GoodRx(GDRX) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights GoodRx reported a 1% year-over-year revenue increase to $203.1 million for Q2 2025, driven by a 32% rise in Pharma Manufacturer Solutions revenue, offsetting declines in prescription transactions and subscriptions, with net income and Adjusted EBITDA showing improvement Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $203.1M | $200.6M | +1% | | Net Income | $12.8M | $6.7M | +91% | | Adjusted Net Income | $33.9M | $32.4M | +5% | | Adjusted EBITDA | $69.4M | $65.4M | +6% | - Pharma Manufacturer Solutions revenue was a key growth driver, increasing 32% year-over-year to $35.0 million, fueled by expanded market penetration and growth in consumer direct pricing programs[5] - Prescription transactions revenue decreased by 3% to $143.1 million, primarily due to a 14% decrease in Monthly Active Consumers and broader changes in the retail pharmacy landscape[4] - Subscription revenue declined 7% to $20.5 million, driven by a decrease in the number of subscription plans[5] - The company announced the launch of a new condition-specific subscription product for erectile dysfunction and finalized new deals for pharmacy counter and e-commerce solutions[2] Financial Performance Analysis The company's revenue grew slightly to $203.1 million, with strong performance in Pharma Manufacturer Solutions offsetting declines elsewhere, leading to improved profitability and a significant increase in operating cash flow to $49.6 million Revenue Analysis Revenue by Segment (Q2 2025 vs. Q2 2024, in thousands) | Revenue Segment | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Prescription transactions | $143,064 | $146,748 | -3% | | Subscription | $20,463 | $21,953 | -7% | | Pharma manufacturer solutions | $34,981 | $26,504 | +32% | | Other | $4,562 | $5,405 | -16% | | Total Revenue | $203,070 | $200,610 | +1% | Profitability Analysis Profitability Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $12.8 million | $6.7 million | | Net Income Margin | 6.3% | 3.3% | | Adjusted EBITDA | $69.4 million | $65.4 million | | Adjusted EBITDA Margin | 34.2% | 32.6% | - Operating income for Q2 2025 was $26.8 million, a significant increase from $19.9 million in Q2 2024, driven by revenue growth and controlled operating expenses[30] Cash Flow and Capital Allocation - Net cash provided by operating activities in Q2 2025 was $49.6 million, a substantial increase from $9.7 million in the same period last year[8] - As of June 30, 2025, the company held $281.3 million in cash and cash equivalents and had $497.5 million in total outstanding debt[8] - During Q2 2025, the company repurchased 10.2 million shares of Class A common stock for an aggregate of $46.4 million, with $143.0 million remaining under the authorized repurchase program[11] - Capital allocation priorities include investing for profitable growth, paying down debt, buying back shares, and strategic M&A[9] Key Operating Metrics GoodRx experienced a decline in key user engagement metrics during the second quarter, with Monthly Active Consumers falling to 5.7 million and subscription plans decreasing to 668,000 year-over-year Key Operating Metrics Trend | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Monthly Active Consumers (millions) | 5.7 | 6.4 | 6.6 | | Subscription plans (thousands) | 668 | 680 | 696 | - The company defines Monthly Active Consumers (MACs) as unique consumers who have used a GoodRx code to purchase a prescription in a given month and saved money[21] - Subscription plans represent the ending balance across GoodRx Gold, the sunset Kroger Savings Club, and newly launched condition-specific subscriptions[22] Business Outlook & Guidance For the full year 2025, GoodRx expects total revenue to increase compared to 2024, despite an estimated revenue loss of $35 to $40 million from the Rite Aid bankruptcy, projecting full-year Adjusted EBITDA between $265 million and $275 million Full Year 2025 Guidance | Metric | FY 2025 Guidance | FY 2024 Actual | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Increase from 2024 | $792.3M | - | | Adjusted EBITDA | $265M - $275M | $260.2M | +2% to +6% | - Guidance includes an estimated revenue loss of $35 to $40 million in 2025 due to the Rite Aid bankruptcy and volume reduction in an integrated savings program[12] - Management expects Q3 revenue to be lower than Q4 revenue for 2025[12] Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements as of June 30, 2025, including Balance Sheets showing total assets of $1.32 billion, Statements of Operations detailing $406.0 million in revenue, and Statements of Cash Flows highlighting $59.0 million in operating cash for the first six months Condensed Consolidated Balance Sheets Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $281,318 | $448,346 | | Total assets | $1,318,706 | $1,388,067 | | Total liabilities | $675,675 | $663,409 | | Total stockholders' equity | $643,031 | $724,658 | Condensed Consolidated Statements of Operations Key Income Statement Items (Three Months Ended June 30, in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $203,070 | $200,610 | | Total costs and operating expenses | $176,261 | $180,732 | | Operating income | $26,809 | $19,878 | | Net income | $12,843 | $6,694 | | Diluted Earnings Per Share | $0.04 | $0.02 | Condensed Consolidated Statements of Cash Flows Key Cash Flow Items (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $58,993 | $52,287 | | Net cash used in investing activities | ($70,191) | ($37,844) | | Net cash used in financing activities | ($155,830) | ($161,836) | | Net change in cash and cash equivalents | ($167,028) | ($147,393) | Non-GAAP Financial Measures & Reconciliations This section defines and reconciles non-GAAP financial measures, including Adjusted EBITDA of $69.4 million and Adjusted Net Income of $33.9 million for Q2 2025, by excluding items like stock-based compensation and amortization to present underlying operational performance Reconciliation of Net Income to Adjusted EBITDA Net Income to Adjusted EBITDA Reconciliation (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $12,843 | | Interest, Taxes, D&A | $34,389 | | Stock-based compensation | $21,415 | | Other adjustments | $855 | | Adjusted EBITDA | $69,403 | Reconciliation of Net Income to Adjusted Net Income Net Income to Adjusted Net Income Reconciliation (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $12,843 | | Amortization of intangibles | $2,793 | | Stock-based compensation expense | $21,415 | | Other adjustments | $1,751 | | Income tax effects of adjustments | ($3,904) | | Adjusted Net Income | $33,903 | Adjusted Earnings Per Share (Q2 2025) | Metric | Value | | :--- | :--- | | Adjusted EPS - Basic | $0.10 | | Adjusted EPS - Diluted | $0.09 | Reconciliation of GAAP to Non-GAAP Operating Expenses GAAP vs. Adjusted Operating Income (Q2 2025, in thousands) | Metric | GAAP | Adjusted | | :--- | :--- | :--- | | Operating income | $26,809 | $52,467 | | % of Revenue | 13% | 26% |