Definitive Healthcare (DH) investor relations material

Executive summary

• Q3 2025 revenue reached $60 million, down 4% year-over-year but at the high end of guidance, with adjusted EBITDA of $18.9 million (32% margin), and net loss narrowed significantly due to the absence of large impairment charges.

• Operational improvements and disciplined expense management contributed to strong cash flow and better customer acquisition and retention, with notable wins in biopharma and medical devices.

• Enterprise customer count grew by 10 sequentially to 520, the highest since Q3 last year, while total customer count held steady at 2,400, though down year-over-year.

• Strategic focus remains on differentiated data, seamless integrations, customer success, and digital partnerships, driving incremental improvements and digital expansion.

• Net loss attributable to shareholders for the nine months ended September 30, 2025, was $129.6 million, reflecting a lower goodwill impairment charge compared to the prior year.

Financial highlights

• Adjusted EBITDA margin was 32%, $2 million above guidance; adjusted net income was $9.7 million, or $0.07 per share, down from $0.10 year-over-year.

• Subscription revenue was $58.2 million, down 4% year-over-year, with improved renewal rates; professional services comprised 3% of revenue, growing 1%.

• Adjusted gross profit was $49.4 million (82% margin), flat year-over-year, benefiting from $2.5 million in cost savings, including a $1.5 million one-time data contract benefit.

• Cash flow from operations for Q3 2025 was $15.7 million; unlevered free cash flow was $17.9 million for the quarter, and $51 million over the trailing 12 months.

• Cash, cash equivalents, and short-term investments totaled $185.9 million, with total debt outstanding at $168.4 million.

Outlook and guidance

• Q4 2025 revenue expected at $59–$60 million, a 4–5% decline year-over-year; adjusted EBITDA of $16–$17 million (27–29% margin).

• Full-year 2025 revenue guidance raised to $239–$240 million (5% decline year-over-year); adjusted EBITDA guidance increased to $68–$69 million (28–29% margin); adjusted EPS for full year guided at $0.23–$0.24.

• Net dollar retention for 2025 expected to modestly decline year-over-year, but gross dollar retention will improve.

• Management expects continued revenue pressure in 2025 due to macroeconomic headwinds, lower renewal rates, and sales execution challenges.

• Cautious on macro environment and renewal pressures, especially with large renewal cohort in December and January.