Definitive Healthcare (DH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $55.2 million, down 9% year-over-year but within guidance; adjusted EBITDA was $14.6 million (26% margin), modestly above guidance.

• Adjusted net income was $7.5 million, or $0.05 per share; net loss attributable to shareholders was $5.4 million, impacted by a $197.2 million goodwill impairment in Q1 2026.

• Profit metrics exceeded guidance due to disciplined cost management and strong expense controls.

• Net dollar retention rate improved year-over-year for the second consecutive quarter, supporting confidence in future growth.

• Strategic focus remains on data differentiation, integrations, customer success, and innovation, highlighted by the launch of the Turbo AI platform.

Financial highlights

• Subscription revenue was $52.8 million, down 9% year-over-year; professional services underperformed due to lighter analytics bookings.

• Adjusted gross profit was $44.2 million (80% margin), down from $50.0 million and 82% margin in Q2 2025; gross margin for Q2 2026 was 73%.

• Adjusted EBITDA was $14.6 million (26% margin), down from $18.7 million (31%) in Q2 2025.

• Cash and cash equivalents at quarter-end were $170.9 million, with $12.7 million in short-term investments and $49.7 million available under the credit facility.

• Deferred revenue at quarter-end was $89 million, down 12% year-over-year; total remaining performance obligations declined 18%.

Outlook and guidance

• Q3 2026 revenue expected at $54–$55 million, down 8–10% year-over-year; adjusted EBITDA guidance is $13.5–$14.5 million (25–27% margin).

• Full-year 2026 revenue guidance tightened to $220–$222 million, an 8–9% decline year-over-year; adjusted EBITDA $57–$59 million (26–27% margin); adjusted net income expected at $27–$29 million, or $0.18–$0.20 per share.

• Turbo AI platform launch is not expected to materially impact 2026 revenue but is anticipated to support retention and future growth.

• Management expects gross profit margin to decrease in 2026 due to revenue declines and a largely fixed cost structure.