Revenue growth has turned negative, with a -5.5% year-over-year decline in 2026Q1, while gross margins have eroded significantly from historical peaks near 80% to 59.6% in the most recent quarter.
| Sales/Revenue | 238.26M | 241.52M | 252.2M | 251.41M | 222.65M | 166.15M | 118.32M | 85.5M |
| Revenue Growth % | -3.89% | -4.24% | 0.31% | 12.92% | 34% | 40.43% | 38.38% | - |
| Cost of Goods Sold | 65.42M | 58.25M | 54.73M | 47.48M | 42.63M | 40.69M | 30.47M | 43.04M |
| COGS % of Revenue | - | 24.12% | 21.7% | 18.89% | 19.14% | 24.49% | 25.75% | 50.33% |
| Gross Profit | 172.84M | 183.28M | 197.47M | 203.93M | 180.03M | 125.47M | 87.85M | 42.47M |
| Gross Margin % | 72.54% | 75.88% | 78.3% | 81.11% | 80.86% | 75.51% | 74.25% | 49.67% |
| Gross Profit Growth % | - | -7.19% | -3.17% | 13.28% | 43.49% | 42.82% | 106.86% | - |
| Operating Expenses | 13.47M | 203.86M | 908.29M | 533.73M | 224.07M | 152.78M | 103.73M | 44.64M |
| OpEx % of Revenue | - | 84.41% | 360.14% | 212.29% | 100.64% | 91.95% | 87.68% | 52.21% |
| Selling, General & Admin | 132M | 133.26M | 133.07M | 153.4M | 141.15M | 89.25M | 48.7M | 37.2M |
| SG&A % of Revenue | - | 55.18% | 52.76% | 61.01% | 63.39% | 53.72% | 41.16% | 43.5% |
| Research & Development | 31.97M | 34.78M | 36.52M | 42.44M | 34.89M | 18.57M | 11.06M | 7.45M |
| R&D % of Revenue | - | 14.4% | 14.48% | 16.88% | 15.67% | 11.17% | 9.35% | 8.71% |
| Other Operating Expenses | 1000K | 35.82M | 738.7M | 337.9M | 48.03M | 44.97M | 43.97M | 0 |
| Operating Income | 159.37M | -20.58M | -710.82M | -329.8M | -44.04M | -27.32M | -15.89M | -2.17M |
| Operating Margin % | 66.89% | -8.52% | -281.85% | -131.18% | -19.78% | -16.44% | -13.43% | -2.54% |
| Operating Income Growth % | - | 97.1% | -115.53% | -648.81% | -61.23% | -71.96% | -630.39% | - |
| EBITDA | 210.23M | 15.23M | -659.15M | -278.05M | 12.86M | 32.63M | 43.7M | 31.36M |
| EBITDA Margin % | 88.24% | 6.31% | -261.36% | -110.59% | 5.78% | 19.64% | 36.93% | 36.68% |
| EBITDA Growth % | 125.43% | 102.31% | -137.06% | -2261.96% | -60.59% | -25.32% | 39.32% | - |
| D&A (Non-Cash Add-back) | 50.86M | 35.82M | 51.67M | 51.75M | 56.9M | 59.95M | 59.58M | 33.54M |
| EBIT | -39.26M | -197.97M | -618.91M | -292.98M | -30.68M | -36.87M | -16.11M | -18.03M |
| Net Interest Income | -5.29M | -4.34M | -245K | -1.56M | -8.41M | -25.87M | -36.49M | 0 |
| Interest Income | 6.2M | 6.95M | 14.59M | 13.64M | 2.79M | 29K | 0 | 18.37M |
| Interest Expense | 11.48M | 11.29M | 14.84M | 15.2M | 11.2M | 25.9M | 36.49M | 18.37M |
| Other Income/Expense | -398.43M | -188.67M | 77.08M | 21.62M | 2.17M | -35.45M | -36.71M | -34.22M |
| Pretax Income | -239.07M | -209.26M | -633.75M | -308.18M | -41.88M | -62.77M | -52.6M | -36.4M |
| Pretax Margin % | -100.34% | -86.64% | -251.28% | -122.58% | -18.81% | -37.78% | -44.46% | -42.57% |
| Income Tax | -2.51M | -9.96M | -42.3M | -18.55M | -17.7M | -443K | 0 | 0 |
| Effective Tax Rate % | 1.05% | 4.76% | 6.67% | 6.02% | 42.26% | 0.71% | 0% | 0% |
| Net Income | -170.32M | -138.93M | -413.12M | -202.39M | -7.22M | -51.91M | -52.6M | -36.4M |
| Net Margin % | -71.49% | -57.52% | -163.81% | -80.5% | -3.24% | -31.24% | -44.46% | -42.57% |
| Net Income Growth % | 66.66% | 66.37% | -104.12% | -2702.38% | 86.09% | 1.31% | -44.51% | - |
| Net Income (Continuing) | -236.56M | -199.3M | -591.45M | -289.63M | -24.18M | -62.32M | -52.6M | -36.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 44.47M | 97.88M | 162.82M | 337.82M | 533.03M | 628.52M | 0 | 0 |
| EPS (Diluted) | -1.63 | -1.30 | -3.54 | -1.79 | -0.07 | -0.19 | -0.53 | -0.24 |
| EPS Growth % | 63.08% | 63.28% | -97.77% | -2407% | 62.42% | 64.15% | -120.83% | - |
| EPS (Basic) | - | -1.30 | -3.54 | -1.79 | -0.07 | -0.19 | -0.53 | -0.24 |
| Diluted Shares Outstanding | 104.68M | 106.65M | 116.64M | 112.76M | 101.11M | 97.03M | 97.03M | 149.1M |
| Basic Shares Outstanding | 104.68M | 106.65M | 116.64M | 112.76M | 101.11M | 97.03M | 97.03M | 149.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent Revenue Contraction
As indicated by the most recent quarterly data, Definitive Healthcare's revenue has experienced a sustained decline, with the company reporting a -5.5% year-over-year contraction in 2026Q1, signaling that the firm is struggling to maintain its top-line momentum amidst potential market saturation or increased customer churn.
The consistent negative growth trajectory across the last several quarters suggests that the company's core subscription model is facing headwinds in both new logo acquisition and expansion within existing accounts. Investors should monitor whether this trend reflects a structural shift in demand for healthcare commercial intelligence or merely a temporary cyclical adjustment in Biopharma and MedTech spending.
Based on the provided financial statements, Definitive Healthcare's gross margin has shown significant instability, dropping to 59.6% in 2026Q1 from historical peaks near 80%, which suggests that the company's cost of data acquisition and platform maintenance is becoming increasingly difficult to manage relative to its revenue.
While the business model theoretically benefits from high incremental margins, the recent compression indicates that the cost structure is not as scalable as previously anticipated. This volatility warrants further investigation into whether the company is incurring higher data ingestion costs or if pricing power is being eroded by competitive pressures in the healthcare data space.
According to the reported income statements, Definitive Healthcare has failed to demonstrate positive operating leverage, as SG&A expenses continue to consume a disproportionate share of gross profit, resulting in an operating margin of -8.6% in the most recent quarter despite the company's established data infrastructure.
The inability to scale operating income faster than gross profit suggests that the company's sales and marketing engine is currently inefficient. Without a clear path to reducing these overhead costs, the firm may continue to face significant bottom-line pressure regardless of its ability to stabilize revenue.
As reported in financial filings, Definitive Healthcare's net income remains deeply negative, with a -57.52% net margin in recent periods, a figure that is heavily influenced by substantial stock-based compensation expenses that consistently exceed $5 million per quarter, complicating the assessment of true operational profitability.
The wide gap between gross profit and net income suggests that non-operating items and heavy reliance on equity-based incentives are significantly distorting the company's earnings quality. Analysts should focus on whether these compensation levels are sustainable or if they represent a recurring drag on shareholder value that obscures the underlying cash-generating capability of the business.
Based on the latest financial data, the primary challenge to the investment thesis is the company's inability to convert its proprietary data moat into profitable growth, as evidenced by the -4.24% average revenue decline and the persistent reliance on cash reserves to fund ongoing operational deficits.
Short-sellers would likely focus on the potential for permanent margin compression and the risk that the company's 'commercial intelligence' is becoming a commoditized service. If the firm cannot demonstrate a return to positive revenue growth and operating efficiency, the current cash buffer may be insufficient to support long-term product innovation and market competitiveness.
Quick answers to the most common questions about buying DH stock.
For fiscal year 2025, Definitive Healthcare Corp. (DH) reported total revenue of $241.5M. This represents a 182.5% increase compared to $85.5M in 2019.
Definitive Healthcare Corp. (DH) reported a net loss of $138.9M for the fiscal year ending 2025.
Definitive Healthcare Corp. (DH) reported an operating income of $-20.6M, resulting in an operating profit margin of -8.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Definitive Healthcare Corp. (DH) generated $183.3M in gross profit for the year, representing a gross profit margin of 75.9%. This demonstrates the company's core pricing power and production efficiency.