Second Quarter 2026
Filed Aug 10, 2026Second Quarter Revenue Within Guidance Range; Profit Surpasses Expectations
Revenue declined 9% year over year and adjusted profitability declined, while the net loss narrowed and operating cash flow increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $55.2 million | – | a decrease of 9% |
| Cost of revenue exclusive of amortizationGAAP | 9,418 (in thousands) | – | – |
| Cost of revenue amortizationGAAP | 5,236 (in thousands) | – | – |
| Gross profit and marginGAAP | $ 40,541; 73 % | – | – |
| Adjusted gross profit and marginnon-GAAP | $ 44,160; 80 % | – | – |
| Sales and marketing expenseGAAP | 19,158 (in thousands) | – | – |
| Product development expenseGAAP | 6,756 (in thousands) | – | – |
| General and administrative expenseGAAP | 10,806 (in thousands) | – | – |
| Depreciation and amortization expenseGAAP | 8,542 (in thousands) | – | – |
| Transaction, integration, and restructuring expensesGAAP | 2,027 (in thousands) | – | – |
| Goodwill impairmentGAAP | — | – | – |
| Loss from operationsGAAP | (6,748 ) (in thousands) | – | – |
| Adjusted Operating Incomenon-GAAP | 11,840 (in thousands) | – | – |
| Interest expense, netGAAP | (1,375 ) (in thousands) | – | – |
| Other income (expense), netGAAP | 326 (in thousands) | – | – |
| Net lossGAAP | $(7.5) million, or (14)% of revenue | – | – |
| Net loss attributable to Definitive Healthcare Corp.GAAP | $ (5,422 ) (in thousands) | – | – |
| Net loss per share of Class A common stock, basic and dilutedGAAP | $ (0.05 ) | – | – |
| Adjusted Net Incomenon-GAAP | $7.5 million | – | – |
| Adjusted Net Income Per Sharenon-GAAP | $ 0.05 | – | – |
| Adjusted EBITDA and marginnon-GAAP | $14.6 million, or 26% of revenue | – | – |
| Cash Flow from OperationsGAAP | $11.5 million | – | – |
| Unlevered Free Cash Flownon-GAAP | $11.6 million | – | – |
| Total equity-based compensation expenseGAAP | $ 5,254 (in thousands) | – | – |
Third Quarter 2026 and Full Year 2026 outlook
- RevenueThird Quarter 2026: $54.0 – $55.0 million. Full Year 2026: $220.0 – $222.0 million.
- NoteThird Quarter 2026 Adjusted Operating Income: $10.5 – $11.5 million.
- NoteThird Quarter 2026 Adjusted EBITDA: $13.5 – $14.5 million, and 25% – 27% adjusted EBITDA Margin.
- NoteThird Quarter 2026 Adjusted Net Income: $5.5 – $6.5 million.
- NoteThird Quarter 2026 Adjusted Net Income Per Diluted Share: $0.04 to $0.05 per share on approximately 145.1 million weighted-average shares outstanding.
- NoteFull Year 2026 Adjusted Operating Income: $45.5 – $47.5 million.
- NoteFull Year 2026 Adjusted EBITDA: $57.0 – $59.0 million, and 26% – 27% adjusted EBITDA Margin.
- NoteFull Year 2026 Adjusted Net Income: $27.0 – $29.0 million.
- NoteFull Year 2026 Adjusted Net Income Per Diluted Share: $0.18 to $0.20 per share on approximately 144.6 million weighted-average shares outstanding.
Capital returns
- Repurchases of Class A common stock: — (in thousands) for the three months ended June 30, 2026.
- Repayments of term loan: $(2,187 ) (in thousands) for the three months ended June 30, 2026.
- Payments under Tax Receivable Agreement: $(315 ) (in thousands) for the three months ended June 30, 2026.
What drove it
- The Company cited its second consecutive quarter of year-over-year improvement in net dollar retention.
- The Company cited strong win-back momentum across end markets.
- The Company launched Turbo, its new AI-powered healthcare intelligence platform.
- A diversified-business customer returned in a six-figure, three-year win-back enterprise agreement.
- A long-standing population-intelligence customer expanded from an initial test into a total activation commitment of several hundred thousand dollars.
Concerns
- Revenue was $55.2 million, a decrease of 9% from $60.8 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.
- Adjusted Net Income was $7.5 million, compared to $9.7 million in Q2 2025.
- The Company recorded goodwill impairment charges of 197,219 (in thousands) for the six months ended June 30, 2026.
- The Company identified risks including inability to acquire new customers, generate additional revenue from existing customers, maintain accurate and reliable data, and respond to advances in healthcare commercial intelligence.
What to watch
- Third Quarter 2026 revenue guidance of $54.0 – $55.0 million.
- Full Year 2026 revenue guidance of $220.0 – $222.0 million.
- Third Quarter 2026 adjusted EBITDA guidance of $13.5 – $14.5 million and 25% – 27% adjusted EBITDA Margin.
- Execution on win-back activity, agency ecosystem adoption, data quality initiatives, customer success, and the Turbo platform launch.
- Whether the Company can return to sustained, predictable growth while maintaining profitability and cash flow.
Balance sheet and cash flow
- Cash and cash equivalents: $ 170,866 (in thousands) as of June 30, 2026; $ 163,627 (in thousands) as of December 31, 2025.
- Short-term investments: 12,729 (in thousands) as of June 30, 2026; 17,262 (in thousands) as of December 31, 2025.
- Term loan, current: 8,750 (in thousands) as of June 30, 2026.
- Term loan, long term: 151,885 (in thousands) as of June 30, 2026.
- Total assets: $ 496,832 (in thousands) as of June 30, 2026; $ 735,492 (in thousands) as of December 31, 2025.
- Total liabilities: 308,967 (in thousands) as of June 30, 2026; 356,500 (in thousands) as of December 31, 2025.
- Total equity: 187,865 (in thousands) as of June 30, 2026; 378,992 (in thousands) as of December 31, 2025.
- Purchases of property, equipment, and data assets: $(2,942 ) (in thousands) for the three months ended June 30, 2026; $(2,293 ) (in thousands) for the three months ended June 30, 2025.
- Net increase in cash and cash equivalents: 13,337 (in thousands) for the three months ended June 30, 2026; net decrease of (25,558 ) (in thousands) for the three months ended June 30, 2025.
Analysis
Definitive Healthcare reported second-quarter revenue of $55.2 million, down 9% from $60.8 million in Q2 2025. The Company characterized revenue as within its guidance range. Management pointed to a second consecutive quarter of year-over-year improvement in net dollar retention, customer win-backs, expansion activity across end markets, and the launch of Turbo as operating developments supporting its effort to return to sustained, predictable growth.
GAAP profitability remained negative, although the reported net loss narrowed to $(7.5) million, or (14)% of revenue, from $(9.3) million, or (15)% of revenue. Gross profit and margin were $40,541 and 73%, versus $46,613 and 77%. Loss from operations was (6,748) (in thousands), compared with (4,170) (in thousands), reflecting in part $2,027 (in thousands) of transaction, integration, and restructuring expenses, compared with 672 (in thousands).
Non-GAAP profitability declined with revenue. Adjusted Operating Income was 11,840 (in thousands), versus 15,639 (in thousands), while Adjusted Net Income was $7.5 million, compared with $9.7 million. Adjusted EBITDA was $14.6 million, or 26% of revenue, compared with $18.7 million, or 31% of revenue. The decline in adjusted gross margin to 80% from 82% and adjusted EBITDA margin to 26% from 31% are key indicators of the reduced earnings level on lower revenue.
Cash generation improved on the reported operating-cash-flow measure. Cash Flow from Operations was $11.5 million, compared with $9.3 million, and Unlevered Free Cash Flow was $11.6 million, compared with $11.5 million. Cash and cash equivalents were $170,866 (in thousands) at June 30, 2026, while the balance sheet carried 8,750 (in thousands) of current term loan and 151,885 (in thousands) of long-term term loan. The Company made $(2,187) (in thousands) of term-loan repayments in the quarter and reported no Class A common-stock repurchases for the quarter.
For the third quarter, management guided revenue to $54.0 – $55.0 million, Adjusted EBITDA to $13.5 – $14.5 million, and adjusted EBITDA margin to 25% – 27%. Full-year revenue guidance is $220.0 – $222.0 million, with Adjusted EBITDA of $57.0 – $59.0 million and a 26% – 27% adjusted EBITDA Margin. The outlook calls for revenue and adjusted EBITDA margins that remain near the second-quarter reported level, placing emphasis on customer retention, win-back execution, agency adoption, and adoption of Turbo.
Management, verbatim
Definitive Healthcare delivered another quarter in line with or above our guidance ranges, reflecting continued discipline alongside targeted investment in our growth priorities.
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.
Kevin Coop, CEO of Definitive Healthcare
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Segment revenue and segment profitability were not disclosed.
- Prior-quarter comparisons for reported financial metrics were not disclosed.
- GAAP forward guidance was not provided.
- Forward gross-margin, operating-expense, and tax-rate guidance was not provided.
- Dividend declaration or payment information was not disclosed.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.