Definitive Healthcare (US:DH)2025-11-06 21:14Financial Performance - Revenue for Q3 2025 was $60.0 million, a decrease of 4% from $62.7 million in Q3 2024[5] - Net Loss was $(17.8) million, or (30)% of revenue, compared to $(187.8) million in Q3 2024, which included goodwill impairment charges of $228.2 million[5] - Adjusted EBITDA was $18.9 million, or 32% of revenue, compared to $20.6 million, or 33% of revenue in Q3 2024[5] - Adjusted Net Income was $9.7 million, down from $15.4 million in Q3 2024[5] - Gross profit for Q3 2025 was $45,993,000, down from $49,031,000 in Q3 2024, reflecting a decline of 6.3%[33] - Operating expenses for Q3 2025 totaled $54,681,000, significantly lower than $274,398,000 in Q3 2024, indicating a reduction in costs[33] - The company reported a basic and diluted net loss per share of $0.14 for Q3 2025, an improvement from a loss of $1.12 per share in Q3 2024[33] - For the three months ended September 30, 2025, the net loss was $17,792 thousand, compared to a net loss of $187,824 thousand for the same period in 2024[35] - Adjusted Net Income for the three months ended September 30, 2025, was $9,673 thousand, down from $15,393 thousand in 2024, resulting in an Adjusted Net Income Per Diluted Share of $0.07 compared to $0.10[39] - The company reported a gross profit of $45,993 thousand for the three months ended September 30, 2025, representing a gross margin of 77%, compared to $49,031 thousand and 78% in 2024[40] - Unlevered Free Cash Flow for the three months ended September 30, 2025, was $17,941 thousand, down from $24,299 thousand in 2024[37] - Adjusted EBITDA for the nine months ended September 30, 2025, was $52,311,000, with a margin of 29%, down from $61,557,000, or 32%, in the same period of 2024[42] Cash Flow and Liquidity - Cash Flow from Operations was $15.7 million in the quarter[5] - Unlevered Free Cash Flow was $17.9 million in the quarter[5] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $51,057 thousand, slightly up from $50,061 thousand in 2024[37] - Total cash and cash equivalents at the end of the period were $108,317 thousand, compared to $137,609 thousand at the end of the same period in 2024[35] - The company reported capital expenditures of $2,281 thousand for the three months ended September 30, 2025, compared to $767 thousand in 2024[37] - The company had a net cash used in financing activities of $12,471 thousand for the three months ended September 30, 2025, compared to $12,065 thousand in 2024[37] Assets and Liabilities - Total assets decreased to $755,527,000 as of September 30, 2025, down from $1,089,389,000 at December 31, 2024[31] - Total liabilities were $365,857,000 as of September 30, 2025, a decrease from $482,195,000 at December 31, 2024[31] - Cash and cash equivalents increased to $108,317,000 from $105,378,000, reflecting a slight growth of 1.8%[31] - Class A Common Stock outstanding decreased to 103,011,649 shares as of September 30, 2025, down from 113,953,554 shares at December 31, 2024[31] - Total equity decreased to $389,670,000 as of September 30, 2025, down from $607,194,000 at December 31, 2024[31] Impairment and Expenses - The company incurred a Goodwill impairment charge of $228,153 thousand in the three months ended September 30, 2024, which significantly impacted the net loss for that period[39] - Goodwill impairment charges for the nine months ended September 30, 2025, amounted to $176,531,000, representing 98% of the total, compared to $591,794,000, or 312%, in the same period of 2024[44] - The company recognized transaction, integration, and restructuring expenses paid in cash amounting to $547 thousand for the three months ended September 30, 2025[38] - The company incurred total transaction, integration, and restructuring expenses of $7,245,000 for the nine months ended September 30, 2025, compared to $9,390,000 in the same period of 2024[45] - The integration costs for the nine months ended September 30, 2025, were $6,046,000, compared to $939,000 in the same period of 2024[45] Market Position and Future Outlook - For Q4 2025, revenue is expected to be in the range of $59.0 – $60.0 million[11] - Full Year 2025 revenue is expected to be in the range of $239.0 – $240.0 million, raising the bottom end of the prior range by $2.0 million[11] - Adjusted EBITDA for Full Year 2025 is expected to be in the range of $68.0 – $69.0 million, with an adjusted EBITDA margin of 28 – 29%[11] - The company secured new customer wins, including a large multi-national biopharma and a medical device company, enhancing its market position[6] Other Expenses - The company recognized a provision for income taxes of $524,000 for the three months ended September 30, 2025, which is 1% of revenue, compared to a benefit of $(13,724,000), or (22)%, in the same period of 2024[42] - The company reported interest expense of $1,331,000 for the three months ended September 30, 2025, which is 2% of revenue, compared to $7,000, or 0%, in the same period of 2024[42] - Non-core legal and regulatory expenses for the three months ended September 30, 2025, totaled $340,000, compared to $363,000 in the same period of 2024[47] - Equity-based compensation for the three months ended September 30, 2025, was $6,684,000, accounting for 11% of revenue, compared to $6,296,000, or 10%, in the same period of 2024[42] Market Capitalization - The company experienced a decline in market capitalization, triggering goodwill impairment tests, resulting in significant impairment charges[44]