Definitive Healthcare Reports 5% Revenue Decline in Q2 2025, Net Loss of $9.3 Million

Definitive Healthcare Corp. reported a decline in financial performance for the second quarter of 2025, with total revenue of $60.8 million, a decrease of 5% from $63.7 million in the same period last year. The company's subscription revenue fell by $3.8 million, while professional services revenue increased by $0.8 million. For the first half of 2025, revenue totaled $119.9 million, down from $127.2 million in the prior year. The company attributed the revenue decline to a decrease in revenue from existing customers, which fell by $7.9 million, partially offset by a $4.9 million increase from new customers.

Definitive Healthcare's operating expenses saw a significant reduction, dropping 88% to $50.8 million in the second quarter, primarily due to the absence of a goodwill impairment charge of $363.6 million recorded in the previous year. The company reported a net loss of $9.3 million for the quarter, compared to a loss of $306.2 million in the same period last year. The loss attributable to Definitive Healthcare Corp. was $7.6 million, with a basic net loss per share of $0.07, compared to a loss of $1.81 per share in the prior year.

In terms of strategic developments, Definitive Healthcare completed the acquisition of the Carevoyance business line from H1 Insights, Inc. for $13.7 million in January 2024. This acquisition is expected to enhance the company's offerings in the MedTech sector. The company also underwent a restructuring plan in early 2024, which included a workforce reduction of approximately 150 employees to improve operating margins and reduce costs. As of June 30, 2025, the company had approximately 2,400 customers, a decrease from 2,600 customers a year earlier, with a notable decline in its Enterprise Customer accounts.

Operationally, Definitive Healthcare reported a net dollar retention rate (NDR) that reflects the percentage of annual recurring revenue retained from existing customers, which has been impacted by macroeconomic conditions leading to increased customer churn, particularly among smaller clients. The company continues to face challenges in customer acquisition and upselling due to these market conditions. Looking ahead, Definitive Healthcare anticipates continued revenue pressure in 2025, driven by macroeconomic factors and changes in customer spending behavior. The company remains focused on expanding its platform and customer base while managing costs effectively.