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Definitive Healthcare Corp
(NASDAQ:DH)
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Rating:57Neutral
Price Target:
$1.00
▲(33.33% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by mixed financial performance: strong cash flow and improved leverage are offset by persistent net losses and softening revenue. Technicals are moderately constructive with the stock trading above key short-term averages, but elevated RSI flags near-term exhaustion risk. Valuation is constrained by negative earnings (negative P/E) and no dividend support. Earnings-call messaging reinforces the same tradeoff—tighter revenue outlook but improving margins and solid free cash flow—while the corporate event modestly improves strategic flexibility.
Positive Factors
Strong Free Cash Flow
Positive free cash flow despite reported net losses indicates the subscription and data business is currently converting operations into cash. This supports internal funding of product investment, debt reduction, and customer initiatives, although the recent year-over-year moderation should be monitored.
Negative Factors
Persistent Revenue Decline
Sustained top-line contraction signals weaker demand or slower customer expansion across the business, limiting operating leverage and reducing the scale available to support investment. The lowered full-year outlook indicates that management expects the pressure to remain relevant beyond a single quarter.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Positive free cash flow despite reported net losses indicates the subscription and data business is currently converting operations into cash. This supports internal funding of product investment, debt reduction, and customer initiatives, although the recent year-over-year moderation should be monitored.
Read all positive factors
Definitive Healthcare Corp (DH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$147.74M
Dividend YieldN/A
Average Volume (3M)565.05K
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth-4.99%
EPS Growth39.52%
CountryUS
Employees682
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.60
Shares Outstanding106,744,710
10 Day Avg. Volume1,250,736
30 Day Avg. Volume565,048
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.09
Price to Sales (P/S)1.27
P/FCF Ratio8.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$1.70Price Target Upside126.67% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.2
Revenue Forecast (FY)$221.23M
Definitive Healthcare Corp Business Overview & Revenue Model
Company Description
Definitive Healthcare Corp. (DH), operating through its various subsidiaries, offers specialized commercial intelligence solutions for the U.S. healthcare industry. The company's services furnish essential data on healthcare providers and their ac...
How the Company Makes Money
Definitive Healthcare primarily makes money by selling access to its healthcare commercial intelligence products and datasets on a subscription basis (typically SaaS-style platform subscriptions and/or data subscriptions). Customers pay recurring ...
Definitive Healthcare Corp Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: clear near‑term top‑line pressures (Q2 revenue down 9% YoY, RPO and deferred revenue down double digits, professional services softness, and continued life sciences drag) alongside strong profitability, disciplined cost management, robust free cash flow (~$50M TTM), operational progress (integrations, win‑backs, digital activation growth), and product/AI momentum (Turbo pilot and AI embedding). Management tightened full‑year revenue guidance while raising profit/margin guidance and emphasized that improvements in net dollar retention and customer win‑backs underpin confidence in a return to growth over time.Positive Updates
Profitability Above Guidance
Adjusted EBITDA of $14.6M in Q2 with a 26% margin, modestly above the high end of guidance; full-year adjusted EBITDA guidance raised to $57M–$59M (26%–27% margin) and midpoint increased by $1M.
Negative Updates
Top-Line Revenue Decline
Total revenue declined 9% YoY in Q2 to $55.2M; subscription revenue also down 9% YoY. Full‑year 2026 revenue guidance tightened to $220M–$222M, an expected decline of 8%–9% YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability Above Guidance
Adjusted EBITDA of $14.6M in Q2 with a 26% margin, modestly above the high end of guidance; full-year adjusted EBITDA guidance raised to $57M–$59M (26%–27% margin) and midpoint increased by $1M.
Read all positive updates
Company Guidance
Definitive Healthcare said Q2 results informed a tightened outlook: Q2 revenue was $55.2M (‑9% YoY) with adjusted EBITDA $14.6M (26% margin), adjusted net income $7.5M ($0.05 non‑GAAP EPS), adjusted gross profit $44.2M (80% margin, down 12% YoY but +100bps ex‑one‑time credit), unlevered free cash flow $11.6M in Q2 and $50M TTM, deferred revenue $89M (‑12% YoY), total RPO down 18% YoY and current RPO $150M (‑12% YoY), and a TTM adjusted EBITDA→unlevered FCF conversion of 75% (down ~5pts). For Q3 they guide revenue $54–55M (‑8% to ‑10% YoY) with subscription revenue flat sequential, professional services expected to show double‑digit growth but below prior expectations, adjusted operating income $10.5–11.5M, adjusted EBITDA $13.5–14.5M (25–27% margin), adjusted net income $5.5–6.5M and EPS ~$0.04–0.05 on ~145M shares. Full‑year 2026 guidance is revenue $220–222M (‑8% to ‑9% YoY), adjusted operating income $45.5–47.5M, adjusted EBITDA $57–59M (26–27% margin), adjusted net income $27–29M and EPS $0.18–0.20 on ~145M shares; management tightened top‑line visibility, lowered professional services expectations, but raised the EBITDA midpoint by $1M and expanded margin guidance ~100bps.Definitive Healthcare Corp Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 232.70M | 241.52M | 252.20M | 251.41M | 222.65M | 166.15M |
| Gross Profit | 166.77M | 183.28M | 197.47M | 203.93M | 180.03M | 125.47M |
| EBITDA | -190.41M | -162.15M | -567.24M | -241.23M | 26.23M | 23.08M |
| Net Income | -168.20M | -138.93M | -413.12M | -202.39M | -7.22M | -51.91M |
Balance Sheet | ||||||
| Total Assets | 496.83M | 735.49M | 1.09B | 1.83B | 2.12B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 183.59M | 180.89M | 290.16M | 308.07M | 331.87M | 387.50M |
| Total Debt | 167.06M | 172.67M | 253.11M | 267.93M | 275.85M | 270.68M |
| Total Liabilities | 308.97M | 356.50M | 482.19M | 626.73M | 640.68M | 617.78M |
| Stockholders Equity | 144.65M | 281.11M | 444.38M | 861.36M | 948.92M | 871.31M |
Cash Flow | ||||||
| Free Cash Flow | 28.56M | 37.06M | 45.85M | 38.21M | 27.25M | 18.48M |
| Operating Cash Flow | 41.43M | 53.78M | 58.20M | 41.19M | 35.58M | 25.21M |
| Investing Cash Flow | 79.17M | 153.88M | -26.41M | -31.78M | -248.90M | -46.73M |
| Financing Cash Flow | -30.28M | -150.79M | -56.75M | -25.58M | -26.70M | 384.37M |
Definitive Healthcare Corp Technical Analysis
Positive
0.75
Price Trends
0.78
Positive
0.83
Positive
1.36
Negative
Market Momentum
0.08
Negative
71.49
Negative
61.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DH, the sentiment is Positive. The current price of 0.75 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.78, and below the 200-day MA of 1.36, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 61.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DH.
Definitive Healthcare Corp Risk Analysis
Definitive Healthcare Corp disclosed 72 risk factors in its most recent earnings report. Definitive Healthcare Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Definitive Healthcare Corp Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.35B | 27.18 | 16.95% | ― | 11.18% | -28.59% | |
70 Outperform | $4.65B | 33.14 | 3.59% | ― | 19.23% | 44.44% | |
66 Neutral | $634.37M | 60.05 | 3.01% | ― | 12.93% | ― | |
57 Neutral | $147.74M | -0.64 | -78.52% | ― | -4.99% | 39.52% | |
57 Neutral | $127.94M | -0.47 | -129.70% | ― | -7.54% | -143.41% | |
52 Neutral | $477.11M | -0.92 | -99.16% | ― | -4.50% | -184.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DH
Definitive Healthcare Corp
1.03
-2.95
-74.12%
EVH
Evolent Health
4.15
-5.04
-54.84%
PHR
Phreesia
10.34
-15.00
-59.19%
HCAT
Health Catalyst
1.73
-1.53
-46.93%
DOCS
Doximity
24.19
-44.81
-64.94%
WAY
Waystar Holding Corp.
23.86
-16.64
-41.09%
Definitive Healthcare Corp Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Definitive Healthcare Holders Waive Tax Agreement Termination Rights
Positive
Sep 9, 2026
Definitive Healthcare disclosed that holders of its tax receivable agreement, including affiliates of Advent International, Spectrum Equity, 22C Capital and founder Jason Krantz, have irrevocably waived their right to receive an early termination ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.