DH

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5:00 p.m. ET Chief Executive Officer - Kevin Coop Chief Financial Officer - Casey Heller Operator: Good day, everyone, and welcome to Definitive Healthcare's Q2 FY '26 earnings call. [Operator Instructions] Now, I'll turn the call over to your host, Jonathan Paris. Please go ahead. Jonathan Paris: Good afternoon, and thank you for joining us to review Definitive Healthcare's financial results. Joining me on today's call are Kevin Coop, our Chief Executive Officer, and Casey Heller, our Chief Financial Officer. Before we begin, I'd like to remind you that today's discussion may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements about our market opportunity, future performance, growth in financial guidance, the benefits of our data and health and commercial intelligence solutions, our competitive position, customer behavior, adoption, growth, renewals, and retention, planned investments and operating strategy, value creation for customers and shareholders, and the expected impact of macroeconomic conditions on our business, customers, and the healthcare industry. Forward-looking statements are based on our current expectations and assumptions as of today and are subject to risks and uncertainties that could cause actual results to differ materially. For more information, please refer to the cautionary statement in today's earnings release, as well as the risk factors and other information included in our filings with the SEC, including our most recent Form 10-K and Form 10-Q. You should not place undue reliance on forward-looking statements, and Definitive Healthcare undertakes no obligation to update them except as required by law. During the call, we may also discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures, along with related definitions and limitations, are included in today's earnings release and investor presentation, each of which is available on the Investor Relations section of our website. For any forward-looking non-GAAP measures, the earnings release also explains why quantitative reconciliation is not available without unreasonable efforts and identifies the relevant unavailable items. With that, I'll turn the call over to Kevin. Kevin. Kevin Coop: Thank you, Jonathan, and thanks to all of you for joining us this afternoon to review Definitive Healthcare's second quarter 2026 financial results. On today's call, I'll provide highlights from our second quarter performance and give an update on our progress against our key strategic priorities for this year. Let me begin by reviewing our financial results for the second quarter, which were in line or exceeded the guidance ranges on both the top and bottom line. Total revenue was $55.2 million, down 9% year-over-year. Adjusted EBITDA was $14.6 million, representing a margin of 26%, which was modestly above the high end of our guidance. We continue to do an effective job of managing expenses while investing in our core growth initiatives. We continue to generate solid cash flow, delivering approximately $50 million of unlevered free cash flow for the trailing 12 months. In general, we are successfully tracking against the targets we set forth at the beginning of the year. Our diversified and provider businesses continue to be further along in returning to growth. Importantly, these end markets represent over 60% of our revenue, and the improvement in these segments represents a critical foundation to build upon in the coming quarters. The response in our life sciences segment has been slower. We are encouraged by signs that the changes we are making to the business are positively impacting the segment, but it is taking longer to have the full impact we are targeting. We remain confident we will see a more meaningful benefit from these changes over time. Our confidence that growth can be improved comes from several important proof points. First and foremost, it is the improvement in our net dollar retention rate. It was once again up several points year-over-year on a trailing 12-month basis in Q2. This is the second consecutive quarter of year-over-year improvement and puts us in strong position to sustain it for the full year. And we're starting to see improvement in life sciences as our biopharma segment had the strongest new business quarter in 3 years outside of Q4. Included amongst those wins were 4 important win-back customers that had left DH prior to the start of 2025. The win-backs are reinforcement to our belief that ultimately data quality and superior service will drive longer-term value for our customers over price alone. We have been pleased to see that this is not only in our life sciences segment. We are continuing to see win-backs across our other end markets as well. A good example this quarter was a 6-figure, 3-year win-back in our diversified business. The customer left us at the end of last year for a lower cost competitor, having concluded that they no longer needed access to our full data set. Over the following months, our team stayed engaged, and when a business leader came back to explore a subscription for a single team, that conversation grew into a 6-figure enterprise agreement. This win reinforces a recurring theme. Even customers who believed that an alternative would be just good enough come to recognize that the cost of an inferior data set outweighs the savings. Again, this is an important validation of the business value our data and products deliver for our customers and reinforce that our focus on data quality and service rather than price was the right path. Our conviction that we are focused on the right things remains strong and that those areas of focus are responding. Importantly, these are areas all within our control. I would now like to provide an update on our operational progress against our 4 key strategic pillars. As a reminder, these pillars are data differentiation, integrations, customer success, and innovation. Let me begin with data differentiation. Data is at the heart of our value proposition, and we continue to invest in sourcing new proprietary data types and to extend our lead in our core reference and affiliation data sets. We are also increasingly leveraging AI to increase the velocity of our data collection and quality assurance. We are introducing a new estimation methodology, ACE 3.0, that applies modern data science and machine learning to help address the industry-wide challenge of incomplete claims coverage, and we expanded our practice location data to more than 4.4 million verified provider locations, improving the precision and recency of our data collection our customers can rely on for territory planning, outreach, and segmentation. This differentiation is showing up in our wins. In the quarter, we added a major financial services institution in our diversified business whose tax-exempt markets team needed a reliable way to monitor health system consolidation, affiliations, and organizational hierarchies. They selected Definitive for our differentiated reference and affiliation data, delivered through an automated monthly feed directly into their existing workflows, choosing us over a competitor they evaluated earlier in the process. We also won a competitive claims deal in the behavioral health market where our coverage and the combination of claims with our reference and affiliation data separated us from other vendors. Our second pillar is seamless integrations. Basically, making it as fast and simple as possible for customers to access our data alongside their other systems they rely on is a critical aspect of delivering value and building durable relationships. Our data continues to show that customers who integrate Definitive directly into their systems of record and insight use us more often, which makes us a stickier, more strategic part of their operations and strengthens our renewal rates over time. And we've continued to accelerate the time to integrate. Compared to the second quarter of last year, we completed over 50% more integrations year-over-year, while also reducing the time to integrate by more than 50%. A good illustration this quarter was an early renewal and expansion with a large diversified account. Adding our Salesforce-embedded connector for their enterprise healthcare team turned a manual, list-driven process into a workflow-native experience and expanded their annual commitment to us. Also, in collaboration with a top-tier biopharma partner, we successfully launched a native integration that embeds our key opinion leader intelligence data directly into the Veeva Vault CRM, which is used widely by life sciences, clinical, and medical affairs teams, a capability we can now extend to additional pharma clients as they adopt that platform. Turning to our third pillar, customer success, we continue to see the benefit of aligning all functional teams that support the customer journey into a unified commercial organization. That alignment lets us engage earlier and more proactively to identify issues before they become problems and uncover opportunities to do more for our customers. A prime example of this quarter was a renewal that had not been budgeted for by the customer and was therefore at real risk of churning due to a budget oversight. Our integrated commercial team was able to identify this issue early, and through persistent cross-functional engagement, our team reestablished the value and partnered with the customer to overcome their budget challenge. This integrated motion successfully retained the business, satisfied the customer's critical need, and converted a 6-figure save with a path to further expansion in the future as a strategic partner. Finally, we continue to make progress against our fourth pillar, innovation, and our focus on digital engagement. With our foundation built on data, quality, and service, we are shifting more of our effort to this fourth pillar over the second half of 2026. For product, customers are increasingly using conversational natural language search to simplify complex research workflows. Since launching our natural language search experience earlier this year, we've seen customers replace multiple manual search and filtering steps with a single connected query. For example, a medtech company rapidly identifying decision-makers across functions and geographies, and a healthcare logistics company building a connected view of target facilities by combining financials, ownership, and network relationships. In our expert intelligence platform, multi-turn conversational search now accounts for roughly 40% of interactions with our AI search feature. In digital activation, we successfully demonstrated real value-add in our proof-of-concept stage and have now rapidly moved into full production with our momentum building on 2 fronts. We've added 10 new agency partners that are now activating in 2026 that were not active with us in 2025. This core group of agencies has grown activation spend meaningfully year-over-year. At the same time, we have added 7 new direct activation customers this year-to-date, and current customers are embracing our digital solutions more aggressively. For example, one longstanding population intelligence customer moved from an initial test into a total activation commitment of more than $300,000. The takeaway is that our activation growth is now being driven by both new direct customers as well as by rising adoption and spend across our agency ecosystem, which gives us a broader and more scalable path forward. We are also encouraged by the performance customers are seeing. One partner running campaigns at our audiences reported registration rates well above the benchmarks they typically expect for hard-to-reach conditions, and this supports our belief that combining high-quality data with ease of digital activation execution will be a winning combination. The most significant milestone this quarter is the launch of Turbo, our new AI-powered healthcare intelligence platform that accelerates how healthcare teams access, process, and turn data into action. Turbo unifies our proprietary healthcare intelligence built on billions of signals spanning providers, organizations, claims, affiliations, key opinion leaders, and consumer data to power autonomous decision-making rather than simple data retrieval, so customers can ask complex questions in natural language and make faster, better-informed commercial, strategic, and product decisions. With DH trusted data as the foundational layer, Turbo will deliver reusable capabilities or skills to power workflows and experiences tailored to the appropriate persona or strategic role, be that commercial, sales, product, marketing, or strategy, with agentic AI providing a future state of always-on continuous monitoring, alerts, and notifications. Our launch begins with an initial stage pilot with a select group of strategic customers this month. We have curated this pilot to ensure it represents a broad customer base that spans both healthcare systems, life sciences organizations, and customers in our diversified segment, which capture all others who sell into the healthcare ecosystem. We are targeting general availability before the end of the year, and our commercial teams are preparing broad market conversations this quarter to align demand with launch. Feedback from our pilot customers will help shape the final experience. While AI is foundational to our next-generation commercial and product strategy, it is important to note that we view AI as a company-wide transformation, not simply a set of product features. We are embedding it across our data value chain to improve how we source, curate, and enrich our data, AI-native capabilities directly into our products. And we have already equipped our teams with AI tools that improve productivity and decision-making across the entire company. Our advantage is the combination of proprietary, differentiated healthcare data, our deep contextual domain expertise, and our scaled and trusted customer relationships across thousands of embedded customers, the foundation on which these AI investments compound. To summarize, we remain focused on delivering upon our commitments for the full year by executing on the things within our control while maintaining disciplined expense management. We will continue to focus our resources in the highest value areas that we believe will best position the company to improve retention and return to consistent, predictable revenue growth over time. With that, let me turn the call over to Casey to review the financials in more detail. Casey Heller: Thank you, Kevin. In all my remarks, I will be discussing our results on a non-GAAP basis, unless otherwise noted. As Kevin mentioned, we delivered a solid quarter with our revenue performance within the guided range and profit metrics above the high end of our guide. I'll walk through the financial results in more detail, including our revenue trends, market performance, and outlook. In the second quarter, we delivered revenue of $55.2 million, down 9% year-over-year, adjusted EBITDA of $14.6 million, reflecting a 26% margin, and adjusted net income was $7.5 million, resulting in $0.05 of non-GAAP earnings per share in the period. We also delivered $11.6 million of unlevered free cash flow in the quarter and $50 million on a trailing 12-month basis. Now moving to our results in more detail. Revenue of $55.2 million was within our guided range and represents a 9% decline year-over-year. Subscription revenues of $52.8 million declined 9% year-over-year, and we again delivered improvement year-over-year in net dollar retention on a trailing 12-month basis. Professional services revenue underperformed our expectations for the quarter, as bookings were lighter for traditional analytics engagements, despite the strength in digital activation. The weaker analytics engagements will also impact Q3 expectations in professional services, as I'll touch on later. Adjusted gross profit in the quarter was $44.2 million, which is down 12% year-over-year. As a percentage of revenue, the adjusted gross profit margin of 80% contracted 230 basis points as reported. However, in Q2 2025, we had a one-time credit from a data contract renegotiation. We spoke of that last year, and adjusting for the one-time credit that did not repeat, we expanded adjusted gross margin by 100 basis points year-over-year. And as I mentioned earlier, adjusted EBITDA was $14.6 million and reflected a 26% margin. Despite the continued top-line pressures, we've continued to prudently manage the business and focus investments on the initiatives that will return Definitive to revenue growth over time. Those same one-time credits that benefited COGS in Q2 of last year drove approximately three-quarters of the adjusted EBITDA margin contraction year-over-year. Turning to cash flow, our business continues to generate strong free cash flow due to our high-margin model, upfront billing, and low recurring CapEx requirements. On a trailing 12-month basis, operating cash flows were over $41 million, and we generated $50 million of unlevered free cash flow. Our conversion rate of trailing 12-month adjusted EBITDA to unlevered free cash flow was 75%, which is down about 5 points year-over-year, primarily reflecting unique items that benefited the prior year. This cash generation provides flexibility to continue investing in growth. Consistent with last quarter, we continue to make organic product investments with an emphasis on expanding our AI capabilities. And we saw another quarter of increased capitalized software development spend, totaling over $2 million, up about $700,000 from the prior year. At the end of Q2, deferred revenue of $89 million was down 12% year-over-year, and total remaining performance obligations declined 18% year-over-year. Current remaining performance obligation of $150 million declined 12% year-over-year. The total remaining performance obligations and current remaining performance obligations year-over-year declines are similar to what we've reported in both Q4 and Q1 and continue to be impacted by the shift towards single-year deals versus multi-year commitments that we discussed the last 2 quarters. With a solid start to the year behind us and continued progress against our objectives, let me turn to our outlook. For the third quarter, we expect total revenue of $54 million to $55 million, a revenue decrease of 8% to 10% year-over-year compared to Q3 of 2025. Within the revenue guide, we expect subscription revenue to be flat sequentially from Q2 to Q3, and we expect to deliver double-digit professional services revenue growth but at a lower level than originally anticipated. This results in expected adjusted operating income of $10.5 million to $11.5 million, adjusted EBITDA of $13.5 million to $14.5 million, or a 25% to 27% adjusted EBITDA margin in Q3, adjusted net income of $5.5 million to $6.5 million, or approximately $0.04 to $0.05 per diluted share on 145 million weighted average shares outstanding. For the full year 2026, we expect revenue of $220 million to $222 million for an 8% to 9% decline year-over-year. This tightens our guidance range based on our first-half performance and visibility into the back half of the year. Our outlook on professional services for the year has weakened versus what we projected 90 days ago. Given the shorter duration of those agreements and the light Q2 bookings, we expect this to have an impact to our second-half top-line outlook, which is reflected in the tightened range on our guide. Despite the full-year revenue guide tightening around the lower end of our prior range, we are in a position to again raise the midpoint on our profit guidance for the year as a result of our continued work to proactively manage our cost base while making targeted investments in growth areas that have us excited about the future. For 2026, we now expect adjusted operating income of $45.5 million to $47.5 million, adjusted EBITDA of $57 million to $59 million for a full-year margin of 26% to 27%. This guide increases the midpoint by $1 million, as well as raising the adjusted EBITDA margin by approximately 100 basis points, reflecting the solid start to the first half of the year and our ongoing commitment to maintaining strong margins while investing in our key growth areas. Adjusted net income is expected to be between $27 million to $29 million, and earnings per share are expected to be $0.18 to $0.20 on approximately 145 million weighted average shares outstanding. In closing, I'd like to emphasize that despite the ongoing pressure on our top line, our priority remains clear, preserving non-GAAP profitability and healthy margins while making disciplined investments that position us for renewed growth. We remain confident in our strategic direction, and we're seeing meaningful traction on our core pillars. Progress, we believe will strengthen customer retention, put us back on a path to accelerate growth and create lasting value for our shareholders. And with that, I would like to open it up for questions. Operator: [Operator Instructions] Our first question today comes from Ryan McDonald of Needham & Company. Matthew Shea: Hey, this is Matt Shea on for Ryan. Thanks for taking the question. Congrats on the launch of Turbo. Maybe with GA targeted for late 2026, is there any Turbo revenue contemplated in the current guidance? And then what are kind of your early thinking? It sounds like some of this is probably still in development, but what's sort of your early thinkings around the commercial model? Do you look at this more of like a bundled retention uplift, or do you kind of plan out rolling out a new premium SKU or more of a usage-based model? Thanks. Casey Heller: Thanks for the question, Matt. A couple of elements. One, as it relates to our guide, we're not anticipating any material impact to the 2026 top-line revenue. Definitely expected to be more impactful in 2027, but what we do expect it to have an impact on, given the rollout later in the year, as we're introducing it to customers, we do think that it has the opportunity to help with retention, and given December and January are our largest renewal periods, we're really hopeful that we'll get a chance to influence some of those early as we're spending time with customers on the new platform. The other piece around kind of the early thinking on the model of it, I will say that the pricing on it is still being evaluated ahead of its GA launch later this year. We are taking a pretty thoughtful approach to how we're assessing the potential for different structures by cohort. So what I mean by that is, there may be a difference between a customer who already has access to the majority of our data, they would be expecting to get a lot of value out of the platform quickly, versus a smaller customer with a limited data set will have the opportunity for greater data module upsells. So, over time, we do plan to be introducing a usage-based element with tiered pricing as well that will calibrate a bit. But for us right now, we really are just focused on launching the pilots and getting that early kind of customer feedback ahead of GA. This is really exciting for us. Matthew Shea: Okay, really helpful, Casey. Thank you. And then life sciences remains a bit of a drag, it sounds like. Wondering, now that the claims data is restored above historical levels and in product, have you reopened the claims upsell cross-sell motion into the life sciences base? And then maybe if we just take a step back, are you seeing any early evidence that large pharma commercialization budgets are turning at all? I'm assuming that the guidance doesn't assume anything or just kind of assumes the environment stays muted, but just curious qualitatively if you're starting to see any of that budge. Casey Heller: Yes, on the claims data piece, I think that where we are starting to see a little bit kind of a normalization where that was driving a significant amount of downsell, we're seeing that start to lessen. You know, after we added in additional claims data back in the fall and then additional data source, we added on into product here in second quarter. We're hopeful that there still is some more benefit to come on that as we move forward, but I think it still is a little bit early days there. And then as we look at kind of the pharma spend, I don't know if we're seeing necessarily significant change in the large pharmas right now, but certainly some of the elements that Kevin touched on in his prepared remarks around having a really solid new logo quarter in biopharma. You know, he mentioned that it was our largest new logo period for biopharma outside of a Q4 in 3 years. Like, that's very encouraging to us. So I think we are starting to see some improvements, but of course, you know, we are hopeful that there will be more progress to come, and we're keeping kind of our eyes open for some of those bright spots. And we're ready to capture that, particularly as we're getting ready to launch Turbo. Operator: [Operator Instructions] We will proceed with Craig Hettenbach of Morgan Stanley. Jialin Jin: Hi, this is Jay for Craig. Thanks for taking my question. Just on the current RPO trends, as you kind of move through the back of 2026, are you seeing any early signs that customers are willing to recommit to multi-year deals? Or what kind of conditions, whether that's like product improvements, AI adoptions or macro stabilizers, would be in place to drive that shift? Thank you. Casey Heller: Yes, it's a great question. You know, I think that we are starting to see some of the trends around multi-year and single-year deals start to normalize a bit, but I'm not sure that we're seeing like a big shift back towards multi-year. And I think that's just more reflective of the kind of the current environment. I mean, I can even say from how we look at things internally, you know, we're always watching for, you know, where we can be opportunistic. And I think for us right now, that kind of leads to single years. The other thing that I would point to is even if you go back a couple of years, it was much more common for us to sign, you know, multi-year agreements with a new customer, and then at renewal, they would shift to single year. So I do think there's a bit of just that kind of very normal dynamic for us that comes through. Of course, we're always looking at different ways that we can incent customers to lock in for multi-year. But that would be great. But I would not say that's kind of a critical component and or dependency for us to be able to continue to make progress. Jialin Jin: Great. Thank you. Operator: We have no further questions at this time. That will conclude our meeting today. Thanks everyone for joining. 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This article first appeared on GuruFocus. Revenue: Total revenue was $55.2 million, down 9% year-over-year. Subscription Revenue: Subscription revenues were $52.8 million, down 9% year-over-year. Adjusted EBITDA: Adjusted EBITDA was $14.6 million, representing a 26% margin. Adjusted Net Income: Adjusted net income was $7.5 million, resulting in $0.05 of non-GAAP earnings per share. Adjusted Gross Profit: Adjusted gross profit was $44.2 million, down 12% year-over-year, with a margin of 80%. Cash Flow: Delivered $11.6 million of unlevered free cash flow in the quarter and $50 million on a trailing 12-month basis. Deferred Revenue: Deferred revenue was $89 million, down 12% year-over-year. Remaining Performance Obligations: Total remaining performance obligations declined 18% year-over-year, while current remaining performance obligations of $150 million declined 12% year-over-year. Capitalized Software Development: Capitalized software development spend totaled over $2 million, up about $700,000 from the prior year. Warning! GuruFocus has detected 4 Warning Signs with DH. Is DH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA of $14.6 million exceeded the high end of guidance, with a 26% margin. Net dollar retention rate improved year-over-year for the second consecutive quarter. Biopharma segment had its strongest new business quarter in 3 years outside of Q4, including 4 win-back customers. Integrations completed increased by over 50% year-over-year, with time to integrate reduced by more than 50%. Launched Turbo, an AI-powered platform, with pilot programs and a target for general availability before year-end. Total revenue declined 9% year-over-year to $55.2 million. Life sciences segment recovery is slower than expected, impacting overall growth. Professional services revenue underperformed due to lighter bookings for traditional analytics engagements. Deferred revenue and total remaining performance obligations declined 12% and 18% year-over-year, respectively. Full-year revenue guidance was tightened to the lower end of the prior range, reflecting weaker professional services outlook. Q: Is any Turbo revenue contemplated in the current guidance, and what are your early thoughts on the commercial model for the new AI platform?A: Casey Heller (CFO): We are not anticipating any material impact to the 2026 top-line revenue from Turbo. It is expected to be more impactful in 2027. However, given the rollout later in the year, we believe it can positively influence retention, especially with our largest renewal periods in December and January. The pricing model is still being evaluated ahead of the GA launch. We are taking a thoughtful approach by cohort, potentially differentiating between customers who already have access to most of our data versus smaller customers with limited data sets who may have upsell opportunities. Over time, we plan to introduce a usage-based element with tiered pricing. Q: With claims data restored above historical levels, have you reopened the claims upsell/cross-sell motion into the life sciences base, and are you seeing any early evidence that large pharma commercialization budgets are turning?A: Casey Heller (CFO): We are starting to see a normalization where claims data was driving a significant amount of downsell, and that is starting to lessen. We are hopeful for more benefit to come as we move forward. While we aren't seeing a significant change in large pharma spend yet, we had a very solid new logo quarter in biopharma, which was our largest new logo period for that segment outside of Q4 in three years. This is very encouraging, and we are ready to capture more progress, particularly with the launch of Turbo. Q: Are you seeing any early signs that customers are willing to recommit to multi-year deals, and what conditions would drive that shift?A: Casey Heller (CFO): We are starting to see the trends around multi-year and single-year deals normalize a bit, but we are not seeing a big shift back towards multi-year. This is reflective of the current environment. Historically, it was common to sign multi-year agreements with new customers, who would then shift to single-year at renewal. We are always looking at ways to incentivize customers to lock in for multi-year, but it is not a critical component or dependency for us to continue making progress. Q: Can you provide more detail on the launch of Turbo and its expected impact on customer retention and growth?A: Kevin Coop (CEO): Turbo is our new AI-powered healthcare intelligence platform that unifies our proprietary data to power autonomous decision-making. We launched an initial pilot with a select group of strategic customers this month, spanning healthcare systems, life sciences, and diversified segments. We are targeting general availability before the end of the year. The platform is expected to help with retention, especially given our largest renewal periods in December and January, and we believe it will be more impactful to revenue in 2027. Q: What is driving the improvement in net dollar retention, and can you sustain this trend?A: Kevin Coop (CEO): Our net dollar retention rate improved several points year-over-year on a trailing 12-month basis in Q2, marking the second consecutive quarter of improvement. This is driven by our focus on data quality and service rather than price, which is leading to win-backs from customers who left for lower-cost competitors. We are seeing this across all end markets, including life sciences, where we had our strongest new business quarter in three years outside of Q4, including four important win-back customers. Q: Can you elaborate on the performance of your different end markets, particularly life sciences versus diversified and provider?A: Kevin Coop (CEO): Our diversified and provider businesses are further along in returning to growth and represent over 60% of our revenue. The response in life sciences has been slower, but we are encouraged by signs that changes we are making are positively impacting the segment. We remain confident we will see a more meaningful benefit over time. The biopharma segment had its strongest new business quarter in three years outside of Q4, which is a positive sign. Q: What is driving the growth in your digital activation business, and how are agency partners contributing?A: Kevin Coop (CEO): We have added 10 new agency partners that are now activating in 2026 that were not active with us in 2025, and this core group has grown activation spend meaningfully year-over-year. We have also added 7 new direct activation customers this year-to-date. Current customers are embracing our digital solutions more aggressively, with one longstanding customer moving from an initial test into a total activation commitment of more than $300,000. Our activation growth is now driven by both new direct customers and rising adoption across our agency ecosystem. Q: Can you provide more detail on the professional services revenue weakness and its impact on guidance?A: Casey Heller (CFO): Professional services revenue underperformed our expectations for the quarter, as bookings were lighter for traditional analytics engagements, despite strength in digital activation. The weaker analytics engagements will impact Q3 expectations. For the full year, our outlook on professional services has weakened versus what we projected 90 days ago, which is reflected in the tightened revenue guidance range. However, we still expect double-digit professional services revenue growth in Q3, but at a lower level than originally anticipated. Q: How are you managing expenses while investing in growth initiatives, and what is your updated profit guidance?A: Casey Heller (CFO): We delivered adjusted EBITDA of $14.6 million in Q2, reflecting a 26% margin, modestly above the high end of our guidance. We continue to prudently manage expenses while investing in core growth initiatives. For the full year 2026, we are raising the midpoint of our profit guidance by $1 million, now expecting adjusted EBITDA of $57 million to $59 million, representing a 26% to 27% margin. This reflects our solid first-half performance and ongoing commitment to maintaining strong margins. Q: Can you provide an example of how your integrated commercial team is helping with customer retention?A: Kevin Coop (CEO): A prime example was a renewal that had not been budgeted for by the customer and was at real risk of churning due to a budget oversight. Our integrated commercial team identified this issue early and, through persistent cross-functional engagement, reestablished the value and partnered with the customer to overcome their budget challenge. This successfully retained the business, satisfied the customer's critical need, and converted a 6-figure save with a path to further expansion in the future. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by stability in the provider and diversified segments, which represent over 60% of revenue, while the life sciences segment continues to recover at a slower pace. Management attributes recent win-backs to a market realization that the cost of inferior data sets from lower-priced competitors outweighs initial savings, validating their focus on data quality over price. Operational efficiency improved through the integration of all customer-facing functions into a unified commercial organization, enabling earlier identification of churn risks and budget-related saves. Data differentiation is being accelerated by AI-native tools, specifically the ACE 3.0 estimation methodology, which addresses industry-wide gaps in claims coverage through machine learning. Strategic positioning is shifting toward 'seamless integration,' with a 50% year-over-year reduction in integration time making the platform a stickier, native component of customer workflows. The company is pivoting toward digital activation, adding 10 new agency partners and 7 direct customers to scale revenue beyond traditional subscription models. The launch of 'Turbo,' an AI-powered intelligence platform, is expected to reach general availability by the end of 2026, serving as a primary catalyst for 2027 growth and late-2026 renewals. Full-year revenue guidance was tightened toward the lower end due to lighter-than-expected bookings for traditional analytics engagements within professional services. Management raised the midpoint of profit guidance, assuming continued disciplined expense management and the realization of productivity gains from internal AI tools. The innovation strategy for the second half of 2026 focuses on 'agentic AI' to provide continuous monitoring and autonomous decision-making rather than simple data retrieval. Guidance assumes a continued environment of shorter-duration, single-year contracts as customers remain cautious with multi-year commitments. Adjusted gross margin expanded by 100 basis points year-over-year when excluding a one-time data contract renegotiation credit from the prior year. Remaining Performance Obligations (RPO) declined 18% year-over-year, primarily reflecting a structural shift in customer preference toward single-year deals over multi-year commitments. Capitalized software development spend increased to over $2 million, reflecting a strategic pivot toward organic AI product investments. Professional services revenue underperformed due to a shift in demand away from traditional analytics, despite strength in the digital activation ecosystem. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management does not expect material revenue impact from Turbo in 2026, but views it as a critical tool for influencing the major December and January renewal cycles. The pricing strategy is still being finalized but will likely include a usage-based element with tiered pricing and data module upsell opportunities for smaller customers. Claims data restoration has begun to lessen the impact of downsells, though management notes it is still early to see the full benefit in the Life Sciences segment. While large pharma budgets remain muted, the company reported its strongest new business quarter in biopharma in three years (excluding Q4s), signaling a potential turning point. Management observed a normalization of contract trends but no significant shift back to multi-year deals, attributing this to the current cautious macroeconomic environment. The company is not dependent on a return to multi-year deals for its recovery, noting that shifting from multi-year to single-year at renewal is a common historical dynamic.

Interested in Definitive Healthcare Corp.? Here are five stocks we like better. Second-quarter results met or exceeded guidance: Revenue fell 9% year over year to $55.2 million, while adjusted EBITDA reached $14.6 million, a 26% margin. The company generated $11.6 million in unlevered free cash flow and improved its net dollar retention trend. AI product Turbo entered customer pilots: The natural-language healthcare intelligence platform is being tested with strategic customers, with general availability targeted before the end of 2026. Management expects limited revenue impact in 2026 but greater potential in 2027. Full-year guidance was narrowed amid ongoing weakness: Fiscal 2026 revenue is now expected at $220 million-$222 million, an 8%-9% decline, as life sciences recovery and professional-services bookings remain challenged. The company nevertheless raised the midpoint of its adjusted EBITDA outlook to $58 million while prioritizing margins and retention. Definitive Healthcare (NASDAQ:DH) reported second-quarter fiscal 2026 revenue and profitability that met or exceeded its guidance ranges, while management pointed to improving retention trends and continued investments in artificial intelligence products as key components of its plan to return to growth. Revenue for the quarter totaled $55.2 million, down 9% from the prior-year period. Adjusted EBITDA was $14.6 million, representing a 26% margin and modestly exceeding the high end of the company’s guidance, Chief Executive Officer Kevin Coop said. The company generated $11.6 million in unlevered free cash flow during the quarter and about $50 million over the trailing 12 months. → MarketBeat Week in Review – 08/03 - 08/07 “We continue to do an effective job of managing expenses while investing in our core growth initiatives,” Coop said. He added that the company’s diversified and provider businesses, which account for more than 60% of revenue, are further along in their return to growth than its life sciences segment. Coop said Definitive Healthcare’s trailing-12-month net dollar retention rate improved by several points year-over-year for the second consecutive quarter. The company said the trend positions it to sustain improvement for the full year. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Life sciences has been slower to recover, although management cited improving new-business activity in biopharma. Coop said the biopharma segment posted its strongest new-business quarter in three years outside of the fourth quarter, including four customers that had previously left the company before the beginning of 2025 and later returned. Management also highlighted a six-figure, three-year win-back in its diversified business. The customer had left for a lower-cost competitor but ultimately expanded its relationship with Definitive Healthcare after reassessing the value of the company’s data, according to Coop. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War During the question-and-answer session, CFO Casey Heller said the company has seen claims-data-related downselling begin to lessen after adding data sources in the fall and another source during the second quarter. However, Heller said it remains early to assess the full impact. Heller also said Definitive Healthcare is not seeing a major change in spending by large pharmaceutical companies, though the stronger biopharma new-logo performance was encouraging. Definitive Healthcare launched Turbo, an AI-powered healthcare intelligence platform designed to help healthcare teams access and act on the company’s data through natural-language queries. The platform combines data covering providers, organizations, claims, affiliations, key opinion leaders and consumers, the company said. The company began an initial pilot with selected strategic customers during the month, including healthcare systems, life sciences organizations and diversified customers. Definitive Healthcare is targeting general availability before the end of 2026. Coop said Turbo is expected to provide reusable capabilities tailored to commercial, sales, product, marketing and strategy users, with a future goal of supporting continuous monitoring, alerts and notifications. Heller said the company does not expect Turbo to have a material effect on 2026 revenue, but management expects it to be more meaningful in 2027. The platform could support retention during the company’s largest renewal periods in December and January, he said. Management is still evaluating Turbo’s pricing structure. Coop said the company is considering different approaches for customer cohorts, including data-module upsell opportunities for customers with more limited existing data access. The company also plans over time to introduce a usage-based component with tiered pricing. The company said it completed more than 50% more customer integrations year-over-year during the quarter while reducing the time required for integrations by more than 50%. Among its product efforts, Definitive Healthcare said customers are increasingly adopting conversational natural-language search. On its expert intelligence platform, multi-turn conversational searches accounted for roughly 40% of interactions with the AI search feature. In digital activation, the company added 10 agency partners that were not active in 2025 and seven direct activation customers year to date. Coop said a longstanding population intelligence customer increased its commitment from an initial test to more than $300,000 in total activation spending. Subscription revenue was $52.8 million in the second quarter, also down 9% year-over-year. Professional services revenue fell short of management’s expectations because bookings for traditional analytics engagements were lighter, despite strength in digital activation. Heller said the weaker analytics bookings will affect professional services expectations in the third quarter and second half. For the third quarter, Definitive Healthcare forecast revenue of $54 million to $55 million, representing an 8% to 10% year-over-year decline. It expects adjusted EBITDA of $13.5 million to $14.5 million, or a 25% to 27% margin. For fiscal 2026, the company narrowed its revenue outlook to $220 million to $222 million, implying an 8% to 9% decline from the prior year. While revenue guidance was tightened around the lower end of the prior range, Definitive Healthcare raised the midpoint of its full-year profit outlook. Adjusted operating income is projected at $45.5 million to $47.5 million. Adjusted EBITDA is projected at $57 million to $59 million, representing a 26% to 27% margin. Adjusted net income is projected at $27 million to $29 million, or $0.18 to $0.20 per diluted share. At the end of the second quarter, deferred revenue was $89 million, down 12% year-over-year. Total remaining performance obligations declined 18%, while current remaining performance obligations fell 12%. Heller attributed the trend in part to customers shifting toward single-year agreements rather than multiyear commitments. Heller said the company is seeing some normalization in the balance between multiyear and single-year deals, but not a significant return to multiyear contracts. Definitive Healthcare will continue to prioritize margin preservation and targeted growth investments while working to improve customer retention and revenue growth, he said. Definitive Healthcare (NASDAQ:DH) is a leading provider of intelligence and analytics on healthcare providers, organizations and the professionals who treat patients. Through its cloud-based platform, the company aggregates data from multiple sources—including claims, government registries, commercial filings and proprietary research—to deliver a unified view of the healthcare landscape. Its solutions enable life sciences companies, healthcare providers, payers and consulting firms to identify market opportunities, optimize sales and marketing efforts, improve operational efficiency and support better patient outcomes. The company's flagship offering is a subscription-based data platform that features detailed profiles on physicians, hospitals, health systems and post-acute care facilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Definitive Healthcare Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second Quarter Revenue Within Guidance Range; Profit Surpasses Expectations FRAMINGHAM, Mass., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare market data and analytics, today announced financial results for the quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights: Revenue was $55.2 million, a decrease of 9% from $60.8 million in Q2 2025. Net Loss was $(7.5) million, or (14)% of revenue, compared to $(9.3) million, or (15)% of revenue in Q2 2025. Adjusted Net Income was $7.5 million, compared to $9.7 million in Q2 2025. Adjusted EBITDA was $14.6 million, or 26% of revenue, compared to $18.7 million, or 31% of revenue in Q2 2025. Cash Flow from Operations was $11.5 million in the quarter. Unlevered Free Cash Flow was $11.6 million in the quarter. "Definitive Healthcare delivered another quarter in line with or above our guidance ranges, reflecting continued discipline alongside targeted investment in our growth priorities," said Kevin Coop, CEO of Definitive Healthcare. "We're encouraged by our second consecutive quarter of year-over-year improvement in net dollar retention, strong win-back momentum across our end markets, and the launch of Turbo, our new AI-powered healthcare intelligence platform, which marks a significant milestone in our innovation strategy. We remain confident that our focus on data quality and customer success is the right path to return to sustained, predictable growth, while continuing to generate strong profitability and cash flow." 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 diversified-business customer returned to Definitive Healthcare in a six-figure, three-year win-back enterprise agreement. This win reinforces a recurring theme: customers who believe a lower-cost alternative will be "good enough" ultimately recognize that the cost of an inferior dataset outweighs the savings, validating the business value our data and products deliver and reaffirming that our focus on data quality and service, rather than price, is the right path forward. One long-standing population-intelligence customer expanded from an initial test into a total activation commitment of several hundred thousand dollars, illustrating that activation growth is now being driven not only by new direct customers but also by rising adoption and spend across our agency ecosystem, which gives us a broader, more scalable path forward. Business Outlook Based on information as of August 10, 2026, the Company is issuing the following financial guidance. Third Quarter 2026: Revenue is expected to be in the range of $54.0 – $55.0 million. Adjusted Operating Income is expected to be in the range of $10.5 – $11.5 million. Adjusted EBITDA is expected to be in the range of $13.5 – $14.5 million, and 25% – 27% adjusted EBITDA Margin. Adjusted Net Income is expected to be $5.5 – $6.5 million. Adjusted Net Income Per Diluted Share is expected to be $0.04 to $0.05 per share on approximately 145.1 million weighted-average shares outstanding. Full Year 2026: Revenue is expected to be in the range of $220.0 – $222.0 million Adjusted Operating Income is expected to be in the range of $45.5 – $47.5 million. Adjusted EBITDA is expected to be in the range of $57.0 – $59.0 million, and 26% – 27% adjusted EBITDA Margin. Adjusted Net Income is expected to be $27.0 – $29.0 million. Adjusted Net Income Per Diluted Share is expected to be $0.18 to $0.20 per share on approximately 144.6 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 10, 2026, at 5:00 p.m. (Eastern 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 9, 2026, 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 Definitive Healthcare is a data and analytics company focused on the business side of healthcare. The healthcare market is complex — our data makes it clearer. We cut through the noise to deliver the insights that healthcare organizations and companies need to make smarter, faster, more strategic decisions. Because when our customers succeed, healthcare gets better for everyone. 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, 2026 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 U.S. Securities and Exchange Commission ("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 This earnings release contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including 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. 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. These non-GAAP financial measures are not required by or prepared in accordance with GAAP. These are supplemental financial measures of our performance and should not be considered substitutes for cash provided by operating activities, loss from operations, net loss, net income margin, gross profit, gross margin, or any other measure derived in accordance with GAAP. Reconciliations to Certain Non-GAAP Measures Unlevered Free Cash Flow We define Unlevered Free Cash Flow as net cash provided by operating activities less purchases of property, equipment and data assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnouts, and other non-core items paid in cash. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin 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. Adjusted Gross Profit and Adjusted Gross Margin 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. Adjusted Operating Income 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. Adjusted Net Income and Adjusted Net Income Per Diluted Share We define Adjusted Net Income as Adjusted Operating Income less interest expense net, recurring income tax (provision) benefit, foreign currency (loss) gain, 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 [email protected] Media Contact: Bethany [email protected]

Definitive Healthcare Corp. (DH) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.00%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.06, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Definitive Healthcare, which belongs to the Zacks Internet - Software industry, posted revenues of $55.2 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.02%. This compares to year-ago revenues of $60.75 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Definitive Healthcare shares have lost about 75.1% since the beginning of the year versus the S&P 500's gain of 13.3%. While Definitive Healthcare has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Definitive Healthcare was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $55.75 million in revenues for the coming quarter and $0.18 on $224.38 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. nCino (NCNO), another stock in the same industry, has yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of +27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. nCino's revenues are expected to be $158.98 million, up 6.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Definitive Healthcare Corp. (DH) : Free Stock Analysis Report nCino Inc. (NCNO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Definitive Healthcare Corp. (DH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $55.76 million, down 8.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 44.44% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Definitive Healthcare, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Definitive Healthcare will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Definitive Healthcare would post earnings of $0.03 per share when it actually produced earnings of $0.06, delivering a surprise of +100.00%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Definitive Healthcare doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Internet - Software industry, DigitalOcean Holdings, Inc. (DOCN), is soon expected to post earnings of $0.26 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -55.9%. Revenues for the quarter are expected to be $277.77 million, up 27% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for DigitalOcean has been revised 8.1% up to the current level. Nevertheless, the company now has an Earnings ESP of -7.69%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that DigitalOcean will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Definitive Healthcare Corp. (DH) : Free Stock Analysis Report DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Definitive Healthcare Corp. (NASDAQ:DH) shareholders are probably feeling a little disappointed, since its shares fell 7.5% to US$0.95 in the week after its latest first-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$56m, statutory losses exploded to US$1.32 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Following the recent earnings report, the consensus from eleven analysts covering Definitive Healthcare is for revenues of US$223.8m in 2026. This implies a perceptible 6.1% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 20% to US$1.29. Before this latest report, the consensus had been expecting revenues of US$223.6m and US$0.23 per share in losses. So it's pretty clear the analysts have mixed opinions on Definitive Healthcare even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses. See our latest analysis for Definitive Healthcare The consensus price target held steady at US$2.29, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Definitive Healthcare analyst has a price target of US$3.50 per share, while the most pessimistic values it at US$1.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.0% by the end of 2026. This indicates a significant reduction from annual growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. It's pretty clear that Definitive Healthcare's revenues are expected to perform substantially worse than the wider industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Definitive Healthcare. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Definitive Healthcare's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$2.29, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Definitive Healthcare analysts - going out to 2028, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 1 warning sign for Definitive Healthcare that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Definitive Healthcare Corp.? Here are five stocks we like better. Definitive reported Q1 revenue of $55.9 million, down 6% year-over-year, but delivered strong profitability with adjusted EBITDA of $15.3 million (a 27% margin), adjusted EPS of $0.06, and unlevered free cash flow of $18 million for the quarter. Product and customer trends were mixed: the provider and diversified businesses (over 60% of revenue) showed modest growth while life sciences continued to decline amid prior claims disruption—management says the claims data supply chain is now repaired and integration velocity and AI-driven data initiatives are improving customer wins and retention. Guidance and balance-sheet notes: Q2 revenue is guided to $55–56 million (an 8–9% decline) and FY revenue to $220–226 million (down 6–9%), while adjusted EBITDA was raised to $55–59 million; management also disclosed a non-cash $197 million goodwill impairment and noted declining deferred revenue/RPO tied to a shift to single-year deals. Definitive Healthcare (NASDAQ:DH) reported first-quarter fiscal 2026 results that management said came in “at or above the high end” of guidance on both revenue and profitability, while reiterating that the company remains in a transition period as it works to return to consistent top-line growth. CEO Kevin Coop said total revenue was $55.9 million, down 6% year-over-year, while adjusted EBITDA was $15.3 million, representing a 27% margin. Coop attributed the EBITDA outperformance versus guidance to “ongoing success in driving expense discipline across the business while investing in initiatives that we believe will return the business to topline growth.” → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% CFO Casey Heller added that adjusted net income was $8.5 million, or $0.06 in non-GAAP earnings per share, and that unlevered free cash flow was $18 million in the quarter and “nearly $50 million” over the trailing 12 months. Heller said adjusted gross profit was $45.2 million, down 4% year-over-year, but adjusted gross margin expanded to 81%, up nearly 150 basis points. He tied the margin benefit primarily to a “short-term gap between removing one data source and onboarding an additional source.” Adjusted EBITDA margin expanded by approximately 260 basis points year-over-year, which Heller said was driven by that same timing gap, broader operating efficiencies, and a shift in product development that reduced R&D expense while increasing capitalized software development. → Years in the Making, AMD’s Upside Movement Has Just Begun Coop said the company’s diversified and provider businesses—together “over 60% of total revenue”—delivered “modest growth” again after returning to growth in the prior quarter. By contrast, he said the life sciences businesses “continued to decline,” citing the claims disruption the company has discussed previously as well as a challenging macro environment. Heller echoed that mix shift, saying the revenue decline “is driven by life sciences,” while diversified and provider end markets “continued to grow year-over-year.” Subscription revenue was $53.6 million, down 7% year-over-year. He also noted the company still had “about 2 points of benefit” in Q1 from the timing of revenue recognition on a data partnership agreement and expects to be “fully wrapped on the benefit in Q2.” → Light Speed Returns: Corning Cashes In on NVIDIA Growth Management also pointed to signs of improving customer metrics. Coop said net dollar retention improved year-over-year in the first quarter on a trailing-12-month basis, and that the company had its “highest win-back quarter in over three years.” He said several six-figure win-backs in diversified and med tech reflected customers’ dissatisfaction with “the breadth and quality of our datasets” offered by competitors and a realization that “the cost of an inferior dataset far outweighed the trade-off.” Coop framed execution around four strategic pillars: data differentiation, integrations, customer success, and innovation. Data differentiation: Coop said the company’s fall “expansion pack” improved claims data breadth and quality and generated “overwhelmingly positive feedback.” He also said Definitive Healthcare is increasingly using AI to increase the “velocity of data collection and quality assurance.” As one example, he described a six-figure, multi-year life sciences win where a customer sought better affiliation data, prescription patterns, and key opinion leader identification. Integrations: Coop said the company completed “nearly 50 new integrations” in Q1 and reduced integration time by “nearly 50%” year-over-year. In the Q&A, he added the average days to integrate fell from “over 100 days” to about 45 days in Q1, and that the company completed 75% more integrations in the last six months than in the prior six months. He highlighted a new HubSpot integration and prior Salesforce enhancements, saying integrated customers use the product more frequently and tend to renew at higher rates. Customer success: Coop said aligning functional teams that support the customer journey has made the organization “more proactive and engaged,” helping identify issues earlier and uncover upsell opportunities. He cited an upsell with a Monocl biopharma customer following that customer’s acquisition by a larger organization. Innovation and digital activation: Coop said the company expects to launch its first AI-enabled solutions “later this quarter,” focused on embedding a natural-language interface into the platform. He positioned this as a way to make the data easier to use and to support workflow-driven actions. Separately, he said the company now has “more than 30 agencies signed up” for digital activation, with “more than half” actively generating bookings, up from roughly a third the prior quarter. Coop also referenced a benchmark from a “leading biopharma solutions company” indicating Definitive audiences delivered a 63% higher click-through rate than a leading competitor. On monetization, Coop said the initial impact of AI features is expected to be improved retention by “democratiz[ing] access” to the platform and increasing value realization. He added that pricing power could become more meaningful as more AI functionality is released over time, along with upsell and cross-sell opportunities. During the Q&A, Coop said the company has repaired its claims data supply chain and is now “at or above historical levels” for claims data, and later said the company is “now above historical levels” in Q1. He suggested this should reduce downsell pressure tied to reduced record counts, though he cautioned that renewal timing matters and said the company expects to see how the next couple of quarters of renewals play out. Coop also discussed biopharma demand dynamics, emphasizing that Definitive primarily serves “phase II” commercialization use cases, while noting that some customers are shifting dollars toward earlier-stage R&D spending. He said muted commercialization activity in the current macro environment has been difficult to offset, but could translate into future demand as assets move toward commercialization. For the second quarter, Heller guided to revenue of $55 million to $56 million, representing an 8% to 9% year-over-year decline, which he said reflects the full wrap of the earlier data partnership benefit. The company expects adjusted EBITDA of $13.5 million to $14.5 million, implying a 24% to 26% margin, and non-GAAP EPS of approximately $0.03 to $0.04. For full-year fiscal 2026, the company reiterated revenue guidance of $220 million to $226 million (a 6% to 9% decline year-over-year). Heller raised adjusted EBITDA guidance to $55 million to $59 million, saying the midpoint increased by $1.5 million based on the “strong start to the year” and continued focus on margins while investing in growth initiatives. Full-year non-GAAP EPS guidance was $0.16 to $0.19. Heller also pointed to contracting dynamics affecting forward-looking metrics. Deferred revenue was $99 million, down 12% year-over-year, and total remaining performance obligations declined 18% year-over-year, which he said continued to reflect a shift toward single-year deals versus multi-year commitments. In response to an analyst question, Heller said the company expects double-digit declines in current RPO for the “next couple of quarters” given the mix, with the potential for stabilization depending on future signing mix. Finally, Heller disclosed a non-cash accounting charge: a $197 million goodwill impairment as of March 31 tied to the stock price decline, along with a $6.6 million gain on remeasurement of the TRA liability and a $3.6 million deferred income tax benefit. He said these items do not impact debt covenants and are excluded from adjusted earnings. Definitive Healthcare (NASDAQ:DH) is a leading provider of intelligence and analytics on healthcare providers, organizations and the professionals who treat patients. Through its cloud-based platform, the company aggregates data from multiple sources—including claims, government registries, commercial filings and proprietary research—to deliver a unified view of the healthcare landscape. Its solutions enable life sciences companies, healthcare providers, payers and consulting firms to identify market opportunities, optimize sales and marketing efforts, improve operational efficiency and support better patient outcomes. The company's flagship offering is a subscription-based data platform that features detailed profiles on physicians, hospitals, health systems and post-acute care facilities. The article "Definitive Healthcare Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.