Definitive Healthcare (DH) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $61.5 million, down 1% year-over-year but above guidance; adjusted EBITDA was $18.0–$18.1 million with a 29% margin, exceeding expectations.

• Full-year 2025 revenue was $241.5 million, a 4% decline year-over-year; adjusted EBITDA totaled $70.4 million (29% margin).

• Strategic focus on data differentiation, seamless integrations, customer success, and innovation drove operational improvements, with emphasis on retention and upsell/cross-sell.

• Retention rates improved for three consecutive quarters, with integrated customers renewing at higher rates.

• Net loss for Q4 2025 was $(17.1) million, including $19.5 million in goodwill impairment; full year net loss was $(199.3) million, including $196.1 million in goodwill impairment.

Financial highlights

• Adjusted Net Income for Q4 2025 was $8.6 million ($0.06 per share), down from $12.6 million in Q4 2024; unlevered free cash flow was $2.5 million for Q4 and $54.9 million for the year.

• Adjusted gross profit margin in Q4 was 82%, up 100 basis points year-over-year; full year adjusted gross margin was 81%.

• Subscription revenue declined 3% year-over-year (7% excluding data partnership), while professional services revenue grew 49% year-over-year, now 5% of mix.

• Deferred revenue at Q4-end was $99 million, up 6% year-over-year.

• Equity-based compensation expense was $8.2 million in Q4 and $29.1 million for the year.

Outlook and guidance

• Q1 2026 revenue expected at $54–$56 million, a 5–9% year-over-year decline; adjusted EBITDA margin projected at 22–23%.

• Full-year 2026 revenue guidance is $220–$226 million (6–9% decline year-over-year); adjusted EBITDA expected at $53–$58 million (24–26% margin).

• Adjusted net income for 2026 forecasted at $21–$26 million ($0.14–$0.173 per share).

• Non-GAAP profitability is expected to improve in the second half of 2026.

• EBITDA to unlevered free cash flow conversion expected to improve in 2026 due to lower CapEx.