David focuses on growth & momentum stocks that are reasonably priced and likely to outperform the market over the long-term. He is a long term investor of quality stocks and uses options for strategy. David told investors to buy in March 2009 at the bottom of the financial crisis. The S&P 500 increased 367% and the Nasdaq increased 685% from 2009 through 2019. He wants to help make people money by investing in high-quality growth stocks.Analyst’s Disclosure:I/we have a beneficial long position in the shares ...

Core Viewpoint - OptimizeRx Corp. has announced four new partner agreements that significantly enhance its point-of-care (POC) network, strengthen its competitive position, and expand its National Provider Identifier (NPI) reach [1][2]. Partnership Agreements - The new agreements include partnerships with an eRx platform and a health systems access partner, which together increase OptimizeRx's unique NPI reach by 37% [3][9]. - The eRx platform was previously part of a competitive network, while the health systems access partner allows OptimizeRx to engage healthcare professionals (HCPs) at critical points in patient care [3][9]. Strategic Footprint Expansion - These partnerships reinforce OptimizeRx's leadership in the POC marketing landscape and secure exclusive access to premium inventory, enhancing visibility into future channel revenue [4][10]. - Renewals with top-performing EHR and eRx platforms further solidify these relationships, based on historical strong utilization and high returns on investment (ROIs) for life sciences brands [4][10]. Growth Positioning - The CEO of OptimizeRx emphasized that deepening relationships with high-value partners and gaining access to large-scale platforms positions the company for sustained, profitable growth [5]. - The company aims to enhance its clients' ability to reach a larger audience of relevant providers, driving brand awareness and conversion [5][10]. Technology and Innovation - OptimizeRx utilizes innovative, AI-driven tools such as the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood® Targeting (MNT) to facilitate timely and relevant engagement between life sciences brands and healthcare providers [6]. - The company's commitment to privacy-safe, patient-centric technology aims to deliver impactful interactions that improve patient outcomes [7].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Performance - Roku (ROKU) is the leading TV streaming platform provider in the U.S., Canada, and Mexico, with a Zacks Consensus Estimate for current year earnings increasing by 83.3% over the last 60 days [1] - AvePoint (AVPT), a data management solutions provider, has seen its Zacks Consensus Estimate for current year earnings increase by 18.5% over the last 60 days [1] - eToro Group Ltd. (ETOR), engaged in trading and investing, has experienced an 8% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Northrim BanCorp (NRIM), a full-service commercial bank, has seen a 6.4% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - OptimizeRx (OPRX), which provides platforms to help patients afford and comply with healthcare products, has seen a 6% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [3]

Financial Performance - Net revenue for the three months ended September 30, 2025, increased to $26,067,000, up 22.5% from $21,309,000 for the same period in 2024[13] - Gross profit for the nine months ended September 30, 2025, was $49,495,000, a 32.4% increase compared to $37,355,000 for the same period in 2024[13] - The company reported a net income of $779,000 for the three months ended September 30, 2025, compared to a net loss of $9,124,000 for the same period in 2024[13] - For the nine months ended September 30, 2025, OptimizeRx Corporation reported a net income of $112, compared to a net loss of $20,032 for the same period in 2024[18] - Net revenue increased by 22% to $26,067 for the three months ended September 30, 2025, and by 29% to $77,190 for the nine months ended September 30, 2025, driven by DTC and DAAP related sales[120] Assets and Liabilities - Total assets as of September 30, 2025, decreased to $170,321,000 from $171,168,000 as of December 31, 2024, representing a decline of approximately 0.5%[11] - Cash and cash equivalents increased to $19,519,000 as of September 30, 2025, from $13,380,000 as of December 31, 2024, reflecting a growth of 46.0%[11] - The current portion of long-term debt rose to $3,300,000 as of September 30, 2025, compared to $2,000,000 as of December 31, 2024, indicating a 65.0% increase[11] - Long-term debt, net, decreased to $24,801 as of September 30, 2025, from $30,816 as of December 31, 2024[39] - The company had total current assets of approximately $56,320, resulting in working capital of approximately $37,854 and a current ratio of approximately 3.0 to 1[134] Equity and Stock - Total stockholders' equity increased to $122,263,000 as of September 30, 2025, from $116,998,000 as of December 31, 2024, marking a growth of 4.0%[11] - The weighted average number of shares outstanding for basic earnings per share increased to 18,576,199 for the three months ended September 30, 2025, compared to 18,323,542 for the same period in 2024[13] - The company had 166,666,667 shares of common stock authorized as of September 30, 2025, with 18,592,442 shares outstanding[54] - During the quarter ended September 30, 2025, the company issued 22,028 shares of common stock, receiving proceeds of $338[55] - The total intrinsic value of outstanding stock options at September 30, 2025, was $18,519[62] Expenses and Costs - Operating expenses for the three months ended September 30, 2025, were $15,466,000, down 29.9% from $22,009,000 in the same period of 2024[13] - Stock-based compensation for the nine months ended September 30, 2025, was $5,002, down from $8,530 in 2024[18] - Total lease cost for the nine months ended September 30, 2025, was $182, slightly down from $188 in the same period of 2024[52] - Cost of revenues as a percentage of revenue decreased to approximately 33% for the three months ended September 30, 2025, from approximately 37% in 2024[121] - Operating expenses decreased by approximately 30% to $15,466 for the three months ended September 30, 2025, and by approximately 15% to $46,371 for the nine months ended September 30, 2025[124] Cash Flow - The company experienced a net cash provided by operating activities of $11,627 for the nine months ended September 30, 2025, an increase from $4,691 in 2024[18] - The net increase in cash from operating activities was primarily due to a $20,144 increase in net income, partially offset by a $3,528 decrease in noncash expenses related to stock-based compensation[137] - Investing activities used $138 in cash during the nine months ended September 30, 2025, a decrease from $330 in the same period in 2024, mainly due to reduced capitalization of internally developed software[138] - Financing activities used $5,350 in cash during the nine months ended September 30, 2025, compared to $2,087 in the same period in 2024, primarily due to increased repayments of long-term debt[139] Revenue Recognition - Revenue recognized over time for the nine months ended September 30, 2025, was $77,017, up from $54,189 in 2024, indicating a growth of about 42.1%[79] - The company recognized $250 and $735 in revenue from contracts with Eversana for the three and nine months ended September 30, 2025, respectively, compared to $200 and $272 in 2024[84] - Deferred revenue as of September 30, 2025, was $395, down from $473 at December 31, 2024[77] - The allowance for credit losses at September 30, 2025, was $260, compared to $339 at the same date in 2024, showing a reduction of approximately 23.2%[81] Customer and Market Insights - The top five customers represented approximately 49% of the company's revenue for the year ended December 31, 2024[109] - The company is transitioning its Dynamic Audience Activation Platform (DAAP) customers to a subscription-based model, which is expected to improve margins and revenue predictability[108] - The percentage of total revenue attributable to top 20 pharmaceutical manufacturers decreased to 56% in 2025 from 65% in 2024, indicating growth from other customers[115] - Net revenue retention was 120% for the twelve months ended September 30, 2025, down from 127% in 2024, reflecting strong organic growth despite the lack of inorganic benefits from acquisitions[116] - Average revenue per top 20 pharmaceutical manufacturer increased to $3,073 for the twelve months ended September 30, 2025, compared to $2,874 for the same period in 2024[114] Debt and Financing - The company entered into a Financing Agreement on October 11, 2023, providing a term loan of $40 million, partially financing the Medicx Health transaction[39] - The term loan bears interest at 12.9%, with an effective interest rate of 15.9% for the three months ended September 30, 2025[46] - The company repaid approximately $2,000,000 of its Term Loan on October 29, 2025, reducing the outstanding balance to $26,790,000[98] - The company believes that funds generated from operations and existing cash will be sufficient to finance current operations and meet obligations under the Term Loan for the next 12 months[135] Regulatory and Compliance - The company is currently evaluating the impact of adopting ASU 2023-09, which is expected to result in additional disclosures but will not materially affect financial position or results of operations[143] - Management is committed to remediating a previously identified material weakness in internal control over financial reporting related to data accuracy from third-party service organizations[153] - There were no material changes in risk factors from those previously reported in the Annual Report for the year ended December 31, 2024[163]

Core Insights - OptimizeRx Corp. reported quarterly earnings of $0.20 per share, significantly exceeding the Zacks Consensus Estimate of $0.03 per share, marking an earnings surprise of +566.67% [1] - The company achieved revenues of $26.07 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.25% and showing a year-over-year increase from $21.31 million [2] - OptimizeRx shares have increased approximately 294.2% year-to-date, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $32.81 million, while the estimate for the current fiscal year is $0.67 on revenues of $107.38 million [7] - The estimate revisions trend for OptimizeRx was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Computer - Software industry, to which OptimizeRx belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Magic Software, is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year increase of +26.1% [9]

Financial Data and Key Metrics Changes - The company is transitioning to a predictive revenue model, providing better visibility into future performance, including 2026 [1] - The implied guidance for Q4 revenue is expected to be slightly down year-over-year at the top end of guidance, reflecting a more conservative approach to revenue visibility [7][9] - Adjusted EBITDA guidance indicates a potential slight decline or narrow increase, with conservative gross margin assumptions [14][16] Business Line Data and Key Metrics Changes - The company has seen outsized growth in Direct-to-Consumer (DTC) and Audience Creation Platform (DAP) segments, contributing to smoother revenue streams [22][43] - Managed services revenue normalized in Q3, with only recognized contracts included in forecasts, reflecting a conservative approach [28][30] Market Data and Key Metrics Changes - The RFP (Request for Proposal) cycle has shown strong performance, with an increase in relevant RFPs and improved win rates due to better client engagement [39][40] - The mid-tier segment of clients is growing, as the company provides capabilities that allow them to compete effectively against larger manufacturers [34] Company Strategy and Development Direction - The partnership with Lamar Advertising aims to transform their business model, focusing on patient finding and precise message deployment across digital platforms [50][52] - The company is committed to a patient-focused strategy, with confidence in achieving both near-term goals and long-term growth objectives [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong operational and financial momentum, and the ability to achieve growth plans [73] - The company is taking a conservative approach to guidance, focusing on signed contracts and existing visibility rather than speculative opportunities [9][30] Other Important Information - Gross margin expansion in Q3 was driven by product mix and improved negotiations with channel partners, with expectations of stabilizing in the upper 50s to low 60s range [55][56] - The company does not currently factor in contributions from new partnerships into their 2026 guidance, indicating a cautious approach to forecasting [54] Q&A Session Summary Question: Can you discuss the implied guidance for Q4 revenue? - Management indicated that the guidance reflects true visibility and is based on contracted revenue rather than speculative pipeline [9][12] Question: What changes have improved visibility in the business? - The company noted that a shift towards subscription-based models and a focus on renewals have contributed to better visibility [21][25] Question: How is the managed services business performing? - The managed services business returned to a normalized rate, with only recognized contracts included in forecasts [28][30] Question: Can you elaborate on the partnership with Lamar Advertising? - The partnership aims to enhance patient finding capabilities and is in early testing stages, with no current contributions factored into forecasts [50][54] Question: What drove the gross margin expansion in Q3? - Gross margin expansion was attributed to product mix and improved channel partner negotiations, with expectations for stabilization going forward [55][56]

Financial Performance - Q3 2025 revenue increased 22% year-over-year to $26.1 million, up from $21.3 million in Q3 2024[5] - Q3 2025 gross profit rose 30% year-over-year to $17.5 million, compared to $13.4 million in Q3 2024[5] - GAAP net income for Q3 2025 was $0.8 million, or $0.04 per share, reversing from a net loss of $(9.1) million, or $(0.50) per share in Q3 2024[5] - Non-GAAP net income for Q3 2025 totaled $3.9 million, or $0.20 per diluted share, compared to $2.3 million, or $0.12 per diluted share in Q3 2024[5] - Adjusted EBITDA for Q3 2025 increased to $5.1 million, up from $2.7 million in the same period last year[5] - Net revenue for the three months ended September 30, 2025, was $26,067 million, a 22.5% increase from $21,309 million in the same period of 2024[24] - Gross profit for the nine months ended September 30, 2025, reached $49,495 million, compared to $37,355 million for the same period in 2024, reflecting a 32.4% increase[24] - The company reported a net income of $779 million for the three months ended September 30, 2025, compared to a net loss of $9,124 million in the same period of 2024[24] - Non-GAAP net income for the nine months ended September 30, 2025, was $9,960 million, compared to $6,200 million for the same period in 2024, an increase of 60.3%[29] - Adjusted EBITDA for the nine months ended September 30, 2025, was $12,326 million, compared to $2,882 million for the same period in 2024, indicating a substantial increase[30] Guidance and Projections - Full year 2025 revenue guidance increased to a range of $105 million to $109 million, with adjusted EBITDA guidance of $16 million to $19 million[1][7] - 2026 revenue guidance introduced at a range of $118 million to $124 million, with adjusted EBITDA expected between $19 million and $22 million[1][7] Cash and Operating Activities - Cash and cash equivalents as of September 30, 2025, totaled $19.5 million, up from $13.4 million as of December 31, 2024[5] - Cash provided by operating activities for the nine months ended September 30, 2025, was $11,627 million, significantly higher than $4,691 million in the same period of 2024[26] - The company reported a net increase in cash and cash equivalents of $6,139 million for the nine months ended September 30, 2025, compared to $2,274 million in the same period of 2024[26] Operating Expenses - Operating expenses decreased to $15,466 million for the three months ended September 30, 2025, down from $22,009 million in the same period of 2024, a reduction of 29.8%[24] - Total operating expenses for the nine months ended September 30, 2025, were $46,371 million, down from $54,695 million in the same period of 2024, a decrease of 15.2%[24] Revenue Metrics - Net revenue retention for the twelve months ended September 30, 2025, was 120%, down from 127% in the previous year[6] - Average revenue per top 20 pharmaceutical manufacturer increased to $3,073, compared to $2,874 in the prior year[6]

Core Insights - OptimizeRx Corp. reported a Q3 revenue of $26.1 million, reflecting a 22% year-over-year increase, and a gross profit of $17.5 million, which is a 30% increase compared to the same period last year [1][5] Financial Performance - The company achieved a GAAP net income of $0.8 million, or $0.04 per share, in Q3 2025, compared to a net loss of $(9.1) million, or $(0.50) per share, in Q3 2024 [5][19] - Non-GAAP net income for Q3 2025 was $3.9 million, or $0.20 per diluted share, up from $2.3 million, or $0.12 per diluted share, in Q3 2024 [5][24] - Adjusted EBITDA for Q3 2025 increased to $5.1 million from $2.7 million in the same period last year [5][24] Guidance and Outlook - The company raised its full-year 2025 revenue guidance to a range of $105 million to $109 million and adjusted EBITDA guidance to between $16 million and $19 million [4][6] - For 2026, OptimizeRx introduced guidance with expected revenue between $118 million and $124 million and adjusted EBITDA between $19 million and $22 million [4][6] Key Performance Indicators - Average revenue per top 20 pharmaceutical manufacturer increased to $3.073 million in 2025 from $2.874 million in 2024 [3] - The percentage of total revenue attributable to the top 20 pharmaceutical manufacturers decreased to 56% in 2025 from 65% in 2024 [3] - Net revenue retention was reported at 120% for 2025, down from 127% in 2024 [3] Cash Position - As of September 30, 2025, cash, cash equivalents, and short-term investments totaled $19.5 million, compared to $13.4 million at the end of 2024 [5][21] Management Commentary - The CEO highlighted strong, profitable growth and an optimistic outlook for 2026, attributing success to execution, customer outcomes, and market-leading technologies [3]

Core Insights - OptimizeRx Corp. will hold a conference call on November 6, 2025, to discuss its third-quarter financial results for the period ending September 30, 2025 [1][2] - The call will include a question-and-answer session and will be accessible via toll-free and international numbers [2] - A replay of the call will be available for 12 months on the company's investor relations website [3] Company Overview - OptimizeRx is a leading healthcare technology company focused on enhancing connections between life science brands, patients, and healthcare providers [4] - The company utilizes AI-driven tools such as the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to facilitate timely and relevant engagement [4] - OptimizeRx emphasizes privacy-safe, patient-centric technology to ensure impactful interactions that deliver therapies to patients effectively [5] - The company is headquartered in Waltham, Massachusetts, and collaborates with major pharmaceutical and life sciences companies to improve healthcare outcomes [5]

Core Insights - OptimizeRx Corporation (NASDAQ: OPRX) is perceived as a simple messaging platform within Electronic Health Record (EHR) systems, but it is evolving into a clinical data provider [1] Company Overview - OPRX is transitioning from being merely a delivery channel to a more comprehensive role in clinical data analysis [1]