Definitive Healthcare (DH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $59.2 million, down 7% year-over-year but exceeded guidance, driven by strong professional services, new logo wins, and operational efficiency despite macroeconomic uncertainty.

• Adjusted EBITDA reached $14.7 million (25% margin), down from $20.0 million (32% margin) a year ago, reflecting lower revenue and higher costs but exceeding expectations.

• Net loss was $(155.1) million, primarily due to a $176.5 million non-cash goodwill impairment charge following a sustained stock price and market cap decline.

• Enterprise customers totaled 512, down from 541 a year earlier, with strong new logo activity across all end markets.

• Strategic focus remains on differentiated data, seamless integration, customer success, and digital engagement to drive retention and growth.

Financial highlights

• Revenue: $59.2 million, down 7% year-over-year, with subscription revenue (97% mix) declining 7% and professional services (3% mix) growing 9%.

• Adjusted EBITDA: $14.7 million (25% margin), down 27% year-over-year.

• Adjusted net income: $7.0 million, $0.05 non-GAAP EPS, down from $13.0 million and $0.08 in Q1 2024.

• Adjusted gross profit: $47.1 million, 80% margin, down from 84% in Q1 2024.

• Cash flow from operations was $26.1 million; unlevered free cash flow (TTM) was $67.1 million.

Outlook and guidance

• Q2 2025 revenue expected at $58.5–$60 million; adjusted EBITDA guidance: $15–$16 million (25–27% margin).

• FY 2025 revenue guidance raised to $234–$240 million (5–7% decline year-over-year); adjusted EBITDA $61–$65 million (26–28% margin); adjusted net income $30–$34 million, EPS $0.20–$0.23.

• Management expects continued macro headwinds, elongated deal cycles, and elevated churn, especially among smaller customers.

• Focus remains on cost containment, sales execution, and product innovation.