Healthcare tech company GoodRx (NASDAQ: GDRX) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 2.6% year on year to $203 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $825 million at the midpoint. Its non-GAAP profit of $0.09 per share was in line with analysts’ consensus estimates.
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GoodRx (GDRX) Q1 CY2025 Highlights:
- Revenue: $203 million vs analyst estimates of $202.3 million (2.6% year-on-year growth, in line)
- Adjusted EPS: $0.09 vs analyst estimates of $0.10 (in line)
- Adjusted EBITDA: $69.81 million vs analyst estimates of $67.29 million (34.4% margin, 3.7% beat)
- The company reconfirmed its revenue guidance for the full year of $825 million at the midpoint
- EBITDA guidance for the full year is $280 million at the midpoint, in line with analyst expectations
- Operating Margin: 11.5%, up from 3.7% in the same quarter last year
- Customers: 6.4 million, down from 6.6 million in the previous quarter
- Market Capitalization: $1.74 billion
StockStory’s Take
GoodRx’s first quarter results were shaped by several strategic and operational changes aimed at reinforcing its position as a pharmacy savings platform. CEO Wendy Barnes, in her first 100 days, highlighted leadership team changes and efforts to deepen relationships with retail pharmacies and pharmaceutical manufacturers. Notably, the company implemented selective price increases to support pharmacy partner profitability, which contributed to a shift in the mix of prescriptions and higher revenue per customer. Barnes explained, “We provided meaningful value to our pharmacy partners...as we ensure pharmacies are able to achieve a sustainable level of profitability.” However, these initiatives led to pressure on monthly active consumers, as some consumers faced higher out-of-pocket costs.
Looking ahead, GoodRx’s full-year outlook reflects the company’s focus on high-impact initiatives, including expanding direct pharmacy integrations, enhancing manufacturer solutions, and leveraging new capabilities in healthcare professional engagement. Management acknowledged uncertainties tied to macroeconomic factors, regulatory changes, and the recent Rite Aid bankruptcy, but emphasized the company’s efforts to mitigate risks through broad partnerships. CFO Chris McGinnis stated, “We have greater conviction and visibility at the lower half of our range with achievement of strategic initiatives providing opportunities to deliver in the upper half of our range.” The leadership team signaled that growth will depend on successfully executing key partnerships and adapting to structural changes in the pharmacy ecosystem.
Key Insights from Management’s Remarks
Management attributed quarterly performance to evolving pharmacy partnerships, expanded manufacturer solutions, and marketplace pricing adjustments, while also noting recent leadership changes and operational shifts.
- Leadership team changes: GoodRx appointed Aaron Crittenden as President of RX Marketplace, Scott Pope as Chief Pharmacy Officer, and Gary Kline as Senior Vice President of Government Affairs to accelerate pharmacy engagement, clinical relationships, and advocacy.
- Pharmacy partnership evolution: The company deepened collaborations with retail pharmacies, introducing price adjustments to ensure partner profitability and launching a new e-commerce experience that enables prescription pickup and upcoming home delivery through direct integration.
- Marketplace pricing strategy: Management raised some prescription prices to support sustainable pharmacy economics, which improved revenue per customer but also led to a decline in monthly active consumers. GoodRx maintained that this approach strengthens long-term partner relations.
- Manufacturer solutions momentum: The manufacturer solutions segment saw expansion, with more pharmaceutical brands joining point-of-sale discount programs. Management cited strong return on investment for partners and highlighted a growing pipeline of brand collaborations, particularly in access and affordability programs.
- Response to external disruptions: The team addressed the Rite Aid bankruptcy, noting that while Rite Aid represents less than 5% of projected revenue, GoodRx is preparing for patient transitions and is in active discussions with potential acquirers to ensure continuity for consumers.
Drivers of Future Performance
GoodRx’s guidance for the year centers on executing deeper pharmacy integrations, expanding manufacturer partnerships, and adapting to ongoing changes in the pharmacy and healthcare environment.
- Expansion of direct pharmacy integrations: Management is prioritizing direct contracting and embedding GoodRx at the pharmacy counter, aiming to make the platform the preferred digital entry point for prescription transactions. This includes scaling e-commerce and integrated savings solutions, with the goal of capturing more cash prescriptions and streamlining pharmacy workflows.
- Growth in manufacturer solutions: The company expects continued momentum in its manufacturer solutions business, targeting over 20% growth by increasing the number of pharmaceutical brands and deepening partnerships across drug portfolios. Management believes strong partner ROI and new point-of-sale programs will drive incremental revenue.
- Macroeconomic and regulatory headwinds: Leadership highlighted potential risks from regulatory changes, shifting consumer sentiment, and industry events such as the Rite Aid bankruptcy. While these factors introduce uncertainty, GoodRx is focused on broadening its pharmacy network and leveraging its brand to retain consumers and mitigate potential disruptions.
Catalysts in Upcoming Quarters
In the upcoming quarters, the StockStory team will be monitoring (1) the pace and breadth of direct pharmacy integrations and new retail partnerships, (2) progress in scaling manufacturer solutions, especially in point-of-sale discount programs, and (3) the company’s ability to navigate external disruptions such as the Rite Aid pharmacy transitions. Execution on these priorities will be crucial in determining GoodRx’s ability to drive sustainable growth.
GoodRx currently trades at a forward P/E ratio of 10.7×. Should you double down or take your chips? Find out in our full research report (it’s free).
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