Definitive Healthcare (DH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $55.2 million, down 9% year-over-year but within guidance; adjusted EBITDA was $14.6 million (26% margin), modestly above guidance.

• Adjusted net income was $7.5 million ($0.05 Non-GAAP EPS), down from $9.7 million year-over-year; net loss attributable to shareholders was $5.4 million, impacted by a $197.2 million goodwill impairment in Q1 2026.

• Strong expense management and targeted investments in AI, data, and digital activation supported profitability and cash flow, with $50 million unlevered free cash flow over the trailing 12 months.

• Net dollar retention rate improved year-over-year for the second consecutive quarter, with notable customer win-backs and new business in biopharma and diversified segments.

• The company received a Nasdaq notice for non-compliance with the minimum bid price requirement, with a compliance deadline of December 15, 2026.

Financial highlights

• Subscription revenue was $52.8 million, down 9% year-over-year; professional services underperformed due to lighter analytics bookings.

• Adjusted gross profit was $44.2 million (80% margin), down from $50.0 million and 82% margin in Q2 2025; gross margin for Q2 2026 was 73%.

• Adjusted net income was $7.5 million ($0.05 Non-GAAP EPS); unlevered free cash flow was $11.6 million for the quarter.

• Cash and cash equivalents at quarter-end were $170.9 million, with $12.7 million in short-term investments and $49.7 million available under the credit facility.

• Deferred revenue at quarter-end was $89 million, down 12% year-over-year; total remaining performance obligations declined 18%.

Outlook and guidance

• Q3 2026 revenue expected at $54–$55 million, down 8–10% year-over-year; adjusted EBITDA $13.5–$14.5 million (25–27% margin).

• Full-year 2026 revenue guidance tightened to $220–$222 million (8–9% decline year-over-year); adjusted EBITDA guidance raised to $57–$59 million (26–27% margin).

• Adjusted net income for 2026 expected at $27–$29 million ($0.18–$0.20 EPS); profit guidance midpoint raised by $1 million.

• Turbo, an AI-powered platform, is being piloted and is not expected to materially impact 2026 revenue but anticipated to support retention and future growth.

• Management expects revenue and gross profit margin to decline in 2026 due to ongoing sales execution challenges and macroeconomic headwinds.