GoodRx(GDRX) - 2025 Q4 - Annual Report

Revenue and Income - Revenue for the year ended December 31, 2025, increased by 1% to $796.9 million from $792.3 million in 2024[348] - Net income rose to $30.4 million with a net income margin of 3.8%, compared to $16.4 million and 2.1% in the previous year[348] - Adjusted EBITDA for 2025 was $270.5 million, representing an Adjusted EBITDA Margin of 33.9%, up from $260.2 million and 32.8% in 2024[348] - Total revenue for the year ended December 31, 2025, was $796.9 million, a slight increase of $4.5 million or 0.6% from $792.3 million in 2024[1] - Operating income for 2025 was $87.5 million, compared to $65.8 million in 2024, indicating a year-over-year increase of $21.7 million[1] Consumer Metrics - Monthly Active Consumers decreased to 5.3 million in Q4 2025, down from 6.6 million in Q4 2024[352] - Subscription plans totaled 674,000 as of December 31, 2025, a decline from 684,000 in the same period of 2024[354] - The company is reassessing the Monthly Active Consumers metric to better align with growth and profitability measures[350] Revenue Streams - Prescription transactions revenue decreased by $33.5 million, or 6%, year-over-year, primarily due to a 14% decrease in Monthly Active Consumers[2] - Subscription revenue decreased by $2.8 million, or 3%, with 674 thousand subscription plans as of December 31, 2025, compared to 684 thousand in 2024[3] - Pharma direct revenue increased by $44.1 million, or 41%, year-over-year, driven by organic growth and expected to continue growing as a percentage of total revenue[4] Costs and Expenses - Total costs and operating expenses decreased to $709.4 million from $726.5 million, reflecting a reduction in sales and marketing expenses by $35.6 million, or 10%[1] Cash Flow and Investments - Net cash provided by operating activities was $167.9 million, a decrease of $16.0 million from $183.9 million in 2024[1] - Net cash used in investing activities increased by $49.6 million, primarily due to cash paid for business acquisitions in 2025[4] - As of December 31, 2025, the company had cash and cash equivalents of $261.8 million and $80.2 million available under its revolving credit facility[1] Financial Risks - The company has no foreign currency exposure as it only operates within the United States[397] - The company is exposed to interest rate risk due to debt arrangements with floating interest rates[398] - A hypothetical 100 basis point increase in interest rates would increase the company's interest expense by $5.0 million for the year ended December 31, 2025[398] - Interest income decreased by $12.3 million, or 53%, year-over-year, primarily due to lower average cash balances and interest rates[4] Market Conditions - The healthcare landscape is shifting towards greater transparency and direct-to-consumer access, presenting both opportunities and challenges for the company[345] - The company anticipates a total impact of $35.0 million to $40.0 million on prescription transactions revenue in 2025 due to external factors[346] - The company is increasing investments in its pharma direct and subscription offerings, expecting a near-term impact on revenue in 2026[347] - The company does not believe inflation has had a material effect on its business or financial condition[399] - If costs become subject to significant inflationary pressures, the company may struggle to offset these higher costs, potentially harming its financial condition[399]