Definitive Healthcare Corp. — Earnings Quality Grade F
DH · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 80 days, change +1 days YoY
AR growth -3.3% vs revenue growth -4.2%
Revenue -4.2%, CFFO -7.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 35.5% is >2x revenue growth -4.2%
SG&A/Gross Profit = 72.7%, exceeds 70%
Gross margin 75.9%, change -2.4pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = -0.27
Accruals ratio = -26.2%. Low accruals
Cash $0.2B covers debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 158% of equity. Over 50%
Interest coverage = -1.8x (<2x). Financial stress
Other assets -1.0% vs revenue -4.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -36% YoY. Normal
Manipulation Score
M-Score = -3.79 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25