Definitive Healthcare Corp. (DH) AI Stock Analysis
DH AI stock analysis summary
AI ResearchDefinitive Healthcare Corp. provides commercial intelligence data and analytics to clients across the healthcare ecosystem. While the company generated $53.8M in operating cash flow and $37.1M in free cash flow in FY2025, revenue contracted 4.2% in FY2025 and fell 9.1% year-over-year in the latest quarter ending June 30, 2026. The stock has experienced significant declines, dropping 65.9% over the past year to close at $1.00.
- Market cap
- $106.7M
- Revenue (TTM)
- $232.7M
- P/E
- — fwd 5.3x
- 1Y return
- -65.9% S&P 500 16.8%
- Avg. target
- $1.90 90.0% vs last close
Bull case
- The balance sheet maintains net cash of $16.5M with $183.6M in cash and short-term investments exceeding total debt of $167.1M as of June 30, 2026.
- Free cash flow reached $37.1M in FY2025, supporting ongoing internal funding despite reported net losses.
- The consensus analyst mean price target of $1.90 indicates a 90.0% upside relative to the October 16, 2026 closing price of $1.00.
Bear case
- Quarterly revenue fell 9.1% year-over-year in the period ended June 30, 2026, following a 4.2% top-line contraction in FY2025.
- Trailing twelve-month net profit margin remained deeply negative at -72.3%, leading to trailing twelve-month EPS of -$1.61.
- The stock has declined 65.9% over the past year and trades 13.0% below its 200-day moving average.
What Definitive Healthcare does
Definitive Healthcare Corp., founded in 2011 and based in Framingham, Massachusetts, delivers commercial intelligence solutions across the United States. The company provides data and insights on healthcare providers and their operational activities to clients in biopharmaceuticals, medical devices, healthcare IT, staffing, commercial real estate, and financial institutions. Its primary product is an intelligence platform comprising 16 specialized modules. These modules assist users with sales, marketing, clinical research, product development, strategy formulation, talent acquisition, and physician network management to support go-to-market execution and improve operational efficiencies.
Growth and profitability
Revenue rose from $166.2M in FY2021 to a peak of $252.2M in FY2024 before declining 4.2% to $241.5M in FY2025. Gross margin stood at 75.9% in FY2025, compared to 81.1% in FY2023 and 75.5% in FY2021. Operating margin was -8.5% in FY2025, an improvement from -281.8% in FY2024. Net income has remained negative over the five-year stretch, ending FY2025 at -$138.9M. For the trailing twelve months, revenue was $232.7M with an operating margin of -8.6% and a net profit margin of -72.3%. In the latest quarter ended June 30, 2026, quarterly revenue fell 9.1% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, the company held $183.6M in cash and short-term investments against $167.1M in total debt, resulting in net cash of $16.5M. Total assets stood at $496.8M and shareholders' equity was $144.7M, yielding a debt-to-equity ratio of 1.15 and a current ratio of 1.86. In FY2025, capital expenditures were $16.7M, while cash used for share buybacks reached $49.5M alongside $3.1M in dividends paid.
Valuation and performance
At $1.00, Definitive Healthcare trades at an enterprise value of $91.3M and a market capitalization of $106.7M. The stock trades at a forward P/E of 5.3x, compared to 17.3x for the median of its US-listed Healthcare peers. Its price-to-sales ratio is 0.5x versus the peer median of 4.1x, while its EV/EBITDA is 46.7x against the peer median of 12.0x. Over the past 1 year, the stock fell 65.9%, trailing the S&P 500 (SPY) gain of 16.8%. Over 5 years, the stock is down 97.6% compared to an 83.0% gain for the index.
What analysts expect
Wall Street coverage includes 1 Strong Buy, 5 Holds, and 1 Sell recommendation among 7 analysts. The mean price target is $1.90, representing a 90.0% premium over the last close of $1.00. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $221.3M and EPS of $0.19, reflecting an EPS decrease of 18.9%. Definitive Healthcare beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.
Key risks and what to watch
- Continued top-line contraction could pressure operations, with FY2026 consensus revenue expected to decline to $221.3M.
- A debt-to-equity ratio of 1.15 and total debt of $167.1M may limit balance sheet flexibility if cash flow generation slows.
- Stock volatility remains elevated, reflected in a beta of 1.40 and a 52-week trading range spanning from $0.61 to $3.04.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DH AI stock analysis
This page is an AI-written research summary of Definitive Healthcare Corp. (DH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DH income statement, DH balance sheet, DH key metrics, DH analyst forecast, DH chart. See the DH stock overview for the latest quote and news.
DH AI stock analysis FAQ
When is Definitive Healthcare's next earnings report?
Definitive Healthcare is scheduled to report its next earnings on November 5, 2026.
What is the consensus analyst target price for DH stock?
The mean analyst price target is $1.90, which is 90.0% above the last closing price of $1.00.
Does Definitive Healthcare generate positive cash flow?
Yes, Definitive Healthcare generated $53.8M in operating cash flow and $37.1M in free cash flow during FY2025.
What is Definitive Healthcare's debt position?
As of June 30, 2026, the company held $167.1M in total debt and $183.6M in cash and short-term investments, resulting in net cash of $16.5M.