OptimizeRx(OPRX) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview OptimizeRx reported strong Q2 2025 results with significant revenue and profit growth, positive GAAP net income, accelerated debt repayment, and increased full-year guidance Financial Highlights & Management Commentary OptimizeRx reported strong Q2 2025 results with a 55% year-over-year revenue increase to $29.2 million and a 59% rise in gross profit to $18.6 million. The company achieved a GAAP net income of $1.5 million, a significant turnaround from a $4.0 million loss in the prior year. Management highlighted profitable growth driven by operational excellence and AI technology, noting that contracted revenue is up over 30% YoY. A key operational achievement was the accelerated repayment of $4.5 million in debt Q2 2025 vs Q2 2024 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $29.2 million | $18.8 million | +55% | | Gross Profit | $18.6 million | $11.7 million | +59% | | GAAP Net Income (Loss) | $1.5 million | $(4.0) million | N/A | | GAAP EPS (diluted) | $0.08 | $(0.22) | N/A | | Non-GAAP Net Income | $4.5 million | $0.3 million | +1400% | | Adjusted EBITDA | $5.8 million | $0.5 million | +1064% | - Management attributes the strong performance to a disciplined focus on operational excellence, exceptional customer experiences, the use of market-leading patient-finding AI technology, and deepening ecosystem partnerships[3] - The company paid down $4.5 million of principal on its term loan during Q2, which was $4.0 million ahead of its debt payment schedule, and intends to continue accelerated repayments[1][5] Key Performance Indicators (KPIs) For the twelve months ending June 30, 2025, net revenue retention stood strong at 121%. The company saw an increase in average revenue per top 20 pharmaceutical manufacturer to $3.08 million and improved operational efficiency, with revenue per average full-time employee rising to $767,000 Key Performance Indicators (Rolling Twelve Months Ended June 30) | KPI | 2025 | 2024 | | :--- | :--- | :--- | | Average revenue per top 20 pharma manufacturer | $3,082,000 | $2,753,000 | | Percent of revenue from top 20 pharma manufacturers | 59% | 66% | | Net revenue retention | 121% | 124% | | Revenue per average full-time employee | $767,000 | $658,000 | - The definition for "top 20 pharmaceutical manufacturers" was updated to be based on Fierce Pharma's 2024 revenue list, with prior periods restated for comparability[12][13] Fiscal Year 2025 Financial Outlook Following strong year-to-date performance, OptimizeRx has increased its full-year 2025 financial guidance. The company now projects higher revenue and Adjusted EBITDA ranges for the fiscal year Updated Full Year 2025 Guidance | Metric | New Guidance Range | | :--- | :--- | | Revenue | $104 million - $108 million | | Adjusted EBITDA | $14.5 million - $17.5 million | Financial Statements This section presents OptimizeRx's condensed consolidated financial statements, detailing the company's balance sheet, income statement, and cash flow performance for Q2 and H1 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, OptimizeRx's balance sheet showed total assets of $169.3 million and total liabilities of $50.0 million. Cash and cash equivalents increased to $16.6 million from $13.4 million at the end of 2024, while long-term debt, net of current portion, was reduced to $25.1 million from $30.8 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,585 | $13,380 | | Total current assets | $54,080 | $53,971 | | Total Assets | $169,265 | $171,168 | | 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 For the second quarter of 2025, the company generated net revenue of $29.2 million, resulting in a gross profit of $18.6 million. This led to an income from operations of $3.2 million and a net income of $1.5 million, or $0.08 per diluted share, marking a significant improvement from the net loss of $4.0 million in Q2 2024 Q2 Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net revenue | $29,195 | $18,812 | | Gross profit | $18,635 | $11,704 | | Income (loss) from operations | $3,189 | $(3,749) | | Net income (loss) | $1,532 | $(4,008) | | Income (loss) per share – diluted | $0.08 | $(0.22) | Six Months Statement of Operations Summary (in thousands, except per share data) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net revenue | $51,123 | $38,502 | | Gross profit | $31,979 | $23,907 | | Income (loss) from operations | $1,075 | $(8,778) | | Net income (loss) | $(667) | $(10,908) | | Income (loss) per share – diluted | $(0.04) | $(0.60) | Condensed Consolidated Statements of Cash Flows For the first six months of 2025, net cash provided by operating activities was $8.4 million, a significant increase from $2.9 million in the same period of 2024. The company used $5.1 million in financing activities, which included a $5.0 million repayment of long-term debt. This resulted in a net increase in cash and cash equivalents of $3.2 million Six Months Cash Flow Summary (in thousands) | Activity | H1 2025 | H1 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 and cash equivalents | $3,205 | $1,107 | | Cash and cash equivalents - end of period | $16,585 | $14,959 | - The primary financing activity during the first six months of 2025 was the repayment of $5.0 million in long-term debt[25] Non-GAAP Financial Measures This section provides reconciliations of GAAP financial measures to Non-GAAP measures, including Non-GAAP Net Income and Adjusted EBITDA, detailing adjustments for non-cash items Reconciliation of GAAP to Non-GAAP Net Income The company's Non-GAAP net income for Q2 2025 was $4.5 million ($0.24 per diluted share), a substantial increase from $0.3 million ($0.02 per diluted share) in Q2 2024. The reconciliation from GAAP net income involved adjusting for non-cash items like depreciation & amortization ($1.1 million) and stock-based compensation ($1.5 million), among others Q2 GAAP to Non-GAAP Net Income Reconciliation (in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) (GAAP) | $1,532 | $(4,008) | | Depreciation and amortization | $1,074 | $1,073 | | Stock-based compensation | $1,488 | $2,903 | | Amortization of debt issuance costs | $437 | $182 | | Other adjustments | $(37) | $166 | | Non-GAAP net income | $4,494 | $316 | Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA Adjusted EBITDA for Q2 2025 surged to $5.8 million, compared to $0.5 million in the same period of 2024. This non-GAAP measure is derived by adjusting GAAP net income for interest, taxes, depreciation, amortization, stock-based compensation, and other non-recurring or non-cash items Q2 GAAP Net Income to Adjusted EBITDA Reconciliation (in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) (GAAP) | $1,532 | $(4,008) | | Depreciation and amortization | $1,074 | $1,073 | | Income tax (benefit) expense | $181 | $(1,088) | | Stock-based compensation | $1,488 | $2,903 | | Interest expense, net | $1,513 | $1,422 | | Other adjustments | $(37) | $166 | | Adjusted EBITDA | $5,751 | $468 | Company Information and Forward-Looking Statements This section provides an overview of OptimizeRx's business and includes important cautions regarding forward-looking statements and associated risks About OptimizeRx OptimizeRx is a healthcare technology company focused on connecting life science brands with patients and healthcare providers. Its platform utilizes AI-driven tools, such as the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT), to facilitate timely and relevant engagement, aiming to accelerate treatment decisions and improve patient outcomes - The company's core business involves providing an AI-driven technology platform to create synchronized marketing solutions for life science brands, bridging the gap between healthcare professional (HCP) and direct-to-consumer (DTC) strategies[15] Important Cautions Regarding Forward-Looking Statements This section provides a standard safe harbor statement, cautioning that the press release contains forward-looking statements, including financial guidance and plans for growth. It warns that these statements are based on current expectations and are subject to significant risks and uncertainties that could cause actual results to differ materially - Forward-looking statements in the report include expectations for future revenue, Adjusted EBITDA, plans to become a "Rule of 40" company, and intentions to pay down debt at an accelerated rate[17] - Investors are cautioned not to place undue reliance on these statements as they are subject to risks such as government regulation, cybersecurity incidents, and competition[17]