Definitive Healthcare Reports Financial Results for Second Quarter Fiscal Year 2025

Rhea-AI Summary

Definitive Healthcare (Nasdaq: DH), a healthcare commercial intelligence leader, reported mixed Q2 2025 financial results. Revenue declined 5% year-over-year to $60.8 million, while net loss improved to $(9.3) million from $(306.2) million in Q2 2024. Adjusted EBITDA was $18.7 million, representing a 31% margin.

The company secured notable customer wins, including a healthcare revenue cycle management firm and a returning digital health organization. Based on H1 2025 progress, management raised guidance, projecting full-year 2025 revenue of $237.0-$240.0 million and adjusted EBITDA of $64.0-$67.0 million with 27-28% margins.

Positive

• Improved net loss position from $(306.2)M to $(9.3)M year-over-year
• Strong cash generation with $9.3M operating cash flow and $11.5M unlevered free cash flow
• Management raised full-year revenue guidance and adjusted EBITDA outlook
• Successful competitive displacement wins and customer returns demonstrate product strength

Negative

• Revenue declined 5% year-over-year to $60.8M
• Adjusted EBITDA margin contracted to 31% from 33% in Q2 2024
• Adjusted Net Income decreased to $9.7M from $14.2M year-over-year

Insights

Financial Analyst

Definitive Healthcare's revenue beat guidance despite YoY decline; raising outlook suggests stabilization after challenging period.

Definitive Healthcare posted $60.8 million in Q2 revenue, exceeding their guidance but still representing a 5% year-over-year decline. The company's net loss narrowed dramatically to $9.3 million compared to last year's $306.2 million loss, though the prior year included a significant $363.6 million goodwill impairment charge.

The company's profitability metrics show mixed signals. Adjusted EBITDA was $18.7 million with a margin of 31%, down from 33% in Q2 2024. Adjusted Net Income also decreased from $14.2 million to $9.7 million. However, the company generated positive cash flow with $9.3 million from operations and $11.5 million in unlevered free cash flow.

Management's decision to raise guidance is particularly noteworthy. The company increased the bottom end of their full-year revenue range by $3 million, now projecting $237-240 million. This suggests their strategic initiatives are gaining traction, despite the ongoing revenue contraction. For Q3, they expect revenue between $59-60 million with adjusted EBITDA of $15.5-16.5 million.

The customer wins highlighted in the release focus on data quality and integration capabilities as competitive differentiators, particularly in revenue cycle management and private equity sectors. These examples indicate the company is successfully positioning its healthcare commercial intelligence platform against competitors, with at least one customer returning after previously leaving.

While still in a challenging period with declining year-over-year metrics, the raised guidance and positive cash flow generation indicate the company may be approaching a stabilization point. The decline in adjusted profit metrics bears watching, but management's increased conviction in their strategic direction suggests potential improvement in coming quarters.

Second Quarter Revenue Exceeded Guidance

FRAMINGHAM, Mass., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter ended June 30, 2025. 

Second Quarter 2025 Financial Highlights:

• Revenue was $60.8 million, a decrease of 5% from $63.7 million in Q2 2024. 
• Net Loss was $(9.3) million, or (15)% of revenue, compared to $(306.2) million in Q2 2024, inclusive of goodwill impairment charges of $363.6 million, or (480)% of revenue.
• Adjusted Net Income was $9.7 million, compared to $14.2 million in Q2 2024.
• Adjusted EBITDA was $18.7 million, or 31% of revenue, compared to $20.9 million, or 33% of revenue in Q2 2024.
• Cash Flow from Operations was $9.3 million in the quarter.
• Unlevered Free Cash Flow was $11.5 million in the quarter.

“Overall, we continue to make progress on our strategic priorities. While there is still more that needs to be done, our conviction that we are taking the right steps to improve the business has increased.” said Kevin Coop, CEO of Definitive Healthcare. “As a result of our progress in the first half of the year, we are increasing the midpoint of our revenue guidance and raising our adjusted EBITDA outlook for the year.”

Recent Business and Operating Highlights: 

Customer Wins

In the second quarter, Definitive Healthcare continued to win new logos and expansion opportunities across all end-markets, by providing the data, insights and integrations that drive their critical business use cases. Customer wins for the quarter included:

• A healthcare revenue cycle management firm selected Definitive Healthcare to improve their go-to-market execution after struggling with poor data quality from a competitor. The superiority of Definitive Healthcare’s data, including up-to-date information on revenue cycle executives, organizational charts, contact data, payer mix, and claims analytics, as well as our ability to integrate with HubSpot and the hands-on support from our integration team, were instrumental in winning this competitive displacement.
• A digital health organization returned to Definitive Healthcare after non-renewing in 2022. Our custom reporting capabilities, especially around Medicaid claims activity—including active, rejected, and reversed transactions—were critical in delivering the physician-level market intelligence they required.
• A healthcare focused private equity firm expanded their relationship with Definitive Healthcare as a key part of their diligence strategy as they shifted their focus from providers toward technology and therapy companies. Population Insights dashboards from our Populi platform proved to be a strong fit and quickly resonated.
  

Business Outlook 

Based on information as of August 7, 2025, the Company is issuing the following financial guidance.

Third Quarter 2025:

• Revenue is expected to be in the range of $59.0 – $60.0 million. 
• Adjusted Operating Income is expected to be in the range of $12.5 – $13.5 million. 
• Adjusted EBITDA is expected to be in the range of $15.5 – $16.5 million, and 26 – 28% adjusted EBITDA margin. 
• Adjusted Net Income is expected to be $7.5 – $8.5 million. 
• Adjusted Net Income Per Diluted Share is expected to be $0.05 to $0.06 per share on approximately 146.1 million weighted-average shares outstanding. 
  

Full Year 2025:

• Revenue is expected to be in the range of $237.0 – $240.0 million, raising the bottom end of our prior range by $3.0 million
• Adjusted Operating Income is expected to be in the range of $52.0 – $55.0 million.
• Adjusted EBITDA is expected to be in the range of $64.0 – $67.0 million, and 27 – 28% adjusted EBITDA margin.
• Adjusted Net Income is expected to be $32.5 – $34.5 million. 
• Adjusted Net Income Per Diluted Share is expected to be $0.22 to $0.23 per share on approximately 147.9 million weighted-average shares outstanding. 
  

We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty in predicting certain items excluded from these non-GAAP financial measures; in particular, the effects of equity-based compensation expense, taxes and amounts under the tax receivable agreement, deferred tax assets and deferred tax liabilities, and transaction, integration, and restructuring expenses. We expect the variability of these excluded items may have a significant and potentially unpredictable impact on our future GAAP financial results. 

Conference Call Information 

Definitive Healthcare will host a conference call today August 7, 2025, at 5:00 p.m. (Eastern Daylight Time) to discuss the Company's full financial results and current business outlook. Participants may access the call at 1-877-358-7298 or 1-848-488-9244. Shortly after the conclusion of the call, a replay of this conference call will be available through September 6, 2025, at 1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A live audio webcast of the event will be available on Definitive Healthcare’s Investor Relations website at ir.definitivehc.com/.

About Definitive Healthcare 

At Definitive Healthcare, our passion is to transform data, analytics and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities and people, so they can shape tomorrow’s healthcare industry. Learn more at definitivehc.com.

Forward-Looking Statements 

This press release includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “will,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “assumes,” “would,” “potentially” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the benefits of our healthcare commercial intelligence solutions, our overall future prospects, customer behaviors and use of our solutions, the market, industry and macroeconomic environment, our plans to improve our operational and financial performance and our business, our ability to execute on our plans, customer growth, including our upsell and cross-sell opportunities, and our ability to successfully transition executive leadership.

Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: global geopolitical tension and difficult macroeconomic conditions; actual or potential changes in international, national, regional and local economic, business and financial conditions, including tariffs, sanctions, trade barriers, recessions, fluctuating inflation, high interest rates, volatility in the capital markets and related market uncertainty; our inability to acquire new customers and generate additional revenue from existing customers; our inability to generate sales of subscriptions to our platform or any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the loss of our access to our data providers; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; our ability to successfully transition executive leadership; and the possibility that our security measures are breached or unauthorized access to data is otherwise obtained.

Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements. 

For additional discussion of factors that could impact our operational and financial results, refer to our Quarterly Report on Form 10-Q for the three months ended June 30, 2025 that will be filed following this earnings release, as well as our Current Reports on Form 8-K and other subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at www.sec.gov. 

All information in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update this information, whether as a result of new information, future developments or otherwise, except as may be required by law. 

Website 

Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at definitivehc.com. Accordingly, you should monitor the investor relations portion of our website at ir.definitivehc.com in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at ir.definitivehc.com. 

Non-GAAP Financial Measures

We have presented supplemental non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the Company with a focus on the performance of its core operations, including providing meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies. Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to loss from operations, net loss, earnings per share, or any other performance measures derived in accordance with GAAP or as measures of operating cash flows or liquidity. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. In evaluating our non-GAAP financial measures, you should be aware that in the future, we may incur expenses similar to those eliminated in these presentations.

We refer to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Diluted Share as non-GAAP financial measures. These non-GAAP financial measures are not required by or prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). These are supplemental financial measures of our performance and should not be considered substitutes for cash provided by (used in) operating activities, loss from operations, net (loss) income, net (loss) income margin, gross profit, gross margin, or any other measure derived in accordance with GAAP. 

We define Unlevered Free Cash Flow as net cash provided by operating activities less purchases of property, equipment and other assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnouts, and other non-core items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. 

We define EBITDA as earnings before debt-related costs, including interest expense (income), net, and loss on partial extinguishment of debt, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income, net, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to help investors to assess our operating performance because these metrics eliminate non-core and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.

We define Adjusted Gross Profit as gross profit excluding acquisition-related amortization and equity-based compensation costs and Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small portion of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.

We define Adjusted Operating Income as loss from operations plus acquisition related amortization, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses.

We define Adjusted Net Income as Adjusted Operating Income less interest (expense), income net, recurring income tax (provision) benefit, foreign currency gain (loss), and tax impacts of adjustments. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares. 

In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations. 

Investor Contact: 
Brian Denyeau 
ICR for Definitive Healthcare 
brian.denyeau@icrinc.com
646-277-1251 

Media Contact: 
Bethany Swackhamer
bswackhamer@definitivehc.com

Definitive Healthcare Corp.
Condensed Consolidated Balance Sheets
(in thousands, except number of shares and par value; unaudited)
		June 30, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents		$	80,984			$	105,378
Short-term investments			103,217				184,786
Accounts receivable, net			37,507				53,232
Prepaid expenses and other assets			14,305				13,040
Deferred contract costs			13,181				13,736
Total current assets			249,194				370,172
Property and equipment, net			10,512				3,791
Operating lease right-of-use assets, net			6,604				7,521
Other assets			2,578				2,300
Deferred contract costs			13,268				14,389
Intangible assets, net			271,237				297,933
Goodwill			216,752				393,283
Total assets		$	770,145			$	1,089,389
Liabilities and Equity
Current liabilities:
Accounts payable			7,898				10,763
Accrued expenses and other liabilities			31,271				40,896
Deferred revenue			100,874				93,344
Term loan			8,750				13,750
Operating lease liabilities			2,459				2,408
Total current liabilities			151,252				161,161
Long term liabilities:
Deferred revenue			574				32
Term loan			160,285				229,368
Operating lease liabilities			6,462				7,586
Tax receivable agreements liability			22,605				49,511
Deferred tax liabilities			14,288				25,088
Other liabilities			3,446				9,449
Total liabilities			358,912				482,195
Equity:
Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 104,746,981 and 113,953,554 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			105				114
Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 38,395,357 shares issued and outstanding at June 30, 2025, and 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024			—				—
Additional paid-in capital			1,060,200				1,085,445
Accumulated other comprehensive deficit			(1,337	)			(610	)
Accumulated deficit			(755,353	)			(640,574	)
Noncontrolling interests			107,618				162,819
Total equity			411,233				607,194
Total liabilities and equity		$	770,145			$	1,089,389

Definitive Healthcare Corp.
Condensed Consolidated Statements of Operations
(in thousands, except share amounts and per share data; unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenue		$	60,750			$	63,737			$	119,941			$	127,217
Cost of revenue:
Cost of revenue exclusive of amortization (1)			8,800				9,904				18,941				19,640
Amortization			5,337				3,379				10,627				6,741
Gross profit			46,613				50,454				90,373				100,836
Operating expenses:
Sales and marketing (1)			20,469				21,545				41,122				43,305
Product development (1)			7,968				10,122				17,269				20,254
General and administrative (1)			12,673				12,527				24,942				29,410
Depreciation and amortization			9,001				9,409				17,528				18,731
Transaction, integration, and restructuring expenses			672				2,851				1,937				11,385
Goodwill impairment			-				363,641				176,531				363,641
Total operating expenses			50,783				420,095				279,329				486,726
Loss from operations			(4,170	)			(369,641	)			(188,956	)			(385,890	)
Other (expense) income, net
Interest (expense) income, net			(1,241	)			(46	)			(1,622	)			65
Other (expense) income, net			(3,398	)			41,600				15,790				44,240
Total other (expense) income, net			(4,639	)			41,554				14,168				44,305
Net loss before income taxes			(8,809	)			(328,087	)			(174,788	)			(341,585	)
(Provision for) benefit from income taxes			(456	)			21,900				10,430				22,680
Net loss			(9,265	)			(306,187	)			(164,358	)			(318,905	)
Less: Net loss attributable to noncontrolling interests			(1,714	)			(92,552	)			(49,579	)			(95,752	)
Net loss attributable to Definitive Healthcare Corp.		$	(7,551	)		$	(213,635	)		$	(114,779	)		$	(223,153	)
Net loss per share of Class A Common Stock:
Basic and diluted		$	(0.07	)		$	(1.81	)		$	(1.05	)		$	(1.90	)
Weighted average Class A Common Stock outstanding:
Basic and diluted			106,815,740				117,750,392				109,782,640				117,591,956
(1) Amounts include equity-based compensation expense as follows:
		Three Months Ended June 30,								Six Months Ended June 30,
			2025				2024				2025				2024
Cost of revenue		$	180			$	309			$	340			$	580
Sales and marketing			1,038				1,686				2,217				3,957
Product development			1,416				2,949				3,155				5,710
General and administrative			4,346				3,898				8,587				14,177
Total equity-based compensation expense		$	6,980			$	8,842			$	14,299			$	24,424

Definitive Healthcare Corp.
Condensed Consolidated Statements of Cash Flows
(in thousands; unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Cash flows provided by (used in) operating activities:
Net loss		$	(9,265	)		$	(306,187	)		$	(164,358	)		$	(318,905	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			868				603				1,459				1,157
Amortization of intangible assets			13,470				12,185				26,696				24,315
Amortization of deferred contract costs			3,988				3,828				7,935				7,520
Equity-based compensation			6,980				8,842				14,299				24,424
Amortization of debt issuance costs			123				175				249				351
(Recovery of) provision for doubtful accounts receivable			(179	)			317				(321	)			528
Loss on partial extinguishment of debt			—				—				507				—
Non-cash restructuring charges			—				1,047				192				1,047
Goodwill impairment charges			—				363,641				176,531				363,641
Tax receivable agreement remeasurement			2,901				(41,701	)			(17,763	)			(43,968	)
Changes in fair value of contingent consideration			—				—				(690	)			270
Deferred income taxes			398				(21,988	)			(10,609	)			(22,835	)
Changes in operating assets and liabilities:
Accounts receivable			5,523				12,201				15,874				15,200
Prepaid expenses and other assets			1,453				(2,859	)			(4,230	)			(4,258	)
Deferred contract costs			(2,465	)			(2,980	)			(6,259	)			(5,679	)
Contingent consideration			—				—				—				(602	)
Accounts payable, accrued expenses, and other liabilities			(3,400	)			(2,058	)			(12,145	)			(10,289	)
Deferred revenue			(11,091	)			(11,026	)			8,003				(1,288	)
Net cash provided by operating activities			9,304				14,040				35,370				30,629
Cash flows (used in) provided by investing activities:
Purchases of property, equipment, and other assets			(2,293	)			(410	)			(9,999	)			(676	)
Purchases of short-term investments			(52,065	)			(40,120	)			(64,065	)			(123,946	)
Maturities of short-term investments			44,196				55,464				147,447				129,052
Cash paid for acquisitions, net of cash acquired			—				—				—				(13,530	)
Net cash (used in) provided by investing activities			(10,162	)			14,934				73,383				(9,100	)
Cash flows (used in) provided by financing activities:
Repayments of term loan			(2,188	)			(3,437	)			(248,438	)			(6,875	)
Proceeds from term loan			—				—				175,000				—
Payments of debt issuance costs			—				—				(1,660	)			—
Taxes paid related to net share settlement of equity awards			(609	)			(969	)			(2,483	)			(6,775	)
Repurchases of Class A Common Stock			(19,076	)			(7,003	)			(40,231	)			(7,003	)
Payments of contingent consideration			—				—				—				(1,000	)
Payments under tax receivable agreement			—				—				(13,767	)			(6,950	)
Member distributions			(2,827	)			(2,713	)			(2,827	)			(2,713	)
Net cash used in financing activities			(24,700	)			(14,122	)			(134,406	)			(31,316	)
Net (decrease) increase in cash and cash equivalents			(25,558	)			14,852				(25,653	)			(9,787	)
Effect of exchange rate changes on cash and cash equivalents			443				55				1,259				(288	)
Cash and cash equivalents, beginning of period			106,099				105,994				105,378				130,976
Cash and cash equivalents, end of period		$	80,984			$	120,901			$	80,984			$	120,901
Supplemental cash flow disclosures:
Cash paid during the period for:
Interest		$	2,959			$	3,590			$	5,201			$	7,232
Income taxes		$	—			$	—			$	32			$	—
Acquisitions:
Net assets acquired, net of cash acquired		$	—			$	—			$	—			$	13,675
Working capital adjustment receivable			—				—				—				(145	)
Net cash paid for acquisitions		$	—			$	—			$	—			$	13,530
Supplemental disclosure of non-cash investing activities:
Capital expenditures included in accounts payable and accrued expenses and other liabilities		$	4,947			$	1,091			$	4,947			$	1,091

Definitive Healthcare Corp.
Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent
Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow
(in thousands; unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
Net cash provided by operating activities	$	9,304			$	14,040			$	35,370			$	30,629
Purchases of property, equipment, and other assets		(2,293	)			(410	)			(9,999	)			(676	)
Interest paid in cash		2,959				3,590				5,201				7,232
Transaction, integration, and restructuring expenses paid in cash (a)		672				1,804				2,435				10,068
Earnout payment (b)		—				—				—				602
Other non-core items (c)		836				2,438				1,396				1,910
Unlevered Free Cash Flow	$	11,478			$	21,462			$	34,403			$	49,765
(a) Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions and strategic partnerships. Restructuring expenses paid in cash relate to our restructuring plans. (b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations. (c) Non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and unrelated to our core operations.
Reconciliation of GAAP Net Loss to Adjusted Net Income and
GAAP Operating Loss to Adjusted Operating Income
(in thousands, except share and per share amounts; unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
Net loss	$	(9,265	)		$	(306,187	)		$	(164,358	)		$	(318,905	)
Add: Income tax provision (benefit)		456				(21,900	)			(10,430	)			(22,680	)
Add: Interest expense (income), net		1,241				46				1,622				(65	)
Add: Loss on partial extinguishment of debt		—				—				507				—
Add: Other expense (income), net		3,398				(41,600	)			(16,297	)			(44,240	)
Loss from operations		(4,170	)			(369,641	)			(188,956	)			(385,890	)
Add: Amortization of intangible assets acquired through business combinations		11,321				11,173				22,410				22,384
Add: Equity-based compensation		6,980				8,842				14,299				24,424
Add: Transaction, integration, and restructuring expenses		672				2,851				1,937				11,385
Add: Goodwill impairment charge		—				363,641				176,531				363,641
Add: Other non-core items		836				2,438				1,396				1,910
Adjusted Operating Income		15,639				19,304				27,617				37,854
Less: Interest (expense) income, net		(1,241	)			(46	)			(1,622	)			65
Less: Recurring income tax (provision) benefit		(456	)			(52	)			(104	)			728
Less: Foreign currency (loss) gain		(497	)			(101	)			(1,466	)			272
Less: Tax impacts of adjustments to net loss		(3,769	)			(4,950	)			(7,777	)			(11,722	)
Adjusted Net Income	$	9,676			$	14,155				16,648				27,197
Shares for Adjusted Net Income Per Diluted Share (a)		145,675,930				156,874,506				148,721,063				156,754,602
Adjusted Net Income Per Diluted Share	$	0.07			$	0.09			$	0.11			$	0.17
(a) Adjusted Net Income Per Diluted Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 158,527,020 and 165,731,986 as of June 30, 2025 and 2024, respectively.

Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
(in thousands, except percentages; unaudited)
		Three Months Ended June 30,												Six Months Ended June 30,
		2025						2024						2025						2024
(in thousands)		Amount			% of Revenue			Amount			% of Revenue			Amount			% of Revenue			Amount			% of Revenue
Reported gross profit and margin		$	46,613		77	%		$	50,454		79	%		$	90,373		75	%		$	100,836		79	%
Amortization of intangible assets acquired through business combinations			3,188		5	%			2,367		4	%			6,341		5	%			4,810		4	%
Equity compensation costs			180		0	%			309		0	%			340		0	%			580		0	%
Adjusted gross profit and margin		$	49,981		82	%		$	53,130		83	%		$	97,054		81	%		$	106,226		83	%

Reconciliation of GAAP Net Loss and Margin to Adjusted EBITDA and Margin
(in thousands, except percentages; unaudited)
	Three Months Ended June 30,																Six Months Ended June 30,
	2025								2024								2025							2024
	Amount				% of Revenue				Amount				% of Revenue				Amount				% of Revenue			Amount				% of Revenue
Net loss and margin	$	(9,265	)			(15	)%		$	(306,187	)			(480	)%		$	(164,358	)		(137	)%		$	(318,905	)		(251	)%
Interest expense (income), net		1,241				2	%			46				0	%			1,622			1	%			(65	)		(0	)%
Provision for (benefit from) income taxes		456				1	%			(21,900	)			(34	)%			(10,430	)		(9	)%			(22,680	)		(18	)%
Loss on partial extinguishment of debt		—				0	%			—				0	%			507			0	%			—			0	%
Depreciation & amortization		14,338				24	%			12,788				20	%			28,155			23	%			25,472			20	%
EBITDA and margin		6,770				11	%			(315,253	)			(495	)%			(144,504	)		(120	)%			(316,178	)		(249	)%
Other expense (income), net (a)		3,398				6	%			(41,600	)			(65	)%			(16,297	)		(14	)%			(44,240	)		(35	)%
Equity-based compensation (b)		6,980				11	%			8,842				14	%			14,299			12	%			24,424			19	%
Transaction, integration, and restructuring expenses (c)		672				1	%			2,851				4	%			1,937			2	%			11,385			9	%
Goodwill impairment (d)		—				0	%			363,641				571	%			176,531			147	%			363,641			286	%
Other non-core items (e)		836				1	%			2,438				4	%			1,396			1	%			1,910			2	%
Adjusted EBITDA and margin	$	18,656				31	%		$	20,919				33	%		$	33,362			28	%		$	40,942			32	%
(a) Primarily represents foreign exchange and Tax Receivable Agreement liability remeasurement gains and losses. (b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors. (c) Transaction and integration expenses primarily represent legal, accounting, and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions and strategic partnerships. Restructuring expenses relate to the 2024 Restructuring Plan as well as impairment and restructuring charges related to office closures, relocations, and consolidations.

	Three Months Ended June 30,							Six Months Ended June 30,
(in thousands)	2025				2024			2025				2024
Merger and acquisition due diligence and transaction costs	$	270			$	687		$	1,448			$	1,296
Integration costs		402				294			959				728
Fair value adjustment for contingent consideration		—				—			(690	)			270
Restructuring charges for severance and other separation costs		-				598			28				7,819
Office closure and relocation restructuring charges and impairments		—				1,272			192				1,272
Total transaction, integration and restructuring expenses	$	672			$	2,851		$	1,937			$	11,385
(d) Goodwill impairment represents non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of a sustained decrease in our stock price, which represented a triggering event requiring our management to perform a quantitative goodwill impairment test as of the end of the first quarter of 2025. As a result of the impairment test conducted, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded the impairment charge. (e) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraordinary litigation, legal and regulatory matters that are not considered normal and recurring business activity, including sales tax accrual adjustments inclusive of penalties and interest for sales taxes that we may have been required to collect from customers in certain previous years, and other non-recurring legal and regulatory matters. Other non-core items also include consulting fees and severance costs associated with strategic transition initiatives, as well as professional fees related to financing, capital structure changes, and other non-recurring items.
	Three Months Ended June 30,							Six Months Ended June 30,
(in thousands)	2025				2024			2025				2024
Non-core legal and regulatory	$	(22	)		$	501		$	31			$	(364	)
Consulting and severance costs for strategic transition initiatives		790				1,885			958				2,215
Other non-core expenses		68				52			407				59
Total other non-core items	$	836			$	2,438		$	1,396			$	1,910

FAQ

What were Definitive Healthcare's (DH) Q2 2025 earnings results?

DH reported Q2 2025 revenue of $60.8M (down 5% YoY), net loss of $(9.3)M, and adjusted EBITDA of $18.7M with a 31% margin.

How did Definitive Healthcare's (DH) Q2 2025 performance compare to Q2 2024?

DH saw revenue decline 5% YoY, but significantly improved its net loss position from $(306.2)M to $(9.3)M. Adjusted EBITDA margin decreased from 33% to 31%.

What is Definitive Healthcare's (DH) guidance for full year 2025?

DH expects full-year 2025 revenue of $237.0-$240.0M, adjusted EBITDA of $64.0-$67.0M, and adjusted net income per share of $0.22-$0.23.

What notable customer wins did Definitive Healthcare (DH) achieve in Q2 2025?

DH won a healthcare revenue cycle management firm through competitive displacement and regained a digital health organization that had previously left in 2022.

What is Definitive Healthcare's (DH) cash flow performance in Q2 2025?

DH generated $9.3M in operating cash flow and $11.5M in unlevered free cash flow during Q2 2025.