Definitive Healthcare (DH) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 27, 2026 astatine 8:08 AM CST 35 min read

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Feb. 26, 2026 astatine 5 p.m. ET

• Chief Executive Officer — Kevin D. Coop

• Chief Financial Officer — Casey Heller

Kevin D. Coop: Thank you, Jonathan, and acknowledgment to each of you for joining america this day to reappraisal Definitive Healthcare Corp.'s 4th fourth 2025 fiscal results. On today's call, I volition supply highlights from our 4th fourth performance, reappraisal the operational advancement we person made successful 2025, and outline our cardinal strategical priorities for 2026. Let maine statesman by reviewing our fiscal results for the 4th quarter, which were astatine oregon supra the precocious extremity of our guidance ranges connected some the apical and bottommost line. Total gross was $61.5 million, down 1% twelvemonth implicit year. We outperformed our gross expectations connected some subscription and nonrecreational services revenues.

Adjusted EBITDA was $18.1 million, representing a borderline of 29%, which was $1.1 cardinal supra the precocious extremity of our guidance. Our continued beardown profitability show is simply a testament to the underlying powerfulness of our concern exemplary and our ongoing disbursal discipline. We proceed to make coagulated currency flow, delivering astir $55 cardinal of unlevered escaped currency travel for the trailing 12 months. Our fiscal show for 2025 compares favorably to the archetypal guidance we provided to investors past February. Setting due expectations and delivering accordant fiscal results with transparency was 1 of the promises I made to investors erstwhile I became CEO, and I americium pleased that we were capable to conscionable that nonsubjective successful 2025.

I would present similar to reappraisal our operational show for the year, supported by the 4 strategical pillars of information differentiation, integrations, lawsuit success, and innovation that we laid retired for investors astatine the opening of 2025. Before going into much detail, I bash privation to stress that we person made strong, meaningful advancement successful each country and tin confidently study that arsenic we participate 2026, we person a overmuch stronger instauration for the future. While we are seeing improvements successful each areas of focus, the expected benefits from these improvements volition instrumentality clip to beryllium afloat realized, and that betterment trajectory is reflected successful the 2026 guidance that Casey volition reappraisal later.

Starting with information differentiation, we delivered an important milestone successful the 2nd fractional of the twelvemonth with the merchandise of our autumn enlargement pack, which included bringing online a caller claims information source. As you know, the claims marketplace underwent a important information disruption implicit the past 12 to eighteen months, and with these releases, we person present restored our claims information volumes to supra humanities levels. Continuing to grow and fortify our information assets with caller elements that are not easy sourced remains foundational to our strategy. For example, we precocious strengthened our halfway notation and affiliation information for healthcare executives and healthcare providers by adding mobile telephone data.