GDRX

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at GoodRx (NASDAQ:GDRX) and its peers. Healthcare technology companies develop software, data analytics, and digital platforms supporting clinical operations, administrative functions, and patient engagement across healthcare systems. Tailwinds include healthcare digitization driving demand for electronic health records, telehealth platforms, and AI-powered diagnostic tools. Regulatory incentives promote interoperability and data sharing, while labor shortages increase automation demand. Headwinds include lengthy sales cycles with risk-averse healthcare buyers, complex regulatory requirements including data privacy compliance, and integration challenges with legacy systems. Competition from established technology giants entering healthcare and reimbursement uncertainties for digital health solutions add market complexity. The 7 healthcare technology stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 2.8% above. Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results. Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ:GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes. GoodRx reported revenues of $200.4 million, down 1.3% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and full-year EBITDA guidance topping analysts’ expectations. GoodRx delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 14.1% since reporting and currently trades at $3.73. Is now the time to buy GoodRx? Access our full analysis of the earnings results here, it’s free. Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Evolent Health reported revenues of $652.5 million, up 46.9% year on year, outperforming analysts’ expectations by 9.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations. Evolent Health achieved the biggest analyst estimate beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 34.3% since reporting. It currently trades at $4.14. Is now the time to buy Evolent Health? Access our full analysis of the earnings results here, it’s free. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. Astrana Health reported revenues of $972.5 million, up 48.5% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted full-year revenue and EBITDA guidance meeting analysts’ expectations. Astrana Health delivered the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 1.3% since the results and currently trades at $34.59. Read our full analysis of Astrana Health’s results here. With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ:TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels. Tandem Diabetes reported revenues of $254.6 million, up 5.8% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also recorded EPS in line with analysts’ estimates but full-year revenue guidance meeting analysts’ expectations. The stock is up 22.8% since reporting and currently trades at $23.07. Read our full, actionable report on Tandem Diabetes here, it’s free. Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models. Privia Health reported revenues of $632.6 million, up 21.4% year on year. This number beat analysts’ expectations by 5.9%. All in all, it was a satisfactory quarter for the company. The stock is down 8.3% since reporting and currently trades at $21.98. Read our full, actionable report on Privia Health here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. GoodRx Holdings has delivered a steep 89.7% share price decline over the past five years. The stock has recently bounced, which sits awkwardly with valuation checks that currently lean toward the shares looking expensive rather than clearly mispriced on the downside. The stock is down 89.7% over five years, which suggests long term holders have worn a heavy loss despite the recent short term recovery. Future progress on converting its platform usage into consistent cash generation can support the current price, while any setback in margins or user engagement may quickly call that support into question. GoodRx Holdings passes only 2 of 6 valuation checks, which points to a low overall value score and a stock that does not screen as a clear bargain on the broader metrics. The issue now is whether the recent share price recovery leaves GoodRx Holdings overvalued relative to what its fundamentals appear to justify. GoodRx Holdings delivered 0.8% returns over the last year. See how this stacks up to the rest of the Healthcare Services industry. The P/E ratio is the cleanest way to see what you are paying today for each dollar of GoodRx Holdings earnings. On this metric, the stock trades on about 75.4x earnings, which is well above the Healthcare Services industry average of roughly 27.8x and higher than the peer group average of about 50.6x. The tailored fair P/E multiple for GoodRx Holdings, which adjusts for its growth profile, margins, size and risk, sits near 37.5x. That is roughly half of where the shares change hands today and indicates that the market is pricing in a lot of optimism already. For anyone looking at GoodRx Holdings mainly through an earnings lens, the gap between the current P/E and this fair ratio points to a rich valuation rather than a clear bargain. On the P/E multiple alone, GoodRx Holdings stock currently appears overvalued. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for GoodRx Holdings pick up from this valuation puzzle and explain which future paths for growth, margins and earnings would need to occur for the stock to be worth materially more or less than it is today, based on different sets of assumptions. Each Narrative treats GoodRx Holdings' fair value as a thesis about how the business might develop that you can track over time, rather than a one off snapshot. Community views on GoodRx Holdings sit on opposite sides of the spectrum, with one camp focused on membership upside and the other on structural risks. Bull case: 10% undervalued Read the full Bull Case to see why GoodRx Holdings could be undervalued Bear case: 44% overvalued Read the full Bear Case to see why GoodRx Holdings could be overvalued Do you think there's more to the story for GoodRx Holdings? Head over to our Community to see what others are saying! GoodRx Holdings currently screens as overvalued on market multiples, with the share price sitting well above the tailored P/E guide that its fundamentals suggest. The key question from here is whether GoodRx Holdings can convert its platform usage into steadier earnings and stronger margins that eventually justify this richer multiple. If that earnings and margin story falls short, today’s valuation leaves limited room for disappointment. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GDRX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. GoodRx Holdings (GDRX) is back in focus after its Q2 2026 earnings report on 5 August, along with raised full-year revenue guidance and a leadership change that appoints Justin Fengler as Chief Financial Officer. See our latest analysis for GoodRx Holdings. The Q2 earnings update and CFO transition come after a period of sharp share price moves for GoodRx Holdings. The stock has a 90 day share price return of 44.18% and a year to date share price return of 30.55%. However, the 3 year total shareholder return has declined 50.41% and the 5 year total shareholder return has declined 89.72%, which suggests recent momentum contrasts with a much weaker long term record. If GoodRx has you looking more closely at healthcare and technology, it can be useful to compare it with other companies using our screener of 43 healthcare AI stocks GoodRx Holdings now trades at $3.59 after a sharp rebound, while longer term shareholders still sit on steep declines. Does the current valuation leave enough upside potential to compensate for the risks? GoodRx Holdings closed at $3.59 compared with a most followed narrative fair value of $3.18, which frames the current valuation debate for this stock. Read the complete narrative. Curious what sits behind that confidence in higher margin pharma solutions and subscriptions. The narrative ties together revenue growth, margin lift and a future earnings multiple. Want to see how those building blocks combine into a single fair value path. Result: Fair Value of $3.18 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, GoodRx still faces meaningful execution risks, including disruption from pharmacy benefit manager or pharmacy changes and pressure from larger competitors that could unsettle the current analyst narrative. Find out about the key risks to this GoodRx Holdings narrative. The analyst narrative suggests GoodRx Holdings is 13% overvalued at $3.59 compared with a fair value of $3.18. Our DCF model points in the opposite direction. It estimates future cash flows support a value of $9.64 per share, which is well above the current price and flags a very different risk reward balance. Which framework do you trust more when the signals split this far apart? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out GoodRx Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With GoodRx Holdings presenting both optimism and concern in this article, it makes sense to review the numbers yourself and test the assumptions on both sides. To quickly size up the trade off between potential upside and the issues investors are watching, take a look at the 2 key rewards and 2 important warning signs. Do not stop with GoodRx Holdings. Use the tools available now to quickly scan fresh opportunities and keep your watchlist stocked with ideas that fit your style. Target potential upside with companies that combine quality fundamentals and attractive pricing by checking the 49 high quality undervalued stocks. Prioritise resilience by focusing on businesses screened for stronger balance sheets and healthier finances through the solid balance sheet and fundamentals stocks screener (49 results). Hunt for underfollowed opportunities that may not be on most radars yet by reviewing the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GDRX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8 a.m. ET Director of Investor Relations - Aubrey Reynolds Chief Executive Officer - Wendy Barnes Chief Financial Officer - Justin Fengler Operator: Good afternoon, and welcome to the GoodRx Second Quarter 2026 Earnings Call. As a reminder, today's conference call is being recorded. I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations. Ms. Reynolds, you may begin. Aubrey Reynolds: Thank you, operator. Good morning, everyone, and welcome to GoodRx's earnings conference call for the second quarter 2026. Joining me today are Wendy Barnes, our Chief Executive Officer; and Justin Fengler, our newly appointed Chief Financial Officer. Before we begin, I'd like to remind everyone that this call will contain forward-looking statements. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding management's plans, strategies, goals and objectives, our market opportunity, our anticipated financial performance, underlying trends in our business and industry, including ongoing changes in the pharmacy ecosystem, our value proposition, our long-term growth prospects, our direct and hybrid contracting approach, collaborations and partnerships with third parties, including our point-of-sale cash programs and our integrated savings program, our e-commerce strategy and our capital allocation priorities. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors. These factors, including the factors discussed in the Risk Factors section of our annual report on the Form 10-K for the year ended December 31, 2025, and our other filings with the Securities and Exchange Commission could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements made on this call. Any such forward-looking statements represent management's estimates as of the date of this call, and we disclaim any obligation to update these statements even if subsequent events cause our views to change. In addition, we will be referencing certain non-GAAP metrics in today's remarks. We have reconciled each non-GAAP metric to the nearest GAAP metric in the company's earnings press release, which can be found on the overview page of our Investor Relations website at investors.goodrx.com. I'd also like to remind everyone that a replay of this call will become available there shortly as well. With that, I'll turn it over to Wendy. Wendy Barnes: Thank you, Aubrey, and thank you to everyone for joining us today. The second quarter was a strong quarter for GoodRx. We exceeded our revenue expectations, maintained disciplined profitability and saw meaningful consumer engagement across the platform. That performance was driven by the 2 strategic priorities we outlined at the beginning of the year. First, Pharma Direct, which is scaling quickly due to growing manufacturer adoption of consumer direct pricing programs and sustained strength in GLP-1 access. Second, subscriptions, which are becoming a central part of how we serve and retain consumers as illustrated by the launch of our newest offering, GoodRx Companion in May. Based on our first full half performance and the trends we are seeing across the business, we are raising our full year revenue and adjusted EBITDA outlook, which we will discuss in more detail later in the call. We are confident this puts us on a path to return to year-over-year revenue growth this year earlier than previously anticipated and reinforces our belief that GoodRx is building a more durable growth profile. That durability is rooted in a combination of assets that work together, a trusted brand, a large high-intent audience and a nationwide pharmacy network. Each year, we see over 280 million site visits across our platform when cost and access are shaping prescription decisions. That gives manufacturers, retail pharmacy partners and plan sponsors a scaled channel to make pricing, access and savings programs visible and usable for consumers. And as more partners bring programs to GoodRx, we are able to deliver better prices, broader access and more useful products directly to consumers, giving them more reasons to return to our platform, increasing engagement and strengthening our revenue base over time. The market backdrop reinforces why this matters. Affordability pressures continue to intensify. Consumers are bearing more cost, facing less predictable coverage and increasingly need to know what a medication will cost before they reach the pharmacy counter. For example, in the ACA marketplace, nearly 3 million fewer people are enrolled following the expiration of enhanced subsidies and early 2027 rate filings point to another year of significant premium increases. Employers are under the same pressure. And as costs rise, many are covering less or shifting more of the expense to employees. Across the board, coverage is becoming harder to maintain and more expensive to use. That makes execution our priority. Our focus now is to continue scaling the programs gaining traction, make them even easier for consumers to use and turn the progress we demonstrated in the second quarter into sustained growth. Before I move into the business updates, I want to address yesterday's leadership announcement. Chris McGinnis has transitioned from his role as Chief Financial Officer. On behalf of our Board and management team, I want to thank Chris for his contributions to GoodRx, including his partnership during my first year as CEO and his leadership of the finance organization. Effective today, Justin Fengler, who currently serves as our Chief Strategy and Operations Officer, will take on the additional role of Chief Financial Officer. Justin has been with GoodRx for more than 10 years and has a deep understanding of the business, our financial model, our corporate development activities and how we operate. In his current role, he has helped connect our corporate strategy to the priorities, investments, M&A and execution plans that guide the company. That experience, combined with his background in investment banking and consulting, makes him well positioned to lead the finance organization. You'll hear directly from Justin later in the call as he reviews our quarterly financial performance and outlook. With that, I'll turn back to the quarter and walk through our business updates. Starting with Pharma Direct. Q2 was a standout quarter with revenue growing 76% year-over-year and 18% quarter-over-quarter, supported by strength in consumer direct pricing and advertising solutions that extend well beyond any single therapeutic category. We now have more than 135 consumer direct pricing programs, including the addition of top brands like Jardiance, Nurtec, Otezla and Rapaflo. Reinforcing the role GoodRx is playing in helping manufacturers bring affordability programs directly to consumers at scale. GLP-1s remain one of the clearest examples of the value of that model. Demand remains strong, coverage remains limited or inconsistent, and the category is evolving rapidly as new therapies, formulations and price points come to market. During the quarter, we supported several important launches and expansions, including Ozempic pill, Wegovy HD, Foundayo and Zepbound KwikPen. These are in addition to our support of the Wegovy pill launch earlier this year as well as continued partnership with all other FDA-approved GLP-1 brands. GoodRx has become one of the leading consumer access channels for GLP-1 medications in the U.S., giving manufacturers a scaled way to turn pricing strategies into consumer access. We believe GoodRx's role in GLP-1 access will remain important as the category evolves. Demand for GLP-1 therapies is growing rapidly, particularly in the self-pay segment, and we expect that momentum to persist for the foreseeable future. Coverage models are also changing, such as the Medicare bridge program that launched on July 1 and runs through the end of 2027, offering $50 pricing on certain GLP-1 therapies to eligible Medicare beneficiaries. We are watching adoption closely, but Medicare age consumers represent a modest share of GLP-1 users on our platform today, and this program includes specific authorization, eligibility and processing requirements that naturally limit its reach. Given the scale of demand and variation in coverage, we expect transparent self-pay access to maintain an important part of the market, creating ongoing opportunity across both Pharma Direct and GoodRx for weight loss. At the same time, the strength of Pharma Direct extends well beyond GLP-1. We continue to deepen our partnerships with a more focused group of large pharmaceutical manufacturers, prioritizing strategic relationships with companies that have leading high-value brands. As a result, our average deal size has increased year-over-year, reflecting both the expansion of existing partnerships and greater alignment around enterprise scale programs. That breadth reduces concentration in any one category and gives us multiple avenues to compound growth over time. This strategy reinforces our ability to deliver meaningful value to manufacturers while driving more efficient, durable growth across our Pharma Direct offering. Turning to subscriptions. The number of subscription plans increased 14% year-over-year. Subscriptions are becoming a central part of how we serve and retain consumers, which is why we are shifting more product and marketing investment towards this model. They allow us to deliver value beyond an individual prescription, build deeper relationships with consumers and help address a broader set of health care needs. That is increasingly important as consumers face higher out-of-pocket costs and less predictable coverage and look for solutions that can complement insurance. A key step in that work was the launch of GoodRx Companion in May, our new subscription offering designed to make everyday health care more affordable and predictable. Companion is available for $14.99 per month or $9.99 per month with an annual plan and offers 200 free generic medications, hundreds more for under $10, affordable online care visits and savings across dental, vision, labs and imaging. It is especially valuable for consumers managing chronic conditions, taking multiple medications or navigating coverage limitations where out-of-pocket costs can be difficult to anticipate. While we are not discontinuing Gold, Companion is now our primary subscription offering with a broader nationwide pharmacy network, richer benefits and consistently lower prices. Early adoption has been encouraging, and we believe Companion gives us a broader membership platform to beat more of consumers' everyday health care needs. In addition, we continue to see growth across our condition-specific subscription offerings, led by GoodRx for weight loss with ED and hair loss also contributing. Together with Companion, these offerings give us more ways to address health care needs where affordability, access and convenience are meaningful barriers. That is why we are reorienting more of the GoodRx experience around subscriptions, including making them the primary call to action across key services such as our homepage and price pages. We believe this more integrated membership model can deliver greater value to consumers, deepen engagement, improve retention and support more durable recurring revenue. Now turning to Rx Marketplace. Performance in the second quarter was in line with our expectations, reflecting the sequential moderation we discussed on our last call and our decision to direct more marketing and product investment toward our subscription offerings. As subscriptions grow, some transactions that would have historically flowed through Rx Marketplace will instead be served through our subscription offerings that will moderate prescription transaction revenue and MACs over time, but we view it as a positive evolution of the business. Consumers receive more value, pharmacies benefit from increased prescription volume and stronger patient retention and GoodRx builds deeper consumer relationships while generating subscription revenue with higher lifetime value. Companion is a clear example of how we are providing value to both consumers and our retail pharmacy partners. It gives members access to meaningfully lower prices than they would receive through a traditional prescription discount while allowing them to continue filling at the pharmacies they already know and trust. It also delivers that value at no additional cost to retail partners. That makes Companion an important way to strengthen the consumer experience while reinforcing the value of our retail pharmacy network. We are also continuing to strengthen the network itself. Our direct contracting model gives us a better foundation to support retailer economics and improve the consumer experience at the counter. Our e-commerce capability is now live at nearly 6,000 pharmacies nationwide, allowing consumers to engage digitally before arriving at the pharmacy and helping retail partners reduce friction and better capture demand. We are also extending the reach of our network into new channels. In May, we brought our nationwide pharmacy access to TrumpRx as a launch partner for generics, giving consumers more choice in where they fill. Turning to Employer Direct. Building on the work we introduced last quarter, we are developing a significant and growing pipeline with partners expected to go live in Q4 and into Q1. Our initial focus is GLP-1s, where we combine manufacturer pricing enabled by Pharma Direct with the consumer-facing care and engagement model we built through GoodRx for weight loss. We also plan to integrate GoodRx Companion, giving employers the ability to subsidize the membership cost for employees and expand access to affordable generic medications. Employer Direct creates the channel to bring those capabilities to plan sponsors at scale, helping lower cost for employers and out-of-pocket prices for employees, including through employer-funded wellness accounts that can be used toward eligible medication costs and related care. While still early, the employer response reinforces our view that GoodRx can help plan sponsors address prescription affordability in a more flexible and targeted way. We plan to have more to report in future quarters as these programs target serving larger employee populations. As we scale these growth initiatives, we are also focused on improving how quickly and efficiently we execute. AI is becoming a more intentional part of the GoodRx operating model with a focus on redesigning workflows, reducing manual work and helping teams execute faster. We are hiring talent and investing in capabilities to embed AI more deeply into how we build and scale the platform, which we believe can accelerate product delivery and support greater operating leverage over time. I will now turn the call over to Justin to discuss second quarter results. Justin Fengler: Thank you, Wendy, and good morning, everyone. We delivered another strong quarter with revenue of $200.4 million and adjusted EBITDA of $63.7 million, representing an adjusted EBITDA margin of 31.8%. Our results were driven by continued momentum across our Pharma Direct and subscriptions offering, which are becoming a larger portion of overall revenue. Turning to our revenue performance by offering. Prescription transactions revenue was $106.4 million, in line with the outlook we previously provided. Monthly active consumers totaled 5 million, down 12% year-over-year and down sequentially, reflecting normal seasonality in our integrated savings program and a deliberate shift of product and marketing investment towards our new subscription offerings. Overall, these trends are unfolding as planned and consistent with the operating assumptions underlying our guidance. Pharma Direct revenue was $61.6 million, up 76% year-over-year as we continue to deepen manufacturer partnerships and expand our consumer direct pricing platform. Our growth reflected continued momentum in our GLP-1 access programs, complemented by strong execution across our non-GLP-1 business. Subscription revenue increased to $28.5 million, up 39% year-over-year, driven by the ongoing demand for our condition-specific offerings, particularly weight loss. The number of our subscription plans increased 14% year-over-year, also benefiting from the launch of GoodRx Companion in May. Turning now to our outlook for the rest of the year. Based on our strong first half performance and continued execution, we're raising our full year revenue guidance to a range of $790 million to $805 million. At the midpoint, we would return to year-over-year growth earlier than we had previously anticipated, demonstrating that our strategy to diversify our revenue base is delivering results ahead of plan. This improved outlook reflects the continued strength of the business, particularly within Pharma Direct, where we now expect revenue to grow more than 70% year-over-year. As we progress through the second half of the year, we expect the growth generated by Pharma Direct and our subscriptions offerings to more than offset declines in prescription transactions revenue. Based on the strength of our operating performance, coupled with our continued focus on disciplined execution, we are also raising our adjusted EBITDA guidance to a range of $240 million to $250 million, underscoring our ability to drive profitable growth while continuing to invest in our strategic priorities. And with that, I will turn the call back over to Wendy. Wendy Barnes: Thanks, Justin. The second quarter showed that our strategy is working. We delivered results ahead of expectations, raised our full year outlook and saw continued growth in Pharma Direct and subscriptions, the 2 growth engines we said would drive the business this year. From here, our focus is consistent execution, driving the programs already in market and in our pipeline towards sustained utilization while continuing to strengthen the experience that keeps consumers coming back. As we deliver against that plan, we are confident it will translate into a more durable growth profile and long-term value for consumers, partners and shareholders. With that, I'll turn the call over to the operator for questions. Operator: [Operator Instructions] Our first question comes from the line of Charles Rhyee with TD Cowen. Charles Rhyee: I wanted to talk about sort of overall performance for the business because, obviously, we now have these different subgroups, PTR, Pharma Direct, subscriptions and each of these have different kind of metrics. But ultimately, at the end of the day, is it right to think that people are going using GoodRx getting prescription filled? And if that's really the case, can you give us a sense of how many prescriptions you are filling across the different buckets? And because as you talk about a return to growth, maybe talk conceptually, what are the kind of metrics that you are thinking about providing investors? Because I feel like the way the business is set up right now, it kind of makes it difficult for people to figure out where this -- obviously, we see revenue growth. But if we think about what people are really focused on. And I ask that because we see MACs continues to kind of decline year-over-year. And just it's kind of hard to gain a lot of confidence if we don't see that number start to flatten a little bit. So anything that you could help us in terms of maybe more like a prescription type of metric would be helpful. Justin Fengler: Yes. It's a great comment, Charles, and thanks for the question. I know we've alluded in periods past to evaluating KPIs that we provide to the Street and things like that. I think you're exactly right in terms of the MAC number because that just pertains to prescription transaction revenue isn't necessarily perfect, and it's also not necessarily an indicator of success in the business. As we kind of talked about on the call, we're actively transitioning more people into subscription offerings, which have closer -- allow us to have a closer relationship with the customer, allows us to drive more value for the customer and allows us to have a higher lifetime value with those people. So -- and as you -- if anybody goes to our website now, they'll see us certainly pushing that on the homepage, the price page, things of that nature. So to the point of what are the KPIs that we're pushing, we're still evaluating that. We're not going to come out this quarter and say, "Hey, we're going to move to this back or the other." Number of prescriptions, things of that nature are certainly things that we're looking at. And I think that at some point in the future, you would expect us to have something a bit different. It's probably -- it's certainly too early today for us to talk about that. But as we think about what are the goals that we're looking for, it's long-term durable revenue and how are we actually leveraging the power of our brand to deliver value to consumers and ultimately have a durable revenue base that's growing. And as we're transitioning the business from a PTR base more into pharma and subs, we think that's a good evolution of the business. Wendy Barnes: Yes. I would add... Charles Rhyee: If I could follow... Wendy Barnes: No, please go ahead. What's your follow-up question? No, no, please... Charles Rhyee: Yes. No, I was going to ask -- so I understand that, right? But I'm just curious to the extent that when you're working with pharma companies with Pharma Direct, clearly, they're looking at the GoodRx platform saying, "Hey, look at this significant number of consumers that constantly come to the site to engage and look at price for drugs, which at the core was built around the PTR model." Does -- what is the right level in PTR that you would say you need to have that critical mass that makes it relevant for pharma to want to work with you guys? Justin Fengler: Charles, yes, when you think about PTR revenue, it's actually -- that's only a subcomponent of kind of the monetization because when you think about people coming to brand drug price pages, they're not actually a MAC necessarily, right? There are people that are looking for co-pay affordability or things like that, that would never actually make their way into that MAC number. What we look at here and kind of what everything starts with at GoodRx is the power of the brand. Like how many people know about us? Is it a good story? Do we have a high NPS or people resonating? And we have over 280 million people that are coming to our site -- or sorry, we have over 280 million site visits every year. And I think that's certainly -- those people or those site visits and the number of those site visits that make their way into price pages and into subscriptions is a leading indicator of how we look at that strength. Wendy Barnes: Yes. And Charles, I would just add to your pointed question regarding the types of things that pharma is looking for and partnering with us. Clearly, they're looking for a high-intent audience that is going to help drive volume to their specific brand programs. And we have delivered time and time again for them on those specific programs. So much so that when we benchmark utilizing third-party sources to do so as to how those programs would have performed either in their own brand.com or with other channels that they could choose to push cash pricing in, we perpetually outperform. I mean, these ROI comparisons sometimes can be 8, 10, 12, 16, 18x, given the high-intent audience we have. And that is tied to a number of things. And by high intent more descriptively, we mean consumers that are showing up very frequently with the prescription already in hand, and they're simply looking for the right channel for affordability. And as we've pointed out in a couple of previous calls, and interestingly, a significant percentage of that audience also has insurance. And so again, they've compared it to ostensibly what their out-of-pocket would have been having been covered and in many instances, choosing the cash option. And so for that reason, that is one of the reasons that the number of pharma programs, I believe at this point, exceeding 135 direct-to-consumer programs. That's why this continue to proliferate and why we are going deeper in our pharma partnerships. So that's kind of how we're thinking about certainly how we measure KPIs with that direct relationship. I don't know that those are things we necessarily contemplate as a metric in the broader sense for the company, but those certainly are metrics that are trending incredibly strong within the different components of the business. But we hear you, we understand the ask for a broader business metric, and it's something we continue to kick around with our Board. It's certainly a bit of a challenge when you're in transition of your business model and certainly changing a metric in the middle of your fiscal year is never a good idea, but we're contemplating what that potentially could be going into '27. Operator: Our next question comes from the line of Daniel Grosslight with Citi. Daniel Grosslight: Some really nice results in Patient Direct. That's great to see. I'm wondering if you could kind of double-click a little bit on Patient Direct and maybe quantify or provide some commentary around how important the GLP-1 drug class is to Patient Direct, particularly the launch of orals. And as we think about the bridge program and perhaps some leveling off of the new launches, how we should be thinking about a sustainable growth rate in the Pharma Direct segment? Wendy Barnes: Thank you for the question. And one, candidly, we probably presumed that we would get today, we'll probably have it in the same conversation and several follow-ups, too. Look, there's -- unequivocally, GLP-1s have been an important part of our Pharma Direct growth story, and they will continue to be. I mean, as we look forward through even 2030, 2031, the ongoing growth opportunity, both in Medicare eligible and non-Medicare eligible consumers is considerable. So that's, in my mind, a bit of thing one. But I think it's also important to point out that we have grown considerably in our non-GLP-1 drug partnerships. all of those deals in both of those categories are up substantially year-over-year. And we think the ongoing partnership pointing more back to the GLP-1 component, our ability to support telehealth, our subscription offering around weight loss will continue to be more important to support that category to include the launch of additional molecules in the coming years. As it pertains to the other portion of your question around the orals, we've seen considerable growth in those particular formulations, and we're continuing to see that without specific commentary on some of the comments earnings-wise from manufacturers as to what they're seeing in their broader book. I can just simply tell you that within our consumer set, it continues to be healthy and growing. Other things you'd add, Justin? Justin Fengler: No. Look, I think that Wendy commented on the GLPs, I would say what we see on our side is not just strength in that segment. I think that, that part of the component of the Pharma Direct is very strong, but also on the non-GLP side as well, we see good growth there. So I think that we're excited for the segment. Obviously, we increased the Pharma Direct guidance range from 50% to 70% this quarter. I think that certainly, this year, it's going to be a really, really strong year. And certainly, on the GLP side, there's many, many more years of strength as this category continues to have new launches and grows. We're not getting into the game of long-term guidance here, and we're certainly going to talk about next year when next year arrives. But it's certainly an area of the business that is performing very strong. Operator: Our next question comes from the line of Michael Cherny with Leerink Partners. Michael Cherny: Maybe if I can just dive in on Pharma Direct and the growth and positioning of the business. Obviously, it's been a standout in the quarter and the year and the acceleration of guidance. As you think about the continued ramp with new manufacturer partners, anything about capacity that you have to worry about, manage for? And is there any balance or incremental investments needed to support this level of growth above and beyond what you would typically expect for a ramp on a new project? Wendy Barnes: Michael, thank you for the question. No, the short answer is that I don't anticipate a ton of incremental costs to continue to scale Pharma Direct. We've largely already invested in the appropriate sales force and supporting infrastructure. Be that as it may, Laura, who I think you've met on previous calls, who's our Chief Commercial Officer, has full permission to come to us as she sees fit managing that P&L as she thinks there are different supportive resources she needs. But there's nothing I'm anticipating even in the short or midterm that would require significant cost to support growth there. We're largely set up to continue to add additional consumer direct partnerships with pharma. What would you add from your lens, Justin? Justin Fengler: Yes. Look, I think from the pharma business, that's 31% of our revenue this quarter. So it's certainly already becoming a scaled part of the offering. And we have an established team here that's been with the business for many, many years. So in terms of incremental investment, I think we'll assess that in the future. I don't expect anything dramatic as we look to continue to expand the business. And again, I think a lot of that comes back to the power of the brand and the platform, 280 million site visits. A lot of this stuff is built in, in terms of how we're monetizing and reaching consumers, which is an amazing part of the GoodRx brand. Operator: Our next question comes from the line of Stan Berenshteyn from Wells Fargo Securities. Stanislav Berenshteyn: Maybe a follow-up on Pharma Direct. As we think about the balance of the year, how active is your pipeline there? And can you compare that to the same time last year? And maybe just a quick follow-up on gross margin. If we just think about the revenue mix persisting here, where do you expect gross margin will shake out going forward here? Justin Fengler: Yes. Thanks for the question, Stan. So from a bookings perspective, much of the bookings happen at the beginning of the year, even before the year began. So we have really good line of sight for the full year revenue picture for Pharma Direct. So I think it's not something where we're chasing a whole bunch of stuff in the back half of the year. In terms of gross margin, we're not going to guide to a particular number there. I think that you've seen that cost of revenue number come up on a year-over-year basis. Some of that's due to the cost to serve some of the subscription offerings as those become a bigger part of the revenue mix, but not something that we're guiding to and not something that we're going to see material changes on throughout the rest of the year. Operator: Our next question comes from the line of Jailendra Singh with Truist Securities. Jailendra Singh: With all the coverage changes we've been seeing year-to-date around Medicaid exchanges, have you seen any of that impact your business positively or negatively thus far? Or are you capturing any of these developments in your updated outlook for second half? And any general thoughts you can share around these developments would be helpful. Wendy Barnes: Jailendra, thank you for the question. Look, being as transparent as I can on a macro level, we do absolutely believe that the continued drop in coverage, coupled with whether it's ACA, whether it's Medicaid rosters or whether it's just candidly a number of employers who are reducing coverage, either number of drugs they're covering and/or increasing the out-of-pocket burden on their employees. We unequivocally believe that those are tailwinds pointing towards both our Companion product being a complement to insurance in addition to traditional coupon usage. As to my ability as of this first week of August to tell you definitively that we've tracked some of those trends, specifically being tied to volume in our business. I mean, the short answer is no. I can't tell you that with conviction. But on a macro level, all of those things do seem to point to a pretty large opportunity for cash. And I think when you just couple that with what is the pipeline of employers with interest in our Employer Direct and/or Companion in tandem with the really strong uptake we've had since launching Companion, it would indicate that those things appear to be related, but I can't tell you that definitively with data. Jailendra Singh: Great. And one quick follow-up. With all the recent developments and interest around peptides market. I was just curious to get your thoughts on the opportunity there. Is that on your radar? Or will this market be ever of your interest? And what would you need to see before leaning more meaningfully into this market? Just any thoughts would be helpful. Wendy Barnes: Yes, gosh, it's actually generated a fair bit of conversation both amongst our leadership team and candidly, with our Board. The short answer is, yes, we think it could be an opportunity. With what the FDA met on, it was either last week or the week prior. To be clear, that was an explicit approval. I mean, at this point, it still would require a regulatory review before those specific molecules would be approved for either compounding pathway supported by the FDA. Be that as it may. We're watching it quite closely. And what we do know is that if they pass all of the rigor through the FDA, that our ability to play, we think, would be strong, but we would do so from a position of strong clinical integrity in addition to a well-vetted/credentialed compounding pharmacy partnership or partnerships. Again, in keeping with really how we've approached giving consumers access to affordable prescriptions, we would approach it very similarly. So perhaps in summary, I would just say, yes, it's of interest. Yes, we're contemplating it provided that those additional regulatory pathways receive check marks through the government. Operator: Our next question comes from the line of Craig Hettenbach with Morgan Stanley. Jialin Jin: This is Jay on for Craig. So on condition-specific offerings like the ED, hair loss and weight loss, now that some cohorts are reaching the 8 to 12 months mark, can you share kind of how are the retention and churn trending? And then specifically within weight loss, can you share like any early read on GLP-1 persistence or churn relative to your other offerings, even though the data is still early? Justin Fengler: Yes. Thanks for the question, Jay. In terms of churn and retention amongst the offerings, it's not a KPI or metric that we're putting out there right now. I'd say, you're right, on the condition-specific offerings for weight loss and ED and hair loss, those have been in the market for a while. We're continuing to invest in product marketing, reactivation, kind of all of those good normal features that you would have. And I think we continue to internally look at those as things that we want to move the needle on. Companion, look, we just launched that offering in May. And I think the early progress on that has been strong, and we're very encouraged by that. So I think that we feel good about where we are, which you can see from a revenue growth perspective, up 39% year-over-year and 17% quarter-over-quarter. And from a subscription plan perspective, if you also look at those, certainly, the value of the subscription is going up as well because revenue is obviously outpacing the number of plans. So from kind of that ARPU perspective, we feel good about where the business is headed. And all of these are things that we have big teams and a lot of investment moving towards because we know they're such important metrics for us. Operator: Our next question comes from Brian Tanquilut with Jefferies. Brian Tanquilut: Congrats on the quarter. Maybe, Chris, my question for you. As I think about the strong free cash flow performance during the quarter and the buyback that you spent. I mean, just curious how you're thinking about capital allocation, especially given where the stock's valuation is today. Justin Fengler: Yes. So this is Justin on. Good to talk to you. From a capital allocation standpoint, I don't think anything has really changed in terms of how we're looking at that. So we didn't do any buybacks this last quarter. Free cash flow, as you said, was very good. The first thing that we're going to look at from an allocation of capital perspective is investing in the business. And in particular, there are the areas that we highlighted where we have a right to win and a lot of momentum, which is what we're doing with subscriptions and what we're doing with pharma. Certainly, opportunistically, we're going to look at M&A and other capital items, not something that we have active plans we're going to talk about here. But I would say, first and foremost, it's investing in the business for long-term durable growth. That's our #1, 2 and 3 priority. Operator: Our next question comes from the line of Allen Lutz with Bank of America. Allen Lutz: For Wendy or for Justin here, I want to follow up on Charles' question at the top. Just around the -- there's a lot of moving pieces here as we think about the different parts of the business. And obviously, the business is in flux. Would love to just, from a high level, talk about the expectations around prescription transaction revenue over the next couple of quarters, the expectation for MAC into the end of the year. And then maybe offsetting that, the expectations for subscription revenue and subscriber growth. I guess, maybe talk about those together? Can they offset each other? Just trying to get a sense of how those 2 items are going to transition into the end of the year and into 2027. Justin Fengler: Yes. Thanks for the question, Allen. Good question. And certainly, in our prepared remarks, we talked about active decisions that we're making around pushing more people into our subscriptions offering, whether it's Companion or Condition. I think that, that's something from a durability of revenue perspective and ability of value or amount of value that we're able to deliver to consumers is something that we're going to actively push. So a lot of these choices are active decisions that are good, that we feel like are good for the business long term. In terms of what that means for MACs, there's certainly -- I think we would expect continued moderation on that line as we move more people into subscriptions. The one thing that I would just note so that we're not getting too far ahead of ourselves is that subscriptions, particularly Companion is a new offering. We just launched that in May of this year. So as we manage kind of the acquisition funnels for that, the retention tactics and things of that nature, it's going to be growth in terms of how well developed that product is. So certainly, the third quarter, fourth quarter, as we go into next year, I think we expect to get sequentially better. And we're focused on moving those big KPIs. But really, we're not looking at that as optimizing revenue from a subscription perspective for 2026. We're really focused on investing in things that are going to help us in the long term, '27, '28, '29, et cetera, and building a really good foundation that makes this product the best product out there in the market. Operator: Our next question comes from the line of George Hill of Deutsche Bank. George Hill: I just kind of wanted to focus on the emerging Companion Direct and the Employer Direct offering. I wanted to talk about product positioning because the Companion Direct product actually seems pretty interesting. It seems like it could fit well in like almost the alternative health plan space given how it's constructed and what it looks like. And I could see pretty interesting growth there. But with Employer Direct, I also see you would kind of technically be going head-to-head against your PBM partners who probably don't love that idea. So it's an interesting needle to try to thread with how both of those products are positioned in the market. So my question is just -- I'd love to hear how you guys think about navigating the positioning of those products and navigating your partnership relationships, both up and downstream as you go to market with those products. Wendy Barnes: Yes. George, this is Wendy. Thank you for the question. Interestingly, I think the 2 concepts actually overlap pretty nicely. So let me start with maybe Employer Direct. Of course, the thesis of which most of the employers that we're dialoguing with, well, all of them, I mean, they already have benefit offerings. So they're looking at partnering with us as more of a complement to their insurance. And let's not forget that the overwhelming majority of the early focus is on GLP-1s, the majority of which these employers have dropped coverage. So in that instance, the PBMs are actually looking at us as a very nice partner in this instance because the employer couldn't really afford to do it through the funded channel. And so as such, the Employer Direct offering when they're partnering with us, gives them access to our direct-to-consumer pricing in partnership with a potential additional buydown from the employer in a wellness type account, which is really good for all parties, not the least of which, of course, is the employee who otherwise would have been on their own to figure this out. Companion, to be clear, is not an insured product, but you're not wrong that when you think about 200-plus free generics plus hundreds more at 10 or less, in addition to all of the adjunctive offerings, be it telehealth, vision, dental, so on and so forth. That is a fantastic complement to a broader offering and also an excellent way for an employer to complement their benefit offering to include perhaps employees that otherwise weren't going to qualify for benefit at all. And so we've had employers say, yes, this makes a ton of sense for us to fold in as well. And so far, I would say there hasn't been explicit pushback from PBMs. Now transparently, am I out soliciting their input as to what they think about it? No, not necessarily. But at the end of the day, benefit coverage continues to get skinnier. And so this just really fits nicely with really the holes that a lot of insured consumers are already experiencing. And maybe more broadly, if I may, look, I will say that the regulatory advocacy that we've been pressing upon in D.C. to both have really all cash pricing count towards out-of-pocket maximums and also pressing upon the ability to use HSA, FSA dollars, those membership expenses to be able to be reimbursed through those particular vehicles. These are all things that have gained a great deal of interest. And when you triangulate that with some of the larger PBM settlements where they've largely already said that they will support, cash out-of-pocket expenses counting towards deductibles. Candidly, George, I think we're all racing towards the same solution here, and GoodRx is well positioned to take advantage of it. George Hill: I think we're generally thinking about it the same. Operator: Our next question comes from the line of Steven Valiquette with Mizuho Securities. Steven Valiquette: So I know that more of the company's overall growth may be tied more heavily to brand drugs these days. But it is worth noting for the overall U.S. market that really calendar 2Q '26 represented one of the strongest quarters ever for new first-time generic drug launches. And we have seen some other companies in the pharma supply channel capture some immediate financial benefit from that. So I guess my question is really, I mean, directionally, this should be quite positive for certain segments of your overall business as well. So I'm wondering if you can just provide a little more color on your observations around this dynamic and whether the company could see maybe some greater leverage to this in the back half of '26? Or is this maybe more of an elongated benefit for the company just based on how it flows? Wendy Barnes: I appreciate the question. I'll start. Justin may have additional financial commentary. I mean, look, unequivocally from just a percentage of fill standpoint, you're spot on. I mean, most of the fills in the U.S., 85%, 90% are, in fact, generics. And it's one of the reasons our Companion product is hyper-fixated on $0 generics because, again, those typically are the first-line therapies that really any consumer pursues, particularly if they have cost-conscious limitations, which most of us do these days. Having said that, that other 10% are often the ones that hit the bottom line the hardest for consumers. And so as such, those programs and partnerships with pharma will continue to be immensely important, just knowing that those tend to be the ones that consumers have a far more difficult time getting. And usually, it's due to cost at the counter. And by our estimates, over $1 billion brand scripts are abandoned in any given year, which is just a drain on the health care system as prescribers writing those therapies to then be unable to get your patient ultimately on to therapy. But more broadly, I think your question pointing toward generics supports our Companion strategy and offering. And to be clear, I mean, my goodness, yes, the overwhelming number of prescriptions supported by GoodRx are generics will continue to be generics and our ability to drive the most competitive generic pricing possible will continue to be of the utmost importance to our strategy. We absolutely don't intend to abandon that. Justin, anything you'd add? Justin Fengler: No, I think that's right, Wendy. Thank you. Operator: I'm showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in GoodRx, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GoodRx wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends GoodRx. The Motley Fool has a disclosure policy. GoodRx (GDRX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a deliberate shift toward Pharma Direct and subscription models, which management identifies as the company's primary durable growth engines. Pharma Direct growth of 76% year-over-year was fueled by manufacturer adoption of consumer-direct pricing programs, now exceeding 135 active programs including top brands like Jardiance and Otezla. Management attributes the success of Pharma Direct to a high-intent audience of over 280 million annual site visits, which delivers ROI for manufacturers significantly higher than other channels. The launch of GoodRx Companion in May represents a strategic reorientation toward a membership model designed to increase consumer lifetime value and retention. Prescription Transactions Revenue (PTR) moderated as planned, reflecting a strategic decision to divert marketing and product investment away from transactional models toward recurring subscriptions. Management highlighted that affordability pressures, such as the expiration of ACA subsidies and rising employer costs, are creating a macro tailwind for cash-pay and supplemental health solutions. Operational efficiency is being enhanced through the intentional embedding of AI into workflows to reduce manual tasks and accelerate product delivery timelines. Full-year revenue guidance was raised to $790 million–$805 million, reflecting expectations to return to year-over-year growth earlier than previously anticipated. Pharma Direct revenue is now projected to grow more than 70% year-over-year, supported by strong visibility into the existing pipeline and manufacturer bookings. Management expects the growth in Pharma Direct and subscriptions to more than offset the anticipated declines in traditional prescription transactions revenue through the second half of the year. The Employer Direct pipeline is expected to go live in Q4 and Q1, initially focusing on GLP-1 access and the integration of GoodRx Companion for plan sponsors. Guidance assumes that while the Medicare bridge program for GLP-1s may limit some reach, the vast majority of demand will remain in the self-pay segment due to complex authorization requirements. Justin Fengler, who serves as Chief Strategy and Operations Officer, has been appointed to the additional role of Chief Financial Officer. The company is actively evaluating new KPIs to replace or supplement Monthly Active Consumers (MACs), as the current metric does not fully capture the shift toward subscription and brand drug engagement. Direct contracting models and e-commerce capabilities are now live at nearly 6,000 pharmacies, aimed at reducing friction at the pharmacy counter and improving retailer economics. Management is monitoring regulatory pathways for compounded peptides, indicating interest in the market provided there is clinical integrity and FDA-approved compounding pathways. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that MACs are no longer a perfect indicator of success as the business shifts toward subscriptions and brand drug price pages that don't always trigger a MAC count. They are evaluating new KPIs for 2027 to better reflect long-term durable revenue and the power of the brand across all segments. While GLP-1s are a significant driver, management emphasized that non-GLP-1 partnerships are also growing substantially and deal sizes are increasing. They expect GLP-1 demand to remain strong through 2030, particularly as new formulations like orals enter the market. Management views Employer Direct as a complement to PBM offerings rather than a replacement, specifically filling gaps where employers have dropped coverage for high-cost drugs. They reported no explicit pushback from PBMs, noting that the industry is moving toward solutions where cash out-of-pocket expenses count toward deductibles.

For the quarter ended June 2026, GoodRx Holdings, Inc. (GDRX) reported revenue of $200.41 million, down 1.3% over the same period last year. EPS came in at $0.08, compared to $0.09 in the year-ago quarter. The reported revenue represents a surprise of +3.92% over the Zacks Consensus Estimate of $192.86 million. With the consensus EPS estimate being $0.08, the company has not delivered EPS surprise. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how GoodRx performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Monthly Active Consumers: 5 compared to the 5 average estimate based on three analysts. Subscription plans: 764 compared to the 726 average estimate based on two analysts. Revenue- Prescription transactions: $106.39 million versus the three-analyst average estimate of $109.31 million. The reported number represents a year-over-year change of -25.6%. Revenue- Other: $3.88 million versus the three-analyst average estimate of $3.88 million. The reported number represents a year-over-year change of -15%. Revenue- Pharma direct: $61.63 million compared to the $55.4 million average estimate based on three analysts. The reported number represents a change of +76.2% year over year. Revenue- Subscription: $28.51 million versus $25.61 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +39.3% change. View all Key Company Metrics for GoodRx here>>> Shares of GoodRx have returned +10.2% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GoodRx Holdings, Inc. (GDRX) came out with quarterly earnings of $0.08 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.07, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. GoodRx, which belongs to the Zacks Medical Services industry, posted revenues of $200.41 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.92%. This compares to year-ago revenues of $203.07 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GoodRx shares have added about 23.3% since the beginning of the year versus the S&P 500's gain of 13%. While GoodRx has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GoodRx was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $194.96 million in revenues for the coming quarter and $0.31 on $775.17 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. HealthEquity (HQY), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on August 27. This provider of services for managing health care accounts is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +10.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. HealthEquity's revenues are expected to be $350.23 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in GoodRx Holdings, Inc.? Here are five stocks we like better. GoodRx raised its full-year outlook after reporting Q2 revenue of $200.4 million and adjusted EBITDA of $63.7 million. The company now expects 2026 revenue of $790 million to $805 million and adjusted EBITDA of $240 million to $250 million. Pharma Direct was the primary growth driver, with revenue up 76% year over year to $61.6 million, while subscription revenue climbed 39% to $28.5 million. GoodRx expects Pharma Direct revenue to grow more than 70% for the full year. Prescription transaction revenue remained pressured as monthly active consumers fell 12% year over year to 5 million, reflecting seasonality and a strategic shift toward subscriptions. GoodRx is prioritizing the expansion of GoodRx Companion, launched in May, along with emerging employer-focused GLP-1 offerings. Wegovy vs. Zepbound: Who Wins the Battle of the GLP-1 Drugs? GoodRx (NASDAQ:GDRX) reported second-quarter 2026 revenue of $200.4 million and adjusted EBITDA of $63.7 million, representing a 31.8% adjusted EBITDA margin, as growth in its Pharma Direct and subscription businesses offset pressure in prescription transaction revenue. The company raised its full-year outlook, now expecting revenue of $790 million to $805 million and adjusted EBITDA of $240 million to $250 million. Chief Financial Officer Justin Fengler said the midpoint of the revenue range would bring a return to year-over-year revenue growth earlier than the company had previously anticipated. → 3 Drone Stocks That Should Soar After the Summer Slump This healthcare stock making a buzz with 160% growth “The second quarter was a strong quarter for GoodRx,” Chief Executive Officer Wendy Barnes said, citing revenue above expectations, disciplined profitability and consumer engagement across the platform. Pharma Direct revenue rose 76% year-over-year and 18% sequentially to $61.6 million. The business includes consumer-direct pricing and advertising solutions for pharmaceutical manufacturers. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Gene therapy: Why does it cost millions for a single treatment? Barnes said GoodRx now offers more than 135 consumer-direct pricing programs, including programs for JARDIANCE, Nurtec ODT, Otezla and Rapaflo. The company continued to support GLP-1 medication launches and expansions during the quarter, including Ozempic pill, Wegovy HD, Foundayo and Zepbound KwikPen. GLP-1 medications remain an important contributor to Pharma Direct, management said, but executives emphasized that non-GLP-1 manufacturer partnerships also grew substantially year-over-year. Barnes said the company has been pursuing deeper partnerships with a more focused group of large pharmaceutical manufacturers and has seen its average deal size increase. → Jersey Mike's Serves Fresh Gains After IPO Stumble Fengler said the company now expects Pharma Direct revenue to grow more than 70% for the full year, an increase from its prior expectation of 50% to 70% growth. He added that the company has substantial visibility into its full-year Pharma Direct revenue because many bookings occur near the start of the year. Management said it does not expect significant incremental costs to scale the Pharma Direct business, pointing to existing sales and operational infrastructure. Pharma Direct accounted for 31% of total quarterly revenue, Fengler said. Subscription revenue increased 39% year-over-year to $28.5 million, while the number of subscription plans rose 14%. Growth was led by the company’s condition-specific offerings, particularly GoodRx for Weight Loss, as well as the May launch of GoodRx Companion. GoodRx Companion costs $14.99 per month, or $9.99 per month under an annual plan. The offering includes 200 free generic medications, hundreds of additional medications priced below $10, online care visits and savings on dental, vision, laboratory and imaging services. Barnes said GoodRx Gold will remain available, but Companion has become the company’s primary subscription offering because of its broader pharmacy network, expanded benefits and lower prices. The company is increasingly making subscriptions the primary call to action across its website, including its homepage and drug-price pages. Fengler said GoodRx is still building acquisition funnels and retention programs for Companion, which launched during the quarter. The company is focused on establishing a foundation for longer-term subscription growth rather than maximizing subscription revenue in 2026, he said. Management did not provide churn or retention figures for its condition-specific offerings or Companion. However, Fengler said subscription revenue has been growing faster than subscription plans, which the company views positively from an average-revenue-per-user perspective. Prescription transactions revenue was $106.4 million, in line with prior guidance. Monthly active consumers totaled 5 million, down 12% from a year earlier and down sequentially. Fengler attributed the decline to normal seasonality in the company’s integrated savings program and GoodRx’s deliberate shift of product and marketing investments toward subscriptions. As more customers transition to subscription products, some transactions that historically would have been recorded as prescription transaction revenue will instead generate subscription revenue, management said. Executives acknowledged that the company is evaluating whether to provide investors with different key performance indicators as its revenue mix evolves. Fengler said monthly active consumers relates only to prescription transaction revenue and is not a complete measure of business performance. GoodRx reported more than 280 million annual site visits across its platform. Barnes said pharmaceutical companies value the company’s high-intent audience, particularly consumers who arrive with prescriptions and seek lower-cost options. The company’s e-commerce capability is now live at nearly 6,000 pharmacies nationwide. GoodRx also became a launch partner for generics on Trump Rx in May. GoodRx said it is developing an Employer Direct pipeline, with partners expected to begin launching in the fourth quarter and first quarter. The initial focus is GLP-1 access, combining manufacturer pricing through Pharma Direct with GoodRx for Weight Loss. The company also plans to offer employers the ability to subsidize GoodRx Companion memberships for employees. Barnes said Employer Direct is intended to complement existing insurance benefits, particularly where employers have reduced or eliminated GLP-1 coverage. She said the company has not seen explicit resistance from pharmacy benefit managers to the initiative. The company also announced that Chris McGinnis transitioned from the chief financial officer role. Fengler, who had served as chief strategy and operations officer and has been with GoodRx for more than a decade, assumed the CFO position in addition to his existing role. On capital allocation, Fengler said GoodRx did not repurchase shares during the quarter and that its top priority remains investing in growth initiatives, particularly Pharma Direct and subscriptions. The company may also evaluate merger-and-acquisition opportunities opportunistically, he said. GoodRx Holdings, Inc (NASDAQ: GDRX) operates a digital healthcare platform designed to help consumers compare prescription drug prices at retail pharmacies across the United States. Through its website and mobile applications, GoodRx aggregates pricing and discount information from a wide network of pharmacies, enabling users to access coupons and savings programs on both generic and brand-name medications. The platform also features price transparency tools that inform patients about cost variations and available discounts to alleviate the financial burden of prescription medications. In addition to its core drug pricing service, GoodRx offers telehealth services under the GoodRx Care brand, providing virtual consultations for a range of non-emergency conditions and prescription needs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "GoodRx Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Pharma Direct and Subscription Revenue Increased 76% and 39%, Respectively, Year-Over-Year Company Raises Full-Year 2026 Revenue and Adjusted EBITDA Expectations SANTA MONICA, Calif., August 05, 2026--(BUSINESS WIRE)--GoodRx Holdings, Inc. (Nasdaq: GDRX) ("we," "us," "our," "GoodRx," or the "Company"), the leading platform for medication savings in the U.S., has released its financial results for the second quarter of 2026. Second Quarter 2026 Highlights Revenue of $200.4 million Net income of $8.5 million; Net income margin of 4.3% Adjusted Net Income1 of $26.8 million; Adjusted Net Income Margin1 of 13.4% Adjusted EBITDA1 of $63.7 million; Adjusted EBITDA Margin1 of 31.8% Net cash provided by operating activities of $80.8 million "We entered 2026 focused on scaling Pharma Direct and subscriptions, and the second quarter provided clear evidence that those investments are translating into stronger performance," said Wendy Barnes, President and Chief Executive Officer of GoodRx. "We believe this progress is accelerating our return to growth and strengthening the long-term durability of GoodRx." Second Quarter 2026 Financial Overview (all comparisons are made to the same period of the prior year unless otherwise noted): Revenue decreased 1% to $200.4 million compared to $203.1 million. Prescription transactions revenue decreased 26% to $106.4 million compared to $143.1 million, primarily driven by a decrease in the number of our Monthly Active Consumers due to the broader changes in the retail pharmacy landscape including store closures and volume reduction in one of our integrated savings programs, as well as the deliberate shift of product and marketing investment toward our new subscription offerings. The year-over-year decrease was also due to lower unit economics which we expect to continue in the near-term as we made deliberate decisions to favor long-term durability and certainty. Subscription revenue increased 39% to $28.5 million compared to $20.5 million, primarily driven by the expansion and growth of our condition-specific subscription programs, in particular weight loss, as well as a resulting increase in the number of subscription plans. Pharma Direct revenue increased 76% to $61.6 million compared to $35.0 million, driven by organic growth as we continued to expand our market penetration with pharma manufacturers and other customers, in particular our GLP-1 access programs, which are part of our consumer direct pricing. Net income was $8.5 million compared to $12.8 million. Net income margin was 4.3% compared to 6.3%. Adjusted Net Income1 was $26.8 million compared to $33.9 million. Adjusted EBITDA1 was $63.7 million compared to $69.4 million. Adjusted EBITDA Margin1 was 31.8% compared to 34.2%. Cash Flow and Capital Allocation Net cash provided by operating activities in the second quarter was $80.8 million compared to $49.6 million in the comparable period last year. As of June 30, 2026, we had cash and cash equivalents of $296.1 million and total outstanding debt of $492.5 million. We are focused on a disciplined approach to capital allocation, centered on furthering our mission and creating stockholder value. Our capital allocation priorities are investing for profitable growth, paying down debt, buying back shares, and M&A that aligns with our strategic priorities. These capital allocation priorities support our long-term growth strategy while also providing flexibility to navigate near-term challenges. Guidance Management is raising its full-year 2026 guidance as follows: "We exceeded our expectations in the second quarter, with Pharma Direct revenue increasing 76% year-over-year and subscription revenue increasing 39% year-over-year," said Justin Fengler, incoming Chief Financial Officer and current Chief Strategy & Operations Officer of GoodRx. "Based on our strong first-half performance, we are raising our full-year revenue and Adjusted EBITDA guidance." Investor Conference Call and Webcast GoodRx management will host a conference call and webcast tomorrow, August 6, 2026, at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time) to discuss the results and the Company’s business outlook. To access the conference call, please pre-register using the following link: https://register-conf.media-server.com/register/BI2d7e976f9edd481db1351e5bb1902f6a Registrants will receive a confirmation with dial-in details and a unique passcode required to join. The call will also be webcast live on the Company’s investor relations website at https://investors.goodrx.com, where accompanying materials will be posted prior to the conference call. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website at https://investors.goodrx.com for at least 30 days. About GoodRx GoodRx is the leading platform for medication savings in the U.S., used by nearly 25 million consumers and over one million healthcare professionals annually. Uniquely situated at the center of the healthcare ecosystem, GoodRx connects consumers, healthcare professionals, payers, pharmacy benefit managers, pharmaceutical manufacturers, and retail pharmacies to make saving on medications easier. By reducing friction and inefficiencies, GoodRx helps consumers save time and money when filling prescriptions so they can get the care they deserve. Since 2011, GoodRx has helped Americans save over $100 billion on the cost of their medications. GoodRx periodically posts information that may be important to investors on its investor relations website at https://investors.goodrx.com. We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors and potential investors are encouraged to consult GoodRx’s website regularly for important information, in addition to following GoodRx’s press releases, filings with the Securities and Exchange Commission and public conference calls and webcasts. The information contained on, or that may be accessed through, GoodRx’s website is not incorporated by reference into, and is not a part of, this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our future results of operations and financial position, industry and business trends, including uncertainty in the macro environment, the impact of trends impacting retail pharmacies on our future financial results, the potential impact of the new government-sponsored direct-to-consumer platform called "TrumpRx.gov" ("TrumpRx") and other evolving federal initiatives on our business, our value proposition, our business strategy and our ability to execute on our strategic priorities including expanding manufacturer partnerships, growing differentiated subscription offerings and strengthening retail relationships, our plans, market opportunity, ability to preserve margin strength and long-term growth prospects, our capital allocation priorities, Pharma Direct as the future key growth driver of our business, and the future of prescription access. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, risks related to our limited operating history and early stage of growth; our recent growth rates may not be sustainable or indicative of future growth; our ability to achieve broad market education and change consumer purchasing habits; our general ability to continue to attract, acquire and retain consumers in a cost-effective manner; our significant reliance on our prescription transactions offering and ability to expand our offerings; changes in medication pricing and the significant impact of pricing structures negotiated by industry participants; our general inability to control the categories and types of prescriptions for which we can offer savings or discounted prices; our reliance on a limited number of industry participants, including pharmacy benefit managers, pharmacies, and pharma manufacturers; the competitive nature of our industry; risks related to pandemics, epidemics, or outbreak of infectious disease; the accuracy of our estimate of our addressable market and other operational metrics; our ability to respond to changes in the market for prescription pricing and to maintain and expand the use of GoodRx codes; our ability to maintain positive perception of our platform or maintain and enhance our brand; risks related to any failure to maintain effective internal control over financial reporting; risks related to use of social media, emails, text messages, and other messaging channels as part of our marketing strategy; our dependence on our information technology systems and those of our third-party vendors, and risks related to any failure or significant disruptions thereof; risks related to government regulation of the internet, e-commerce, consumer data and privacy, information technology, and cybersecurity; risks related to the use of AI and machine learning in our business; risks related to a decrease in consumer willingness to receive correspondence or any technical, legal, or any other restrictions to send such correspondence; risks related to any failure to comply with applicable data protection, privacy and security, advertising and consumer protection laws, regulations, standards, and other requirements; our ability to utilize our net operating loss carryforwards and certain other tax attributes; the risk that we may be unable to realize expected benefits from our restructuring and cost reduction efforts; our ability to attract, develop, motivate and retain well-qualified employees; risks related to our acquisition strategy; risks related to our debt arrangements; interruptions or delays in service on our apps or websites or any undetected errors or design faults; our reliance on third-party platforms to distribute our platform and offerings, including software as-a-service technologies; systems failures or other disruptions in the operations of these parties on which we depend; risks related to climate change; risks associated with environmental sustainability and social initiatives; risks related to our intellectual property; risks related to operating in the healthcare industry; risks related to our organizational structure; litigation related risks; our ability to accurately forecast revenue and appropriately plan our expenses in the future; risks related to general economic factors, natural disasters, or other unexpected events; risks related to fluctuations in our tax obligations and effective income tax rate which could materially and adversely affect our results of operations; risks related to the healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending, including the new platform TrumpRx, which may adversely affect our business, financial condition and results of operations; as well as the other important factors discussed in the section entitled "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in our other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Key Operating Metrics Monthly Active Consumers (MACs) refers to the number of unique consumers who have used a GoodRx code to purchase a prescription medication in a given calendar month and have saved money compared to the list price of the medication. A unique consumer who uses a GoodRx code more than once in a calendar month to purchase prescription medications is only counted as one Monthly Active Consumer in that month. A unique consumer who uses a GoodRx code in two or three calendar months within a quarter will be counted as a Monthly Active Consumer in each such month. Monthly Active Consumers do not include subscribers to our subscription offerings, consumers of our Pharma Direct offering, or consumers who used our telehealth offering. When presented for a period longer than a month, Monthly Active Consumers are averaged over the number of calendar months in such period. Monthly Active Consumers from acquired companies are included beginning from the acquisition date. As our business continues to evolve, we are reassessing the Monthly Active Consumers metric as a primary indicator of performance to ensure it aligns with how we measure growth and profitability. Subscription plans represent the ending subscription plan balance across our subscription offerings, GoodRx Gold, condition-specific related subscription programs (first launched in June 2025), RxSmartSaver+ powered by GoodRx (launched in July 2025) and GoodRx Companion (monthly and annual plans launched in May and July 2026, respectively). For GoodRx Gold and RxSmartSaver+, each subscription plan may represent more than one subscriber since family subscription plans may include multiple members. For the three and six months ended June 30, 2026 and 2025, revenue comprised of the following: Non-GAAP Financial Measures Adjusted Revenue and metrics presented as a percentage of Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, and Adjusted Earnings Per Share are supplemental measures of our performance that are not required by, or presented in accordance with, U.S. GAAP. We also present each cost and operating expense on our condensed consolidated statements of operations on an adjusted basis to arrive at adjusted operating income. Collectively, we refer to these non-GAAP financial measures as our "Non-GAAP Measures." We define Adjusted Revenue for a particular period as revenue excluding client contract termination costs associated with restructuring related activities. We exclude these costs from revenue because we believe they are not indicative of past or future underlying performance of the business. For the current period and full year of 2025, revenue was equal to Adjusted Revenue. In addition, we expect revenue for the full year of 2026 to equal Adjusted Revenue. We define Adjusted EBITDA for a particular period as net income or loss before interest, taxes, depreciation and amortization, and as further adjusted for, as applicable for the periods presented, acquisition related expenses, stock-based compensation expense, payroll tax expense related to stock-based compensation, loss on extinguishment of debt, financing related expenses, loss on operating lease assets, restructuring related expenses, legal settlement expenses, gain on sale of business, and other income or expense, net. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of Adjusted Revenue. We define Adjusted Net Income for a particular period as net income or loss adjusted for, as applicable for the periods presented, amortization of intangibles related to acquisitions and restructuring activities, acquisition related expenses, stock-based compensation expense, payroll tax expense related to stock-based compensation, loss on extinguishment of debt, financing related expenses, loss on operating lease assets, restructuring related expenses, legal settlement expenses, gain on sale of business, other income or expense, net, and as further adjusted for estimated income tax on such adjusted items. Our adjusted taxes also exclude (i) the valuation allowance recorded against certain of our net deferred tax assets that was recognized in accordance with GAAP and any subsequent releases of the valuation allowance, and (ii) all tax benefits/expenses resulting from excess tax benefits/deficiencies in connection with stock-based compensation. Adjusted Net Income Margin represents Adjusted Net Income as a percentage of Adjusted Revenue. Adjusted Earnings Per Share is Adjusted Net Income attributable to common stockholders divided by weighted average number of shares. The weighted average shares we use in computing Adjusted Earnings Per Share – basic is equal to our GAAP weighted average shares – basic and the weighted average shares we use in computing Adjusted Earnings Per Share – diluted is equal to either GAAP weighted average shares – basic or GAAP weighted average shares – diluted, depending on whether we have adjusted net loss or adjusted net income, respectively. We also assess our performance by evaluating each cost and operating expense on our condensed consolidated statements of operations on a non-GAAP, or adjusted, basis to arrive at adjusted operating income. The adjustments to these cost and operating expense items include, as applicable for the periods presented, acquisition related expenses, amortization of intangibles related to acquisitions and restructuring activities, stock-based compensation expense, payroll tax expense related to stock-based compensation, financing related expenses, restructuring related expenses, legal settlement expenses, loss on operating lease assets, and gain on sale of business. Adjusted operating income is Adjusted Revenue less non-GAAP costs and operating expenses. We believe our Non-GAAP Measures are helpful to investors, analysts and other interested parties because they assist in providing a more consistent and comparable overview of our operations across our historical financial periods. Adjusted Revenue, Adjusted EBITDA, and Adjusted EBITDA Margin are also key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. In addition, Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Earnings Per Share are frequently used by analysts, investors and other interested parties to evaluate and assess performance. The Non-GAAP Measures are presented for supplemental informational purposes only and should not be considered as alternatives or substitutes to financial information presented in accordance with GAAP. These measures have certain limitations in that they do not include the impact of certain costs that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented herein, limiting their usefulness as comparative measures. The following table presents a reconciliation of net income, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, and presents net income margin, the most directly comparable financial measure calculated in accordance with GAAP, with Adjusted EBITDA Margin: The following tables present a reconciliation of net income and calculations of net income margin and earnings per share, the most directly comparable financial measures calculated in accordance with GAAP, to Adjusted Net Income, Adjusted Net Income Margin, and Adjusted Earnings Per Share, respectively: The following table presents (i) each non-GAAP, or adjusted, cost and expense and operating income measure together with its most directly comparable financial measure calculated in accordance with GAAP; and (ii) each adjusted cost and expense and adjusted operating income as a percentage of Adjusted Revenue together with each GAAP cost and expense and operating income as a percentage of revenue, the most directly comparable financial measure calculated in accordance with GAAP: The following table presents a reconciliation of each non-GAAP, or adjusted, cost and expense and operating income measure to its most directly comparable financial measure calculated in accordance with GAAP: View source version on businesswire.com: https://www.businesswire.com/news/home/20260805968388/en/ Contacts Investor Contact GoodRxAubrey [email protected] Press Contact GoodRxLauren [email protected]

GoodRx has had an impressive run over the past six months as its shares have beaten the S&P 500 by 13.1%. The stock now trades at $3.14, marking a 21.5% gain. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is there a buying opportunity in GoodRx, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We’re glad investors have benefited from the price increase, but we’re cautious about GoodRx. Here are three reasons why GDRX doesn’t excite us, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, GoodRx grew its sales at a mediocre 6.4% compounded annual growth rate. This was below our standard for the healthcare sector. Larger companies benefit from economies of scale, where fixed costs like infrastructure, technology, and administration are spread over a higher volume of goods or services, reducing the cost per unit. Scale can also lead to bargaining power with suppliers, greater brand recognition, and more investment firepower. A virtuous cycle can ensue if a scaled company plays its cards right. With just $787.9 million in revenue over the past 12 months, GoodRx is a small company in an industry where scale matters. This makes it difficult to build trust with customers because healthcare is heavily regulated, complex, and resource-intensive. Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). GoodRx’s five-year average ROIC was negative 1%, meaning management lost money while trying to expand the business. Investors are likely hoping for a change soon. We see the value of companies making people healthier, but in the case of GoodRx, we’re out. With its shares topping the market in recent months, the stock trades at 9.7× forward P/E (or $3.14 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We’d suggest looking at the most dominant software business in the world. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. GoodRx Holdings stock has seen a steep share price decline over the past few years, yet on current checks it still screens as relatively expensive on market multiples and only a mixed value story overall. Over the past 5 years, GoodRx Holdings has delivered a share price decline of about 90%, which sets a cautious backdrop for any case that the current valuation now looks attractive. Future growth in prescription transaction volume and adherence to its discount platform can support earnings power, while any pressure on margins or user engagement may limit how much value investors are willing to ascribe to those cash flows. The company scores 3 out of 6 on Simply Wall St’s broader valuation checks. This is a mixed picture rather than a clear bargain or clear overvaluation, and you can see the breakdown at 3. The issue now is whether GoodRx Holdings’ current price fairly reflects its longer term cash generation potential given this track record and the mixed valuation signals. GoodRx Holdings delivered -37.8% returns over the last year. See how this stacks up to the rest of the Healthcare Services industry. The P/E ratio is a useful starting point for GoodRx Holdings because it is already generating positive earnings. On this measure, the stock trades at about 48.6x earnings, which is above the Healthcare Services industry average of roughly 26.4x but below the peer group average near 56.2x. That puts GoodRx in a middle ground, not the most expensive stock in its peer set, yet clearly carrying a premium to the broader industry. A more tailored yardstick here is the fair P/E ratio estimate of about 35.5x, which reflects factors specific to GoodRx Holdings such as its business model, risk profile and sector. Compared with this benchmark, the current multiple sits materially higher, suggesting the market is pricing in a relatively full outcome for the business. For investors, that gap means the stock does not screen as a clear bargain on earnings alone. On the P/E multiple, GoodRx Holdings stock looks overvalued relative to what the fair ratio would suggest. See what the numbers say about this price — find out in our valuation breakdown. For GoodRx Holdings, Simply Wall St Narratives pick up where the valuation puzzle leaves off. They spell out which paths for growth, margins and earnings would need to occur for the stock to be worth significantly more or less than its current price. Each narrative ties a fair value to a specific scenario for GoodRx Holdings' potential catalysts and risks, so you can track over time which version of the story appears to be unfolding on the Community page. Community narratives on GoodRx Holdings sit far apart, with one group focused on membership driven upside and the other on pressure from regulation and industry power shifts. Bull case: 26% undervalued Read the full Bull Case to see why GoodRx Holdings could be undervalued Bear case: 31% overvalued Read the full Bear Case to see why GoodRx Holdings could be overvalued Do you think there's more to the story for GoodRx Holdings? Head over to our Community to see what others are saying! GoodRx Holdings screens as overvalued on earnings multiples, with the current P/E sitting above a tailored fair ratio estimate and the broader healthcare services industry. The mixed valuation checks indicate that this is not a straightforward value opportunity, even after a difficult past five years for the stock. For potential investors, the key question is whether GoodRx can deliver the growth and margin profile implied by this premium, or whether expectations for its discount platform and subscriptions are set too high. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GDRX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]