Definitive Healthcare Corp.

Definitive Healthcare reported Q2 FY2026 revenue of $55.2 million, down 9% year over year. Adjusted EBITDA was $14.6 million with a 26% margin, adjusted net income was $7.5 million, and non-GAAP EPS was $0.05. Adjusted gross profit was $44.2 million and adjusted gross margin was 80%, which Casey Heller said was up 100 basis points year over year after adjusting for a one-time credit in the prior year. Unlevered free cash flow was $11.6 million in the quarter and about $50 million over the trailing 12 months. For Q3, the company guided to revenue of $54 million to $55 million, adjusted EBITDA of $13.5 million to $14.5 million, and EPS of about $0.04 to $0.05. For full-year 2026, it guided to revenue of $220 million to $222 million, adjusted EBITDA of $57 million to $59 million, adjusted net income of $27 million to $29 million, and EPS of $0.18 to $0.20.

Kevin Coop said the quarter was in line with or above guidance and emphasized that the company is executing on the levers it controls: data differentiation, integrations, customer success, and innovation. He highlighted improving net dollar retention, win-backs, faster integrations, and the launch of Turbo as signs that the strategy is working, while noting life sciences is recovering more slowly than the other segments. His tone was confident but measured, with repeated emphasis on disciplined spending and building a foundation for more durable growth over time.

Casey Heller focused on the durability of profitability and cash generation despite top-line pressure. She cited Q2 revenue of $55.2 million, adjusted EBITDA of $14.6 million, 26% margin, adjusted gross profit of $44.2 million, and $11.6 million of quarterly unlevered free cash flow, with $50 million over the trailing 12 months and a 75% conversion rate. She also pointed to deferred revenue of $89 million, total RPO down 18% year over year, and current RPO down 12%, noting the shift toward single-year deals. On guidance, she said the revenue range was tightened because professional services outlook weakened, but profit guidance was raised because of cost control and targeted investment.

Analysts pressed management on whether Turbo will contribute to 2026 revenue and what the monetization model will look like. Casey Heller said Turbo is not expected to materially affect 2026 top-line results, but it could help retention ahead of heavy renewal periods; pricing is still being evaluated, with a future mix that may include cohort-based, tiered, and usage-based elements. Questions also focused on life sciences and claims data, and Heller said the earlier downsell pressure from claims is starting to normalize, while management is seeing encouraging biopharma wins even though large pharma budgets have not clearly turned yet. On contract duration, she said multi-year deals have not made a big comeback and the current environment still favors single-year commitments.