Definitive Healthcare Corp. reported fourth‑quarter 2025 revenue of $61.5 million, a 1% decline from the $62.3 million earned in Q4 2024. The company’s full‑year 2025 revenue totaled $241.5 million, down 4% from $252.2 million in 2024. The decline was driven by a 3% drop in subscription revenue, the core of the business, while professional services revenue surged 49% year‑over‑year, offsetting the subscription weakness.
Adjusted EBITDA for Q4 2025 was $17.8 million, giving a margin of 29%, an expansion of 120 basis points from the 27.9% margin reported in Q4 2024. The full‑year adjusted EBITDA margin also stood at 29%, with adjusted EBITDA of $68–$69 million, a 28–29% margin that represents a slight decline from the 31% margin recorded in 2024. The margin improvement was largely due to disciplined cost management and a temporary reduction in cost of goods sold, even as revenue slipped.
Non‑GAAP earnings per share for Q4 2025 were $0.06, matching the consensus estimate and representing a beat of $0.00. However, GAAP EPS was a loss of $0.09 per share, a significant miss relative to analyst expectations of a small profit. The GAAP loss reflects higher operating expenses and one‑time charges that were not fully offset by the strong professional services performance.
Management highlighted that the company’s net dollar retention fell, while gross dollar retention improved by about 2 points year‑over‑year, driven by enterprise customers in life sciences. CEO Kevin Coop said the results were “at or above the high end of our guidance ranges on both the top and bottom line,” and CFO Casey Heller noted that “gross dollar retention improved by about 2 points year over year, driven by enterprise customers in life sciences, but net dollar retention declined due to fewer upsell opportunities.”
For 2026, Definitive Healthcare reiterated revenue guidance of $220–$226 million and adjusted EPS guidance of $0.14–$0.17. The guidance signals a 6–9% year‑over‑year decline in revenue, below analyst consensus, and reflects management’s concern about ongoing subscription revenue headwinds and weaker upsell activity. The company also emphasized its focus on improving retention, expanding digital engagement, and integrating generative AI into its View platform to create new upsell and cross‑sell opportunities.
Market reaction to the earnings was muted, with investors focusing on the 2026 revenue guidance and the GAAP EPS miss. The negative reaction was driven by the projected revenue decline and the significant GAAP loss, which together suggested that the company’s top‑line pressures and profitability concerns would persist into the next year.
The company’s results underscore a mixed picture: revenue beat estimates thanks to strong professional services growth, but GAAP profitability fell short, and guidance points to continued revenue headwinds. The company’s emphasis on retention, digital engagement, and AI integration signals a strategic pivot aimed at stabilizing the business and positioning for longer‑term growth.
The earnings release provides critical insight into Definitive Healthcare’s financial health, segment performance, and management’s outlook, making it a high‑importance event for investors and analysts.
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