Definitive Healthcare Reports First Quarter 2025 Financial Results, Surpasses Guidance Despite Revenue Decline
Definitive Healthcare Corp. (Nasdaq: DH), a leading provider of healthcare commercial intelligence, today announced financial results for the first quarter ended March 31, 2025. Despite a year-over-year decline in revenue, the company exceeded its previously stated guidance for both revenue and earnings, driven by strong customer acquisition and disciplined operational execution.
CEO Kevin Coop emphasized the company’s positive momentum and resilient performance. “We delivered first-quarter results above the high end of our guidance for both revenue and earnings, reflecting solid new logo momentum across markets and our continued focus on operational efficiency,” Coop said. “Even with rising macroeconomic uncertainty, we remain firmly on track to meet our full-year financial targets.”
Financial Highlights for Q1 2025
Definitive Healthcare reported Q1 2025 revenue of $59.2 million, a 7% decrease from $63.5 million reported in the same quarter last year. Despite the revenue contraction, the company beat the upper range of its revenue guidance, signaling continued demand for its data and analytics platforms.
However, the quarter included a significant non-cash goodwill impairment charge of $176.5 million, contributing to a GAAP net loss of $155.1 million, or (262%) of revenue. This compared unfavorably to a net loss of $12.7 million, or (20%) of revenue, in the first quarter of 2024. The impairment charge, though non-operational, significantly impacted headline earnings figures.
On a non-GAAP basis, Adjusted Net Income was $7.0 million, down from $13.0 million in the prior-year period. Adjusted EBITDA came in at $14.7 million, representing 25% of revenue, compared to $20.0 million, or 32% of revenue, in Q1 2024. The decline reflects ongoing investments in the business and the challenging year-over-year revenue environment.
Still, Definitive Healthcare posted strong cash flow metrics, with Cash Flow from Operations totaling $26.1 million, and Unlevered Free Cash Flow at $22.9 million. These figures underscore the company’s continued ability to generate liquidity and fund growth initiatives internally.
Strategic Execution and Customer Growth
In the first quarter, Definitive Healthcare maintained a clear focus on expanding its customer base and deepening relationships across key market segments. The company achieved multiple new client wins and expansions, driven by demand for its proprietary platforms such as Carevoyance and Populi, which deliver actionable insights for commercial healthcare strategies.
Some notable customer developments during the quarter included:
- A California-based medical device company specializing in continuous patient monitoring adopted the Carevoyance platform to enhance its sales intelligence capabilities. The platform enables targeting of high-value sites such as ambulatory surgery centers and hospitals.
- A Southern U.S. regional health system deployed the Populi platform to support a range of strategic initiatives, including physician recruitment, service line development, and telemedicine expansion. The platform’s competitive intelligence and insights on healthcare technology adoption were cited as critical assets in the decision.
- In a noteworthy win-back, a leading office supply company returned to Definitive Healthcare after previously switching to a competitor in 2023. The client attributed their decision to the depth and accuracy of Definitive’s data on hospitals and health systems, as well as robust integration capabilities with Salesforce.com—features their prior vendor could not match.
Additionally, the company expanded its footprint in the digital marketing and advertising segment. It signed agreements with two leading healthcare advertising agencies, strengthening its role as a partner in healthcare-focused marketing activation. These partnerships are expected to scale during the second half of 2025.
Operational Discipline Amid Market Headwinds
Despite the revenue decline, Definitive Healthcare maintained strong operational discipline. The company’s focus on cost management and strategic investment enabled it to outperform guidance in both revenue and earnings metrics.
CEO Kevin Coop highlighted this balance: “Our ability to deliver above guidance while navigating a challenging macro environment demonstrates our operational rigor. We are confident in the strength of our core offerings and our capacity to create long-term value for stakeholders.”
The leadership also pointed to sustained demand for healthcare commercial intelligence as healthcare organizations continue to face complexity and fragmentation. Definitive’s integrated datasets, proprietary analytics, and user-friendly platforms remain well-positioned to meet evolving market needs.
Updated Guidance Reflects Confidence in 2025 Outlook
Looking ahead, Definitive Healthcare issued updated guidance for both the second quarter and full fiscal year 2025. The company modestly raised the lower end of its full-year revenue forecast, reflecting optimism around ongoing customer traction and momentum in digital engagement channels.
Q2 2025 Guidance:
- Revenue: $58.5 – $60.0 million
- Adjusted Operating Income: $12.0 – $13.0 million
- Adjusted EBITDA: $15.0 – $16.0 million (25 – 27% margin)
- Adjusted Net Income: $6.5 – $7.5 million
- Adjusted EPS (Diluted): $0.04 – $0.05 on ~147.9 million shares
Full-Year 2025 Guidance:
- Revenue: $234.0 – $240.0 million (raising the prior lower bound by $4.0 million)
- Adjusted Operating Income: $49.0 – $53.0 million
- Adjusted EBITDA: $61.0 – $65.0 million (26 – 28% margin)
- Adjusted Net Income: $30.0 – $34.0 million
- Adjusted EPS (Diluted): $0.20 – $0.23 on ~148.8 million shares
The company emphasized that it does not provide GAAP-to-non-GAAP reconciliations for forward-looking guidance due to the unpredictable nature of certain excluded items, such as equity-based compensation and restructuring expenses. These variables can significantly impact GAAP results but are excluded from internal performance assessments.
Definitive Healthcare’s first quarter performance in fiscal year 2025 underscores a nuanced narrative. While headline GAAP figures were marred by a substantial goodwill impairment, core operational performance exceeded expectations. Solid cash flow, improving sales execution, and early success in digital partnerships provide encouraging signs for the remainder of the year.
The company’s leadership remains confident that its differentiated platform and data offerings will continue to drive long-term value, even as macroeconomic conditions evolve.
