Group 1 - OptimizeRx Corporation (NASDAQ: OPRX) is perceived as a simple messaging platform within Electronic Health Record (EHR) systems, but it is evolving beyond just being a delivery channel [1] - The company aims to transform its role to connect pharmaceutical companies with healthcare providers more effectively [1]

Core Viewpoint - OptimizeRx Corp. (OPRX) is identified as a strong momentum stock with a Zacks Rank of 1 (Strong Buy) and a Momentum Style Score of B, indicating potential for significant near-term gains [4][12]. Company Performance - OPRX shares have increased by 3.19% over the past week, while the Zacks Computer - Software industry has declined by 1.15% during the same period [6]. - Over the last quarter, OPRX shares have risen by 40.18%, and over the past year, they have surged by 150.07%, significantly outperforming the S&P 500, which has moved 8.57% and 18.94% respectively [7]. - The average 20-day trading volume for OPRX is 371,193 shares, indicating a bullish trend as the stock is rising with above-average volume [8]. Earnings Outlook - In the past two months, four earnings estimates for OPRX have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.53 to $0.67 [10]. - For the next fiscal year, four estimates have also moved upwards without any downward revisions, suggesting a positive earnings outlook [10].

Group 1: OptimizeRx Performance - OptimizeRx (OPRX) reported second-quarter 2025 revenues of $29.2 million, reflecting a 55% year-over-year increase, with earnings per share at 24 cents, surpassing consensus estimates [1] - The company achieved strong adjusted EBITDA of $5.8 million and expanding gross margins, indicating operational leverage, while raising full-year revenue guidance to $104-$108 million [1] - Contracted revenues increased by over 30%, demonstrating growing customer confidence in OPRX's integrated solutions [1] Group 2: Strategic Focus and Market Position - OPRX's strategy centers on AI-driven workflow integration, utilizing an omnichannel platform that connects physicians, patients, and life sciences firms in real time [2] - The integration is crucial as the pharmaceutical industry focuses on efficient script lift and reduced abandonment amid regulatory uncertainty and a shift towards specialty medications [3] - Management noted that operating expenses remained flat despite double-digit top-line growth, indicating meaningful leverage from its scalable tech stack [3] Group 3: Future Outlook and Challenges - Part of the second-quarter outperformance was due to episodic managed service revenues, which are not expected to recur in the second half of the year [4] - OPRX's ability to serve both healthcare professionals (HCP) and direct-to-consumer (DTC) markets at scale provides a competitive advantage, but sustaining momentum will require expanding multiyear subscription contracts and managing customer concentration risk [4] - Average revenues per top-20 pharma manufacturer increased to $3.1 million, with mid-tier clients scaling faster than top-20 accounts, broadening the revenue base [5] Group 4: Industry Trends and Competitors - Omnicell (OMCL) is enhancing its digital health strategy through the Intelligence-Enabled Pharmacy vision, scaling its OmniSphere platform, which is a cloud-based, AI-powered solution for predictive analytics and real-time medication inventory management [6] - OMCL's Advanced Services suite integrates automation, analytics, and remote pharmacy services to optimize clinical and financial outcomes for healthcare providers [7] - Teladoc Health (TDOC) is focusing on digital mental health through its BetterHelp platform and the acquisition of UpLift, which enhances therapy options and reduces out-of-pocket costs for users [8]

Core Insights - OptimizeRx Corp. will participate in the 9th Annual Lake Street Capital Best Ideas Growth Conference on September 11, 2025, in New York, NY [1] - The company is a leading provider of healthcare technology solutions that help life sciences companies engage healthcare professionals and patients [1][3] Company Overview - OptimizeRx utilizes AI-driven tools such as the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to enhance engagement strategies [3] - The company focuses on creating synchronized marketing solutions that facilitate faster treatment decisions and improve patient outcomes [3] - OptimizeRx is committed to privacy-safe, patient-centric technology, ensuring impactful interactions that deliver therapies to the right patients at the right time [4] - The company partners with leading pharmaceutical and life sciences companies to transform the healthcare landscape [4]

Core Insights - The partnership between OptimizeRx and Lamar Advertising aims to enhance out-of-home (OOH) advertising for healthcare brands by integrating OptimizeRx's Micro-Neighborhood Targeting (MNT) data with Lamar's extensive advertising inventory [1][2][3] Group 1: Partnership Overview - OptimizeRx's MNT data allows for targeted advertising based on disease prevalence at the ZIP+4 level, enabling precise geographic targeting for healthcare brands [2][7] - The collaboration is designed to make OOH advertising a strategic component of omnichannel marketing strategies, allowing brands to reach relevant patient populations effectively [2][5] Group 2: Industry Impact - This partnership positions OOH advertising as a viable alternative for life sciences brands amidst the competitive digital marketing landscape, leveraging real-world clinical data for targeted outreach [5][6] - The integration of MNT data with Lamar's inventory provides healthcare marketers with a data-driven approach to media planning, allowing for prioritization of advertising spend based on local health attributes [3][5] Group 3: Benefits of the Partnership - The partnership offers a cost-effective solution that competes with linear TV placements while delivering measurable results through targeted OOH advertising [6][7] - The vast reach of Lamar's network, combined with OptimizeRx's clinical targeting, enables healthcare brands to expand their marketing strategies beyond digital channels confidently [7][8]

Company Overview - OptimizeRx Corp. (OPRX) currently holds a Momentum Style Score of B, indicating potential for strong performance in the momentum investing strategy [3][12] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a strong track record of outperformance in the market [4][12] Price Performance - OPRX shares have increased by 4.75% over the past week, while the Zacks Computer - Software industry has remained flat during the same period [6] - Over the past month, OPRX's price has risen by 44.56%, significantly outperforming the industry's 0.45% [6] - In the last quarter, OPRX shares rose by 23.6%, and over the past year, they have surged by 117.45%, compared to the S&P 500's increases of 9.68% and 16.9%, respectively [7] Trading Volume - The average 20-day trading volume for OPRX is 481,960 shares, which serves as a useful baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, four earnings estimates for OPRX have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.53 to $0.67 [10] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [10]

Core Viewpoint - OptimizeRx Corp. (OPRX) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. - The recent upgrade for OptimizeRx suggests an improvement in the company's underlying business, likely leading to increased stock prices due to investor interest [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, OptimizeRx is expected to earn $0.67 per share, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for OptimizeRx has increased by 514.3%, reflecting a significant upward trend in earnings estimates [8].

Core Insights - OptimizeRx Corp. announced organizational updates and leadership advancements aimed at accelerating its Rule of 40 strategy, which focuses on balancing sustained growth with increased profitability [1][2] Leadership Advancements - Ed Stelmakh has been appointed Chief Financial & Strategic Officer (CFSO), expanding his role to include corporate strategy alongside financial leadership, emphasizing profitable growth and shareholder value creation [3] - Theresa Greco continues as Chief Commercial Officer (CCO), overseeing the commercial team and focusing on sustainable revenue growth through a transition to a recurring revenue model [4] - Marion Odence-Ford has been named Chief Legal & Administrative Officer (CLAO), expanding her role to include oversight of key administrative functions and ensuring alignment between legal and strategic initiatives [5] - Doug Besch remains Chief Product & Technology Officer (CPTO), focusing on product enhancements and platform optimization to capture market share in pharma's commercial spend [6] - Brendan Merrell has been appointed Chief Operating Officer (COO), emphasizing operational excellence and driving operating leverage across the company [7] - Andy D'Silva has been promoted to Chief Business Officer (CBO), focusing on strategic planning and championing Rule of 40 strategies to accelerate growth initiatives [8]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1: Financial Statements](index=4&type=section&id=Item%201%3A%20Financial%20Statements) This section presents OptimizeRx Corporation's unaudited condensed consolidated financial statements and accompanying notes for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to **$169.3 million** as of June 30, 2025, while total liabilities decreased and stockholders' equity increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $54,080 | $53,971 | | Cash and cash equivalents | $16,585 | $13,380 | | Accounts receivable, net | $33,512 | $38,212 | | **Total Assets** | **$169,265** | **$171,168** | | **Total Current Liabilities** | $21,057 | $18,654 | | Long-term debt, net | $25,127 | $30,816 | | **Total Liabilities** | **$49,981** | **$54,170** | | **Total Stockholders' Equity** | **$119,284** | **$116,998** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net revenue increased significantly in Q2 2025, leading to a **$1.5 million** net income compared to a prior-year loss, with six-month net loss narrowing Statements of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $29,195 | $18,812 | $51,123 | $38,502 | | **Gross Profit** | $18,635 | $11,704 | $31,979 | $23,907 | | **Income (Loss) from Operations** | $3,189 | $(3,749) | $1,075 | $(8,778) | | **Net Income (Loss)** | **$1,532** | **$(4,008)** | **$(667)** | **$(10,908)** | | **Diluted EPS** | $0.08 | $(0.22) | $(0.04) | $(0.60) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$8.4 million** for the six months ended June 30, 2025, increasing cash and cash equivalents Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $8,425 | $2,900 | | Net Cash Used in Investing Activities | $(128) | $(238) | | Net Cash Used in Financing Activities | $(5,092) | $(1,555) | | **Net Increase in Cash** | **$3,205** | **$1,107** | | **Cash and Cash Equivalents - End of Period** | **$16,585** | **$14,959** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's business, accounting policies, term loan, revenue recognition, stock-based compensation, and future payment commitments - The company operates as a single reportable segment, connecting life science companies with healthcare providers (HCPs) and patients through its technology platform[23](index=23&type=chunk)[27](index=27&type=chunk) - As of June 30, 2025, the company had a term loan with an outstanding principal of **$29.3 million**, bearing interest at **13.1%** and was in compliance with all financial covenants[39](index=39&type=chunk)[45](index=45&type=chunk)[47](index=47&type=chunk) - Revenue is primarily generated from content delivery activities and data subscriptions, recognized over time as services are performed, with **$6.3 million** recognized as an agent on a net basis for the first six months of 2025[69](index=69&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - The company has commitments for future minimum payments to partners totaling **$13.1 million**, with **$7.6 million** due in the remainder of 2025[95](index=95&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting strong revenue growth, improved profitability, key performance indicators, and sufficient liquidity for the next twelve months [Overview and Strategy](index=24&type=section&id=Overview%20and%20Strategy) OptimizeRx, a digital healthcare technology company, employs a 'land and expand' strategy focusing on enterprise engagements and AI-powered solutions to drive growth - The company's core business is connecting life science organizations with over **two million HCPs** and their patients via an intelligent technology platform[106](index=106&type=chunk) - The strategy focuses on a "land and expand" model, aiming for enterprise-level engagements and promoting higher-margin, proprietary solutions like the AI-powered Dynamic Audience Activation Platform (DAAP)[108](index=108&type=chunk)[109](index=109&type=chunk) [Key Performance Indicators](index=24&type=section&id=Key%20Performance%20Indicators) Key performance indicators show increased average revenue per top 20 pharma manufacturer and improved revenue per employee, alongside strong net revenue retention Key Performance Indicators (Rolling Twelve Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Average revenue per top 20 pharma manufacturer (in thousands) | $3,082 | $2,753 | | % of total revenue from top 20 pharma manufacturers | 59% | 66% | | Net revenue retention | 121% | 124% | | Revenue per average full-time employee (in thousands) | $767 | $658 | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Net revenue grew **55%** in Q2 2025, improving gross margin and leading to a **$1.5 million** net income, primarily due to reduced stock-based compensation - Net revenue increased **55%** to **$29.2 million** for Q2 2025 and **33%** to **$51.1 million** for the six months ended June 30, 2025, driven by growth in DTC and DAAP related sales[121](index=121&type=chunk) - Gross margin improved to **63.8%** in Q2 2025 from **62.2%** in Q2 2024, attributed to a better product and channel partner mix[124](index=124&type=chunk) - Stock-based compensation expense decreased significantly to **$1.5 million** in Q2 2025 from **$2.9 million** in Q2 2024, mainly due to lower grant date fair values and forfeiture of prior CEO's awards[126](index=126&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$33.0 million** in working capital and expects existing cash and operations to fund obligations for the next twelve months - The company had working capital of **$33.0 million** and cash of **$16.6 million** as of June 30, 2025[134](index=134&type=chunk) - Management believes existing cash and funds from operations are sufficient to finance operations and meet obligations for the next 12 months[135](index=135&type=chunk) - Net cash from operating activities for the first six months of 2025 was **$8.4 million**, a significant increase from **$2.9 million** in the same period of 2024[137](index=137&type=chunk) [Item 4: Controls and Procedures](index=30&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to an un-remediated material weakness concerning third-party data completeness and accuracy, with remediation efforts ongoing - Management concluded that disclosure controls and procedures were not effective as of the end of the period covered by the report[147](index=147&type=chunk) - The ineffectiveness is due to a previously identified material weakness related to controls over the completeness and accuracy of data received from third-party service organizations[147](index=147&type=chunk)[149](index=149&type=chunk) - Remediation efforts are underway, including requiring SOC-1, Type 2 audit reports from third parties, hiring a Senior VP of Internal Controls, and developing a new audit process; the material weakness will be considered remediated once new controls are tested and proven effective over time[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) [PART II — OTHER INFORMATION](index=32&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1: Legal Proceedings](index=32&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is not currently a party to any material legal or administrative proceedings, nor is it aware of any threatened actions - The company is not currently a party to any material legal proceedings[159](index=159&type=chunk) [Item 1A: Risk Factors](index=32&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K have occurred - No material changes in risk factors have occurred since the filing of the 2024 Annual Report on Form 10-K[160](index=160&type=chunk) [Item 5: Other Information](index=32&type=section&id=Item%205%3A%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by executives and the approval of amended bylaws with new stockholder procedural requirements - During Q2 2025, director Patrick Spangler and CFO/COO Edward Stelmakh adopted Rule 10b5-1 trading plans for the sale of company securities[163](index=163&type=chunk)[164](index=164&type=chunk) - On August 5, 2025, the Board approved the Fourth Amended and Restated Bylaws, which established new and more detailed procedural requirements for stockholder nominations and business proposals[166](index=166&type=chunk)[167](index=167&type=chunk)

Financial Data and Key Metrics Changes - Q2 2025 revenues increased by 55% year over year to $29.2 million, with adjusted EBITDA at $5.8 million, an improvement of over $5 million year over year [3][11] - Gross margin increased from 62.2% in Q2 2024 to 63.8% in Q2 2025, attributed to a favorable product mix and economies of scale [10][11] - Net income for Q2 2025 was $1.5 million, compared to a net loss of $4 million in Q2 2024 [11] Business Line Data and Key Metrics Changes - Average revenue per top 20 pharmaceutical manufacturer is now $3.1 million, with a net revenue retention rate of 121% [13] - Average revenue over the last twelve months for the largest five customers is over $11 million [6] Market Data and Key Metrics Changes - Contracted revenue increased by more than 30% year over year, indicating strong market demand [4][34] - The company is positioned uniquely in the market, capable of engaging providers and patients at scale, leveraging a large point of care network [7][8] Company Strategy and Development Direction - The company is focused on operational excellence and strengthening relationships with business partners, aiming for sustainable long-term shareholder growth [3][6] - A key focus will be on addressing commercialization challenges in the pharmaceutical industry, including improving brand visibility and reducing script abandonment [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving updated revenue guidance of $104 million to $108 million for the year, with promising initial indications for 2026 [4][5] - The company is not expecting to access equity capital markets for the foreseeable future due to strong free cash flow [5] Other Important Information - The company paid down $4.5 million of principal during Q2, exceeding its debt payment schedule by $4 million [5][12] - The company is committed to maintaining a healthy balance sheet to support operational goals [12] Q&A Session Summary Question: Revenue cadence and outliers in Q2 - Management acknowledged some managed service revenue contributed to Q2 results but maintained that guidance remains conservative and achievable [16][18] Question: Operating expenses sustainability - Management indicated that operating expenses are expected to remain flat in the second half of the year, reflecting operational leverage [20][22] Question: Growth in non-top 20 revenues - Management confirmed that revenues from non-top 20 clients are growing faster, with mid-sized accounts contributing positively [23][24] Question: Contracted revenue details - Management stated that contracted revenue is a blend of HCP and DTC business, both growing solidly, with no significant changes in contract lengths [34][35] Question: Subscription revenue percentage - Management indicated that subscription revenue is projected to reach about 10% for the year, assuming pipeline conversions [43] Question: Visibility on contracted revenue - Management confirmed contracted revenue is up 30% year over year, providing confidence in guidance for the fourth quarter [48][50] Question: Impact of managed services on Q2 performance - Management clarified that while managed services contributed to Q2, it was not the primary driver of performance [51][53] Question: Operating expenses and growth leverage - Management expects to maintain current operating expenses while being able to support significant revenue growth without major increases in headcount [55][56] Question: Pharma industry trends - Management noted that pharma companies are focusing on efficient revenue generation and are increasingly leaning into digital channels [58][60] Question: Pull forward of spending - Management reported no signs of pull forward in revenue but noted earlier engagement in planning for the second half [64][66]