[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section details Definitive Healthcare's recent financial results and updated business outlook for 2025 [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Q2 2025 revenue decreased 5% to $60.8M, net loss significantly improved, and full-year guidance was raised Q2 2025 Key Financial Metrics | Metric | Q2 2025 (M) | Q2 2024 (M) | Change | | :--- | :--- | :--- | :--- | | Revenue | $60.8M | $63.7M | -5% | | Net Loss | $(9.3)M | $(306.2)M | N/A | | Adjusted Net Income | $9.7M | $14.2M | -31.7% | | Adjusted EBITDA | $18.7M | $20.9M | -10.5% | | Adjusted EBITDA Margin | 31% | 33% | -200 bps | | Cash Flow from Operations | $9.3M | N/A | N/A | | Unlevered Free Cash Flow | $11.5M | N/A | N/A | - The significant reduction in Net Loss year-over-year is primarily due to the absence of the **$363.6 million** goodwill impairment charge that was recorded in Q2 2024[4](index=4&type=chunk) - Citing progress in the first half of the year, the company is increasing the midpoint of its revenue guidance and raising its adjusted EBITDA outlook for the full year 2025[4](index=4&type=chunk) [Recent Business and Operating Highlights](index=2&type=section&id=Recent%20Business%20and%20Operating%20Highlights) The company secured new and expanded customer contracts, highlighting superior data quality and custom reporting capabilities - Definitive Healthcare continues to win new logos and expand existing relationships across all its end-markets[5](index=5&type=chunk) - Key competitive advantages highlighted in recent wins include superior data quality, custom reporting capabilities (especially for claims analytics), and seamless integration with other platforms like HubSpot[5](index=5&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) The company issued Q3 2025 guidance and updated its full-year 2025 outlook, raising revenue and Adjusted EBITDA forecasts [Third Quarter 2025 Guidance](index=3&type=section&id=Third%20Quarter%202025%20Guidance) Specific financial guidance for Q3 2025, including revenue and profitability ranges, has been provided Q3 2025 Financial Guidance | Metric | Guidance Range (M) | | :--- | :--- | | Revenue | $59.0M – $60.0M | | Adjusted Operating Income | $12.5M – $13.5M | | Adjusted EBITDA | $15.5M – $16.5M | | Adjusted EBITDA Margin | 26% – 28% | | Adjusted Net Income | $7.5M – $8.5M | | Adjusted Net Income Per Diluted Share | $0.05 – $0.06 | [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) Definitive Healthcare updated its full-year 2025 financial guidance, increasing revenue and Adjusted EBITDA projections Full Year 2025 Financial Guidance | Metric | Guidance Range (M) | | :--- | :--- | | Revenue | $237.0M – $240.0M | | Adjusted Operating Income | $52.0M – $55.0M | | Adjusted EBITDA | $64.0M – $67.0M | | Adjusted EBITDA Margin | 27% – 28% | | Adjusted Net Income | $32.5M – $34.5M | | Adjusted Net Income Per Diluted Share | $0.22 – $0.23 | - The company raised the bottom end of its prior full-year revenue range by **$3.0 million**[10](index=10&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $770.1M as of June 30, 2025, primarily due to reduced goodwill, while liabilities also declined Key Balance Sheet Items (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $80,984 | $105,378 | | Goodwill | $216,752 | $393,283 | | Total assets | $770,145 | $1,089,389 | | Term loan (Current + Long term) | $169,035 | $243,118 | | Total liabilities | $358,912 | $482,195 | | Total equity | $411,233 | $607,194 | [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue was $60.8M, with net loss significantly improving to $(9.3)M due to the absence of goodwill impairment Statement of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $60,750 | $63,737 | | Gross Profit | $46,613 | $50,454 | | Loss from Operations | $(4,170) | $(369,641) | | Goodwill Impairment | $0 | $363,641 | | Net Loss | $(9,265) | $(306,187) | | Net Loss per Share | $(0.07) | $(1.81) | - For the six months ended June 30, 2025, the company recorded a goodwill impairment charge of **$176.5 million**[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $9.3M in Q2 2025, with significant cash used in financing activities, leading to a net decrease Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,304 | $35,370 | | Net cash (used in) provided by investing activities | $(10,162) | $73,383 | | Net cash used in financing activities | $(24,700) | $(134,406) | | Net (decrease) in cash | $(25,558) | $(25,653) | | Cash and cash equivalents, end of period | $80,984 | $80,984 | - Significant cash outflows in financing activities for the six-month period included repayments of the term loan (**$248.4M**), repurchases of Class A Common Stock (**$40.2M**), and payments under the tax receivable agreement (**$13.8M**), partially offset by proceeds from a new term loan (**$175.0M**)[33](index=33&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles the company's non-GAAP financial measures to their most directly comparable GAAP equivalents [Explanation of Non-GAAP Financial Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA to assess core operational performance by excluding non-recurring items - The company presents non-GAAP financial measures to help investors evaluate its core operations by excluding certain significant or unusual items[19](index=19&type=chunk) - Key non-GAAP measures include **Unlevered Free Cash Flow**, **Adjusted EBITDA**, **Adjusted Gross Profit**, **Adjusted Operating Income**, and **Adjusted Net Income**[20](index=20&type=chunk) - **Adjusted EBITDA** is a key metric used by management and the board to assess profitability, excluding items like interest, taxes, depreciation, amortization, equity-based compensation, and goodwill impairments[22](index=22&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed tables reconcile GAAP results to non-GAAP metrics, including Unlevered Free Cash Flow, Adjusted Net Income, and EBITDA [Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Cash%20Flow%20to%20Unlevered%20Free%20Cash%20Flow) This table reconciles GAAP net cash provided by operating activities to Unlevered Free Cash Flow (Non-GAAP) Unlevered Free Cash Flow Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities (GAAP) | $9,304 | $14,040 | | Less: Purchases of property, equipment, etc. | $(2,293) | $(410) | | Add: Interest paid in cash | $2,959 | $3,590 | | Add: Transaction, integration, and restructuring expenses | $672 | $1,804 | | Add: Other non-core items | $836 | $2,438 | | **Unlevered Free Cash Flow (Non-GAAP)** | **$11,478** | **$21,462** | [Reconciliation of GAAP Net Loss to Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20Net%20Income) This table reconciles the GAAP net loss to the Adjusted Net Income (Non-GAAP) by detailing various adjustments Adjusted Net Income Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net loss (GAAP) | $(9,265) | $(306,187) | | Adjustments (Amortization, Equity Comp, Goodwill, etc.) | $18,809 | $377,802 | | Adjusted Operating Income | $15,639 | $19,304 | | Less: Other adjustments (Interest, Taxes, etc.) | $(5,963) | $(5,149) | | **Adjusted Net Income (Non-GAAP)** | **$9,676** | **$14,155** | | **Adjusted Net Income Per Diluted Share** | **$0.07** | **$0.09** | [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=16&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA) This table reconciles GAAP net loss to Adjusted EBITDA (Non-GAAP) by adding back interest, taxes, D&A, and other adjustments Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net loss (GAAP) | $(9,265) | $(306,187) | | Add: Interest, Taxes, D&A | $16,035 | $(8,937) | | EBITDA | $6,770 | $(315,253) | | Add: Other adjustments (Equity Comp, Goodwill, etc.) | $11,886 | $336,172 | | **Adjusted EBITDA (Non-GAAP)** | **$18,656** | **$20,919** | | **Adjusted EBITDA Margin** | **31%** | **33%** | [Other Information](index=4&type=section&id=Other%20Information) This section provides details on the upcoming conference call and important forward-looking statements [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Definitive Healthcare will host a conference call on August 7, 2025, to discuss Q2 2025 financial results - A conference call to discuss Q2 2025 results is scheduled for August 7, 2025, at 5:00 p.m. EDT[11](index=11&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance, subject to risks that could cause actual results to differ - The report includes forward-looking statements concerning financial guidance, future prospects, and market conditions, which are not guarantees of future performance[13](index=13&type=chunk) - Key risks that could cause actual results to differ include geopolitical tension, macroeconomic conditions, inability to acquire new customers, market competition, and potential security breaches[14](index=14&type=chunk)

Core Viewpoint - Definitive Healthcare Corp. will report its financial results for the second quarter of 2025 on August 7, 2025, after market close, and will host a conference call to discuss these results [1]. Group 1 - The financial results will cover the period ended June 30, 2025 [1]. - A conference call and webcast will take place at 5:00 PM (ET) / 2:00 PM (PT) on the same day [1]. - The event will be accessible via a live audio webcast on the company's Investor Relations website [2]. Group 2 - A live dial-in option will be available for participants, with domestic and international numbers provided [2]. - A replay of the conference call will be available until September 6, 2025, with specific access numbers and a passcode [2]. Group 3 - Definitive Healthcare aims to transform data, analytics, and expertise into healthcare commercial intelligence, helping clients identify markets and opportunities [3]. - The company offers SaaS products and solutions designed to facilitate commercial success in the healthcare market [3].

Core Viewpoint - Definitive Healthcare Corp. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, but down from $0.08 per share a year ago, indicating a 150% earnings surprise [1][2] Financial Performance - The company achieved revenues of $59.19 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.71%, although this represents a decline from $63.48 million in the same quarter last year [2] - Over the last four quarters, Definitive Healthcare has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Definitive Healthcare shares have declined approximately 33.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $58.14 million, and for the current fiscal year, it is $0.21 on revenues of $234.84 million [7] Industry Outlook - The Internet - Software industry, to which Definitive Healthcare belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $59.2 million, down 7% year over year, but above the high end of guidance [5][21] - Adjusted EBITDA was $14.7 million, representing a 25% margin, which was well ahead of expectations [6][21] - Unlevered free cash flow for the trailing twelve months was $67.1 million, down 12% year over year, with a 91% conversion from adjusted EBITDA [27][28] Business Line Data and Key Metrics Changes - Subscription revenue declined 7% year over year, while Professional Services revenue grew by 9% in the quarter [23] - Adjusted gross profit was $47.1 million, down 11% from Q1 2024, with an adjusted gross profit margin of 79.5% [23] - Adjusted operating income was $12 million, down 35% from Q1 2024, with an adjusted EBITDA margin of 25% [26] Market Data and Key Metrics Changes - Renewal rates stabilized in Q1 at levels observed in the second half of 2024, but retention rates remain lower than desired [8][9] - New logo activity was solid across all end markets, indicating ongoing demand for differentiated actionable data [8] Company Strategy and Development Direction - The company is focusing on four strategic pillars: differentiated data, seamless integration, customer success, and digital engagement [9][18] - The goal is to improve retention rates and return to growth by enhancing the value proposition and performance across these areas [18] - The company is committed to managing costs while identifying additional ways to drive efficiencies [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational strategies despite economic uncertainties, aiming for sequential revenue growth in the near term [19] - The company is tightening its revenue guidance for 2025 to $234 million to $240 million, reflecting a 5% to 7% decline year over year [33] Other Important Information - The company repurchased approximately 5.6 million shares for a total of $21.2 million, leaving $77 million remaining under the existing authorization [29] - A goodwill impairment of $176.5 million was recorded due to stock price decline, which is a non-cash accounting charge [30] Q&A Session Summary Question: Can you elaborate on data integrations and their impact on retention? - Management indicated that data sharing and integration are crucial for enhancing customer retention, with a focus on facilitating data interactions through various platforms [37][39] Question: What is the agency strategy and its impact on the go-to-market motion? - The agency strategy is seen as applicable across all customer segments, aiming to leverage differentiated data to help customers activate their data effectively [41][43] Question: What is the expected timeframe for seeing growth inflection from operational changes? - Management expects to see signs of growth within the year as operational changes take effect, with a focus on aligning support functions and customer engagement [45][47] Question: How does the company plan to address churn and customer retention? - Management noted that while churn remains a challenge, stabilization is encouraging, and operational actions are expected to improve renewal rates later in the year [77][78] Question: What is the competitive environment like, especially against other pharma services companies? - Management acknowledged pressures in the Life Sciences sector due to macroeconomic factors but emphasized the company's focus on quality data as a competitive advantage [78][80]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $59.2 million, down 7% year over year, but above the high end of guidance [5][21] - Adjusted EBITDA was $14.7 million, representing a 25% margin, which was well ahead of expectations [6][21] - Unlevered free cash flow for the trailing twelve months was $67.1 million, down 12% year over year, with a 91% conversion from adjusted EBITDA [27][28] Business Line Data and Key Metrics Changes - Subscription revenue declined 7% year over year, while Professional Services revenue grew 9% in the quarter [23] - Adjusted gross profit was $47.1 million, down 11% from Q1 2024, with a gross profit margin of 79.5% [23] - Adjusted operating income was $12 million, down 35% from Q1 2024, with an operating income margin of 20% [26] Market Data and Key Metrics Changes - New logo activity was solid across all end markets, indicating ongoing demand for differentiated actionable data [7] - Renewal rates stabilized in Q1 at levels observed in the second half of 2024, but retention rates remain lower than desired [7][8] Company Strategy and Development Direction - The company is focusing on four strategic pillars: differentiated data, seamless integration, customer success, and digital engagement [9][18] - There is a commitment to improving retention rates and enhancing the value proposition through targeted investments in data quality and customer engagement [18][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational strategies despite lower retention rates, indicating a lag in seeing the positive impacts of changes made [8][19] - The company remains on track to meet full-year financial targets, with expectations for sequential revenue growth in the near term [19][33] Other Important Information - The company experienced a goodwill impairment of $176.5 million due to stock price decline, which is a non-cash accounting charge [29] - The company repurchased approximately 5.6 million shares for a total of $21.2 million, leaving $77 million remaining under the existing authorization [28] Q&A Session Summary Question: Can you elaborate on data integrations and challenges? - Management indicated that data sharing and integration depend on various factors, including data security and system compatibility, and they are working to facilitate these integrations [36][40] Question: What is the agency strategy and its impact on the go-to-market motion? - The agency strategy is seen as a logical next step to help customers activate data, applicable across all customer segments, with expectations for contributions this year [41][43] Question: What is the expected timeframe for seeing growth inflection? - Management anticipates seeing improvements in growth rates within the year as operational changes take effect [46][48] Question: How does the company plan to win back customers? - The company believes that high-quality data and service will create a competitive advantage, allowing them to win back former customers while also acquiring new ones [49][50] Question: What is the churn rate and competitive environment? - Churn rates were consistent with the second half of the previous year, and while there are pressures in the market, management has not observed significant changes in competitive dynamics [77][78]

Q1 2025 Performance - Total revenue decreased by 7% year-over-year to $59.2 million[16] - Adjusted EBITDA declined by 27% year-over-year, reaching $14.7 million[18] - Adjusted EBITDA margin contracted by 670 basis points year-over-year to 25%[18] - Unlevered Free Cash Flow (uFCF) was $22.9 million, a 19% decrease year-over-year[21] - Cash, cash equivalents, and short-term investments totaled $200.7 million, a 32% decrease year-over-year[21] Revenue Mix - Subscription revenue, constituting 97% of the total, experienced a 7% year-over-year decline[17] - Professional Services revenue, accounting for 3% of the total, grew by 9% year-over-year[17] Q2 and FY 2025 Guidance - The company projects Q2 2025 revenue to be between $58.5 million and $60.0 million, representing a year-over-year decrease of 8% to 6%[25] - The company anticipates full-year 2025 revenue to be between $234.0 million and $240.0 million, a year-over-year decrease of 7% to 5%[25] - The company expects full-year 2025 Adjusted EBITDA to be between $61.0 million and $65.0 million, representing 26% to 28% of revenue[25] Shareholder Statistics - Sponsor ownership (as-if converted) is 77,778,491 shares, representing 52.3% of total ownership[30] - Management, Directors & employees ownership is 25,424,644 shares, representing 17.1% of total ownership[30] - Float is 45,438,239 shares, representing 30.6% of total ownership[30]

Part I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) For the quarter ended March 31, 2025, Definitive Healthcare reported a significant net loss of **$155.1 million**, primarily due to a **$176.5 million** goodwill impairment, with revenue decreasing **7%** to **$59.2 million** and total assets declining to **$808.7 million** [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$808.7 million** from **$1,089.4 million** as of March 31, 2025, primarily due to goodwill impairment, while total liabilities also declined to **$372.8 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$808,657** | **$1,089,389** | | Cash and cash equivalents | $106,099 | $105,378 | | Goodwill | $216,752 | $393,283 | | **Total Liabilities** | **$372,752** | **$482,195** | | Term loan (current & long-term) | $171,135 | $243,118 | | Tax receivable agreements liability | $23,124 | $49,511 | | **Total Equity** | **$435,905** | **$607,194** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue decreased **6.8%** to **$59.2 million**, resulting in a **$184.8 million** operating loss due to a **$176.5 million** goodwill impairment, leading to a **$107.2 million** net loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $59,191 | $63,480 | | Gross Profit | $43,760 | $50,382 | | Goodwill Impairment | $176,531 | $0 | | Loss from Operations | ($184,786) | ($16,249) | | Net Loss | ($155,093) | ($12,718) | | Net Loss Attributable to Definitive Healthcare Corp. | ($107,228) | ($9,518) | | Net Loss Per Share (Basic and Diluted) | ($0.95) | ($0.08) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$26.1 million** in Q1 2025, while financing activities used **$109.7 million** for debt repayment and share repurchases, maintaining cash at **$106.1 million** Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,066 | $16,589 | | Net cash provided by (used in) investing activities | $83,545 | ($24,034) | | Net cash used in financing activities | ($109,706) | ($17,194) | | Cash and cash equivalents, end of period | $106,099 | $105,994 | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a **$176.5 million** goodwill impairment, a new **$175.0 million** term loan, **5.6 million** share repurchases for **$21.2 million**, and a **$20.7 million** TRA liability remeasurement gain - In Q1 2025, a sustained decrease in the company's stock price triggered a quantitative goodwill impairment test, resulting in a non-cash, pre-tax goodwill impairment charge of **$176.5 million**[56](index=56&type=chunk) - On January 16, 2025, the company amended its credit agreement, establishing a new **$175.0 million** term loan facility and a **$50.0 million** revolving credit facility, maturing in January 2030. Proceeds were used to repay existing debt[64](index=64&type=chunk)[65](index=65&type=chunk) - During Q1 2025, the company repurchased **5.6 million** shares of Class A Common Stock for an aggregate price of **$21.2 million** under its 2025 Repurchase Program[101](index=101&type=chunk) - The Tax Receivable Agreement (TRA) liability decreased by **$34.7 million** in Q1 2025, primarily due to a **$20.7 million** remeasurement gain and **$13.8 million** in payments to TRA parties[114](index=114&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **7%** revenue decrease to **$59.2 million** in Q1 2025, impacted by sales challenges and a **$176.5 million** goodwill impairment, with Adjusted EBITDA at **$14.7 million** [Recent Developments and Challenges](index=39&type=section&id=Recent%20Developments%20and%20Challenges) Recent challenges include a **$176.5 million** goodwill impairment, sales disruptions from a 2024 restructuring reducing **~150** employees, and macroeconomic pressures causing longer deal cycles and higher customer churn - A goodwill impairment charge of **$176.5 million** was recorded in Q1 2025 due to a sustained decrease in the company's stock price and market capitalization[133](index=133&type=chunk) - The 2024 Restructuring Plan, which reduced the workforce by **~150** people, created disruptions to sales efforts, impacting new customer acquisition and upsells[135](index=135&type=chunk)[137](index=137&type=chunk) - The company is experiencing difficult macroeconomic conditions, leading to lengthened deal cycles, deferred purchasing decisions, and heightened customer churn, particularly in the Life Sciences market and with smaller customers[139](index=139&type=chunk) [Key Metrics and Performance](index=41&type=section&id=Key%20Metrics%20and%20Performance) Key metrics show total customers decreased to **~2,475** and enterprise customers to **512** in Q1 2025, with current RPO declining to **$181.8 million**, reflecting macroeconomic challenges Customer Count Trend (Updated Methodology) | Metric | March 31, 2024 | March 31, 2025 | | :--- | :--- | :--- | | Total Customers | ~2,700 | ~2,475 | | Enterprise Customers | 541 | 512 | Remaining Performance Obligations (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current RPO (cRPO) | $181,772 | $188,050 | | Total RPO | $281,574 | $293,723 | [Results of Operations Comparison (Q1 2025 vs Q1 2024)](index=47&type=section&id=Results%20of%20Operations%20Comparison) Q1 2025 revenue decreased **7%** to **$59.2 million**, while operating expenses surged to **$228.5 million** due to a **$176.5 million** goodwill impairment, partially offset by increased other income - Revenue decreased by **7%** YoY, primarily due to a **$6.9 million** decrease in revenue from customers existing prior to 2025, partially offset by a **$2.6 million** increase from new customers[175](index=175&type=chunk) - Operating expenses increased by **243%** YoY, driven by the **$176.5 million** goodwill impairment. This was partially offset by a **$7.3 million** decrease in transaction, integration, and restructuring expenses, as the prior year included significant costs from the 2024 Restructuring Plan[177](index=177&type=chunk) [Non-GAAP Financial Measures](index=50&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted Gross Profit was **$47.1 million** (**80%** margin) in Q1 2025, while Adjusted EBITDA decreased to **$14.7 million** (**25%** margin) from **$20.0 million** (**32%** margin) in Q1 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | ($155,093) | ($12,718) | | Goodwill impairment | $176,531 | $0 | | Equity-based compensation | $7,319 | $15,582 | | Transaction, integration, and restructuring expenses | $1,265 | $8,534 | | **Adjusted EBITDA** | **$14,706** | **$20,023** | | **Adjusted EBITDA Margin** | **25%** | **32%** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity as of March 31, 2025, included **$106.1 million** cash and **$94.6 million** short-term investments, with **$49.7 million** available on the revolver, supporting operations for the next twelve months - Principal sources of liquidity are cash on hand (**$106.1 million**), short-term investments (**$94.6 million**), and availability under the revolving credit facility (**$49.7 million**)[192](index=192&type=chunk) - In Q1 2025, the company amended its credit agreement, resulting in a new **$175.0 million** term loan and a **$50.0 million** revolver. Net repayments on the term loan during the quarter were **$71.3 million**[201](index=201&type=chunk)[204](index=204&type=chunk) - The company repurchased **10.4 million** shares in total under its repurchase programs as of March 31, 2025[212](index=212&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risk is interest rate exposure on the **$172.8 million** variable-rate term loan, where a **1.0%** increase would raise quarterly interest expense by approximately **$0.4 million**, mitigated by interest rate caps - The company is subject to interest rate risk on its **$172.8 million** term loan. A hypothetical **1.0%** increase in interest rates would impact quarterly interest expense by approximately **$0.4 million**[223](index=223&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO have concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[225](index=225&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[226](index=226&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not anticipate a material adverse effect on its financial position or operations - The company states that the ultimate resolution of current legal proceedings is not expected to have a material adverse effect on its financials[230](index=230&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the 2024 Annual Report on Form 10-K filing - No material changes to risk factors have occurred since the 2024 Form 10-K filing[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company issued **441,443** Class A Common Stock shares for LLC Units and repurchased **5,604,751** shares at an average price of **$3.75** per share - In Q1 2025, **441,443** LLC Units were exchanged for an equivalent number of Class A Common Stock shares[232](index=232&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2025 | 940,134 | $4.58 | | Feb 2025 | 1,700,622 | $4.94 | | Mar 2025 | 2,963,995 | $2.81 | | **Total** | **5,604,751** | **$3.75** | [Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reported no defaults upon senior securities[235](index=235&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company reported no other information under this item - The company reported no other information under this item[237](index=237&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and corporate agreements incorporated by reference

[Definitive Healthcare Q1 2025 Earnings Release](index=1&type=section&id=Definitive%20Healthcare%20Reports%20Financial%20Results%20for%20First%20Quarter%20Fiscal%20Year%202025) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Q1 2025 results surpassed guidance despite a revenue decline, impacted by a significant goodwill impairment Q1 2025 Key Financial Metrics | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $59.2M | $63.5M | -7% | | Net Loss | $(155.1)M | $(12.7)M | Increased Loss | | Adjusted Net Income | $7.0M | $13.0M | -46% | | Adjusted EBITDA | $14.7M | $20.0M | -26.5% | | Adjusted EBITDA Margin | 25% | 32% | -7 pts | | Cash Flow from Operations | $26.1M | $16.6M (from Q1 2024 cash flow statement) | +57% | | Unlevered Free Cash Flow | $22.9M | $28.3M (from reconciliation) | -19% | - The company recorded a **goodwill impairment charge of $176.5 million** in Q1 2025, the primary driver of the significant GAAP Net Loss[4](index=4&type=chunk) - CEO Kevin Coop stated that the results were **above the high end of guidance** and the company remains on track to meet full-year financial targets[4](index=4&type=chunk) [Recent Business and Operating Highlights](index=2&type=section&id=Recent%20Business%20and%20Operating%20Highlights) The company secured new customers and expanded key relationships across all end-markets in Q1 2025 - A medical device company selected the **Carevoyance platform** to identify high-value sales targets like ambulatory surgery centers and hospitals[5](index=5&type=chunk) - A regional health system is using the **Populi platform** to support service line expansions, physician recruitment, and telemedicine growth[5](index=5&type=chunk) - A leading office supply company **returned as a customer**, citing the superiority of Definitive Healthcare's data and Salesforce integration[5](index=5&type=chunk) - The company is expanding its focus on digital marketing activation by signing two leading healthcare advertising agencies[5](index=5&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) The company issued Q2 2025 guidance and raised the low end of its full-year 2025 revenue forecast - The company does not provide a quantitative reconciliation for forward-looking non-GAAP measures due to high variability in predicting certain excluded items[9](index=9&type=chunk) [Second Quarter 2025 Guidance](index=3&type=section&id=Second%20Quarter%202025%3A) The company anticipates Q2 2025 revenue between $58.5M and $60.0M and Adjusted EBITDA of $15.0M to $16.0M Q2 2025 Guidance | Metric | Q2 2025 Guidance | | :--- | :--- | | Revenue | $58.5M – $60.0M | | Adjusted Operating Income | $12.0M – $13.0M | | Adjusted EBITDA | $15.0M – $16.0M | | Adjusted EBITDA Margin | 25% – 27% | | Adjusted Net Income | $6.5M – $7.5M | | Adjusted Net Income Per Diluted Share | $0.04 – $0.05 | [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%3A) Full-year 2025 revenue guidance was raised to $234.0M-$240.0M, with Adjusted EBITDA of $61.0M-$65.0M Full Year 2025 Guidance | Metric | Full Year 2025 Guidance | | :--- | :--- | | Revenue | $234.0M – $240.0M | | Adjusted Operating Income | $49.0M – $53.0M | | Adjusted EBITDA | $61.0M – $65.0M | | Adjusted EBITDA Margin | 26% – 28% | | Adjusted Net Income | $30.0M – $34.0M | | Adjusted Net Income Per Diluted Share | $0.20 – $0.23 | - The company **raised the bottom end** of its prior full-year revenue guidance range by **$4.0 million**[10](index=10&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $808.7M, primarily due to a $176.5M goodwill impairment charge Key Balance Sheet Items (in thousands) | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $106,099 | $105,378 | | Goodwill | $216,752 | $393,283 | | Total Assets | $808,657 | $1,089,389 | | Total Liabilities | $372,752 | $482,195 | | Total Equity | $435,905 | $607,194 | [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue was $59.2M, with a net loss of $155.1M driven by a goodwill impairment charge Key Income Statement Items (in thousands) | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $59,191 | $63,480 | | Gross Profit | $43,760 | $50,382 | | Goodwill Impairment | $176,531 | $0 | | Loss from Operations | $(184,786) | $(16,249) | | Net Loss | $(155,093) | $(12,718) | | Net Loss Per Share (Basic & Diluted) | $(0.95) | $(0.08) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $26.1M in Q1 2025, up from $16.6M in the prior-year period Key Cash Flow Items (in thousands) | Cash Flow Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,066 | $16,589 | | Net cash provided by (used in) investing activities | $83,545 | $(24,034) | | Net cash used in financing activities | $(109,706) | $(17,194) | | Cash and cash equivalents, end of period | $106,099 | $105,994 | - Financing activities in Q1 2025 included **$21.2 million for repurchases** of Class A Common Stock and net debt repayment activity[33](index=33&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides definitions and reconciliations for non-GAAP measures to their closest GAAP equivalents - The company uses non-GAAP measures to provide a view of performance focused on core operations, excluding non-core or non-cash items[19](index=19&type=chunk)[22](index=22&type=chunk) - The **goodwill impairment charge of $176.5 million** was triggered by a sustained decrease in the company's stock price[44](index=44&type=chunk) [Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Cash%20Flow%20to%20Unlevered%20Free%20Cash%20Flow) Unlevered Free Cash Flow was $22.9M in Q1 2025, down from $28.3M in the prior-year quarter Reconciliation to Unlevered FCF (in thousands) | Reconciliation to Unlevered FCF (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,066 | $16,589 | | Less: Purchases of property, equipment, etc. | $(7,706) | $(266) | | Add: Interest paid in cash | $2,242 | $3,642 | | Add: Transaction, integration, etc. paid in cash | $1,763 | $8,264 | | Unlevered Free Cash Flow | $22,925 | $28,303 | [Reconciliation of GAAP Net Loss to Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20Net%20Income) Adjusted Net Income was $7.0M in Q1 2025, reconciled from a GAAP Net Loss of $155.1M Reconciliation to Adjusted Net Income (in thousands) | Reconciliation to Adjusted Net Income (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(155,093) | $(12,718) | | Adjustments (Goodwill, Amortization, etc.) | $167,071 | $25,760 | | Adjusted Net Income | $6,972 | $13,042 | | Adjusted Net Income Per Share | $0.05 | $0.08 | [Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin](index=15&type=section&id=Reconciliation%20of%20GAAP%20Gross%20Profit%20and%20Margin%20to%20Adjusted%20Gross%20Profit%20and%20Margin) Adjusted Gross Profit was $47.1M (80% margin) in Q1 2025, down from $53.1M (84% margin) in Q1 2024 Gross Profit Reconciliation (in thousands) | Gross Profit Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Reported gross profit | $43,760 (74%) | $50,382 (79%) | | Add: Amortization of intangible assets | $3,153 | $2,443 | | Add: Equity compensation costs | $160 | $271 | | Adjusted gross profit | $47,073 (80%) | $53,096 (84%) | [Reconciliation of GAAP Net Loss and Margin to Adjusted EBITDA and Margin](index=15&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20and%20Margin%20to%20Adjusted%20EBITDA%20and%20Margin) Adjusted EBITDA was $14.7M (25% margin) in Q1 2025, down from $20.0M (32% margin) in Q1 2024 EBITDA Reconciliation (in thousands) | EBITDA Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(155,093) | $(12,718) | | Add: Interest, Taxes, D&A | $3,812 | $11,793 | | EBITDA | $(151,274) | $(925) | | Add: Other adjustments (Goodwill, Equity Comp, etc.) | $165,980 | $20,948 | | Adjusted EBITDA | $14,706 | $20,023 | | Adjusted EBITDA Margin | 25% | 32% |

Core Insights - Definitive Healthcare Corp. reported first quarter results exceeding guidance for both revenue and earnings, driven by strong new customer acquisition and operational efficiency [3][4][6] - The company anticipates revenue for the second quarter of 2025 to be between $58.5 million and $60.0 million, with adjusted operating income expected to be between $12.0 million and $13.0 million [7][8] - For the full year 2025, revenue is projected to be in the range of $234.0 million to $240.0 million, with adjusted net income expected to be between $30.0 million and $34.0 million [13] Financial Performance - Revenue for Q1 2025 was $59.2 million, a decrease of 7% from $63.5 million in Q1 2024 [6] - The net loss for the quarter was $(155.1) million, or (262)% of revenue, compared to $(12.7) million or (20)% of revenue in Q1 2024 [6] - Adjusted net income was $7.0 million, down from $13.0 million in Q1 2024, while adjusted EBITDA was $14.7 million, or 25% of revenue, compared to $20.0 million, or 32% of revenue in Q1 2024 [6][31] Customer Acquisition and Business Development - The company secured several new customer wins in Q1 2025, including a California-based medical device company and a regional health system in the Southern US, highlighting the effectiveness of its data and insights [7] - Definitive Healthcare is expanding its focus on digital marketing activation partnerships, having signed two leading healthcare advertising agencies [7] Cash Flow and Operational Efficiency - Cash flow from operations was $26.1 million in the quarter, with unlevered free cash flow at $22.9 million [6] - The company continues to focus on operational efficiency despite rising macroeconomic uncertainty, maintaining a positive outlook for meeting full-year financial targets [3][4]

Financial Results Announcement - Definitive Healthcare Corp. will report its financial results for the first quarter ended March 31, 2025, on May 8, 2025, after market close [1] - A conference call and webcast will be held at 5:00 PM (ET) / 2:00 PM (PT) to discuss the financial results [1] Webcast and Replay Information - A live audio webcast of the event will be available on Definitive Healthcare's Investor Relations website [2] - A replay of the conference call will be available through June 7, 2025, with specific dial-in numbers and a passcode provided for access [2] Company Overview - Definitive Healthcare aims to transform data, analytics, and expertise into healthcare commercial intelligence, helping clients identify markets and opportunities [3] - The company's SaaS products and solutions are designed to create new paths to commercial success in the healthcare market [3]