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1. Company Snapshot

1.a. Company Description

Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States.Its solutions provide information on healthcare providers and their activities to help its customers in the area ranging from product development to go-to-market planning, and sales and marketing execution.The company's platform offers 16 intelligence modules that cover functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management.


It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate companies, financial institutions, and other organizations in the healthcare ecosystem.Definitive Healthcare Corp.was founded in 2011 and is headquartered in Framingham, Massachusetts.

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1.b. Last Insights on DH

Definitive Healthcare Corp.'s recent performance was negatively impacted by a decrease in earnings, with Q3 earnings per share (EPS) of $0.07, down from $0.10 a year ago. Despite beating revenue estimates, the company's growth seems to be slowing. A partnership with Salubrum to provide precision patient activation may boost future growth. The company also presented at the Morgan Stanley 23rd Annual Global Healthcare Conference, potentially showcasing its commercial intelligence capabilities. A share buyback program is not mentioned, leaving investors awaiting future quarters for improved performance.

1.c. Company Highlights

2. Definitive Healthcare's Q3 2025 Earnings: A Mixed Bag

Definitive Healthcare reported Q3 2025 revenue of $60 million, a 4% year-over-year decline, with adjusted EBITDA of $18.9 million, representing a 32% margin. The company's earnings per share (EPS) came in at $0.07, beating estimates of $0.06. The trailing 12-month unlevered free cash flow stood at $51 million. While revenue declined, the company's total customer count remained steady at approximately 2,400, and enterprise customer count grew by 10 to 520.

Publication Date: Nov -19

📋 Highlights
  • Revenue Decline:: Q3 2025 revenue fell 4% to $60 million year-over-year, with full-year revenue now guided at $239–240 million (-5% YoY).
  • Adjusted EBITDA Margin:: Q3 adjusted EBITDA reached $18.9 million (32% margin), with Q4 guidance projected at 27–29% due to margin pressures.
  • Unlevered Free Cash Flow:: Generated $51 million in trailing 12 months, reflecting strong cash generation despite revenue contraction.
  • Enterprise Customer Growth:: Enterprise customers increased by 10 to 520, while total customer count stabilized at ~2,400.
  • Strategic Wins:: Secured major clients in biopharma and medical device sectors, driven by differentiated data and new claims data sources.

Operational Highlights

The company saw improvements in new logo production, retention rates, and renewal rates, driven by its differentiated data and focus on customer success. A new claims data source was added in Q3, with another to be added later this quarter. The company secured wins, including a large multinational biopharma and a medical device company, driven by its data quality and integrations.

Guidance and Outlook

Guidance for Q4 2025 is $59 million to $60 million in revenue, a decrease of 4% to 5% compared to Q4 2024, with adjusted EBITDA expected to be $16 million to $17 million. The company raised its full-year revenue and non-GAAP profit guidance, with revenue now expected to be $239-240 million, a 5% decline year-over-year. The company is focused on improving customer retention, returning to growth, and driving shareholder value.

Valuation and Growth Prospects

With a P/S Ratio of 1.11 and EV/EBITDA of -0.75, the market appears to have priced in some level of distress. However, the company's free cash flow yield stands at 17.98%, indicating a potentially attractive return for investors. Analysts estimate next year's revenue growth at -2.3%. The company's growth algorithm is expected to be driven by a mix of new customer adds and expanding within existing customers, with a focus on leveraging its data and digital activations to drive long-term shareholder value.

Customer Dynamics and Future Growth

The company experienced greater expansion within existing accounts in life sciences last year than this year, with downsell components primarily due to customers under budget pressures. However, customer counts remained relatively stable quarter-over-quarter, which is encouraging given the long multiyear relationships. The company is confident in its future growth prospects, driven by its differentiated data, investments in unified UI/UX, and changes in go-to-market and customer success teams.

3. NewsRoom

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Definitive Healthcare Corp. (DH) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Definitive Healthcare Corp. (DH) Beats Q3 Earnings and Revenue Estimates

Nov -07

Source: zacks.com

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Definitive Healthcare Reports Financial Results for Third Quarter Fiscal Year 2025

Nov -06

Source: globenewswire.com

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Definitive Healthcare Announces Timing of Its Third Quarter 2025 Financial Results Conference Call and Webcast

Oct -23

Source: globenewswire.com

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Forum Ventures Bets Big on Category-Defining Vertical AI Solution for Healthcare Growth, Salubrum

Oct -17

Source: globenewswire.com

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Definitive Healthcare Corp. (DH) Presents At Morgan Stanley 23rd Annual Global Healthcare Conference (Transcript)

Sep -09

Source: seekingalpha.com

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Definitive Healthcare to Present at the Morgan Stanley 23rd Annual Global Healthcare Conference

Sep -02

Source: globenewswire.com

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DH vs. BL: Which Stock Should Value Investors Buy Now?

Aug -19

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Subscription Services

Expected Growth: 4.5%

Definitive Healthcare Corp.'s Subscription Services growth is driven by increasing demand for healthcare data analytics, expansion into new markets, and strategic partnerships. The company's unique data platform, which provides actionable insights to healthcare providers, payers, and life sciences companies, is a key differentiator. Additionally, the shift towards value-based care and the need for data-driven decision making are contributing to the segment's 4.5% growth.

Professional Services

Expected Growth: 4.8%

Definitive Healthcare Corp.'s 4.8% growth in Professional Services is driven by increasing demand for data-driven insights in the healthcare industry, expansion of value-based care models, and growing need for healthcare providers to optimize operations and improve patient outcomes.

7. Detailed Products

Hospital Intelligence

Provides detailed information on hospital market trends, hospital demographics, and hospital purchasing behavior

PhysicianGroup Intelligence

Offers insights into physician group practices, including physician demographics, practice patterns, and prescribing behavior

Surgical Intelligence

Provides detailed data on surgical procedures, including procedure volumes, surgeon demographics, and surgical trends

Claims Analytics

Offers insights into medical claims data, including patient demographics, diagnosis codes, and treatment patterns

Commercial Claims Data

Provides access to commercial claims data, including patient demographics, diagnosis codes, and treatment patterns

Medicare Claims Data

Offers insights into Medicare claims data, including patient demographics, diagnosis codes, and treatment patterns

Diagnostics Intelligence

Provides detailed data on diagnostic testing, including lab test volumes, test types, and testing trends

8. Definitive Healthcare Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Definitive Healthcare Corp. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the healthcare industry.

Bargaining Power Of Customers

Definitive Healthcare Corp.'s customers are primarily healthcare providers and payers, who have limited bargaining power due to the company's specialized data and analytics offerings.

Bargaining Power Of Suppliers

Definitive Healthcare Corp. has a diversified supplier base, and the company's suppliers have limited bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The healthcare data and analytics market is attractive, and new entrants may be drawn to the market, posing a significant threat to Definitive Healthcare Corp.'s market share.

Intensity Of Rivalry

The healthcare data and analytics market is moderately competitive, with several established players, but Definitive Healthcare Corp.'s strong brand and customer relationships help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.09%
Debt Cost 6.04%
Equity Weight 76.91%
Equity Cost 10.99%
WACC 9.85%
Leverage 30.02%

11. Quality Control: Definitive Healthcare Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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CareCloud

A-Score: 5.2/10

Value: 7.6

Growth: 6.9

Quality: 7.8

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

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Privia Health Group

A-Score: 5.1/10

Value: 1.9

Growth: 8.0

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.3

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Definitive Healthcare

A-Score: 3.8/10

Value: 8.7

Growth: 5.3

Quality: 4.1

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

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Cue Health

A-Score: 3.6/10

Value: 10.0

Growth: 3.2

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

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Omnicell

A-Score: 3.1/10

Value: 4.7

Growth: 3.3

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

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Ontrak

A-Score: 2.9/10

Value: 10.0

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.48$

Current Price

2.48$

Potential

-0.00%

Expected Cash-Flows