Definitive Healthcare Corp.

Good day, everyone, and welcome to the Definitive Healthcare's Q2FY26 earnings call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question and answer session. Now, I'll turn the call over to your host, Jonathan Paris. Please go ahead.

Good afternoon, and thank you for joining us to review Definitive Healthcare's financial results. Joining me on today's call are Kevin Coop, our Chief Executive Officer, and Casey Heller, our Chief Financial Officer. Before we begin, I'd like to remind you that today's discussion may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These statements include, among others, Statements about our market opportunity, future performance, growth and financial guidance, the benefits of our data and healthcare commercial intelligence solutions, our competitive position, customer behavior, adoption, growth, renewals and retention, planned investments and operating strategy, Value creation for customers and shareholders and the expected impact of macroeconomic conditions on our business, customers, and the healthcare industry. Forward-looking statements are based on our current expectations and assumptions as of today and are subject to risks and uncertainties that could cause actual results to differ materially. For more information, please refer to the cautionary statement in today's earning release, as well as the risk factors and other information included in our filings with the SEC including our most recent Form 10-K and Form 10-Q. You should not place undue reliance on forward-looking statements and definitive healthcare undertakes no obligation to update them except as required by law. During the call, we may also discuss certain non-GAAP financial measures, reconciliation to the most directly comparable GAAP measures Kevin Coop,

Thank you, Jonathan, and thanks to all of you for joining us this afternoon to review Definitive Healthcare's second quarter 2026 financial results. On today's call, I'll provide highlights from our second quarter performance and give an update on our progress against our key strategic priorities for this year. Let me begin by reviewing our financial results for the second quarter, which were in line or exceeded the guidance ranges on both the top and bottom line. Total revenue was $55.2 million, down 9% year-over-year. Adjusted EBITDA was $14.6 million, representing a margin of 26%, which was modestly above the high end of our guidance. We continue to do an effective job of managing expenses while investing in our core growth initiatives. We continue to generate solid cash flow, delivering approximately 50 million of unlevered free cash flow for the trailing 12 months. In general, we are successfully tracking against the targets we set forth at the beginning of the year. Our diversified and provider businesses continue to be further along in returning to growth. Importantly, these end markets represent over 60% of our revenue, and the improvement in these segments represents a critical foundation to build upon in the coming quarters. The response in our life sciences segment has been slower. We are encouraged by signs that the changes we are making to the business are positively impacting this segment, but it is taking longer to have the full impact we are targeting. We remain confident we will see a more meaningful benefit from these changes over time. Our confidence that growth can be improved comes from several important proof points. First and foremost, it is the improvement in our net dollar retention rate. It was once again up several points year over year on a trailing 12-month basis in Q2. This is the second consecutive quarter of year-over-year improvement and puts us in strong position to sustain it for the full year. and we're starting to see improvement in life sciences as our biopharma segment had the strongest new business quarter in three years outside of Q4. Included amongst those wins were four important win-back customers that had left DH prior to the start of 2025. The win-backs are reinforcement to our belief that ultimately data quality and superior service will drive longer term value for our customers over price alone. We have been pleased to see that this is not only in our life sciences segment, we are continuing to see win-backs across our other end markets as well. A good example this quarter was a six-figure, three-year win-back in our diversified business. The customer left us at the end of last year for a lower-cost competitor, having concluded that they no longer needed access to our full data set. Over the following months, Our team stayed engaged, and when a business leader came back to explore a subscription for a single team, that conversation grew into a six-figure enterprise agreement. This win reinforces a reoccurring theme. Even customers who believed that an alternative would be just good enough come to recognize that the cost of an inferior data set outweighs the savings. Again, this is an important validation of the business value our data and products deliver for our customers and reinforce that our focus on data quality and service rather than price was the right path. Our conviction that we are focused on the right things remains strong and that those areas of focus are responding. Importantly, these are areas all within our control. I would now like to provide an update on our operational progress against our four key strategic pillars. As a reminder, these pillars are Data differentiation, integrations, customer success, and innovation. Let me begin with data differentiation. Data is at the heart of our value proposition, and we continue to invest in sourcing new proprietary data types and to extend our lead in our core reference and affiliation datasets. We are also increasingly leveraging AI to increase the velocity of our data collection and quality assurance. We are introducing a new estimation methodology, ACE 3.0, that applies modern data science and machine learning to help address the industry-wide challenge of incomplete claims coverage, and we expanded our practice location data to more than 4.4 million verified provider locations, improving the precision and recency our customers can rely on for territory planning, outreach, and segmentation. This differentiation is showing up in our wins. In the quarter, we added a major financial services institution in our diversified business whose tax-exempt markets team needed a reliable way to monitor health system consolidation, affiliations, and organizational hierarchies. They selected Definitive for our differentiated reference and affiliation data, delivered through an automated monthly feed directly into their existing workflows, choosing us over a competitor they evaluated earlier in the process. We also won a competitive claims deal in the behavioral health market where our coverage and the combination of claims with our reference and affiliation data separated us from other vendors. Our second pillar is seamless integrations. Basically, making it as fast and simple as possible for customers to access our data alongside their other systems they rely on is a critical aspect of delivering value and building durable relationships. Our data continues to show that customers who integrate Definitive directly into their systems of record and insight use us more often, which makes us a stickier, more strategic part of their operations and strengthens our renewal rates over time. And we've continued to accelerate the time to integrate. Compared to the second quarter of last year, we completed over 50% more integrations year over year, while also reducing the time to integrate by more than 50%. Good illustration this quarter was an early renewal and expansion with a large diversified account. We're adding our Salesforce-embedded connector for their enterprise healthcare team turned a manual list-driven process into a workflow native experience and expanded their annual commitment to us. Also, in collaboration with a top-tier biopharma partner, We successfully launched a native integration that embeds our key opinion leader intelligence data directly into the VIVA Vault CRM, which is used widely by life sciences, clinical, and medical affairs teams. A capability we can now extend to additional pharma clients as they adopt that platform. Turning to our third pillar, customer success, we continue to see the benefit of aligning all functional teams that support the customer journey into a unified commercial organization. That alignment lets us engage earlier and more proactively to identify issues before they become problems and uncover opportunities to do more for our customers. A prime example of this quarter was a renewal that had not been budgeted for by the customer and was therefore at real risk of churning due to a budget oversight. Our integrated commercial team was able to identify this issue early, and through persistent cross-functional engagement, our team reestablished the value and partnered with the customer to overcome their budget challenge. This integrated motion successfully retained the business, satisfied the customer's critical need and converted a six-figure save with a path to further expansion in the future as a strategic partner. Finally, we continue to make progress against our fourth pillar, innovation, and our focus on digital engagement. With our foundation built on data, quality, and service, we are shifting more of our effort to this fourth pillar over the second half of 2026. For product, customers are increasingly using conversational natural language search to simplify complex research workflows. Since launching our natural language search experience earlier this year, we've seen customers replace multiple manual search and filtering steps with a single connected query. For example, a med tech company rapidly identifying decision makers across functions and geographies, and a healthcare logistics company building a connected view of target facilities by combining financials, ownership, and network relationships. In our expert intelligence platform, multi-turn conversational search now accounts for roughly 40% of interactions with our AI search feature. In digital activation, we successfully demonstrated real value add in our proof of concept stage and have now rapidly moved into full production with our momentum building on two fronts. We've added 10 new agency partners that are now activating in 2026 that were not active with us in 2025, and this core group of agencies has grown activation spend meaningfully year over year. At the same time, we have added seven new direct activation customers this year to date, and current customers are embracing our digital solutions more aggressively. For example, one longstanding population intelligence customer moved from an initial test into a total activation commitment of more than $300,000. The takeaway is that our activation growth is now being driven by both new direct customers as well as by rising adoption and spend across our agency ecosystem, which gives us a broader and more scalable path forward. We are also encouraged by the performance customers are seeing. One partner running campaigns at our audiences reported registration rates well above the benchmarks they typically expect for hard to reach conditions. And this supports our belief that combining high quality data with ease of digital activation execution will be a winning combination. The most significant milestone this quarter is the launch of Turbo, our new AI powered healthcare intelligence platform that accelerates how healthcare teams access, process, and turn data into action. Turbo unifies our proprietary healthcare intelligence built on billions of signals spanning providers, organizations, claims, affiliations, key opinion leaders, and consumer data to power autonomous decision-making rather than simple data retrieval. So customers can ask complex questions in natural language and make faster, better informed commercial, strategic, and product decisions. With DH trusted data as the foundational layer, Turbo will deliver reusable capabilities or skills to power workflows and experiences tailored to the appropriate persona or strategic role. Be that commercial, sales, product, marketing, or strategy, with Agentic AI providing a future state of always-on continuous monitoring alerts and notifications. Our launch begins with an initial stage pilot with a select group of strategic customers this month. We have curated this pilot to ensure it represents a broad customer base that spans both healthcare systems, life sciences organizations, and customers in our diversified segment which capture all others who sell into the healthcare ecosystem. We are targeting general availability before the end of the year and our commercial teams are preparing broad market conversations this quarter to align demand with launch. Feedback from our pilot customers will help shape the final experience. While AI is foundational to our next generation commercial and product strategy, it is important to note that we view AI as a company-wide transformation, not simply a set of product features. We are embedding it across our data value chain to improve how we source, curate, and enrich our data. We are building AI native capabilities directly into our products, and we have already equipped our teams with AI tools that improve productivity and decision-making across the entire company. Our advantage is the combination of proprietary, differentiated healthcare data, our deep contextual domain expertise, and our scaled and trusted customer relationships across thousands of embedded customers, the foundation on which these AI investments compound. To summarize, we remain focused on delivering upon our commitments for the full year by executing on the things within our control and while maintaining disciplined expense management. We will continue to focus our resources in the highest value areas that we believe will best position the company to improve retention and return to consistent, predictable revenue growth over time. With that, let me turn the call over to Casey to review the financials in more detail. Casey?