Q4 2025 Definitive Healthcare Corp Earnings Call

February 26, 2026

Operator: Good afternoon. Thank you for joining us today to review Definitive Healthcare's financial results. Joining me on the call today are Kevin Coop, Chief Executive Officer, and Casey Heller, Chief Financial Officer. During this call, we will make forward-looking statements including, but not limited to, statements related to our market and future performance and growth opportunities, the benefits of our differentiated data and healthcare commercial intelligence solutions, our competitive position, customer behaviors, and use of our solutions, customer growth, renewals, and retention, our financial guidance, our planned investments and operational strategy, generating value for our customers and shareholders, and the anticipated impacts of global macroeconomic conditions on our business, results in customers and on the healthcare industry generally. Any forward-looking statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #1: Good afternoon. Thank you for joining us today to review Definitive Healthcare's financial results. Joining me on the call today are Kevin Coop, Chief Executive Officer and Casey Heller, Chief Financial Officer.

Speaker #1: During this call, we will make forward-looking statements including but not limited to statements related to our market and future performance, and growth opportunities. The benefits of our differentiated data and healthcare commercial intelligence solutions, our competitive position, customer behaviors, and use of our solutions, customer growth, renewals, and retention, our financial guidance, our planned investments, and operational strategy.

Speaker #1: Generating value for our customers and shareholders. And the anticipated impacts of global macroeconomic conditions on our business. Results and customers and on the healthcare industry generally.

Speaker #1: Any forward-looking statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties including those discussed in the risk factor section and elsewhere in our filings, with the SEC.

Operator: Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factor section and elsewhere in our filings with the SEC. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements to reflect events that may arise after this conference call, except as required by law. For more information, please refer to the cautionary statement included in the earnings release that we have just posted to the investor relations portion of our website. We will discuss non-GAAP financial measures on this conference call. Please refer to the tables in our earnings release, and investor presentation on the investor relations portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Kevin. Kevin?

Speaker #1: Actual results may differ materially from any forward-looking statement. The company undertakes no obligation to revise or update any forward-looking statements to reflect events that may arise after this conference call, except as required by law.

Speaker #1: For more information, please refer to the cautionary statement included in the earnings release that we have just posted to the investor relations portion of our website.

Speaker #1: We will discuss non-GAAP financial measures on this conference call. Please refer to the tables and our earnings. Release and investor presentation on the investor relations portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure.

Speaker #1: With that, I'd like to turn the call over to Kevin. Kevin?

Speaker #2: Thank you, Jonathan. And thanks to all of you for joining us this afternoon to review Definitive Healthcare's fourth quarter 2025 financial results. On today's call, I'll provide highlights from our fourth quarter performance, review the operational progress we've made in 2025, and outline our key strategic priorities for 2026.

Kevin Coop: Thank you, Jonathan. Thanks to all of you for joining us this afternoon to review Definitive Healthcare's Q4 2025 financial results. On today's call, I'll provide highlights from our Q4 performance, review the operational progress we've made in 2025, and outline our key strategic priorities for 2026. Let me begin by reviewing our financial results for the Q4, which were at or above the high end of our guidance ranges on both the top and bottom line. Total revenue was $61.5 million, down 1% year-over-year. We outperformed our revenue expectations on both subscription and professional services revenues.

Speaker #2: Let me begin by reviewing our financial results for the fourth quarter, which were at or above the high end of our guidance ranges on both the top and bottom line.

Speaker #2: Total revenue was $61.5 million, down 1% year over year. We outperformed our revenue expectations on both subscription and professional services revenues. Adjusted EBITDA was $18.1 million, representing a margin of 29%, which was $1.1 million above the high end of our guidance.

Kevin Coop: Adjusted EBITDA was $18.1 million, representing a margin of 29%, which was $1.1 million above the high end of our guidance. Our continued strong profitability performance is a testament to the underlying power of our business model and our ongoing expense discipline. We continue to generate solid cash flow, delivering approximately $55 million of Unlevered Free Cash Flow for the trailing 12 months. Our financial performance for 2025 compares favorably to the initial guidance we provided to investors last February. Setting appropriate expectations and delivering consistent financial results with transparency was one of the promises I made to investors when I became CEO, and I am pleased that we were able to meet that objective in 2025.

Speaker #2: Our continued strong profitability performance is a testament to the underlying power of our business model, and our ongoing expense discipline. We continue to generate solid cash flow, delivering approximately $55 million of unlevered free cash flow for the trailing 12 2025 compares favorably to the initial guidance we provided to investors last February.

Speaker #2: Setting appropriate expectations and delivering consistent financial results with transparency was one of the promises I made to investors when I became CEO, and I am pleased that we were able to meet that objective in 2025.

Speaker #2: I would now like to review our operational performance for the year, supported by the four strategic pillars of data differentiation, integrations, customer success, and innovation that we laid out for investors at the beginning of 2025.

Kevin Coop: I would now like to review our operational performance for the year, supported by the four strategic pillars of data differentiation, integrations, customer success, and innovation that we laid out for investors at the beginning of 2025. Before going into more detail, I do want to emphasize that we have made strong, meaningful progress in each area and can confidently report that as we enter 2026 with a much stronger foundation for the future. While we are seeing improvements in all areas of focus, the expected benefits from these improvements will take time to fully be realized. That improvement trajectory is reflected in the 2026 guidance that Casey will review later. Starting with data differentiation, we delivered an important milestone in the second half of the year with the release of our fall expansion pack, which included bringing online a new claims data source.

Speaker #2: Before going into more detail, I do want to emphasize that we have made strong meaningful progress in each area and can confidently report that as we enter 2026 with a much stronger foundation for the future.

Speaker #2: While we are seeing improvements in all areas of focus, the expected benefits from these improvements will take time to fully be realized, and that improvement trajectory is reflected in the 2026 guidance that Casey will review later.

Speaker #2: Starting with data differentiation, we delivered an important milestone in the second half of the year, with the release of our fall expansion pack, which included bringing online a new claims data source.

Speaker #2: As you know, the claims market underwent a significant data disruption over the past 12 to 18 months, and with these releases, we have now restored our claims data volumes to above historical levels.

Kevin Coop: As you know, the claims market underwent a significant data disruption over the past 12 to 18 months, and with these releases, we have now restored our claims data volumes to above historical levels. Continuing to expand and strengthen our data assets with new elements that are not easily sourced remains foundational to our strategy. For example, we recently strengthened our core reference and affiliation data for healthcare executives and healthcare providers by adding mobile phone data. Overall, I am pleased with the progress we made in remediating the claims data market disruption, expanding our core data assets with new elements, ensuring our focus remains on maintaining our data differentiation and quality, and expanding the value of our data over the course of 2025. This will remain a foundational priority going forward into 2026 and beyond. Our second pillar focused on seamless integrations.

Speaker #2: Continuing to expand and strengthen our data assets with new elements that are not easily sourced remains foundational to our strategy. For example, we recently strengthened our core reference and affiliation data for healthcare executives and healthcare providers by adding mobile phone data.

Speaker #2: Overall, I am pleased with the progress we made in remediating the claims data market disruption, expanding our core data assets with new elements, ensuring our focus remains on maintaining our data differentiation and quality, and expanding the value of our data over the course of 2025.

Speaker #2: This will remain a foundational priority going forward into 2026 and beyond. Our second pillar focused on seamless integrations. A core part of our strategy is ensuring it is as simple as possible for customers to utilize our data sets, proprietary software, and analytical capabilities.

Kevin Coop: A core part of our strategy is ensuring it is as simple as possible for customers to utilize our datasets, proprietary software, and analytical capabilities. Being an open platform is a foundational tenet of our product strategy. We have successfully deepened the number of our integrations in 2025, including Snowflake, Databricks, and the recent introduction of an important HubSpot integration in Q4. We launched a new pilot program with Physician Data and Salesforce, which we expect to be generally available this quarter. We've been focused on increasing the automation of our integrations, which has dramatically shortened the time to integrate by about 25% over the course of 2025. This improves customer satisfaction and gets our data into the hands of our customers faster.

Speaker #2: Being an open platform is a foundational tenet of our product strategy. And we have successfully deepened the number of our integrations in 2025, including Snowflake, Databricks, and the recent introduction of an important HubSpot integration in Q4.

Speaker #2: We launched a new pilot program with physician data and Salesforce, which we expect to be generally available this quarter, and we've been focused on increasing the automation of our integrations, which has dramatically shortened the time to integrate by about 25% over the course of 2025.

Speaker #2: This improves customer satisfaction and gets our data into the hands of our customers faster. Ensuring ease of integration to our customers' system of record and systems of insight effectively improves retention, as we know that those customers that are integrated will renew at higher rates than those that are not integrated.

Kevin Coop: Ensuring ease of integration to our customers' system of record and systems of insight effectively improves retention, as we know that those customers that are integrated will renew at higher rates than those that are not integrated. We are already seeing examples of this in action, including an important win in Q4, a large nonprofit, academic-affiliated, integrated health system operating multiple hospitals, outpatient clinics, and specialty service lines selected our Population Intelligence platform to enable more targeted segmentation within their region and surrounding markets. They needed to drive patient volumes across key inpatient and outpatient service lines while capturing additional market share. A core pain point was the significant internal effort required for data mining, layering, modeling, and assumption-based analysis, which limited their ability to align resources around broader growth and strategy initiatives.

Speaker #2: We are already seeing examples of this in action. Including an important win in Q4, a large nonprofit academic affiliated integrated health system, operating multiple hospitals, outpatient clinics, and specialty service lines, selected our population intelligence platform to enable more targeted segmentation within the region and surrounding markets.

Speaker #2: They needed to drive patient volumes across key inpatient and outpatient service lines while capturing additional market share. A core pain point was the significant internal effort required for data mining, layering, modeling, and assumption-based analysis, which limited their ability to align resources around broader growth and strategy initiatives.

Speaker #2: Our seamless approach to integration and our agnostic capabilities that enabled flexible access to their systems were critical to this win where we delivered clean, enriched, and actionable data directly into their existing workflows, allowing them to hydrate records and uncover incremental patient leads more efficiently.

Kevin Coop: Our seamless approach to integration and our agnostic capabilities that enabled flexible access to their systems were critical to this win, where we delivered clean, enriched, and actionable data directly into their existing workflows, allowing them to hydrate records and uncover incremental patient leads more efficiently. Turning to our third pillar, customer success, I am pleased with the improvement we have made throughout the year to improve customer satisfaction, ease of use, and added services that will increase the stickiness of our solutions. While we will always be looking to iterate and improve our processes, I am confident that the steps we took in 2025 have built a strong, durable, and repeatable customer engagement process. Retention improvement is more than just a customer success effort, though. Product development, data quality, and GTM execution all play a significant role.

Speaker #2: Turning to our third pillar, customer success, I am pleased with the improvement we have made throughout the year to improve customer satisfaction and ease of use, and value-added services that will increase the stickiness of our solutions.

Speaker #2: While we will always be looking to iterate and improve our processes, I am confident that the steps we took in 2025 have built a strong durable and repeatable customer engagement process.

Speaker #2: Retention improvement is more than just a customer success effort, though. Product development, data quality, and GTM execution all play a role. A realignment of our focus across all functional groups working in service to a shared goal of improving the customer journey, including how they are compensated, is making a difference.

Kevin Coop: The realignment of our focus across all functional groups working in service to a shared goal of improving the customer journey, including how they are compensated, is making a difference. Importantly, we have seen retention rates improve year-over-year for each of the past 3 quarters, including with the larger cohort of renewals we have in the Q4. The impact of our coordinated customer-facing effort can be seen where our newly integrated commercial teams collaborated on an early risk identification, which proved critical in converting what was forecasted as a churn risk into a successful multiyear renewal. This example shows how proactive focus on addressing customer concerns will deliver tailored solutions that restore confidence in service of retention, not individual objectives.

Speaker #2: Importantly, we have seen retention rates improve year over year for each of the past three quarters, including with the larger cohort of renewals we have in the fourth quarter.

Speaker #2: The impact of our coordinated customer-facing effort can be seen where our newly integrated commercial teams collaborated on an early risk identification, which proved critical in converting what was forecasted as a churn risk into a successful multi-year renewal.

Speaker #2: This example shows how proactive focus on addressing customer concerns will deliver tailored solutions that restore confidence in service of retention, not individual objectives. The integrated team approach with sales, support, and success working together with a shared goal of producing happy customers benefits both the customer and our own retention goals.

Kevin Coop: The integrated team approach with sales, support, and success working together with a shared goal of producing happy customers benefits both the customer and our own retention goals. These changes are complex and took the early part of the year to put into effect, with the impact showing improvement in the second half of the year. Intuitively, the improved sales, onboarding, training, and success process will begin to show up as those customers experience the benefits in time. Therefore, we expect that the improved trajectory that we can already see will continue to accelerate, especially as the impact begins to show up in the new business we are signing now and starts renewing later this year without the legacy impact of prior disruptions from the claims situation or past organizational miscues. Finally, we had a notably successful year delivering against our fourth pillar, innovation, and our focus on digital engagement.

Speaker #2: These changes are complex and took the early part of the year to put into effect, with the impact showing improvement in the second half of the year.

Speaker #2: Intuitively, the improved sales, onboarding, training, and success process will begin to show up as those customers experience the benefits in time. Therefore, we expect that the improved trajectory that we can already see will continue to accelerate, especially as the impact begins to show up in the new business we are signing now and starts renewing later this year, without the legacy impact of prior disruptions from the claims situation or past organizational miscues.

Speaker #2: Finally, we had a notably successful year delivering against our fourth pillar, innovation, and our focus on digital engagement. This pillar has been focused on several distinct sub-areas.

Kevin Coop: This pillar has been focused on several distinct sub-areas. The first is digital activations, which enables customers to combine our data with other digital assets to generate actionable customer engagement. Over the course of the year, we signed nearly 30 agencies and already have more than a third of them actively generating bookings for Definitive Healthcare. As a reminder, there is a natural lag between signing up of an activation customer or partner and when they begin generating revenue. We had ambitious growth plans for our activation business in 2025, and I am pleased to report that we outperformed this target. We are also tracking excellent progress building from the agency activation channel, and we expect our early successes in this channel will make it easier to directly sign customer activation programs in 2026.

Speaker #2: The first is digital activations, which enables customers to combine our data with other digital assets to generate actionable customer engagement. Over the course of the year, we signed nearly 30 agencies and already have more than a third of them actively generating bookings for Definitive Healthcare.

Speaker #2: As a reminder, there is a natural lag between the signing up of an activation customer or partner and when they begin generating revenue. We had ambitious growth plans for our activation business in 2025, and I am pleased to report that we outperformed this target.

Speaker #2: We are also tracking excellent progress building from the agency activation channel and we expect our early successes in this channel will make it easier to directly sign customer activation programs in 2026.

Speaker #2: Second is partnerships, where we are building a dedicated partnership team that will help customers seeking syndication rights and new distribution channels. One example of this type of partnership was launched last quarter with Bombora and their curated ecosystem audiences.

Kevin Coop: Second is partnerships, where we are building a dedicated partnership team that will help customers seeking syndication rights and new distribution channels. One example of this type of partnership was launched last quarter with Bombora and their Curated Ecosystem Audiences. This platform helps distribute off-the-shelf and fully customizable audiences for activation on a variety of platforms, such as The Trade Desk, Yahoo DSP, Reddit, or data marketplaces like LiveRamp. It extends the reach of our specialized intelligence and addressable audiences to the customer bases of these platforms that need to access comprehensive views of the healthcare organizations and professionals across the entire ecosystem. In addition, we see AI as a core enabling technology for growth that DH can harness with several important incumbent advantages. First, our proprietary data is our powerful foundation. Definitive is a data company first. AI presents a way to retrieve, analyze, and harness data.

Speaker #2: This platform helps distribute off-the-shelf and fully customizable audiences for activation on a variety of platforms such as the trade desk, Yahoo DSP, Reddit, or data marketplaces like LiveRamp.

Speaker #2: It extends the reach of our specialized intelligence and addressable audiences to the customer bases of these platforms that need to access comprehensive views of the healthcare organizations and professionals across the entire ecosystem.

Speaker #2: In addition, we see AI as a core enabling technology for growth that DH can harness with several important incumbent advantages. First, our proprietary data is our powerful foundation.

Speaker #2: Definitive is a data company first. AI presents a way to retrieve, analyze, and harness data. Our advantage is the proprietary data itself, much of which is not publicly available, as well as within our data curation system and processes.

Kevin Coop: Our advantage is the proprietary data itself, much of which is not publicly available, as well as within our data curation system and processes. An AI model is only as good as the data it ingests. Our advantage is taking today's high-performing AI models and applying them to our domain-specific proprietary and differentiated data. Second, in addition to the proprietary nature of our data, the longitudinal aspect of our data from over 15 years of intensive accumulation cannot be recreated. This data is critical to a customer that needs to understand how the healthcare ecosystem and its affiliations have changed over time. Third, contextual expertise. In-depth domain expertise is required to effectively operate as a trusted partner in healthcare. Our customers rely on us for that expertise. Competing in healthcare is complex.

Speaker #2: An AI model is only as good as the data it ingests, and our advantage is taking today's high-performing AI models and applying them to our domain-specific proprietary and differentiated data.

Speaker #2: Second, in addition to the proprietary nature of our data, the longitudinal aspect of our data from over 15 years of intensive accumulation cannot be recreated.

Speaker #2: This data is critical to a customer that needs to understand how the healthcare ecosystem and its affiliations have changed over time. Third, contextual expertise.

Speaker #2: In-depth domain expertise is required to effectively operate as a trusted partner in healthcare. And our customers rely on us for that expertise. Competing in healthcare is complex.

Speaker #2: To provide effective AI workflow and analytics, it is essential to have that deep understanding of the complex relationships among the healthcare providers and their corresponding use cases, which require years of expertise to develop.

Kevin Coop: To provide effective AI workflow and analytics, it is essential to have that deep understanding of the complex relationships among the healthcare providers and their corresponding use cases, which require years of expertise to develop. Contextual relevancy and accuracy is required by this industry. The importance is evidenced by the fact that 60% of our largest life sciences customers leverage our advanced analytics expertise in addition to our data, and half of our top 20 customers across all verticals rely on contextual domain expertise and advanced analytical insights. Finally, embedded customer relationships. As we integrate GenAI into our products, beginning with our flagship View platform next quarter, our deep relationships with approximately 2,300 customers provide integration points for rapid deployment.

Speaker #2: Contextual relevancy and accuracy are required by this industry. The importance is evidenced by the fact that 60% of our largest life sciences customers leverage our advanced analytics expertise in addition to our data, and half of our top 20 customers across all verticals rely on contextual domain expertise and advanced analytical insights.

Speaker #2: Finally, embedded customer relationships. As we integrate GenAI into our products, beginning with our flagship view platform, next quarter, our deep relationships with approximately 2,300 customers provide integration points for rapid deployment.

Speaker #2: Because our pricing and packaging strategy is based on value, not seats, the increased capabilities unlocked with GenAI will drive both new use cases and adoption of new offerings such as digital activation.

Kevin Coop: Because our pricing and packaging strategy is based on value, not seats, the increased capabilities unlocked with GenAI will drive both new use cases and adoption of new offerings such as digital activation. Almost 50% of our customers already integrate our data directly into their systems of insight and record via CRM connectors, APIs, or lake to lake, and our next gen SaaS platform will offer another accelerant to our integrated strategic focus area, which we know drives increased retention. Overall, we have accomplished much in 2025, and I want to thank the entire Definitive team for delivering these improvements and advancing our strategy. In 2026, we expect to build upon the progress we made last year. The signs of success, especially in the second half of the year, have reinforced our belief that we have the right strategy in place.

Speaker #2: Almost 50% of our customers already integrate our data directly into their systems of insight and record via CRM connectors, APIs, or lake-to-lake, and our next-gen SaaS platform will offer another accelerant to our integrated strategic focus area, which we know drives increased retention.

Speaker #2: Overall, we have accomplished much in 2025. And I want to thank the entire Definitive team for delivering these improvements and advancing our strategy. In 2026, we expect to build upon the progress we made last year.

Speaker #2: The signs of success, especially in the second half of the year, have reinforced our belief that we have the right strategy in place. As we look ahead to 2026, our key priorities remain unchanged from our 2025 pillars.

Kevin Coop: As we look ahead to 2026, our key priorities remain unchanged from our 2025 pillars. As noted above, different pillars are in different phases of maturation and delivering success, but as the year unfolds, we will be focused on investing incremental dollars in those areas showing the most promise. Given the success ramp we are seeing, we anticipate there will be opportunity to accelerate digital activation with our customers, extend our partnership and distribution efforts, and we have confidence that our GenAI enablement of View will provide new and incremental upsell cross-sell opportunities later this year. Our primary strategic objective remains that of returning the business to consistent revenue growth. Fundamental to that objective is improving retention, and we remain confident that the steps we are taking can and will deliver that outcome over time.

Speaker #2: As noted above, different pillars are in different phases of maturation and delivering success, but as the year unfolds, we will be focused on investing incremental dollars in those areas showing the most promise.

Speaker #2: Given the success ramp we are seeing, we anticipate there will be opportunity to accelerate digital activation with our customers, extend our partnership and distribution efforts, and we have confidence that our GenAI enablement of view will provide new and incremental upsell cross-sell opportunities later this year.

Speaker #2: Our primary strategic objective remains that of returning the business to consistent revenue growth. The fundamental to that objective is improving retention and we remain confident that the steps we are taking can and will deliver that outcome over time.

Speaker #2: While the macro environment remains challenging, we will continue to focus on those areas we can control and we will be making the investments necessary to steadily improve operational performance.

Kevin Coop: While the macro environment remains challenging, we will continue to focus on those areas we can control, and we will be making the investments necessary to steadily improve operational performance. With that, I'd like to turn this over to Kasey to discuss our financial results in greater detail. Kasey?

Speaker #2: With that, I'd like to turn this over to Casey to discuss our financial results in greater detail. Casey? Thank you, Kevin. In all my remarks, I will be discussing our results on a non-GAAP basis unless otherwise noted.

Kasey: Thank you, Kevin. In all my remarks, I will be discussing our results on a non-GAAP basis, unless otherwise noted. As Kevin mentioned, 2025 was an important year for Definitive that saw tangible improvement on our four strategic pillars and put us in a better position to meet our long-term objectives. I'm pleased by our ability to close 2025 by outperforming on both revenue and Adjusted EBITDA, while executing against those core strategic objectives. This reflects the continuation of our disciplined approach to managing the business while we have continued to face top-line pressures in a dynamic macro environment. In Q4, we delivered revenue of $61.5 million, down 1% year-over-year. Adjusted EBITDA of $18 million, reflecting a 29% margin and expanding approximately 120 basis points year-over-year.

Casey Heller: Thank you, Kevin. In all my remarks, I will be discussing our results on a non-GAAP basis, unless otherwise noted. As Kevin mentioned, 2025 was an important year for Definitive that saw tangible improvement on our four strategic pillars and put us in a better position to meet our long-term objectives. I'm pleased by our ability to close 2025 by outperforming on both revenue and Adjusted EBITDA, while executing against those core strategic objectives. This reflects the continuation of our disciplined approach to managing the business while we have continued to face top-line pressures in a dynamic macro environment. In Q4, we delivered revenue of $61.5 million, down 1% year-over-year. Adjusted EBITDA of $18 million, reflecting a 29% margin and expanding approximately 120 basis points year-over-year.

Speaker #2: As Kevin mentioned, 2025 was an important year for Definitive that saw tangible improvement on our four strategic pillars, and put us in a better position to meet our long-term objectives.

Speaker #2: I'm pleased by our ability to close 2025 by outperforming on both revenue and adjusted EBITDA. While executing against those core strategic objectives, this reflects the continuation of our disciplined approach to managing the business while we have continued to face top-line pressures and a dynamic macro environment.

Speaker #2: In the fourth quarter, we delivered revenue of $61.5 million down 1% year over year. Adjusted EBITDA of $18 million reflecting a 29% margin and expanding approximately $120 basis points year over year.

Speaker #2: And adjusted net income of $8.6 million resulting in $0.06 of non-gap earnings per share in the period. All of which were at or above the high end of our guidance for the quarter.

Kasey: Adjusted net income of $8.6 million, resulting in $0.06 of non-GAAP earnings per share in the period, all of which were at or above the high end of our guidance for the quarter. We also delivered $2.5 million of Unlevered Free Cash Flow in the quarter and $54.9 million on a trailing 12-month basis. Turning to our results in more detail. Revenue of $61.5 million was above the high end of our guidance range and represents a 1% decline year-over-year. Subscription revenues of $58.5 million declined 3% year-over-year, or declined 7% excluding data partnership contributions, and were modestly ahead of our expectations for the quarter. We did again see modest improvements in our Q4 renewal rates year-over-year, but not to the extent we had hoped.

Casey Heller: Adjusted net income of $8.6 million, resulting in $0.06 of non-GAAP earnings per share in the period, all of which were at or above the high end of our guidance for the quarter. We also delivered $2.5 million of Unlevered Free Cash Flow in the quarter and $54.9 million on a trailing 12-month basis. Turning to our results in more detail. Revenue of $61.5 million was above the high end of our guidance range and represents a 1% decline year-over-year. Subscription revenues of $58.5 million declined 3% year-over-year, or declined 7% excluding data partnership contributions, and were modestly ahead of our expectations for the quarter. We did again see modest improvements in our Q4 renewal rates year-over-year, but not to the extent we had hoped.

Speaker #2: We also delivered $2.5 million of unlevered free cash flow in the quarter and $54.9 million on a trailing 12-month basis. Turning to our results in more detail.

Speaker #2: Revenue of $61.5 million was above the high end of our guidance range and represents a 1% decline year over year. Subscription revenues of $58.5 million declined 3% year over year, or declined 7% excluding data partnership contributions.

Speaker #2: And we're modestly ahead of our expectations for the quarter. And we did again see modest improvements in our Q4 renewal rates year over year, but not to the extent we had hoped.

Kasey: Professional services revenue in the quarter was strong, up 49% year-over-year and outperformed our expectations. This was a combination of delivering on traditional analytics engagements as well as a ramp-up in our digital activations activity. adjusted gross profit in Q4 was $50.2 million, which was flat from Q4 2024. As a percentage of revenue, the adjusted gross profit margin of 82% expanded about 100 basis points year-over-year, driven by some short-term benefit to our cost structure in the period as we had removed one data source from product, but we're still in the process of onboarding an additional source that will come online in the next month or two. This temporarily reduced COGS in Q4.

Casey Heller: Professional services revenue in the quarter was strong, up 49% year-over-year and outperformed our expectations. This was a combination of delivering on traditional analytics engagements as well as a ramp-up in our digital activations activity. adjusted gross profit in Q4 was $50.2 million, which was flat from Q4 2024. As a percentage of revenue, the adjusted gross profit margin of 82% expanded about 100 basis points year-over-year, driven by some short-term benefit to our cost structure in the period as we had removed one data source from product, but we're still in the process of onboarding an additional source that will come online in the next month or two. This temporarily reduced COGS in Q4.

Speaker #2: Professional services revenue in the quarter was strong, up 49% year over year, and outperformed our expectations. This was a combination of delivering on traditional analytics engagements as well as a ramp-up in our digital activations activity.

Speaker #2: Adjusted gross profit in the fourth quarter was $50.2 million, which was flat from Q4 '24. As a percentage of revenue, the adjusted gross profit margin of 82% expanded about 100 basis points year over year, driven by some short-term benefit to our cost structure in the period as we had removed one data source from product, but we're still in the process of onboarding an additional source that will come online in the next month or two.

Speaker #2: This temporarily reduced COGS in Q4. Adjusted EBITDA was $18 million, and reflects a 29% margin, which, as I mentioned, expanded about 120 basis points versus Q4 of '24.

Kasey: Adjusted EBITDA was $18 million and reflects a 29% margin, which, as I mentioned, expanded about 120 basis points versus Q4 2024 and was above the high end of our guidance boosted by the revenue beat. Looking quickly at our full year results, total revenue was $241.5 million, a 4% decline year-over-year. Adjusted EBITDA was $70.4 million, a 29% margin, and Unlevered Free Cash Flow was $54.9 million. In terms of operating metrics, we saw gross dollar retention improve about 2 points year-over-year, reflecting the initial impact of the actions we've been taking to stabilize the business. At the same time, net dollar retention declined due to the ongoing pressure in our upsell motion.

Casey Heller: Adjusted EBITDA was $18 million and reflects a 29% margin, which, as I mentioned, expanded about 120 basis points versus Q4 2024 and was above the high end of our guidance boosted by the revenue beat. Looking quickly at our full year results, total revenue was $241.5 million, a 4% decline year-over-year. Adjusted EBITDA was $70.4 million, a 29% margin, and Unlevered Free Cash Flow was $54.9 million. In terms of operating metrics, we saw gross dollar retention improve about 2 points year-over-year, reflecting the initial impact of the actions we've been taking to stabilize the business. At the same time, net dollar retention declined due to the ongoing pressure in our upsell motion.

Speaker #2: And was above the high end of our guidance, boosted by the revenue beat. Looking quickly at our full year results, total revenue was $241.5 million, a 4% decline year over year, adjusted EBITDA was $70.4 million, a 29% margin, and unlevered free cash flow was $54.9 million.

Speaker #2: In terms of operating metrics, we saw gross dollar retention improve about two points year over year, reflecting the initial impact of the actions we've been taking to stabilize the business.

Speaker #2: At the same time, net dollar retention declined due to the ongoing pressure in our upsell motion. As we discussed throughout the year, the lower upsell opportunities put downward pressure on NDR in 2025.

Kasey: As we discussed throughout the year, the lower upsell opportunities put downward pressure on NDR in 2025. We're confident that the combination of the actions we've taken to restore claims volume and the innovation in products we'll be releasing in Q2 will provide exciting new upsell and cross-sell opportunities that will positively improve net dollar retention in 2026. Turning to cash flow, our business continues to generate strong free cash flow due to our high margin model, upfront billing, and low reoccurring CapEx requirements. Operating cash flows for full year 2025 were $53.8 million, down 8% from the prior year, reflecting the revenue decline, but was partially offset by strong working capital performance. We generated $54.9 million of unlevered free cash flow in 2025.

Casey Heller: As we discussed throughout the year, the lower upsell opportunities put downward pressure on NDR in 2025. We're confident that the combination of the actions we've taken to restore claims volume and the innovation in products we'll be releasing in Q2 will provide exciting new upsell and cross-sell opportunities that will positively improve net dollar retention in 2026. Turning to cash flow, our business continues to generate strong free cash flow due to our high margin model, upfront billing, and low reoccurring CapEx requirements. Operating cash flows for full year 2025 were $53.8 million, down 8% from the prior year, reflecting the revenue decline, but was partially offset by strong working capital performance. We generated $54.9 million of unlevered free cash flow in 2025.

Speaker #2: We're confident that the combination of the actions we've taken to restore claims volume and the innovation in product will be releasing in Q2 will provide exciting new upsell and cross-sell opportunities that will positively improve net dollar retention in 2026.

Speaker #2: Turning to cash flow, our business continues to generate strong free cash flow due to our high margin model upfront billing and low reoccurring CapEx requirements.

Speaker #2: Operating cash flows for full year 2025 were $53.8 million, down 8% from the prior year, reflecting the revenue decline but was partially offset by strong working capital performance.

Speaker #2: And we generated $54.9 million of unlevered free cash flow in 2025. Our conversion rate of adjusted EBITDA to unlevered free cash flow was 78%, which is down about 14 points year over year.

Kasey: Our conversion rate of Adjusted EBITDA to Unlevered Free Cash Flow was 78%, which is down about 14 points year-over-year. Adjusting for some one-time CapEx spend that largely occurred in Q1 2025, the conversion rate is 87% over the last 12 months. This cash generation provides flexibility to continue investing in growth, as noted by the tick up in capitalized software spend as we restarted our organic innovation engine in 2025. As a result of that, we capitalized about $6 million of software development spend, a $5 million increase over the prior year. At the end of Q4, deferred revenue of $99 million was up 6% year-over-year, and total remaining performance obligations declined 18% year-over-year.

Casey Heller: Our conversion rate of Adjusted EBITDA to Unlevered Free Cash Flow was 78%, which is down about 14 points year-over-year. Adjusting for some one-time CapEx spend that largely occurred in Q1 2025, the conversion rate is 87% over the last 12 months. This cash generation provides flexibility to continue investing in growth, as noted by the tick up in capitalized software spend as we restarted our organic innovation engine in 2025. As a result of that, we capitalized about $6 million of software development spend, a $5 million increase over the prior year. At the end of Q4, deferred revenue of $99 million was up 6% year-over-year, and total remaining performance obligations declined 18% year-over-year.

Speaker #2: Adjusting for some one-time CapEx x spend that largely occurred in Q1 '25, the conversion rate is 87% over the last 12 months. This cash generation provides flexibility to continue investing in growth, as noted by the tick up in capitalized software spend as we restarted our organic innovation engine in 2025.

Speaker #2: As a result of that, we capitalized about $6 million of software development spend, a $5 million increase over the prior year. At the end of Q4, deferred revenue of $99 million was up 6% year over year, and total remaining performance obligations declined 18% year over year.

Speaker #2: Current remaining performance obligations of $165 million were flat quarter over quarter, but declined 12% year over year. As mentioned last quarter, we've now wrapped on the initial contributions from our data partnership agreement, which explained the favorable year-over-year CRPO growth that we printed exiting Q3.

Kasey: Current remaining performance obligations of $165 million were flat quarter-over-quarter, declined 12% year-over-year. As mentioned last quarter, we've now wrapped on the initial contributions from our data partnership agreements, which explain the favorable year-over-year CRPO growth that we printed exiting Q3. There are other dynamics impacting CRPO as well. In 2025, we saw a greater percentage of our new logo additions sign 1 year versus multiyear commitments than in prior years. This impacts both RPO as well as CRPO. Let me explain why. If you went back to the end of 2024, there was approximately $100 million of CRPO on our books related to commitments that extended beyond 2025. As we enter 2026, this amount is $85 million.

Casey Heller: Current remaining performance obligations of $165 million were flat quarter-over-quarter, declined 12% year-over-year. As mentioned last quarter, we've now wrapped on the initial contributions from our data partnership agreements, which explain the favorable year-over-year CRPO growth that we printed exiting Q3. There are other dynamics impacting CRPO as well. In 2025, we saw a greater percentage of our new logo additions sign 1 year versus multiyear commitments than in prior years. This impacts both RPO as well as CRPO. Let me explain why. If you went back to the end of 2024, there was approximately $100 million of CRPO on our books related to commitments that extended beyond 2025. As we enter 2026, this amount is $85 million.

Speaker #2: There are other dynamics impacting CRPO as well. In 2025, we saw greater percentage of our new logo additions signed one year versus multi-year commitments than in prior years.

Speaker #2: This impacts both RPO as well as CRPO. Let me explain why. If you went back to the end of 2024, there was approximately 100 million of CRPO on our books related to commitments that extended beyond 2025.

Speaker #2: As we enter 2026, this amount is 85 million. This $15 million difference reflects the lower average duration of our contract portfolio entering the year and is a drag to CRPO growth.

Kasey: This $15 million difference reflects the lower average duration of our contract portfolio entering the year and is a drag to CRPO growth. Before providing guidance on Q1 and the full year, I'd like to take a moment to frame where we believe the business is as we enter 2026. We made significant progress in 2025 across each of our strategic priorities and are confident we have set a solid foundation for the business to return to growth in the future. As Kevin mentioned, based on the timing of when these changes will be implemented, we will not see the full impact of these investments in 2026. This is reflected in our guidance for the year.

Casey Heller: This $15 million difference reflects the lower average duration of our contract portfolio entering the year and is a drag to CRPO growth. Before providing guidance on Q1 and the full year, I'd like to take a moment to frame where we believe the business is as we enter 2026. We made significant progress in 2025 across each of our strategic priorities and are confident we have set a solid foundation for the business to return to growth in the future. As Kevin mentioned, based on the timing of when these changes will be implemented, we will not see the full impact of these investments in 2026. This is reflected in our guidance for the year.

Speaker #2: Before providing guidance on Q1 and the full year, I'd like to take a moment to frame where we believe the business is as we enter 2026.

Speaker #2: We made significant progress in 2025 across each of our strategic priorities and are confident we have set a solid foundation for the business to return to growth in the future.

Speaker #2: However, as Kevin mentioned, based on the timing of when these changes will be implemented, we will not see the full impact of these investments in 2026.

Speaker #2: This is reflected in our guidance for the year. Now, moving to guidance for Q1, we expect total Q1 revenue of $54 to $56 million, a revenue decrease of 5 to 9 percent year over year compared to Q1 '25.

Kasey: Now, moving to guidance for Q1, we expect total Q1 revenue of $54 to 56 million, a revenue decrease of 5% to 9% year-over-year compared to Q1 2025. The sequential decline in revenue reflects that the improvement in renewal rates in Q4 only modestly improved year-over-year. As a reminder, a substantial portion of our yearly renewals occur in this timeframe. Keep in mind that there'll be a partial period benefit to growth this quarter from the data partnership that began generating revenue during Q1 2025.

Casey Heller: Now, moving to guidance for Q1, we expect total Q1 revenue of $54 to 56 million, a revenue decrease of 5% to 9% year-over-year compared to Q1 2025. The sequential decline in revenue reflects that the improvement in renewal rates in Q4 only modestly improved year-over-year. As a reminder, a substantial portion of our yearly renewals occur in this timeframe. Keep in mind that there'll be a partial period benefit to growth this quarter from the data partnership that began generating revenue during Q1 2025.

Speaker #2: The sequential decline in revenue reflects that the improvement in renewal rates in Q4 only modestly improved year over year. As a reminder, a substantial portion of our yearly renewals occur in this timeframe.

Speaker #2: Also, keep in mind that there'll be a partial period benefit to growth this quarter from the data partnership that began generating revenue during Q1 '25.

Speaker #2: Taking these factors into account, in Q1, we expect adjusted operating income of $9.5 to $10.5 million, adjusted EBITDA of $12 to $13 million, or 22 to 23 percent adjusted EBITDA margin in Q1, and adjusted net income of $4 to $5 million, or approximately 3 cents per diluted share on $143.2 million weighted average shares outstanding.

Kasey: Taking these factors into account, in Q1, we expect adjusted operating income of $9.5 to $10.5 million, adjusted EBITDA of $12 to $13 million or 22% to 23% adjusted EBITDA margin in Q1, and adjusted net income of $4 to $5 million or approximately $0.03 per diluted share on 143.2 million weighted average shares outstanding. For the full year 2026, we expect revenue of $220 to $226 million for a 6% to 9% decline year-over-year. For the full year, we expect total revenue dollars to be roughly flat sequentially through the year with a modest uptick in the second half relative to the first half. We have continued to proactively manage our cost base while making targeted investments in growth areas.

Casey Heller: Taking these factors into account, in Q1, we expect adjusted operating income of $9.5 to $10.5 million, adjusted EBITDA of $12 to $13 million or 22% to 23% adjusted EBITDA margin in Q1, and adjusted net income of $4 to $5 million or approximately $0.03 per diluted share on 143.2 million weighted average shares outstanding. For the full year 2026, we expect revenue of $220 to $226 million for a 6% to 9% decline year-over-year. For the full year, we expect total revenue dollars to be roughly flat sequentially through the year with a modest uptick in the second half relative to the first half. We have continued to proactively manage our cost base while making targeted investments in growth areas.

Speaker #2: For the full year 2026, we expect revenue of $220 to $226 million, for a 6 to 9 percent decline year over year. For the full year, we expect total revenue dollars to be roughly flat sequentially through the year with a modest uptick in the second half relative to the first half.

Speaker #2: And we have continued to proactively manage our cost base while making targeted investments in growth areas. From a non-GAAP profitability perspective, the largely fixed nature of our costs mean that most of the revenue decrease will flow through and create negative operating leverage.

Kasey: From a non-GAAP profitability perspective, the largely fixed nature of our costs mean that most of the revenue decrease will flow through and create negative operating leverage. We expect sales and marketing expense of 32% to 33% of revenue, development expense of 12% to 13% of revenue, and G&A expense of 12% to 13% of revenue. We expect development expense to be modestly higher year-over-year as we make targeted investments for growth, while we expect to see sales and marketing as well as G&A expense reduce year-over-year as we drive efficiencies across support functions in each area. Translating that into dollars, in 2026, we expect adjusted operating income of $41.5 to $46.5 million, adjusted EBITDA of $53 to $58 million for a full year margin of 24% to 26%.

Casey Heller: From a non-GAAP profitability perspective, the largely fixed nature of our costs mean that most of the revenue decrease will flow through and create negative operating leverage. We expect sales and marketing expense of 32% to 33% of revenue, development expense of 12% to 13% of revenue, and G&A expense of 12% to 13% of revenue. We expect development expense to be modestly higher year-over-year as we make targeted investments for growth, while we expect to see sales and marketing as well as G&A expense reduce year-over-year as we drive efficiencies across support functions in each area. Translating that into dollars, in 2026, we expect adjusted operating income of $41.5 to $46.5 million, adjusted EBITDA of $53 to $58 million for a full year margin of 24% to 26%.

Speaker #2: We expect sales and marketing expense of $32 to $33 percent of revenue, development expense of $12 to 13 percent of revenue, and G&A expense of $12 to 13 percent of revenue.

Speaker #2: We expect development expense to be modestly higher year over year as we make targeted investments for growth while we expect to see sales and marketing as well as G&A expense reduce year over year as we drive efficiencies across support functions in each area.

Speaker #2: Translating that into dollars, in 2026, we expect adjusted operating income of $41.5 to $46.5 million, adjusted EBITDA of $53 to $58 million, for a full-year margin of 24 to 26 percent.

Kasey: This guide reflects our ongoing commitment to maintaining strong margins while investing in our key growth areas. The decline from 2025 levels is due to a combination of ongoing pressure on revenue and more than a point of impact from the one-time expense credits we recognized in the Q2 and Q3 of 2025 that will not repeat this year. Adjusted net income is expected to be between $21 to $26 million, and earnings per share are expected to be $0.14 to $0.17 on 145.4 million weighted average shares outstanding. While we don't explicitly guide on Unlevered Free Cash Flow, it's important to note that we do expect to see Adjusted EBITDA to Unlevered Free Cash Flow conversion improving by several points in 2026 relative to 2025, given lower planned CapEx spend.

Casey Heller: This guide reflects our ongoing commitment to maintaining strong margins while investing in our key growth areas. The decline from 2025 levels is due to a combination of ongoing pressure on revenue and more than a point of impact from the one-time expense credits we recognized in the Q2 and Q3 of 2025 that will not repeat this year. Adjusted net income is expected to be between $21 to $26 million, and earnings per share are expected to be $0.14 to $0.17 on 145.4 million weighted average shares outstanding. While we don't explicitly guide on Unlevered Free Cash Flow, it's important to note that we do expect to see Adjusted EBITDA to Unlevered Free Cash Flow conversion improving by several points in 2026 relative to 2025, given lower planned CapEx spend.

Speaker #2: This guide reflects our ongoing commitment to maintaining strong margins while investing in our key growth areas. The decline from 2025 levels is due to a combination of ongoing pressure on revenue and more than a point of impact from the one-time expense credits we recognized in the second and third quarter of 2025 that will not repeat this year.

Speaker #2: Adjusted net income is expected to be between $21 to $26 million, and earnings per share are expected to be $14 to $17 cents on $145.4 million weighted average shares outstanding.

Speaker #2: And while we don't explicitly guide on unlevered free cash flow, it's important to note that we do expect to see adjusted EBITDA to unlevered free cash flow conversion improving by several points in 2026 relative to 2025, given lower planned CAPEX spend.

Speaker #2: As we wrap up, I'd like to reiterate that while we continue to face top-line pressures, we remain committed to non-GAAP profitability and maintaining a solid margin profile while balancing investments for a return to growth in the future.

Kasey: As we wrap up, I'd like to reiterate that while we continue to face top-line pressures, we remain committed to Non-GAAP profitability and maintaining a solid margin profile while balancing investments for a return to growth in the future. We are confident that we have the right strategy and are committed to continuing to make progress against our key initiatives that over time we expect will improve customer retention, return Definitive growth, and drive long-term shareholder value. With that, I would like to open it up for questions.

Casey Heller: As we wrap up, I'd like to reiterate that while we continue to face top-line pressures, we remain committed to Non-GAAP profitability and maintaining a solid margin profile while balancing investments for a return to growth in the future. We are confident that we have the right strategy and are committed to continuing to make progress against our key initiatives that over time we expect will improve customer retention, return Definitive growth, and drive long-term shareholder value. With that, I would like to open it up for questions.

Speaker #2: We are confident that we have the right strategy and are committed to continuing to make progress against our key initiatives that over time we expect will improve customer retention, return definitive to growth, and drive long-term shareholder value.

Speaker #2: And with that, I would like to open it up for questions.

Speaker #1: If you'd like to ask a question, please press star one on your phone now, and you'll be placed into the queue on the order received.

Operator: If you'd like to ask a question, please press star one on your phone now, and you'll be placed into the queue and the order received. Again, star one for a question, and we'll pause briefly to form our queue. The first question today comes from Craig Hettenbach of Morgan Stanley.

Speaker #1: Again, star one for a question, and we'll pause briefly to form our queue. Our first question today comes from Craig Hettenbach of Morgan Stanley.

Speaker #2: Hi, this is Jay Ahn for Craig Hettenbach. Thanks for taking my question. I was just wondering, can you provide a quick update on a demand environment across your three end markets?

[Analyst] (Morgan Stanley): Hi, this is Jay for Craig Hettenbach. Thanks for taking my question. I was just wondering, can you provide a quick update on demand environment across your three end markets? Any other common themes you can share from the large cohort of renewals from the December and January?

Jay Jin: Hi, this is Jay for Craig Hettenbach. Thanks for taking my question. I was just wondering, can you provide a quick update on demand environment across your three end markets? Any other common themes you can share from the large cohort of renewals from the December and January?

Speaker #2: And then any common other common themes you can share from the large cohort of renewals from the December and January?

Speaker #1: Sure. So let me start with the integration strategy and the renewal impact that we're seeing come through our focus on churn improvement. So as we've noted previously, a significant portion of our retention trends were impacted by the industry-wide claims disruption.

Kasey: Sure. Let me start with the integration strategy and the renewal impact that we're seeing come through our focus on churn improvement. As we've noted previously, a significant portion of our retention trends were impacted by the industry-wide claims disruption. We're confident that the actions that we took to remediate the claims data throughout the year will drive improvement in our performance as we move into 2026. As we look at the business from a cohort perspective, the first cohort of renewals, excluding Q1 2024, where the disruption occurred, was posted this last quarter in Q4.

Kevin Coop: Sure. Let me start with the integration strategy and the renewal impact that we're seeing come through our focus on churn improvement. As we've noted previously, a significant portion of our retention trends were impacted by the industry-wide claims disruption. We're confident that the actions that we took to remediate the claims data throughout the year will drive improvement in our performance as we move into 2026. As we look at the business from a cohort perspective, the first cohort of renewals, excluding Q1 2024, where the disruption occurred, was posted this last quarter in Q4.

Speaker #1: And we're confident that the actions that we took to remediate the claims data throughout the year will drive improvement in our performance as we move into '26.

Speaker #1: And as we look at the business from a cohort perspective, the first cohort of renewals excluding the first quarter of '24 where the disruption occurred was posted this last quarter in Q4.

Speaker #1: And that performance on a business sold post-Q1 '24 basis and up for renewal through 2025 shows about a 200 basis points improvement over the previous comparison quarters, even extending back to '22.

Kevin Coop: That performance on a business sold post Q1 2024 basis and up for renewal through 2025 shows about a 200 basis points improvement over the previous comparison quarters, even extending back to 2022. This indicates not only is our strategy focused on data quality, integrations, and improved customer experience that's working, we now are very confident that it will continue to build in 2026, it gives us support for confidence in our plan.

Speaker #1: So this indicates not only is our strategy focused on that is focused on data quality, integrations, and improved customer experience, that that's working, we now are very confident that it will continue to build in 2026, and it gives us support for confidence in our plan.

Speaker #2: And the only other component that I would layer on there is that we did see, as I mentioned, improvement in our renewal rates in Q4 year over year.

Casey Heller: The only other component that I would layer on there is that, you know, we did see, as I mentioned, improvement in our renewal rates in Q4 year-over-year. They were modest. You know, what we're seeing in January is fully incorporated into our 2026 guide. More broadly in the demand environment, no significant change, but certainly a couple of green shoots that we're continuing to monitor. You know, we started to see sales cycles condense, as I think Kevin mentioned earlier in the prepared remarks. Those are just kind of some of the encouraging signs that I think are pairing a little bit of maybe some benefit in terms of what we're starting to monitor from a macro perspective, as well as paired with some of our stronger own sales execution.

Speaker #2: They were modest. And what we're seeing in January is fully incorporated into our 2026 guide. More broadly, the demand environment, no significant change, but certainly a couple of green shoots that we're continuing to monitor.

Speaker #2: We started to see sales cycles condense, as I think Kevin mentioned earlier in the prepared remarks, so those are just kind of some of the encouraging signs that I think are pairing a little bit of maybe some benefit into terms of what we're starting to monitor from a macro perspective.

Speaker #2: As well as paired with some of our stronger own sales execution.

Speaker #1: And then maybe one other data point, which I think would be helpful, is we have been focused on integrations as we know that integrated customers will renew at a higher rate than those that are not.

Kevin Coop: Maybe one other data point which I think would be helpful is we have been focused on integrations as we know that integrated customers will renew at a higher rate than those that are not. I mentioned that in the prepared remarks. In Q4, we added over 60 integrated customers. To give you kind of perspective on that, we added 160 for the full year. We're seeing the integration focus starting to accelerate. Our commercial teams are promoting that because it's good for the customer as well as good for us. We're very confident that that performance in the Q4, which often is a more difficult quarter to get moving, was actually very positive, especially in comparison to the full year.

Speaker #1: I mentioned that in the prepared remarks. And in Q4, we added customers. And to give you kind of perspective on that, we added 160 for the full year.

Speaker #1: So we're seeing the integration focus starting to accelerate. Our commercial teams are promoting good for us. And we're very confident that that performance in the fourth quarter, which often is a more difficult quarter to get moving, was actually very positive, especially in comparison to the full year.

Speaker #3: From Native, we have Brian McDonald.

Ryan MacDonald: From Needham, we have Ryan MacDonald.

Operator: From Needham, we have Ryan MacDonald.

Matt Shea: Hey, thanks. This is Matt Shea on for Ryan. Appreciate you guys taking the question. Maybe just to start, I have a quick follow-up. Would love to just double-click on the last question. Anything you can parse out, I guess, between end markets as you went through the renewal cycle? Any end markets that maybe surprised you, either positive or negative? I know in the past, down sells have been more of an issue in the life sciences and pharma end markets, so would love an update on how that end market in particular is doing.

Speaker #4: Hey, thanks. This is Matt Shea on for Ryan. Appreciate you guys taking the question. Maybe just to start, and then I have a quick follow-up.

Speaker #4: Would love to just double-click on the last question. Anything you can parse out, I guess, between end markets as you went through the renewal cycle? Any end markets that maybe surprised you, either positive or negative?

Speaker #4: And then I know in the past, downsells have been more of an issue in the life sciences and pharma end markets, so would love an update on how that end market in particular is doing.

Speaker #2: Yeah, let me give you a little bit of color as far as what we're seeing in terms of the renewal profile across the business.

Casey Heller: Yeah, let me give you a little bit of color as far as what we're seeing in terms of the renewal profile across the business. You know, 2025 for us was a year we're really focused on stabilizing the business. I think that we were able to, you know, certainly accomplish that across a number of metrics. If we look at gross dollar retention improved two points year-over-year. That actually was largely driven by our enterprise customers, which are strongly weighted toward the life sciences space, just given that the size of the customers that we tend to deal with within life sciences. That's an encouraging component there.

Speaker #2: 2025, for us, was a year we were really focused on stabilizing the business. And I think that we were able to certainly accomplish that across a number of metrics.

Speaker #2: So if we look at growth dollar retention, growth dollar retention improved two points year over year. That actually was largely driven by our enterprise customers, which are strongly weighted toward the life sciences space, just given that the size of the customers that we tend to deal with within life sciences.

Speaker #2: So that's an encouraging component there. But exactly as you mentioned, as we've continued to talk about, we were seeing a little bit of the flip side of that in terms of net dollar retention.

Casey Heller: Exactly as you mentioned, as we continue to talk about, we were seeing a little bit of the flip side of that in terms of net dollar retention, which declined a couple of points year-over-year due to the lesser opportunities around upsell and cross-sell opportunities. I think that, you know, where we stand here today and during 2026, we are in a much stronger position. We've remediated the claims data disruption by bringing on a new data source late in 2025. We've got an additional data source ready to come online in the next couple of weeks as well to further add to our claims volumes. Kevin touched on some of the additional new data that we've added into product as well. Plus, just more broadly restarting our overall product innovation engine.

Speaker #2: Which declined a couple of points year over year, due to the lesser opportunities around upsell. And cross-sell opportunities. I think that as we stand here today, entering 2026, we are in a much stronger position.

Speaker #2: We've remediated the claims data disruption by bringing on a new data source late in '25. We've got an additional data source ready to come online in the next couple of weeks, as well, to further add to our claims volumes.

Speaker #2: And Kevin touched on some of the additional new data that we've added into product as well. Plus, just more broadly restarting our overall product innovation engine.

Speaker #2: So we've got a lot more tools in the kit, essentially, as we stand here at the start of 2026 than we did at the start of '25.

Casey Heller: We've got a lot more tools in the kit, essentially, as we stand here at the start of 2026 than we did at the start of 2025. That gives us all the confidence and be able to continue to build upon, you know, the stabilization in the gross dollar retention and start to build back that net dollar retention improvement into 2026.

Speaker #2: And that gives us all the confidence in being able to continue to build upon the stabilization in the growth dollar retention and start to build back that net dollar retention improvement into '26.

Speaker #1: Okay. I appreciate that color. I guess maybe if we think about the inputs to the growth outlook for 2026, I know understanding churn is still a topic, but if I assume customer count declines and call it the six to seven percent range, like it did in 2025, to get to the midpoint of the 2026 guidance, I have to then assume year over year declines in revenue per customer.

Matt Shea: Okay. I appreciate that color. I guess maybe if we think about the inputs to the growth outlook for 2026, I know understanding churn is still a topic. If I assume customer count declines and call it the 6% to 7% range like it did in 2025, to get to the midpoint of the 2026 guidance, I have to then assume year-over-year declines in revenue per customer. Despite the down sell pressure you guys have experienced in the last year or two, you've been able to consistently grow ARPU through that headwind. Maybe just help us reconcile that. Is there more churn in store for 2026 than 2025? Is it more so that down sells have finally reached the point where we should start to expect ARPU declines? Thanks.

Speaker #1: And despite the downsell pressure you guys have experienced in the last year or two, you've been able to consistently grow our poo through that headwind.

Speaker #1: So maybe just help us reconcile that. Is there more churn in store for 2026 than 2025, or is it more so the downsells have finally reached the point where we should start to expect our poo declines?

Speaker #1: Thanks.

Casey Heller: I think that there's an element here of one, over the last couple of years, we've continued to put more focus on our larger enterprise accounts. I think that that is still very much aligned to our strategy, but there's also an element here when you think about the mix of our business. If diversified and provider are smaller than life sciences accounts, we are actually growing in diversified and provider. Both of those printed growth in Q4. We've got 60% of the business that has returned to growth, which is really encouraging for us.

Speaker #2: Listen, I think that there's an element here of one, over the last couple of years, we've continued to put more focus on our larger enterprise accounts.

Speaker #2: I think that that is still very much aligned to our strategy, but there's also an element here when you think about the mix of our business.

Speaker #2: Diversified and provider are smaller than life sciences accounts. We are actually growing in diversified and provider. Both of those printed growth in Q4. So we've got 60% of the business that is returned to growth, which is really encouraging for us.

Speaker #2: So I think what you're capturing there is less of a churn issue and more of just the business mix element of the diversified and provider pieces of the business returning to growth and us continuing to pick up and add new customers there that do come in typically at a lower dollar value than some of the larger life sciences clients.

Casey Heller: I think what you're capturing there is less of a churn issue and more of just a business mix element of the diversified and provider pieces of the business, you know, returning to growth and us continuing to pick up and add new customers there that do come in typically at a lower dollar value than, you know, some of the larger life sciences clients.

Speaker #1: Okay. Got it. Thanks, Casey.

Jared Haase: Okay, got it. Thanks, Casey.

Matt Shea: Okay, got it. Thanks, Casey.

Speaker #4: Next, we'll hear from Brian Peterson of Raymond James.

Ryan MacDonald: Next, we'll hear from Brian Peterson of Raymond James.

Operator: Next, we'll hear from Brian Peterson of Raymond James.

Speaker #5: Oh, hey, guys. Thanks for taking the question. So maybe just started on AI. I wanted to understand how much of your customer conversations are impacted by AI and what you guys would be able to deliver through your data assets, but also I can see scenarios where AI might be distracting or capturing share of budget, maybe away from traditional vendors.

Brian Peterson: Hey, guys. Thanks for taking the question. Maybe just start it on AI. I wanted to understand, you know, how much of your customer conversations are impacted by AI and what you guys would be able to deliver through your data assets. Also, I can see scenarios where AI might be, you know, distracting or capturing share of budget, maybe away from traditional vendors. You know, I'd love to understand how you're thinking about the net impact of AI so far as at least through 2025.

Speaker #5: I'd love to understand how you're thinking about the net impact of AI so far as at least through 2025.

Speaker #1: Yeah. So I think the helpful aspect of our solution set and the type of use cases that we sell into it's very healthcare-specific workflow.

Kevin Coop: Yeah. I think the helpful aspect of our solution set and the type of use cases that we sell into, it's very healthcare-specific workflow. These are purpose-built solutions, and the data is collected in a way to be delivered in these purpose-built workflows. It's around sales and marketing intelligence for contact-level targeting and territory design. It's population and conditioning modeling. It needs to address market sizing, medical affairs planning, even key opinion leader mapping related to influence patterns and how that evolves over time, or automating risk related to things like legal affairs. We've got the type of use cases that we're solving aren't really optional, right? They're very much around commercial execution, product, or strategy. That's sort of the base layer.

Speaker #1: These are purpose-built solutions, and the data is collected in a way to be delivered in these purpose-built workflows. And it's around sales and marketing intelligence for contact-level targeting and territory design.

Speaker #1: It's population and conditioning modeling. It needs to address market sizing, medical affairs planning, even key opinion leader mapping related to influence patterns and how that evolves over time, or automating risk related to things like legal affairs.

Speaker #1: So we've got the type of use cases that we're solving aren't really optional, right? They're very much around commercial execution, product or strategy. And so that's sort of the base layer.

Speaker #1: Then you also look at it from—which I mentioned in my prepared remarks—which was, look, AI modeling is only as good as the data it can mine.

Kevin Coop: You also look at it from, which I mentioned in my prepared remarks, which was, you know, look, AI modeling is only as good as the data it can mine. We know that our differentiated data, which is focused on and founded on our best in class reference and affiliation dataset gives us a clear advantage. The conversations that we're having, it's more around how do we apply and what can we do to apply and harness AI as it relates to the existing use cases and workflow and healthcare suite workflows, which is why we believe that it's a competitive advantage and a tailwind as opposed to a headwind for us today.

Speaker #1: And we know that our differentiated data, which is focused on and founded on our best-in-class reference and affiliation data set, gives us a clear advantage.

Speaker #1: And so the conversations that we're having, it's more around how do we apply and what can we do to apply the and harness AI as it relates to the existing use cases and workflow and healthcare suite workflows, which is why we believe that is a competitive advantage in a tailwind as opposed to a headwind for us today.

Speaker #5: Got it. Thanks, Kevin. And I appreciate all the comments on the NDR and that the customer dynamics are you guys able at this point to say when you think NDR may actually hit a bottom?

Brian Peterson: Got it. Thanks, Kevin. I appreciate all the comments on the NDR and the customer dynamics. Are you guys able at this point to say when you think NDR may actually hit a bottom? It's good that you've seen the gross revenue retention improve. Just curious when that KPI should inflect. Thanks, guys.

Speaker #5: It's good that you've seen the growth revenue retention improve just curious when that KPI should inflict. Thanks, guys.

Speaker #2: Yeah. It's fully our expectation that we're able to improve NDR within 2026. So we view 2025 as the bottom. As I mentioned I think that there's a lot of work that we did in '25 that really positioned us to be starting 2026 from a stronger footing from a product innovation standpoint, as well as the work we've done to add additional data, remediate the claims data issue, as well as enhance some of the components that we have within our crown jewel, our reference and affiliation data as well.

Casey Heller: Yeah. It's fully our expectation that we're able to improve NDR within 2026. We view 2025 as the bottom. As I mentioned, you know, I think that there's a lot of work that we did in 2025 that really positioned us to be starting 2026 on a stronger footing from a product innovation standpoint, as well as the work we've done to add additional data, remediate the claims data issue, as well as enhance some of the components that we have within our crown jewel, our reference and affiliation data as well.

Speaker #1: Yeah. And I think to amplify I'm sorry. I was going to add on if it's okay that maybe the contextual expertise and why we see the tailwind with AI, especially as it relates to that, is as we're bringing the Gen AI layer to what is already a highly effective front-end platform, that's going to allow us to it's sort of democratizes the use today where while the platforms are very powerful, they do require a certain level of expertise and super users to access.

Kevin Coop: Yeah. I think, you know, I'm sorry, I was gonna add on if it's okay, that maybe the contextual expertise and why we see the tailwind with AI, especially as it relates to that, is as we're bringing the GenAI layer to what is already a highly effective front-end platform, that's going to allow us to. It sort of democratizes the use today, where while the platforms are very powerful, they do require a certain level of expertise and super users to access. With what we're doing this quarter, that's gonna allow more users to have more access to unlock more value. In fact that we are value-based pricing anyway, not seat-based.

Speaker #1: And so, with what we're doing this quarter, that's going to allow more users to have more access to unlock more value. In fact, that we are value-based pricing anyway, not seat-based.

Speaker #1: Unlocking more value is going to be really helpful, especially as we focus on net dollar retention as addition to gross dollar retention because that will unlock more cross-sell, upsell, and value unlock as we delight our customers with more value from the products and the platforms that we already have.

Kevin Coop: Unlocking more value is going to be really helpful, especially as we focus on net dollar retention as addition to gross dollar retention, because that will unlock more cross sell, upsell, and value unlock as we delight our customers with more value from the products and the platforms that we already have.

Speaker #5: Thanks, guys.

Brian Peterson: Thanks, guys.

Speaker #4: Our next question comes from Jared Haas of William Blair.

Ryan MacDonald: Our next question comes from Jared Haase of William Blair.

Operator: Our next question comes from Jared Haase of William Blair.

Speaker #5: Hey, guys. Thanks for taking the question. Maybe I'll follow up on that point related to the NDR and appreciate all the underlying drivers that give you confidence that 2025 can mark the bottom here.

Jared Haase: Hey, guys. Thanks for taking the question. Maybe I'll follow up on that point related to the NDR and appreciate, you know, all the underlying drivers that give you confidence that 2025 can mark the bottom here. I guess I just wanted to contextualize, 'cause obviously we've been thinking a lot about, you know, some of the product development and innovation initiatives to help drive that. Just to put a fine point on it, I'm curious if you guys are planning any refinement in your go-to-market, specifically targeted towards the sales motion to drive better upsells as well in addition to the product innovation.

Speaker #5: I guess I just wanted to contextualize, because obviously we've been thinking a lot about some of the product development and innovation initiatives to help drive that.

Speaker #5: But just to put a fine point on it, I'm curious if you guys are planning any refinement in your go-to-market, specifically targeted towards the sales motion to drive better upsells as well in addition to the product innovation.

Speaker #1: Yeah. So we've got really I would think about it in terms of five sort of prongs in that area. You've got the confidence coming from several key points.

Kevin Coop: Yeah. I would think about it in terms of 5 sort of prongs in that area. You've got the confidence coming from several key points. Number 1, we continue to have extremely valuable differentiated data that improves our customers' business performance. The second thing that we've got is we're investing to develop purpose-built solutions on top of our purpose solutions with AI, which will make it easier for the customers to actually value and create value from our data. The 3rd, we have already completed our go-to-market and customer success integration, which allows us to impact the business positively with higher run rates, shorter sales cycles, and with a consolidated commercial organization, we're seeing greater alignment, which is showing up in things like radically improved implementation timelines that has already decreased by over 25% year to date.

Speaker #1: Number one, we continue to have extremely valuable differentiated data that improves our customer's business performance. The second thing that we've got is we are investing to develop purpose-built solutions on top of our purpose-built solutions with AI, which will make it easier for the customers to actually value and create value from our data.

Speaker #1: The third, we have already completed our go-to-market and customer success integration, which allows us to impact the business positively with higher win rates, shorter sales cycles, and with a consolidated commercial organization, we're seeing greater alignment, which is showing up in things like radically improved implementation timelines.

Speaker #1: That is already decreased by over 25% year to date. And with the extending our AI investments into product, the data and end-user development within our 2026 product roadmap, which is already in there inside the financials with Casey's already taking you through, that accelerated investment is going to start to produce real tangible outcomes as we bring these innovations to market starting later this quarter.

Kevin Coop: With the extending our AI investments into product, the data and end user development within our 2026 product roadmap, which is already in there inside the financials, which Casey's already taken you through, that accelerated investment is gonna start to produce real tangible outcomes as we bring these innovations to market starting later this quarter. Finally, we talked about this about a year ago or so, a little bit more than a year ago, on our integration strategy, which we know is having a positive impact. You can see I mentioned we had 60 integrations as opposed to 160 for the full year. When we look at the retention rates from integrated customers, it's only going up.

Speaker #1: And finally, we talked about this about a year ago or so, a little bit more than a year ago on our integration strategy, which we know is having a positive impact.

Speaker #1: You can see I mentioned we had 60 integrations, as opposed to 160 for the full year. And when we look at the retention rates from integrated customers, it's only going up.

Speaker #1: And we can talk a little bit more about the expansion of the integrations, but I don't think we should underestimate the value that we have as being an agnostic platform where we are able to integrate with the customer's systems of insight and systems of record, regardless of what those are, and often they use multiple ways because that's how we start to see the stickiness come in.

Kevin Coop: We can talk a little bit more about the expansion of the integrations. I don't think we should underestimate the value that we have as being a, an agnostic platform where we are able to integrate with the customer systems of insight and systems of record regardless of what those are. Often they use multiple ways because that's how we start to see the stickiness come in. Whether they're integrating it through lake to lake, whether they need direct API integration or whether they're still accessing, and oftentimes they do directly through our state-of-the-art, soon to be AI-enabled workflow products.

Speaker #1: So whether they're integrating it through Lake to Lake whether they need direct API integration or whether they're still accessing and oftentimes they do directly through our state-of-the-art soon-to-be AI-enabled workflow products.

Speaker #5: Gotcha. Okay, that's helpful. And then, I guess as my follow-up—so you mentioned the fall expansion pack and some of the big updates. You brought on the new claims data source in the fourth quarter as well.

Jared Haase: Gotcha. Okay, that's helpful. Then I guess as my follow-up, so you mentioned the fall expansion pack and some of the big updates. You know, you brought on the new claims data source in the Q4 as well. When you have big product refreshes or updates like that, I'm just curious how quickly you're able to communicate those upgraded features to the market. You know, I'm wondering how much that factored into the year-end renewal discussions in the December, January timeframe. I guess the specific point around this is I'm trying to think about, you know, how much of that is sort of more incremental tailwind in 2026 selling discussions.

Speaker #5: When you have big product refreshes or updates like that, I'm just curious how quickly you're able to communicate those upgraded features to the market.

Speaker #5: I'm wondering how much that factored into the year-end renewal discussions and the December–January timeframe. And I guess the specific point around this is, I'm trying to think about how much of that is sort of more incremental tailwind in 2026 selling discussions.

Speaker #2: Yeah. That's an excellent question. So given the timing of the fall expansion pack, that really came in at the start of Q4. And most of our customers have already kind of made most of their renewal decisions largely like 90 days out.

Casey Heller: That's an excellent question. Given the timing of the fall expansion pack, that really came in at the start of Q4, and most of our customers have already kind of made most of their renewal decisions, largely like 90 days out. I actually don't think that we're seeing the impact from that and the benefit from that showing up in the Q4 renewals just yet. I think we're gonna learn about the extent that that's going to boost renewals a lot more here in Q1 and Q2.

Speaker #2: So I actually don't think that we're seeing the impact from that, and the benefit from that, showing up in the Q4 renewals just yet.

Speaker #2: I think we're going to learn about the extent that that's going to boost renewals a lot more here in Q1 and Q2. So I think it's how that relates in terms of the guidance we've put together and put out is I think that the guidance assumes some modest improvement in renewal rates, but I think that there's certainly still opportunity that will continue to monitor based on how quickly we see additional uplift.

Casey Heller: I think as how that relates in terms of the guidance we've put together and put out is I think that the guidance assumes some modest improvement in renewal rates, but I think that there certainly is still opportunity that we'll continue to monitor based on how quickly we see additional uplift and the impact on renewals. It's not just the renewals, it's also now. We did a really good job historically of selling claims as an upsell motion and a cross-sell motion into our customers historically. We didn't really do that last year because we needed to address the data disruption. Now that that's been addressed, that opens up that avenue for us as well. That'll certainly be a boost to us in 2026.

Speaker #2: And the impact on renewals. But it's not just the renewals. It's also now we've got we did a really good job historically of selling claims as an upsell motion and a cross-sell motion into our customers historically.

Speaker #2: We didn't really do that last year because we needed to address the data disruption. Now that that's been addressed, that opens up that avenue for us as well.

Speaker #2: So that'll certainly be a boost to us in '26. There's a component of it baked into our '26 guide. And we're continuing to kind of monitor results for more potential upside and we'll talk about that more as the year goes on.

Casey Heller: There's a component of it baked into our 2026 guide. We're continuing to kind of monitor results for more potential upside, and we'll talk about that more as the year goes on.

Speaker #5: Okay. Perfect. That's really helpful.

Jared Haase: Okay, perfect. That's really helpful.

Speaker #4: Once again, everyone, please press star one if you have a question. Next up, we have George Hill of Deutsche Bank.

Ryan MacDonald: Once again, everyone press star one for a question. Next up, we have George Hill of Deutsche Bank.

Operator: Once again, everyone press star one for a question. Next up, we have George Hill of Deutsche Bank.

Speaker #6: Hey. Good afternoon, guys, and thanks for taking the questions. I've just got two quick ones. Casey, you talked about the NDR improving or bottoming, I guess, in '26.

George Hill: Hey, good afternoon, guys, thanks for taking the questions. I've just got two quick ones. Kasey, you talked about the NDR improving, or bottoming, I guess, in 2026. I guess I don't know if you're willing to talk about like order of magnitude, as you think about the recovery, like if we're modeling that going forward, kind of what does that look like? Kevin, on the claims data, are you able to talk about like what amount of enterprise revenue does the claims data product? To what amount of revenue does claims data underpin like various product revenue?

Speaker #6: I guess I don't know if you're willing to talk about order of magnitude as you think about the recovery. If we're modeling that going forward, kind of what does that look like?

Speaker #6: And Kevin, on the claims data, are you able to talk about what amount of enterprise revenue does the claims data product to what amount of revenue does claims data underpin various product revenue?

Speaker #6: And is the disruption there enough to consider that product significantly impaired or is there a resell process around that? A reintroduction process? As it relates to the claims data product, are you able to just kind of go back to market with the patches that you guys have made?

George Hill: Is the disruption there enough to consider that product significantly impaired or is there a resell process around that, like a reintroduction process, as it relates to the claims data product? Are you able to just kind of go back to market with the patches that you guys have made? I understand that's a clumsy question. I apologize.

Speaker #6: I understand that's a clumsy question. I apologize.

Speaker #1: Well, no. I mean, I get where the intent of the question is. So maybe what I'll do is, I'll start with sort of the philosophical and the rationale, and then maybe Casey can kind of quantify it to the question on both NDR, as well as how you size that.

Kevin Coop: Well, no, I mean, I get where your, where the intent of the question is. Maybe what I'll do is I'll start with sort of the philosophical and the rationale, and then maybe Kasey can kind of quantify it to the question on both NDR as well as how do you size that. The claims data, it's really just a very simple issue that we faced. It depends on the customer because it wasn't universally spread evenly across the country.

Speaker #1: So the claims data, it's more it's really just a very simple issue that we faced. And it depends on the customer. Because it wasn't universally spread evenly across the country.

Speaker #1: So when you have, say, 30% of records that suddenly evaporate from the market and if you've entitled your customers to expect a certain number of records and now there's 30% less, regardless of the reason, there's going to be pressure on rightsizing and downsell pressure when you renew or they want you to be they want to be made right.

Kevin Coop: When you have, say, 30% of records that suddenly evaporate from the market, and if you've entitled your customers to expect a certain number of records and now there's 30% less, regardless of the reason, there's gonna be pressure on right sizing and down sell pressure when you renew or they want, you know, they want to be made right. Remediating the claims data was twofold. One, we needed to get the actual counts back up to historical or better than historical averages, which is where we are now. We're above historical averages. At the same time, it gave us the opportunity to increase the quality. The one thing that I definitely... And this relates to all of our data and all of our products.

Speaker #1: And so remediating the claims data was twofold. One, we needed to get the actual counts back up to historical or better than historical averages, which is where we are now.

Speaker #1: We're above historical averages. At the same time, it gave us the opportunity to increase the quality because the one thing that I definitely and this relates to all of our data and all of our products.

Speaker #1: The single biggest reason—and the number one factor—that our customers report why they select Definitive is because they rely on us for accuracy and quality.

Kevin Coop: The single biggest reason and the number one factor that our customers report why they select Definitive is because they rely on us for accuracy and quality. Our data needs to be as pristine and accurate as possible. It wasn't a simple answer. Now that you've gotten claims data that's been cross-sold very effectively in earlier years, that now creates a dissatisfaction. Even if the revenue component was less, it starts to impair other companies that may or other customers that may have acquired that as well. Remediating the volume and the quality at the same time was very important, and we are claiming job complete on that, and we feel very good about it, and I think it's starting to show up in the green shoots and the records going forward.

Speaker #1: Our data needs to be as pristine and accurate as possible. So it's not just it wasn't a simple answer. So now that you've gotten claims data that's been cross-sold very effectively in earlier years, that now creates a dissatisfaction even if the revenue even if the revenue component was less, it starts to impair other companies that may or other customers that may have acquired that as well.

Speaker #1: So remediating the volume and the quality at the same time was very important. And we are claiming job complete on that. And we feel very good about it.

Speaker #1: And I think it's starting to show up in the green shoots and the records going forward. As far as the question on how that impacts NDR and how you would shirt-size that, Casey, if I don't know if you want to answer anything.

Kevin Coop: As far as the question on how that impacts NDR and how you would shirt size that, Kasey, I don't know if you wanna add to anything.

Casey Heller: I think as far as what's assumed in our guide around NDR is a modest improvement. It's a couple of points. I think that, you know, again, there'll be more that we'll monitor as we go through the year to be able to show if we're on track for that or if we've got the opportunity to do better. We're confident in being able to deliver a couple of points of improvement on an NDR basis for 2026.

Speaker #2: Yeah. I think as far as what's assumed in our guide around NDR is a modest improvement. It's a couple of points. I think that, again, there'll be more that we'll monitor as we go through the year.

Speaker #2: To be able to show if we're on track for that or if we've got the opportunity to do better. But we're confident in being able to deliver a couple of points of improvement on an NDR basis for '26.

Speaker #5: Okay. Thank you.

Ryan MacDonald: Okay. Thank you. Next, we have Jeff Garro, Stephens Inc.

George Hill: Okay. Thank you.

Operator: Next, we have Jeff Garro, Stephens Inc.

Speaker #4: Next, we have Jeff Garoff, Steven Sink, Incorporated.

Jeff Garro: Yeah, good afternoon. Thanks for taking the question. Want to ask about renewals and sales activity in the life science end market. You mentioned positive activity in December year-over-year, but want to specifically combine that with the idea that we've heard from others, maybe some life science companies were distracted around December as they negotiated most favored nation pricing agreements with the administration. Curious to the extent you saw that and what you could tell us about pipeline development here in the first 50 days or so of 2026 as we get past that year-end 2025 period and start to look forward a little bit more as we've heard there's more budget certainty for these large pharma companies.

Speaker #6: Yeah, good afternoon. Thanks for taking the question. I want to ask about renewals and sales activity in the life sciences market. You mentioned positive activity in December year over year.

Speaker #6: But I want to specifically combine that with the idea that we've heard from others—maybe some life science companies were distracted around December as they negotiated most favored nation pricing agreements with the administration.

Speaker #6: So curious to the extent you saw that and what you could tell us about pipeline development here in the first 50 days or so of 2026 as we get past that year-end 2025 period and start to look forward a little bit more as we've heard there's more budget certainty for these large pharma companies.

Speaker #2: Yeah. So let me start here around some of the dynamics we've seen in the life sciences space. Again, I don't think there's been a ton of change from the elements that we talked about all year.

Casey Heller: Yeah. Let me start here around some of the dynamics we've seen in the life sciences space. Again, I don't think there's been a ton of change from the elements that we talked about all year. In Q4, there still was pressure around lack of upsell activity. We talked about gross dollar retention improving about 200 basis points at a total company level. That's a pretty consistent level within life sciences as well. That stabilization and that improvement there, I think is really important, and is something that we've been very focused on really kind of stabilizing that component of the business. As I mentioned earlier, when we got diversified and provider back to growth, now it's what's it take and what's that curve, and really the slope of that curve look like around life sciences.

Speaker #2: I think Q4, there's still was pressure around lack of upsell activity. But we talked about growth dollar retention improving about 200 bips at a total company level.

Speaker #2: That's a pretty consistent level within life sciences as well. So that stabilization and that improvement there, I think, is really important. And it's something that we've been very focused on really kind of stabilizing that component of the business.

Speaker #2: As I mentioned earlier, when we've got diversified and provider back to growth, now it's what's the take and what's that curve and really the slope of that curve look like around life sciences.

Speaker #2: And that's what we're really focused around kind of executing against while continuing to nurture the growth that we're seeing within diversified and the provider space.

Casey Heller: That's what we're really focused around kind of executing against while continuing to nurture the growth that we're seeing within diversified in the provider space. I can't say there's really been too significant of changes. I think we still are very highly engaged. We've got a lot of our relationships in the life sciences space are very long-standing. In fact, if you look at our logo churn rates, our logo retention rates are extremely high in the life sciences space. That's just an area that I think has been quite consistent for us for a long time. These are customers that have been with us for a long period of time. They value high-quality data, and we really just have these downsell pressures throughout 2024 and 2025 as a result of claims data disruption.

Speaker #2: But I can't say there's really been two significant changes. I think we still are very highly engaged. A lot of our relationships in the life sciences space are very longstanding.

Speaker #2: In fact, if you look at our logo churn rates, our logo sorry, our logo retention rates are extremely high in the life sciences space.

Speaker #2: And that's just an area that I think has been quite consistent for us for a long time. These are customers that have been with us for a long period of time.

Speaker #2: They value high-quality data. And we've really just had these downsell pressures throughout '24 and '25 as a result of claims data disruption. And we feel really good about where we are today and being able to build back the revenue within these accounts over time.

Casey Heller: We feel really good about where we are today and being able to build back the revenue within these accounts over time. That for us is really just the key component there of, what does the slope of the life sciences recovery look like? From a guidance perspective, we're being pretty prudent on the assumptions within the life sciences space until we get a couple more green shoots under our belt.

Speaker #2: And that, for us, is really just the key component there—what does the slope of the life sciences recovery look like? And from a guidance perspective, we're being pretty prudent on the assumptions within the life sciences space until we get a couple more green shoots under our belt.

Speaker #4: Great. I appreciate that. And one more quick one for me. Just the discussion of a return to organic innovation spend—I wanted to see if there's anything you can add more around the focus areas there.

Jeff Garro: Great. I appreciate that. One more quick one for me. Just the discussion of a return to organic innovation spend. Want to see if there's anything you can add more around the focus areas there and around the timing of product releases and eventual return on that investment. You mentioned one release later this quarter, so maybe help us just a little bit more with the cadence of other releases from there. Thanks again.

Speaker #4: And around the timing of product releases and eventual return on that investment. You mentioned one release later this quarter. So maybe help us just a little bit more with the cadence of other releases from there.

Speaker #4: Thanks again.

Speaker #1: Yeah. As we're looking at our compute capacity management and how we're deploying our resources, we're balancing the internal deployment of resources by focusing our engineering or problem-solving teams primarily on our AI-enabled product roadmap.

Kevin Coop: Yeah. As we're looking at our kind of compute capacity management and how we're deploying our resources, we're balancing the internal deployment of resources by focusing our engineering, our problem-solving teams primarily, and our AI-enabled product roadmap. We're doing so with If I was going to give you the, you know, the guidance on there, I would think of it in terms of Q2 is when we're really focusing on getting this into a more of a GA cycle, even though we are launching certain beta programs currently and in this quarter. I would look at it from a Q2 perspective.

Speaker #1: And we're doing so with if I was going to give you the guidance on there, I would think of it in terms of Q2.

Speaker #1: Is when we're really focusing on getting this into a more of a GA cycle, even though we are launching certain beta programs currently and in this quarter.

Speaker #1: But I would look at it from a Q2 perspective.

Speaker #4: We have no further questions at this time. That concludes our meeting today. Thanks, everyone, for joining.

Ryan MacDonald: We have no further questions at this time. That concludes our meeting today. Thanks everyone for joining. The host has ended this call. Goodbye.

Operator: We have no further questions at this time. That concludes our meeting today. Thanks everyone for joining. The host has ended this call. Goodbye.

Speaker #7: The host has ended this call.

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