Definitive Healthcare (DH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $55.9 million, down 6% year-over-year but at the high end of guidance, with improvements in retention rates and continued profitability and cash flow generation.

• Adjusted EBITDA reached $15.3 million (27% margin), up from $14.7 million (25%) in Q1 2025 and $2.3 million above guidance.

• Net loss attributable to shareholders was $138.6 million to $192.4 million, primarily due to a $197.2 million goodwill impairment charge.

• Management remains focused on sustaining non-GAAP profitability, margin expansion, and investing for a return to growth.

• Strategic focus includes data differentiation, integrations, customer success, and innovation, with restructuring efforts to improve margins.

Financial highlights

• Adjusted net income was $8.5 million, or $0.06 per share (non-GAAP), up from $7.0 million in Q1 2025.

• Adjusted gross profit was $45.2 million (81% margin), up from 80% year-over-year.

• Cash and cash equivalents at quarter-end were $157.6 million, with $20.4 million in short-term investments and $49.7 million available under the revolving credit facility.

• Unlevered free cash flow was $18 million for the quarter and nearly $50 million for the trailing 12 months.

• Booked a $197.2 million goodwill impairment charge due to stock price decline.

Outlook and guidance

• Q2 2026 revenue expected at $55–$56 million, down 8–9% year-over-year; adjusted EBITDA guidance: $13.5–$14.5 million (24–26% margin).

• Full-year 2026 revenue expected at $220–$226 million, a 6–9% decline year-over-year; adjusted EBITDA guidance: $55–$59 million (25–26% margin).

• Adjusted net income for 2026 expected at $23–$27 million, EPS $0.16–$0.19.

• Gross profit margin is expected to decrease year-over-year due to revenue declines and a largely fixed cost structure.

• No further material restructuring charges are anticipated for the remainder of 2026.