Definitive Healthcare Corp.

What they do

Definitive Healthcare provides a SaaS platform with data and analytics on healthcare providers, claims, and consumers. It serves life sciences, provider, and diversified end markets (including HCIT, staffing, and financial institutions). The company generates substantially all revenue from subscription fees, with 96% of 2025 revenue from subscriptions.

Revenue drivers

• Life Sciences customers — Biopharmaceutical and medical device companies; a primary end market, though no separate revenue breakdown was provided in the excerpts.
• Provider customers — Hospitals, health systems, and other care delivery organizations; another primary end market, contributing to the ~2,200 total customers as of June 30, 2026.
• Diversified customers — Includes HCIT companies, staffing firms, commercial real estate, financial institutions, and marketing agencies; a third primary end market.
• Turbo platform — New AI-powered healthcare intelligence platform launched in Q2 2026; positioned as a growth and innovation priority.

Recent performance

In Q2 2026, revenue was $55.2 million, down 9% year-over-year from $60.8 million. Net loss was $(7.5) million, compared to $(9.3) million in Q2 2025. Adjusted EBITDA was $14.6 million (26% of revenue), down from $18.7 million (31% of revenue). Operating cash flow was $11.5 million in the quarter. For 2025, revenue declined to $241.5 million from $252.2 million in 2024, with a net loss of $(138.9) million.

Strategy

Management is focused on reducing costs, improving operating margins, and returning to sustained, predictable growth. They committed to a 2026 Restructuring Plan to cut ~40 employees, incurring ~$1.1 million in charges. They are prioritizing data quality, customer success, and targeted investment in growth areas like the Turbo platform. They also highlight strong win-back momentum and improving net dollar retention as key initiatives.

Risks

• Revenue decline — Revenue has declined for multiple quarters and is projected to decline further in 2026, indicating ongoing demand headwinds.
• Goodwill impairment — The company recorded $197.2 million and $196.1 million in non-cash goodwill impairment charges in Q1 2026 and FY2025, respectively, reflecting sustained stock price declines.
• Macroeconomic pressure — Difficult macroeconomic conditions have lengthened deal cycles, increased approval scrutiny, and deferred customer purchasing decisions.
• Customer churn — Net dollar retention has been improving but remains below 100% historically, and churn of subscription ARR is a key risk to revenue.

Outlook

For Q3 2026, the company guides revenue of $54.0–$55.0 million and Adjusted EBITDA of $13.5–$14.5 million (25–27% margin). For full year 2026, revenue is expected to be $220.0–$222.0 million, with Adjusted EBITDA of $57.0–$59.0 million. Management expects continued profitability and cash flow generation, and notes no further material restructuring charges are expected.