Definitive Healthcare Reports $60M Revenue in Q3 2025, Down 4% Year-Over-Year

Definitive Healthcare Corp. reported a revenue of $60.0 million for the third quarter of 2025, a decrease of 4% from $62.7 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $180.0 million, down from $189.9 million in the prior year. The decline in revenue was primarily attributed to a drop in subscription revenue, which fell by $10.9 million year-over-year, although professional services revenue increased slightly. The company’s net loss for the quarter was $17.8 million, compared to a loss of $187.8 million in the same quarter of 2024, reflecting a significant reduction in operating expenses due to the absence of a goodwill impairment charge that had impacted the previous year.

In terms of operational metrics, Definitive Healthcare's customer base decreased to approximately 2,400 as of September 30, 2025, down from 2,570 a year earlier. The company reported a net dollar retention rate (NDR) that reflects the percentage of annual recurring revenue retained from existing customers, which is a critical indicator of customer engagement and revenue stability. The company has also been focusing on expanding its platform and enhancing customer relationships, which it believes will drive future growth.

Strategically, 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 medical technology sector. The company has also undergone significant organizational changes, including a restructuring plan initiated in early 2024, which involved a workforce reduction aimed at improving operational efficiency and profitability.

Financially, the company reported total assets of $755.5 million as of September 30, 2025, a decrease from $1.1 billion at the end of 2024. This decline was largely due to a reduction in goodwill and intangible assets, which fell significantly following the goodwill impairment charge recorded earlier in the year. The company’s cash and cash equivalents stood at $108.3 million, with short-term investments totaling $77.6 million. Looking ahead, Definitive Healthcare anticipates continued challenges in customer retention and revenue growth due to macroeconomic conditions, but remains focused on leveraging its platform to capture new business opportunities and enhance existing customer relationships.