Core Insights - GoodRx has launched two major initiatives to enhance the availability of FDA-approved GLP-1 medications [1] - The first initiative is GoodRx for Weight Loss, a telemedicine subscription service connecting consumers with licensed healthcare providers for affordable weight management treatment [1] - The second initiative, in partnership with Novo Nordisk, introduces a new cash price of $199 per month for Ozempic® [1]

Core Insights - GoodRx Holdings, Inc. (NASDAQ:GDRX) has been identified as one of the best American penny stocks to buy, with Goldman Sachs raising its price target from $3.75 to $4 while maintaining a Neutral rating [1][3] Company Performance - GoodRx reported strong performance in its third quarter of 2025, particularly through its pharmaceutical manufacturer solutions [3] - The company is actively working on expanding accessibility and affordability programs and is in discussions regarding participation in the TrumpRx initiative [2] Marketing and Brand Initiatives - A new brand campaign has been launched by GoodRx to enhance awareness of its consumer products and services, including new subscription services targeting hair loss and weight loss treatments [4] Industry Challenges - The industry faces ongoing challenges, including uncertainties surrounding the Affordable Care Act marketplace subsidies and Medicaid support [3] - Potential regulatory changes and platform launches from Washington could lead to volatility for GoodRx [5] - Consumer affordability challenges are expected to remain a significant concern for investors [5] Company Overview - GoodRx is recognized for its digital healthcare platform that connects various stakeholders, including consumers, healthcare professionals, payers, PBMs, pharmaceutical manufacturers, and retail pharmacies, to improve medication affordability and accessibility [6]

Core Insights - GoodRx CEO Wendy Barnes highlights a significant transformation in prescription drug pricing, driven by the upcoming launch of TrumpRx, a government-run prescription drug website [2][3] - The market is shifting towards greater transparency and direct consumer access, which aligns with GoodRx's mission to provide transparent pricing for medications [2][3] Company Performance - GoodRx reported a slight revenue increase from $195.3 million to $196 million, despite a 9% decrease in prescription transactions revenue due to a decline in monthly active consumers [6] - Subscription revenue fell by 3% to $20.7 million, primarily due to a reduction in the number of subscription plans [7] - The company's pharma manufacturer solutions business saw a significant growth of 54%, increasing from $28.1 million to $43.4 million, attributed to expanded market penetration and consumer direct pricing [7] Market Trends - Research indicates that over 80% of consumers prefer using digital platforms for accessing pharmacy benefits and comparing insurance plans [4] - GoodRx is integrating affordability tools into physical pharmacies, exemplified by the rollout of Rx SmartSaver at Kroger pharmacies [5]

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $196 million, an increase of approximately $1 million compared to the prior year [20] - Prescription transaction revenue decreased by 9% year-over-year, primarily due to the impact of Rite Aid store closures and lower transaction volume in the integrated savings program [21] - Adjusted EBITDA for the quarter was $66.3 million, reflecting a 2% increase year-over-year and an adjusted EBITDA margin of 33.8%, which is an improvement of 50 basis points compared to the prior year [22] Business Line Data and Key Metrics Changes - Manufacturer solutions revenue grew by 54% year-over-year to $43.4 million, driven by strong execution and expansion across new and existing brand partnerships [21][11] - The company has over 200 brand affordability programs on its platform, with nearly 80 offering cash prices [13] Market Data and Key Metrics Changes - The ongoing changes in the U.S. healthcare environment, particularly around prescription drug pricing, are seen as a significant opportunity for GoodRx, especially with the introduction of Trump Rx and the focus on price transparency [6][9] - The company is positioned to benefit from the anticipated increase in uninsured individuals and higher out-of-pocket costs due to changes in the Affordable Care Act marketplace subsidies and Medicaid support [9] Company Strategy and Development Direction - GoodRx is focused on expanding partnerships with pharmaceutical manufacturers and retail pharmacies to enhance access and affordability for consumers [19] - The company is investing in its manufacturer solutions capabilities and aims to deliver a true end-to-end e-commerce model to the pharmaceutical industry [14] - The new brand campaign, "The Savings Wrangler," aims to reinforce GoodRx's position as a trusted name in prescription savings and has already shown positive results in key marketing metrics [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the broader healthcare environment's challenges but remains confident in GoodRx's ability to navigate these changes and capitalize on emerging opportunities [10][25] - The company expects continued growth in its manufacturer solutions segment, projecting approximately 35% revenue growth in 2025 [24] - Management is optimistic about the long-term growth potential as the market shifts towards greater price transparency and consumer-direct models [9][26] Other Important Information - The company repurchased approximately 13.4 million shares at an average price of $4.61 per share, totaling $61.6 million, with about $81.4 million remaining under its share repurchase program [22] - GoodRx is actively engaged with the administration and HHS to inform policy efforts that expand access and affordability for all Americans [6] Q&A Session Summary Question: Can you discuss the stabilizing PTR environment and its implications for GoodRx? - Management noted that 2025 has been challenging due to various macro conditions but anticipates a return to growth in 2026 as more people may become uninsured, creating a tailwind for GoodRx [30][31] Question: How does GoodRx differentiate itself in the manufacturer solutions space? - GoodRx highlighted its position as the number one digital prescription marketplace, providing manufacturers with significant ROI and access to a large consumer base [33] Question: What are the implications of PBMs moving towards point-of-sale discounts? - Management expressed support for this shift, indicating that it aligns with GoodRx's mission of enhancing affordability for consumers at the pharmacy counter [36][37] Question: How will GoodRx integrate with Trump Rx? - GoodRx is actively working with HHS to integrate its pricing into the Trump Rx platform, positioning itself as a key provider of pricing information [39][41] Question: What is the outlook for the ISP relationship and potential new products? - Management indicated that while the ISP relationship has evolved, there remains potential for new product offerings that could enhance affordability for consumers [43][44]

Core Insights - GoodRx Holdings, Inc. reported revenue of $196.03 million for the quarter ended September 2025, reflecting a year-over-year increase of 0.4% [1] - The earnings per share (EPS) for the same period was $0.08, unchanged from the previous year, but below the consensus estimate of $0.09, resulting in an EPS surprise of -11.11% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $193.43 million, indicating a positive surprise of +1.34% [1] Financial Performance Metrics - Monthly Active Consumers stood at 5, matching the average estimate from three analysts [4] - Subscription plans reached 671, slightly above the average estimate of 662 from two analysts [4] - Revenue from prescription transactions was $127.29 million, below the average estimate of $131.26 million, representing a year-over-year decline of -9.3% [4] - Revenue from other sources was $4.64 million, slightly above the estimated $4.5 million, but down -14% compared to the previous year [4] - Revenue from pharmaceutical manufacturer solutions was $43.37 million, exceeding the average estimate of $37.06 million, marking a significant year-over-year increase of +54.4% [4] - Subscription revenue was reported at $20.72 million, slightly above the estimate of $20.26 million, but down -2.7% year-over-year [4] Stock Performance - GoodRx shares have declined by -27.7% over the past month, contrasting with a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - GoodRx Holdings, Inc. reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.09 per share, representing an earnings surprise of -11.11% [1] - The company posted revenues of $196.03 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.34% [2] - GoodRx shares have declined approximately 28.8% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Performance - Over the last four quarters, GoodRx has not surpassed consensus EPS estimates, with the most recent earnings matching the previous year's figure of $0.08 per share [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.10, with projected revenues of $196.93 million, and for the current fiscal year, the estimate is $0.38 on revenues of $796.43 million [7] Market Outlook - The sustainability of GoodRx's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The Zacks Rank for GoodRx is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Medical Services industry, to which GoodRx belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, DocGo Inc., is expected to report a quarterly loss of $0.09 per share, reflecting a significant year-over-year decline [9]

Financial Performance - Revenue for the three months ended September 30, 2025, was $196.0 million, a slight increase from $195.3 million in the same period of 2024[115] - Net income for the same period was $1.1 million, with a net income margin of 0.6%, down from $4.0 million and 2.0% in the prior year[115] - Adjusted EBITDA for the three months ended September 30, 2025, was $66.3 million, representing an Adjusted EBITDA Margin of 33.8%, compared to $65.0 million and 33.3% in the same period of 2024[115] - The company reported a revenue increase to $602.1 million for the nine months ended September 30, 2025, compared to $593.7 million in the same period of 2024[115] - Net income for the nine months ended September 30, 2025, was $25.0 million, with a net income margin of 4.2%, up from $9.7 million and 1.6% in the prior year[115] - Adjusted EBITDA for the nine months ended September 30, 2025, was $205.5 million, with an Adjusted EBITDA Margin of 34.1%, compared to $193.2 million and 32.5% in the same period of 2024[115] - Net income for Q3 2025 was $1.1 million, down from $4.0 million in Q3 2024, resulting in a net income margin of 0.6% compared to 2.0%[121] - Operating income rose to $64.8 million, compared to $47.7 million in the prior year, reflecting improved operational efficiency[146] - Net income for the nine months ended September 30, 2025, was $25.0 million, significantly up from $9.7 million in 2024, marking a year-over-year increase of 159%[146] Consumer Metrics - Monthly Active Consumers decreased to 5.4 million in Q3 2025 from 6.6 million in Q3 2024, reflecting a year-over-year decline[112] - Subscription plans as of September 30, 2025, totaled 671,000, a decrease from 701,000 in the same period of 2024[114] - Subscription revenue decreased by $0.6 million, or 3%, year-over-year, with 671 thousand subscription plans as of September 30, 2025, down from 701 thousand a year earlier[132] Revenue Breakdown - Prescription transactions revenue decreased by $13.1 million, or 9%, year-over-year, primarily due to a decline in Monthly Active Consumers[131] - Pharma manufacturer solutions revenue increased by $15.2 million, or 54%, year-over-year, driven by organic growth and market expansion[133] - Prescription transactions revenue decreased by $13.3 million, or 3%, year-over-year, while pharma manufacturer solutions revenue increased by $27.9 million, or 35%[146] Expenses and Costs - General and administrative expenses rose by $6.4 million, or 25%, year-over-year, mainly due to a $5.5 million estimated loss related to ongoing litigation[137] - Total costs and operating expenses for Q3 2025 were $181.4 million, an increase from $174.8 million in Q3 2024[127] - Sales and marketing expenses decreased by $20.3 million, or 7%, year-over-year, largely due to reduced stock-based compensation and third-party marketing expenses[151] - General and administrative expenses decreased by $4.3 million, or 5%, primarily due to a reduction in estimated legal settlement expenses[152] - Depreciation and amortization expenses increased by $11.6 million, or 23%, year-over-year, reflecting higher asset utilization and investment[153] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2025, totaled $273.5 million, with an additional $80.2 million available under a revolving credit facility[156] - Net cash provided by operating activities decreased by $4.1 million year-over-year, primarily due to increased cash outflows from changes in operating assets and liabilities[163] - Net cash used in investing activities increased by $34.5 million, driven by a $30.0 million increase in cash paid for business acquisitions[164] Strategic Initiatives - The company acquired ScriptDrop, Inc. for $13.5 million in cash on October 16, 2025, enhancing its prescription delivery capabilities[108] - The company plans to expand its condition-specific subscription programs into additional conditions before the end of 2025[103]

Revenue Performance - Revenue for Q3 2025 increased to $196.0 million, slightly up from $195.3 million in the same period last year[3] - Total revenue for the three months ended September 30, 2025, was $196.028 million, a slight increase of 0.4% compared to $195.251 million in the same period of 2024[29] - For FY 2025, the company anticipates revenue growth from $792.3 million in FY 2024, with adjusted EBITDA guidance of $265 - $275 million[12] Consumer Metrics - The company exited Q3 2025 with over 6 million prescription-related consumers using GoodRx services[23] - Monthly Active Consumers decreased to 5.4 million in September 2025 from 6.6 million in September 2024, representing a decline of approximately 18.2% year-over-year[24] - Subscription plans decreased to 671,000 in September 2025 from 701,000 in September 2024, reflecting a decline of approximately 4.3% year-over-year[24] Income and Profitability - Net income for Q3 2025 was $1.1 million, with a net income margin of 0.6%, down from $4.0 million and 2.0% respectively[6] - Operating income for the three months ended September 30, 2025, was $14.620 million, down 28.0% from $20.407 million in the same period of 2024[29] - Net income for the nine months ended September 30, 2025, was $25.014 million, compared to $9.650 million in the same period of 2024, indicating a significant increase of 159.4%[31] Cash Flow and Liquidity - Cash flow from operating activities was $76.0 million, down from $86.9 million in the same quarter last year[8] - Cash and cash equivalents decreased to $273.529 million as of September 30, 2025, down from $448.346 million at the end of December 2024, a decline of 39.0%[26] Expenses and Cost Management - Sales and marketing expenses for Q3 2025 were $83,532 thousand, accounting for 43% of revenue, down from 46% in Q3 2024[46] - General and administrative expenses for Q3 2025 were $32,014,000, an increase of 25.0% from $25,619,000 in Q3 2024[50] - Stock-based compensation expense for the nine months ended September 30, 2025, was $58,707,000, down from $78,067,000 in the same period of 2024[50] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $66.3 million, with an adjusted EBITDA margin of 33.8%, compared to $65.0 million and 33.3% in the prior year[7] - Adjusted Net Income for the nine months ended September 30, 2025, was $97,087 thousand, compared to $96,894 thousand for the same period in 2024, showing a marginal increase of 0.2%[44] - Adjusted Earnings Per Share (EPS) for Q3 2025 was $0.08, consistent with Q3 2024, while the diluted EPS also remained at $0.08[44] Asset and Liability Management - Total assets decreased to $1.325 billion as of September 30, 2025, from $1.388 billion at the end of December 2024, a decrease of approximately 4.5%[26] - Total liabilities increased to $724.795 million as of September 30, 2025, compared to $663.409 million at the end of December 2024, an increase of approximately 9.2%[27] Depreciation and Amortization - The company reported a total of $62.072 million in depreciation and amortization for the nine months ended September 30, 2025, compared to $50.442 million in the same period of 2024, an increase of 23.1%[31] - Depreciation and amortization for the nine months ended September 30, 2025, was $62,072,000, an increase of 23.0% from $50,442,000 in the same period of 2024[50] Share Repurchase - The company repurchased 13.4 million shares for $61.6 million during Q3 2025, with $81.4 million remaining in its share repurchase program[11]

Core Insights - GoodRx (GDRX) stock is considered a viable investment due to its expansion, cash generation, and notable valuation discount [1] Financial Performance - GoodRx has a free cash flow yield of 10.0%, indicating strong cash generation capabilities [8] - Revenue growth over the last 12 months is 3.2%, suggesting potential for increased cash reserves [8] Valuation Metrics - GDRX stock is currently priced at 35% below its 3-month high, 46% under its 1-year high, and 63% lower than its 2-year high, highlighting a significant valuation discount [8] Market Trends - The stock has experienced substantial declines, including a 41% drop during the Covid pandemic and a nearly 93% decline during the inflation crisis, indicating vulnerability to market fluctuations [6] - Despite favorable aspects, the stock can still face considerable declines during market shifts [6] Investment Strategy - The average forward returns for GDRX over 6-month and 12-month periods are 25.7% and 57.9% respectively, with a win rate exceeding 70% for both intervals [9]

Core Insights - GoodRx has experienced significant stock volatility, with a 52-week high of $7.11 and a current valuation approximately 49% below its YTD high of $5.81, despite an 18% increase from its YTD low of $3.31 [1] - The company is valued at around $1.4 billion and serves nearly 30 million users annually, saving over $85 billion in medication costs [2] - GoodRx's mission is to address high prescription drug prices, providing tools for price comparison and discounts, and has expanded its services to include telehealth and pet healthcare solutions [3] Stock Performance - GDRX stock has seen fluctuations, with a notable increase of over 5% following news of potential collaboration with the Trump administration on the TrumpRx initiative [5][9] - The stock is currently trading at 18.9 times forward earnings and 1.68 times sales, indicating it is undervalued compared to sector averages [10] Financial Performance - In Q2, GoodRx reported a modest revenue increase of 1% year-over-year to $203.1 million, with prescription transactions down 3% to $143.1 million [11][12] - Subscription revenue decreased by 7% to $20.5 million, while revenue from pharma manufacturer solutions surged by 32% to $35 million [13] - Adjusted EPS rose slightly to $0.09, and adjusted EBITDA increased to $69.4 million, reflecting improved cash flow management with $49.6 million generated from operations [14] Future Outlook - GoodRx anticipates revenue growth in 2025 despite short-term challenges, projecting adjusted EBITDA between $265 million and $275 million [16] - Analysts expect fiscal 2025 earnings to increase by 54% year-over-year to $0.20 per share, with further growth projected for 2026 [17] Strategic Developments - The potential partnership with the TrumpRx initiative could enhance GoodRx's role in digital healthcare, allowing it to integrate its services into a government-backed platform [20][21] - Analysts have mixed views on the impact of TrumpRx, with some seeing it as an opportunity for growth while others express concerns about potential disruptions to GoodRx's traditional business model [22][23] Analyst Ratings - GoodRx has a "Moderate Buy" rating overall, with an average price target of $5.46, suggesting a potential upside of 40% [24]