GoodRx (NasdaqGS:GDRX) FY Conference Transcript

GoodRx FY Conference Summary Company Overview - Company: GoodRx (NasdaqGS:GDRX) - Date of Conference: January 13, 2026 - Speakers: CEO Wendy Barnes, CFO Chris McGinnis, and Lisa Gill from JPMorgan Key Industry Dynamics - Health Benefits Landscape: Significant changes are occurring, including reductions in ACA subsidies, changes to Medicaid coverage, and an increase in high-deductible plans, which are leading to higher uninsured and underinsured rates [4][5] - Consumer Behavior: The trend of underinsurance is pushing more consumers to utilize cash for prescriptions, with approximately 90% of GoodRx users having insurance but still facing high out-of-pocket costs for medications [6] Core Business Insights - Drug Affordability: The current administration's focus on drug affordability aligns with GoodRx's mission, although the effectiveness of policy changes remains uncertain [9][10] - Retail Pharmacy Challenges: Retail pharmacies are facing closures and margin pressures, prompting GoodRx to partner directly with retailers to enhance their profitability and efficiency [11][12] - Script Recapture Strategy: GoodRx aims to recapture scripts from closed pharmacies like Rite Aid, estimating a potential recovery of 20%-40% of those scripts over time [19][21] Subscription Services - Condition-Based Offerings: GoodRx launched subscription services for conditions like ED, hair loss, and weight loss in 2025, focusing on branded therapies and competitive pricing [22][25] - Market Potential: The company sees significant opportunities in condition subscriptions, particularly in areas where traditional insurance coverage is limited [27] Manufacturer Solutions - Growth in Manufacturer Solutions: This segment has grown over 40% year-over-year, driven by manufacturers rethinking their commercial strategies and seeking partnerships with GoodRx to reach consumers effectively [29][30] - Regulatory Environment: The favorable regulatory landscape is encouraging manufacturers to engage in direct-to-consumer strategies, enhancing GoodRx's appeal as a partner [32] New Strategic Partnership - Partnership with Surescripts: GoodRx announced a partnership with Surescripts to launch "Script Corner," a tool aimed at providing price transparency to patients at the point of prescription [42][43] - Impact on Patient Care: The initiative aims to reduce prescription abandonment by providing patients with upfront pricing information, thereby improving adherence to prescribed therapies [55][61] Financial Outlook - EBITDA Margins: GoodRx is focused on maintaining cost discipline and expanding EBITDA margins, with potential variability based on strategic investments in marketing and partnerships [38][39] - Future Guidance: Specific financial guidance for 2026 will be provided later, but the company is optimistic about its growth trajectory [26][70] Conclusion - Investor Understanding: GoodRx aims to clarify its revenue model, emphasizing the integration of manufacturer solutions with its Rx marketplace and the potential for partnerships at the employer level [69][70] - Commitment to Transparency: The company is dedicated to enhancing transparency in drug pricing and improving consumer access to affordable medications [58][62]