OPRX

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 4:30 p.m. ET Chief Executive Officer - Stephen L. Silvestro Chief Financial Strategy Officer - Edward Stelmakh Chief Legal and Administrative Officer - Marion Odence-Ford Chief Business Officer - Andrew D'Silva Operator: Good afternoon, everyone, and thank you for joining OptimizeRx's Second Quarter Fiscal 26 Earnings Conference Call. With us today is Chief Executive Officer, Stephen L. Silvestro. He is joined by chief financial strategy officer Edward Stelmakh, chief legal and administrative officer, Marion Odence-Ford and chief business officer, Andrew D'Silva. At the conclusion of today's call, I will provide some important cautions regarding the forward-looking statements made by management during today's call. The company will also discuss certain non-GAAP financial measures that it believes are useful in evaluating operating performance. A reconciliation of these non-GAAP measures can be found in today's earnings release as well as in the Investor Relations on the company's website. I would also like to remind everyone that today's call is being recorded. And will be available for replay on the Investor Relations section of the company's website. With that, I will turn the call over to OptimizeRx's chief executive officer, Stephen L. Silvestro. Stephen L. Silvestro: Thank you, operator, and good afternoon, everyone. Thank you for joining us for our second quarter 26 earnings call. We are pleased to report second quarter revenue of $20.5 million and adjusted EBITDA of $4.9 million both of which exceeded consensus expectations. Our results reflect continued margin expansion, disciplined operational execution, and the resilience of our operating model despite a health care marketing environment that remains dynamic. While revenue declined year over year and contracted revenue remains below prior year levels, these declines remain limited to a small number of large customers, including the 1 customer we discussed last quarter that again did not generate revenue this quarter. As well as customers that have made heavier use of lower margin managed service offerings in prior year periods, services from which we have been transitioning away since the acquisition of Medicx in 2023. Outside the business with these limited customers and across the remainder of the business, we are in encouraged by improving engagement and growth. At the same time, our continued investment in platform capabilities including recent product launches and expanded programmatic initiatives, is strengthening customer engagement and our competitive position as we move into the 2027 planning cycle. Although the timing and mix of second half revenue remains subject to some variability, our first half performance, encouraging commercial momentum and current outlook support our decision to reiterate full year 2026 revenue guidance of $95 million to $100 million and adjusted EBITDA guidance of $21 million to $25 million Edward will provide additional details during this during his prepared remarks. Over the past several quarters, we have remained focused on executing against the initiatives within our control, improving profitability, strengthening our balance sheet, expanding our technology platform, and creating new avenues for long term growth. I believe our second quarter results demonstrate the progress we have made across each of these priorities, while portions of the pharmaceutical marketing landscape continue to experience some budget timing variability, and cautious spending behavior, we are encouraged by the continued stabilization we are seeing across many of our largest customers. More importantly, the long term secular trends driving our business remain firmly intact. Life science organizations continue shifting toward more measurable data driven engagement that delivers value at the point of clinical decision making. Healthcare marketers increasingly expect AI enabled planning, authenticated health care audiences, measurable outcomes, and seamless programmatic execution. These are precisely the areas in which OptimizeRx has invested for years, and where we believe we maintain a meaningful competitive advantage. Our existing customers continue expanding their use of our platform across additional brands, therapeutic areas, and commercial use cases. During the quarter, we saw continued adoption of our AI enabled audience activation platform or DAP, which increased over 30% year-over-year. While also expanding our point-of-prescribe capabilities across both pharmaceutical and med tech customers. These solutions are powered by OptimizeRx's proprietary foundational data asset, which continues to grow as more engagement transpires across our ecosystem. We are also continuing to make progress expanding our footprint among mid sized and emerging life science companies which we believe represent 1 of the largest untapped opportunities within our commercial business. As these organizations increasingly seek enterprise grade technology without enterprise scale or infrastructure investments, we believe our platform is uniquely positioned to meet the demand by bridging the technology gap for them and leveling the playing field for them to be able to compete with top tier companies. Just as important, we continue making progress transitioning more of our business toward recurring subscription revenue, particularly within our AI enabled software offerings, which grew 25% year-over-year. Over time, we believe this transition will further improve revenue visibility while strengthening the durability and predictability of our financial model. Taken together, these trends reinforce our confidence that the underlying fundamentals of our business remain very strong. Meanwhile, during the second quarter, we announced 3 significant product innovations that further strengthen our competitive position while expanding our long term opportunities at OptimizeRx. First, we announced that DeepIntent became the first health care demand side platform to integrate directly with our authenticated EHR network. This represents an important milestone in our strategy of making point-of-care media easier to access through the programmatic platforms health care marketers already rely on. As media buying continues shifting toward programmatic workflows, we are positioning OptimizeRx as the trusted infrastructure connecting premium point-of-care inventory with the industry's leading buying platforms. The implementation is now live. Second, we introduced our patent pending natural language audience builder or NLAB. This AI powered capability enables pharmaceutical marketers and agencies to build highly customized health care provider audiences using simple natural language prompts directly within DSPs and media planning platforms. By combining our proprietary health care intelligence, with an intuitive AI driven workflows, we are making it significantly easier for marketers to build targeted audiences while further embedding OptimizeRx technology into the planning tools of our customers that they are already using today. Finally, we launched CopayQ, our next generation copay activation solution powered by real time prescribing intent. Medication affordability remains 1 of the largest barriers to patient adherence, and CopayQ delivers savings information directly within the prescribing workflow at the exact moment physicians are making treatment decisions. By combining real time intense signals with our industry leading point-of-care and point-of-prescribe capabilities, We are helping life science organizations improve patient access while delivering stronger commercial outcomes for their brands. Individually, each of these launches represents an important advancement for our platform. Collectively, they demonstrate something even more significant. That we have entered a new phase of innovation as a company. We are evolving beyond being solely a point-of-care marketing company into being the operating system for pharmaceutical marketers. Our technology infrastructure is connecting pharmaceutical marketers media agencies, demand side platforms, health care providers, and patients at scale through authenticated clinical workflows. As AI becomes increasingly integrated into commercial planning and as health care advertising continues migrating towards privacy safe programmatic execution, we believe our combination of proprietary health care data, authenticated clinical inventory, and workflow integration creates a highly differentiated platform with significant long term growth potential. This strategic evolution not only expands our addressable market, but also creates additional recurring revenue opportunities that we believe will be increasingly meaningful over time. Before turning the call over to Edward, I would like to share an important leadership regarding our finance organization. Over nearly 5 years as chief financial officer, including previously as our Chief Operations Officer, and most recently as our chief strategy officer, Edward Stelmakh and the board of directors have mutually agreed on a planned leadership transition effective 12/31/2026. That reflects both the depth of talent within our organization, and our commitment to prudent financial stewardship. Over the past 5 years, Edward has played an instrumental role in transforming financial foundation and positioning OptimizeRx for long term success. Under his leadership, we have significantly expanded our gross margins, and operating margins, strengthened our operating discipline, successfully refinanced our debt to materially improve our cost of capital, completed the acquisition and integration of Medicx, executed the divestiture of noncore assets to sharpen our strategic focus, and built a deep, highly capable finance and strategy organization that positions the company well for the future. Just as importantly, Edward has helped establish the financial discipline and operational rigor that support our long term strategy and our commitment to sustainable shareholder value creation. As part of our long term succession planning process, we are pleased to announce that Andy D'Silva will succeed Edward as our chief financial officer effective 01/01/2027. Andy has most recently served as our chief business officer and has worked closely with Edward and the board of directors, and our executive leadership team on our financial strategy, capital allocation, investor relations, corporate development, and long range planning. he is been deeply involved in many of the strategic initiatives that have helped transform the business over the past several years, making him well prepared to lead our finance organization as CFO. We are also pleased to announce that Heather Favazza will be promoted to Chief Accounting Officer effective 01/01/2027, Heather has been an outstanding leader with our financial organization and played an instrumental role as our corporate controller for the last 8 years. Strengthening our accounting operations, financial reporting, internal controls, and overall finance infrastructure. Her promotion reflects both the strength of our accounting organization and the deep bench of leadership that we have built over the past several years. To ensure a seamless transition, Edward will remain our chief financial and strategy officer through the end of 26. And has also agreed to remain in the role of strategic adviser in 2027 to ensure ample time for thoughtful and seamless transfer of responsibilities. While allowing Andy and Heather to continue working closely with him as they assume their expanded leadership roles. Transitions like these are strongest when they are the result of thoughtful planning rather than necessity. And that is exactly what this represents. Have tremendous confidence in Andy and Heather, and we are equally grateful that Edward will continue supporting the company throughout the transition. On behalf of our board of directors and everyone at OptimizeRx, I want to thank Edward for his outstanding leadership and the many contributions he is made during his tenure. With that, I will turn the call over to Edward. Edward Stelmakh: Thanks, Steve, and thank you for the kind words. While this is certainly a bittersweet moment, is also 1 I approach with clarity, confidence, and optimism for the company's future. I look forward to continuing to drive our strategic priorities through the back half of 2026 and contributing to the company's mission in an advisory role. In 2027. I want to extend my appreciation to the board, our leadership team, all our employees. and shareholders of this company. For giving me this amazing opportunity for the last 5 years. it is been a true privilege to serve as their chief financial and strategy officer and I am excited to see what the future brings. Now let's turn to our financial results for Q2. 26. As always, we issued our earnings release this afternoon. Detailing our financial results for the second quarter ended 06/30/2026. A copy of the release is available on the Investor Relations section of our website and additional information will be included in our upcoming Form 10 q. Second quarter revenue was $20.5 million, a decrease of 30% from the $29.2 million we recognized during the same period in 2025. The revenue reduction was largely contained a limited number of large customers that utilized the lower margin managed services in 2025. An offering from which we have been transitioning away since acquiring Medicx in 2023. and 1 of our large customers in 2025 that has not generated revenue this quarter. As well as a decrease in demand due to macroeconomic factors including MFN pricing dynamics. Our expenses for the quarter ended 06/30/2026 decreased $5.4 million year-over-year to $20.6 million primarily driven by lower cost of revenue. Despite being impacted by $1.7 million in severance expense associated with our previously announced reduction in force. The decrease in cost of revenue was primarily attributed to a favorable product mix, resulting from not having any DTC managed service revenue this quarter and a favorable channel partner mix. We believe various margin optimization strategies we implemented over the last 18 months continue to yield meaningful benefits. As a result, we now expect gross margins to normalize into the high 60% to low 70% range for full year 2026. Meanwhile, we had a net loss of $700 thousand or $0.04 per basic and diluted share for the 3 months ended 06/30/2026. As compared to a net income of $1.5 million or $0.08 per basic and diluted share for the same 3 month period in 2025. On a non GAAP basis, our net income for the second quarter of 2026 was $3.1 million or $0.16 per diluted share. As compared to a non GAAP net income of $3.7 million or $0.19 per diluted share in the same year ago period. Our adjusted EBITDA was $4.9 million, for the second quarter of 2026, compared to $5.8 million during the second quarter of 2025. Operating cash flow was $8.1 million for the first half of 2026, and we ended the quarter with a $24.1 million cash balance. As compared to $23.4 million on 12/31/2025. As we highlighted in May, our term loan with Blue Torch Capital was refinanced with Fifth Third Bank to which we fully drew down the $25 million term loan and have access to a $10 million revolver. Our current interest rate on the term loan with Fifth Third Bank is SOFR plus 2.25%. With that said, we paid $5.3 million in principal during the quarter, which was $5 million ahead of our payment schedule leaving our outstanding debt at the end of June at $19.7 million. Furthermore, subsequent to the quarter end, we paid off an additional $3 million in debt. At this time, we intend to deploy at least a portion of our free cash flow to pay down the principal on our loan faster as we look to continuously lower our cost of capital. With that said, we continue to believe that our healthy balance sheet will help us execute against our operational goals. Now let's turn to our KPIs. For the second quarter of 2026. Average revenue per top 20 pharmaceutical manufacturer now stands at $2.7 million. Net revenue retention rate dipped below prior period levels to 90%. The dip was driven primarily by a small number of large accounts optimizing spend, rather than a broad based churn. Additionally, revenue per FTE came in at $750 thousand. While our KPIs showed decline compared to previous quarters, we have made meaningful progress on margin expansion and operating expense management. Consistent with our strategy of driving profitable growth in our space. Based on our first half performance, and the visibility we have into the remainder of the year, we are reaffirming our previously issued full year 2026 guidance. We continue to expect revenue in the range of $95 million to $100 million and adjusted EBITDA between $21 million and $25 million While portions of the health care marketing environment remain dynamic, our execution year to date continued product innovation, expanding book of business with select clients, and disciplined expense management, give us confidence in our outlook for the balance of the year. As we noted previously, continue to expect revenue to be weighted towards the second half of the year. Consistent with the seasonal purchasing patterns of many of our customers with Q4, and it is significantly higher than Q3. And likely representing 35% to 40% of our full year revenues. With that, I will turn the call back over to Steve. Steve? Stephen L. Silvestro: Thanks, Edward. Operator, let's now move to Q&A. Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star and then 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary for you to pick up your handset before pressing the star key. 1 moment, while we poll for questions. First question comes from Ryan Daniels from William Blair. Please proceed with your questions, Ryan. Dustin: Hey, everyone. This is Dustin on the call for Ryan. Thanks for taking our question. Maybe just first wondering if there is an update on the larger client you have spoken about previously. Know you probably cannot get into too many specifics, but wondering at a high level, what is the update there, and what are the expectations that baked into the back half in relation to that client? Thank you. Stephen L. Silvestro: Hey, Dustin. Thanks for the question. We right now do not have any expectation baked into the back half for that large client coming back, but we are starting to see some progress around it that will definitely positively impact the back half. How much? We are not really prepared to say at this point, but discussions are open, and we are, we are actively engaging there. We also just announced you may have seen the announcement of our chief marketing officer that chief marketing officer is coming from that client as well. So I think he is prepared to kind of help us bridge the gap there and get some things right where we have had the missteps that we talked about last quarter. On the commercial front. Dustin: Okay. Great. Understood. Thank you for that. So you have talked about the strategic importance of DSP. Just wondering if you can talk more about the progress with DeepIntent and if you are making any inroads with other DSPs that are out there. I think you have stated that also, that DSP could double your business over the next 2 years. Just what does the growth curve look like? For the DSP opportunity there over the next 24 months? Thank you. Stephen L. Silvestro: You got it. So we have we have got great news. We have gone live. With DeepIntent as of this last week, and so that is pretty exciting for us as a business. We are now starting to see bid flow happen over the platform. I do not really think we are ready to say what the what the uptick looks like. In terms of the next couple of weeks and months, but we do think it will be very, very meaningful. And I would also say right now in terms of just the broader programmatic environment 60% of the buys out in this specific space are occurring now through these programmatic channels. And so our comment around the ability to scale the business through that ecosystem is directly tied to the number of buys that we know are happening through these DSPs. And it is not a place. Those are not funds that we have had access to in the past. We are expanding our near term accessible market that is a little bit more color around the commentary. So more to come around that. We do have other DSPs that we are speaking with. But nothing that we are ready to announce on this call. But stay tuned. Dustin: Okay. Got it. Thanks for that. And then just lastly for us, there is been some discussion with the FDA and HHS about eliminating the adequate provision framework for pharma advertising. And, you know, that requires more disclosures with the DTC ads. How are you thinking about that potential impact on the farmer marketing budgets and general allocation? Could that lead to some shift in TV and potentially create some incremental demand for your digital and point of care engagements? Thanks. Stephen L. Silvestro: Yeah. No problem, Dustin. Yeah. We see those moves as favorable for our business per your last comment there. Anything that would sort of limit the ability to execute across other DTC channels where we may not be engaged at scale, we will automatically push funds into some of the ACP focused marketing channels where we are connected and that are sort of our bread and butter. So we have been waiting on that with bated breath. We are not forecasting it because it is impossible for us to predict what the FDA and HHS are or are not going to do. But we are well positioned that if they do make that decision, we will benefit. It will not just be us; Everybody in our space that is focused on HCP will disproportionately benefit us. So, great question. Dustin: All right. Thank you very much. Stephen L. Silvestro: You got it. Operator: Thank you. Thank you. The next question comes from Richard Baldry from ROTH Capital Partners. Please proceed with your questions, Richard. Richard Baldry: Thanks. If we look at your adjusted EBITDA guidance, the implication is the second half would be somewhere between $13 million to $17 million Can you talk about under that backdrop, what is your capital allocation strategy might start to evolve to? Do you still see pretty much an exclusive focus on reducing debt? Or do you think more of a balance between that and, share buybacks at current depressed levels? Stephen L. Silvestro: Yeah. Edward, I will let you I will let you take that 1. Edward Stelmakh: Yep. No problem. Richard. How are you? Yeah. I think our strategy, as we said in the prepared remarks, will be first pay down the debt. We are down to $16.7 million of outstanding principal. And then secondly, if the price of the stock continues to drop, we have a 10b5-1 in place to trigger buying. With a $10 million approved stock buyback. Thanks. Richard Baldry: Then in terms of the second half rebound to revenues, that is implied in guidance, how much of that is visible contracted? Or how much of that is really just assuming seasonal patterns that you have seen in the past sort of repeat themselves? Stephen L. Silvestro: Yeah. I mean, I think, Richard, first of all, it is good to hear your voice. We, right now, are seeing as we shared in the previous calls, still trending more towards 24 contracted revenue seasonality versus 25. Just in our progress. And that is why we are reiterating the guide that we have got out there right now. Versus increasing the guide. We do think the seasonality that we have experienced in previous years is pretty much what we should anticipate for the back half of this year. We are starting to already see that But sort of the visibility that we have given is what we have is what we have put out there. What we have got visibility to. And anything that is incremental above and beyond that, you know, obviously, on the next earnings call, if we have more visibility with contracted revenue, we will happy to provide an update around that. But no changes right now to that. We have got a sort of iron out the 1 major client disruption that we have got and sort of take a look at what Q3, Q4 is going to put out before we do any updates. But good I would I would say good solid progress as we approach the back half now. Richard Baldry: Maybe looking at, to call it top of the funnel, you talk a little bit about non top 20 opportunities, whether that is new logos or existing, you know, how are they acting sort of by contrast to the top 20 who have seen, you know, obvious issues with MFN, etcetera? Stephen L. Silvestro: Yeah. They are growing they are growing in an accelerated rate. Is what I think we would tell you. The outside of the top 20 are some of our fastest 10 list just this last couple of months. And so we are really excited to see that. We will have more to announce around that in the future, but that their mid tier long tail strategy is really proving out, and we are really excited with the progress we are seeing there. So got a gap to fill on that 1 of those top accounts that, where the disruption was, and that is gonna take a little bit of time. But with the comeback of that plus the mid tier, we think we are entering the back half of this year and then setting ourselves up for 2027 really, really nicely. Richard Baldry: And last for me then, back to the top 20, excluding the, you know, the 1 challenging customer. Can you talk about just activity levels within there, whether it is discussions, pipeline, new opportunities. You know, how is that activity level, I mean, non-quantifiably, you know, versus what had been sort of at the depth of MFN? Stephen L. Silvestro: Yeah. Activity level has definitely increased. I would say the strategic discussions are starting to flow a lot more than they were previously. Beginning of the year, particularly, I would say, Q4 coming into Q1 and to a degree, a little bit of Q2. And we talked about this already. There was a lot of consternation around MFN. I think just we talked about it. Everybody in our space talked about it. Just because they people were not sure what to expect I think for the most part, manufacturers are in a place where they sort of know what the new normal looks like, and they are prepared for that. So we are starting to see engagement happen across the board. Mid tier, long tail, engaging faster because they have not really been the targets of the administration, and they have been able to kind of skate by and just business as usual and accelerate and viewed it almost as a time to kind of skip ahead and compete more effectively with the top 20. So that is been good for them. But we are starting to see specifically, people within our top 10, 20, really reengage in meaningful ways. I am not ready to say yet that Q4 is going to be, you know, lightning in a bottle, you know, buy-ups like we talk about. From time to time that happens. But we are getting some really positive buying signals going into the back half of the year that look very good. Richard Baldry: Thanks for your answers. Stephen L. Silvestro: You got it. Great to talk to you, Richard. Look forward to catching up soon. Thank you. Operator: Next question comes from Eric Martinuzzi from Lake Street. Please proceed with your questions, Eric. Eric Martinuzzi: Yes. Your comments on most favored nation, it sounds like we have worked through the disruption. The other issues that you talked about, at least last quarter, were macro issues weighing on budgets, and that was everything from inflation to oil, geopolitical uncertainty. Is that still an overhang on spending by the top 20? Stephen L. Silvestro: Hey, Eric. Thank you for the question. it is still a little bit of an overhang. I think there is still some consternation around macro. And pharma has been 1 of the largest targets of the administration, not just for MFN, but a whole myriad of reasons. So they have been a little bit conservative with budgets. But, again, per my response to Richard, we are starting to see a lot of that normalize now in the back half. And they are starting to spend more just sort of across the board to drive patient capture for the back half of the year. And I think we will benefit from that. I do think we are we did not talk about LOE at all, but we are looking at a couple different strategic things going on in the marketplace right now. Potential acquisitions, some mergers happening, few LOE events. So they will navigate those things. But by and large, I think the macro stuff that we discussed last quarter is starting to normalize. In their approach to spend. Eric Martinuzzi: Starting Yeah. Okay. And then, Edward, certainly enjoyed working with you. I know we have got you for another 5 months. And, Andy, congratulations on the pending promotion here. Wanted to ask about the operating expense. I know you guys went through a bit of a-- some cost moves in the second quarter. Is that all behind us? In other words, is this kind of a normalized operating expense that we should use for the third quarter? Edward Stelmakh: Yeah. I think the current run rate from a cash OpEx should stay kind of around this rate. The only variable there may be things like, you know, bonus accruals depending on what we commence. Versus budget. But generally speaking, I think we will be in that range. Eric Martinuzzi: Got it. Thank you. Operator: Thanks, Eric. The next question comes from Constantine Davides from Citizens. Please proceed with your questions, Constantine. Constantine Davides: Thanks. Just a question on the margin profile of the business. Looks like you have lifted that outlook. So I guess a couple of questions on that. First, is that a sustainable level of profitability? Or is it more of a 2026 profile that you are talking about? Number 1. Number 2, what drove the upside in the second quarter? I think you said channel mix, but I just wanted to drill into that a little bit more. And then third point on this, just your latest thinking around how profitability changes as you layer in more as you tap into the DSP market. Over time and, I guess, more specifically, the economics of those arrangements. Compared to traditional engagements. Stephen L. Silvestro: Sure. Happy to chime in. it is good to hear from you, Constantine. Appreciate the question. You know, I think we are setting the new level of profitability for the business and making sure that we are communicating that clearly. it is not episodic. That really will be the new normal You will see we will probably outperform that a little bit from time to time, but that should be sort of the baseline expectation of the business going forward. And going into the you know, macro DSP ecosystem, we do not expect that the level of profitability will drop It will sustain that same level that we are kind of guiding to and talking about now. Most of that is being driven by favorable channel mix. As I have shared on previous calls, and Edward and Andy have done the same, we have been able to bring on additional channel partners that have helped us manage our gross margin and thus been really, I think, transformational for the business, even with the disruption in top line revenue, we have been able to continue to generate good, solid EBITDA and cash flow and pay down the debt, all the things that we have been talking about in calls. We are feeling pretty bullish around profitability in general and our ability to continue to generate cash and pay down the debt and do the things that we would like to do. So pending we get the top line back in line, Constantine, like we talked about, and we all fervently believe we will. The, you know, the profitability of the business will continue to follow suit. So but, yeah, we think we are excited about that. Eddie, anything else you would add to that? Edward Stelmakh: Oh, sorry. Yeah. I will add 1 quick thing to that. Yeah. So, Constantine, when we think about our business, we are really managing the business to, you know, a high 60% gross margin. You know, we are gonna have, you know, favorable quarters like you saw, last 2 quarters. But that is how we think about it internally. And that is how we are gonna manage the business. So, you know, when you are looking at your models, just keep that kind of thing in mind. Constantine Davides: Got it. And I guess and not to sort of belabor the point, but in the past, you have talked about becoming a sustainable rule of 40 company. And Steve and, I guess, Andy had all you guys, I am just wondering what your latest view is in terms of is that still an objective? Do you think you, you know, as you look out, maybe you will prioritize growth a little bit more than you had in your prior thinking. Just any kind of comments there would be helpful. Thanks. Stephen L. Silvestro: Yeah. No problem. I mean, look. Go ahead, Edward. Edward Stelmakh: Yeah. Okay. Thanks, Steve. Yeah. I would say absolutely. Mainly because, I mean, this year is definitely a bit of an anomaly. For us. So profitability threshold has been set. You can see that this business can be highly profitable in a soft year. Once growth returns, which we are confident it will certainly do in 2027. it is not gonna take much to get back to Rule of 40. So my view is absolutely we are gonna be right back at it. In 2027. Operator: Constantine, does that conclude your question? Constantine Davides: I am all set. Thank you. Stephen L. Silvestro: Okay. You got it. Thanks, Constantine. Operator: Thank you. That does conclude our Q&A session. Mr. Silvestro, I would like to hand it to you, sir. Stephen L. Silvestro: Thank you, operator. As we close today's call, I would like to leave you with 3 thoughts. First, we continue to execute our strategy while delivering disciplined financial performance. Our second quarter results demonstrate the strength of our operating model and our team's ability to balance profitability even in years where headwinds are present with continued investment in innovation. Second, we believe OptimizeRx is uniquely positioned at the intersection of several powerful long term trends that are reshaping the life sciences commercialization environment. Healthcare marketers are increasingly demanding AI enabled planning, authenticated health care audiences, measurable outcomes, and programmatic activation across clinical workflows. We have spent years building the infrastructure to support this moment of change in the industry. We are best positioned to be the operating system for pharma marketers because of the data driven technology that we have built. The announcements we made this quarter from our DeepIntent partnership to the launch of NLAB, our natural language audience builder and CopayQ are all examples of how we are prioritizing a culture of innovation and expanding our platform to create additional opportunities for sustainable recurring growth. Importantly, these innovations do not represent isolated product launches. Together, they further strengthen the network effects within our platform while increasing the value we deliver to pharmaceutical manufacturers agency partners, health care providers, and ultimately to patients. Third, we remain committed to disciplined execution and long term shareholder value creation. Our priorities remain clear. Continue expanding our AI enabled platform capabilities increase utilization of our proprietary HCP and DTC networks, accelerate adoption of our recurring software solutions, expand programmatic access through additional strategic partnerships, deliver profitable sustainable growth while maintaining disciplined capital allocation, We believe the investments we have made over the past several years have positioned OptimizeRx to capitalize on the continued digital transformation occurring across health care. While the market environment may continue to experience periods of variability, our long term opportunity has never been more compelling. it is an exciting time to be a part of the OPRX story. Before we conclude, I would like to again recognize Edward for his tremendous leadership and contributions to OptimizeRx in the past 5 years. he is been an outstanding partner trusted adviser, and leader helping transform our financial foundation while positioning the company for its next phase of growth. On behalf of our Board, our employees, our shareholders, Edward, thank you very much for everything that you have done for OptimizeRx. Finally, I would like to thank our employees for their continued dedication and execution. Our customers for their partnership and trust and our shareholders for their ongoing support. We appreciate you joining us today. And look forward to updating you on the continued progress of the quarter. Operator,, back to you. Operator: Thank you, Mr. Silvestro. Before we conclude today's call, I would like to provide the company's safe harbor statement that includes important cautions regarding forward-looking statements made during today's call. Statements made by management during today's call may contain forward-looking statements within the definition of Section 27A of the Securities Act of 1.93 thousand as amended, and Section 21B of the Securities Act of 1.93 thousand as amended. These forward-looking statements should not be used to make investment decisions. The words anticipate, estimate, expect, possible, and seeking, and similar expressions identify forward-looking statements. They speak only as of the date that such statements are made. Forward looking statements in this call include statements regarding orderly transition of finance leader responsibilities, the company's financial and growth strategy, including continued margin expansion, disciplined operational execution, and resilience of its operating model, company's revenue decline being limited to a small number of large customers, company's product innovation strengthening customer engagement, competitive position and expansion of long term opportunities, company improving its profitability, strengthening its balance sheet, expanding its technology platforms, and creating new avenues for long term growth. Company maintaining meaningful competitive advantages, company's expansion into mid-sized and emerging life sciences companies representing 1 of the largest untapped opportunities. Company platform being uniquely positioned to meet the demands of customers, company's ability to create highly differentiated platform with significant long term growth potential, company's strategy of driving profitable growth, company being well positioned to capitalize on significant opportunities and company's ability to create long term value for its shareholders. Forward looking statements also include the management's expectations for the rest of the year. The company undertakes no obligation to publicly update or revise any forward-looking statements whether because of new information, future events, or otherwise. Forward looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. The risks and uncertainties to which forward-looking statements are subject to include, but are not limited to, the effects of government regulation, competition, dependence, on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contracts with electronic prescription platforms, and electronic health record networks and other material risks. Risks and uncertainties to which forward-looking statements are subject could affect business and financial results are included in the company's annual report on Form 10-K for the year ended 12/31/2025, and in other filings that the company has made and may make with SEC in the future. These filings, when made are available on the company's website and on the SEC's website at www.sec.gov. Before we end today's conference, I would like to remind everyone that an audio recording of this conference call will be available for replay starting later this evening, running through for a year on the Investor Relations on the company's website. Thank you very much for joining us today. This concludes today's conference call. And you may now disconnect your lines. Before you buy stock in OptimizeRx, 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 OptimizeRx 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 $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 213% 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 19, 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. OptimizeRx (OPRX) 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. Management attributed the year-over-year revenue decline to a small number of large customers, specifically one major client that generated zero revenue and others transitioning away from lower-margin managed services. The company is pivoting from being a point-of-care marketing firm to an 'operating system' for pharmaceutical marketers, integrating proprietary data with authenticated clinical workflows. Gross margin expansion to the high 60% to low 70% range was driven by a favorable product mix, including the elimination of DTC managed service revenue and improved channel partner arrangements. Adoption of the AI-enabled audience activation platform (DAP) grew over 30% year-over-year, signaling a shift toward data-driven engagement at the point of clinical decision-making. Management identified mid-sized and emerging life science companies as a primary untapped opportunity, as these firms seek enterprise-grade technology without large-scale infrastructure investments. The transition toward recurring subscription revenue for AI-enabled software offerings, which grew 25% year-over-year, is intended to improve long-term revenue visibility and predictability. Full-year 2026 guidance was reiterated, assuming a heavy second-half weighting where Q4 is expected to represent 35% to 40% of total annual revenue. The company expects to return to 'Rule of 40' status in 2027, predicated on the stabilization of top-tier accounts and continued growth in the mid-tier segment. Strategic focus for the remainder of 2026 includes deploying free cash flow to accelerate debt repayment and potentially executing stock buybacks if share prices remain depressed. The integration with DeepIntent is expected to scale the business by accessing the approximately 60% of healthcare media buys that now occur through programmatic channels. Management is monitoring potential regulatory changes regarding DTC advertising disclosures, viewing a shift toward HCP-focused digital channels as a favorable tailwind for their core business. A planned leadership transition was announced, with Andy D'Silva set to succeed Edward Stelmakh as CFO on January 1, 2027, following Stelmakh's five-year tenure. Second quarter results included $1.7 million in severance expenses related to a previously announced reduction in force aimed at optimizing the cost structure. Macroeconomic factors, including Most Favored Nation (MFN) pricing dynamics, continue to cause budget timing variability and cautious spending among top 20 pharmaceutical customers. The company successfully refinanced its debt with Fifth Third Bank, reducing the outstanding principal to $19.7 million by the end of June through accelerated payments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management has not baked any revenue from this specific large client into the second-half guidance, though active discussions are ongoing. The appointment of a new Chief Marketing Officer, who joined from that specific client, is expected to help bridge the gap and rectify previous commercial missteps. The DeepIntent integration went live recently and is already seeing bid flow; management believes this will be 'very, very meaningful' for scaling. The strategy targets the 60% of industry buys currently happening programmatically, representing funds the company previously could not access. Management confirmed these levels represent a 'new normal' rather than an episodic peak, driven by structural changes in channel partner mix. The company intends to manage the business to a high 60% baseline even as they scale the programmatic DSP business. While MFN caused significant 'consternation' early in the year, management believes manufacturers have reached a 'new normal' and are re-engaging. Mid-tier and long-tail clients are currently growing at an accelerated rate as they were not the primary targets of these regulatory pricing pressures.

Interested in OptimizeRx Corp.? Here are five stocks we like better. OptimizeRx’s Q2 revenue fell 30% year over year to $20.5 million, pressured by reduced demand, lower-margin managed services and the loss of revenue from a major customer. Adjusted EBITDA was $4.9 million, but the company reaffirmed full-year revenue guidance of $95 million–$100 million and adjusted EBITDA guidance of $21 million–$25 million. Management said improved margins and expense discipline represent a new profitability baseline, with gross margin expected in the high-60% to low-70% range. The company generated $8.1 million in first-half operating cash flow, repaid $8 million of debt around quarter-end and may use additional free cash flow for accelerated repayment. OptimizeRx expects revenue to be heavily weighted toward the second half, while customer engagement shows signs of normalization and mid-sized accounts are growing. New initiatives—including DeepIntent integration, the Natural Language Audience Builder and CopayCue—aim to expand programmatic advertising and recurring software revenue. OptimizeRx (NASDAQ:OPRX) reported second-quarter fiscal 2026 revenue of $20.5 million, down 30% from $29.2 million a year earlier, while adjusted EBITDA totaled $4.9 million, management said on its earnings call. The company reaffirmed its full-year revenue outlook of $95 million to $100 million and adjusted EBITDA guidance of $21 million to $25 million. Chief Executive Officer Stephen Silvestro said the quarter’s revenue and adjusted EBITDA exceeded consensus expectations, citing margin expansion and expense discipline. However, revenue remained pressured by a limited number of large customers, including one customer discussed in the prior quarter that generated no revenue during the period. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chief Financial and Strategic Officer Edward Stelmakh said the revenue decline also reflected reduced demand amid macroeconomic factors, including most-favored-nation pricing dynamics, as well as lower revenue from managed-service offerings that carried lower margins. OptimizeRx has been shifting away from those offerings since its 2023 acquisition of Medicx Health. OptimizeRx recorded a net loss of $700,000, or $0.04 per basic and diluted share, compared with net income of $1.5 million, or $0.08 per share, in the second quarter of 2025. On a non-GAAP basis, net income was $3.1 million, or $0.16 per diluted share, versus $3.7 million, or $0.19 per diluted share, a year earlier. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Second-quarter adjusted EBITDA declined from $5.8 million in the prior-year period. Expenses fell $5.4 million year over year to $20.6 million, despite $1.7 million in severance costs related to the company’s previously announced reduction in force. Stelmakh attributed lower costs of revenue to product mix, including the absence of direct-to-consumer managed-service revenue, and a favorable channel-partner mix. The company now expects full-year gross margin to normalize in the high-60% to low-70% range. During the question-and-answer session, Silvestro said management views the updated profitability profile as a new baseline rather than a temporary condition, while Chief Business Officer Andy D’Silva said the company is managing the business toward approximately 68% gross margin. → First Solar’s Profit Engine Faces a New Policy Test in Washington Operating cash flow totaled $8.1 million in the first half, and cash at June 30 was $24.1 million, compared with $23.4 million at the end of 2025. The company refinanced its term loan with Fifth Third Bank, fully drawing a $25 million loan and gaining access to a $10 million revolving facility. The term loan carries an interest rate of SOFR plus 2.25%. OptimizeRx paid $5.3 million of principal during the second quarter, including $5 million beyond its scheduled payment, leaving $19.7 million in debt at quarter-end. Subsequent to quarter-end, it paid another $3 million of debt. Stelmakh said the company intends to use at least part of free cash flow for accelerated debt repayment. He also said OptimizeRx has a Rule 10b5-1 plan in place that could trigger purchases under its board-approved $10 million stock repurchase authorization if the share price continues to decline. Average revenue per top 20 pharmaceutical manufacturer stood at $2.7 million, while net revenue retention was 90%. Stelmakh said the retention decline was primarily tied to a small number of major accounts optimizing spending rather than broad customer churn. Revenue per full-time employee was $750,000. Silvestro said the company has not included a return of revenue from its disrupted large customer in its second-half assumptions. Still, he said discussions with that client have reopened and could positively affect the back half of the year, though management did not quantify the potential contribution. The company expects revenue to remain weighted to the second half, with fourth-quarter revenue likely representing 35% to 40% of full-year revenue and coming in significantly higher than third-quarter revenue. Silvestro said contracted revenue trends remain closer to 2024 seasonality than 2025 patterns. Management also cited growing activity among mid-sized and emerging life-science customers. Silvestro said a mid-tier account entered OptimizeRx’s top 10 customer list in recent months, and that customers outside the top 20 are among the company’s fastest-growing accounts. While pharmaceutical manufacturers have remained cautious due to policy and macroeconomic uncertainty, Silvestro said engagement among larger customers has begun to normalize. He said the company is seeing more strategic discussions and positive buying signals heading into the second half, though he did not predict a major late-year spending surge. OptimizeRx announced three product and partnership developments during the quarter: DeepIntent became the first healthcare demand-side platform to integrate directly with OptimizeRx’s authenticated electronic health record network. The integration is live, and Silvestro said the company has begun seeing bid flow through the platform. The company introduced its patent-pending Natural Language Audience Builder, or NLAB, which enables pharmaceutical marketers and agencies to create healthcare-provider audiences using natural-language prompts within demand-side platforms and media-planning tools. OptimizeRx launched CopayCue, a copay activation solution that delivers savings information in prescribing workflows using real-time prescribing-intent signals. Silvestro said adoption of the company’s AI-enabled Dynamic Audience Activation Platform increased more than 30% year over year, while revenue from AI-enabled software offerings increased 25%. He said the company is working to move more business toward recurring subscription revenue. The DeepIntent connection gives OptimizeRx access to programmatic media buying workflows, an area management views as an expansion opportunity. Silvestro said about 60% of buys in the relevant market are occurring through programmatic channels and that the company is discussing potential arrangements with other demand-side platforms. OptimizeRx also announced a planned finance leadership transition. Stelmakh will remain Chief Financial and Strategic Officer through Dec. 31, 2026, before serving as a strategic adviser during 2027. D’Silva, currently Chief Business Officer, will become chief financial officer on Jan. 1, 2027. Heather Favazza, the company’s corporate controller for the past eight years, will become chief accounting officer on the same date. Silvestro said the succession plan reflects the company’s long-term planning process and is intended to provide a seamless transition. Stelmakh said he expects to continue advancing the company’s strategic priorities through the remainder of 2026. OptimizeRx, Inc is a healthcare technology company that operates a digital health network designed to facilitate communication between pharmaceutical manufacturers, payers and healthcare providers. Through its cloud-based platform, OptimizeRx delivers targeted digital interventions—such as patient savings messages, clinical content and product information—directly into electronic health record (EHR) workflows at the point of care. By integrating with leading EHR systems, the company helps life sciences organizations optimize brand engagement, improve patient adherence and support informed prescribing decisions. The company's core offerings include digital prescription benefit notifications, co-pay assistance alerts and real-time clinical messaging tailored to specific patient populations. 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 "OptimizeRx Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $20.5 million in Q2 2026, a 30% decrease from $29.2 million in Q2 2025. Adjusted EBITDA: $4.10 million in Q2 2026, compared to $5.8 million in Q2 2025. Net Loss: $0.7 million, or $0.04 per basic and diluted share, versus net income of $1.5 million, or $0.08 per share, in Q2 2025. Non-GAAP Net Income: $3.1 million, or $0.16 per diluted share, compared to $3.7 million, or $0.19 per diluted share, in the year-ago period. Expenses: Decreased $5.4 million year-over-year to $20.6 million, impacted by $1.7 million in severance expense. Gross Margin: Expected to normalize into the high 60% to low 70% range for full year 2026. Operating Cash Flow: $8.1 million for the first half of 2026. Cash Balance: $24.1 million at end of Q2 2026, compared to $23.4 million on December 31, 2025. Debt: Paid $5.3 million in principal during the quarter, leaving outstanding debt at $19.7 million; paid off an additional $3 million subsequent to quarter end. Average Revenue per Top 20 Pharma Manufacturer: $2.7 million. Net Revenue Retention Rate: Dipped to 90%. Revenue per FTE: $750,000. Full Year 2026 Guidance: Reaffirmed revenue of $95 million to $100 million and adjusted EBITDA of $21 million to $25 million. Warning! GuruFocus has detected 3 Warning Sign with OPRX. Is OPRX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OptimizeRx Corp (NASDAQ:OPRX) exceeded consensus expectations for Q2 2026, reporting revenue of $20.5 million and adjusted EBITDA of $4.9 million. The company is experiencing strong growth in its AI-enabled software offerings, which grew 25% year-over-year, and its Dynamic Audience Activation Platform (DAAP) increased over 30% year-over-year. OptimizeRx Corp (NASDAQ:OPRX) launched three significant product innovations in Q2, including a direct integration with DeepIntent's DSP, the AI-powered Natural Language Audience Builder (NLAB), and CopayCue, a next-generation co-pay activation solution. The company is successfully transitioning away from lower-margin managed services, leading to improved gross margins, which are now expected to normalize in the high 60% to low 70% range for the full year 2026. OptimizeRx Corp (NASDAQ:OPRX) is strengthening its balance sheet by paying down debt ahead of schedule, ending Q2 with $19.7 million in debt and a $24.1 million cash balance, and has a $10 million stock buyback program in place. The company is seeing accelerated growth in its mid-tier and emerging life science company segment, with a new mid-tier account entering its top 10 list, indicating successful diversification beyond its top 20 customers. OptimizeRx Corp (NASDAQ:OPRX) experienced a significant 30% year-over-year decline in Q2 revenue, falling to $20.5 million from $29.2 million in the same period of 2025. The company's net revenue retention rate dipped to 90%, driven by a small number of large accounts optimizing their spend, and the average revenue per top 20 pharmaceutical manufacturer has declined. A major client that was previously discussed did not generate any revenue in Q2, and the company has no expectations for this client to return in the second half of the year. The company's financial performance was impacted by $1.7 million in severance expenses related to a previously announced reduction in force, and it reported a net loss of $0.7 million for the quarter. The broader health care marketing environment remains dynamic, with continued budget timing variability and cautious spending behavior from pharmaceutical manufacturers due to macroeconomic factors and Most Favored Nation (MFN) pricing dynamics. The company's Q2 adjusted EBITDA declined to $4.1 million from $5.8 million in the year-ago period, and its non-GAAP net income also decreased year-over-year. Q: What is the update on the larger client that previously disrupted revenue, and what expectations are baked into the second half of 2026?A: CEO Stephen Silvestro stated that no revenue from this client is currently baked into the back-half guidance. However, discussions are open and active, and the company is seeing progress that could positively impact the second half. He noted that the newly announced Chief Marketing Officer, who is coming from that client, will help bridge the gap and address the commercial missteps previously discussed. Q: Can you provide more detail on the progress with the DeepIntent DSP partnership and the growth curve for this opportunity over the next 24 months?A: CEO Stephen Silvestro confirmed that the DeepIntent integration is now live, with bid flow beginning. While it is too early to quantify the uptick, the company views this as very meaningful. He highlighted that 60% of buys in this space now occur through programmatic channels, representing funds previously inaccessible to the company. This expands their near-term addressable market, and they are in talks with other DSPs, though nothing is ready to announce. Q: How might the potential FDA/HHS changes to the "adequate provision" framework for pharma advertising impact marketing budgets and channel allocation?A: CEO Stephen Silvestro views these potential regulatory moves as favorable. Any limitations on DTC channels would likely push funds into HCP-focused marketing channels, which are the company's core strength. While they are not forecasting this outcome, they believe they are well-positioned to benefit disproportionately if the decision is made. Q: Given the implied second-half adjusted EBITDA of $13 million to $17 million, what is the capital allocation strategy? Will it remain focused on debt reduction or shift to share buybacks?A: CFO Edward Stelmakh confirmed the primary strategy is to pay down debt, with outstanding principal now at $16.7 million. As a secondary measure, the company has a 10b5-1 plan in place to trigger buybacks under its $10 million approved stock repurchase program if the share price continues to decline. Q: How much of the second-half revenue rebound implied in guidance is visible or contracted versus based on assumed seasonal patterns?A: CEO Stephen Silvestro stated that contracted revenue is trending more towards 2024 seasonality than 2025, which is why they are reiterating rather than raising guidance. They anticipate the back half will follow historical seasonal patterns, with Q4 expected to be significantly higher than Q3. The company will provide updates as they gain more visibility into contracted revenue. Q: How are non-top 20 customers performing in contrast to the top 20, who have faced issues like MFN pricing?A: CEO Stephen Silvestro reported that the mid-tier and long-tail segment is growing at an accelerated rate and represents some of the company's fastest growers. A mid-tier account recently entered the top 10 list. This strategy is proving out, and while there is a gap to fill from the disrupted top account, the combination of a potential comeback and mid-tier growth positions the company well for 2027. Q: Excluding the one challenging customer, what is the activity level within the top 20 accounts compared to the depth of the MFN disruption?A: CEO Stephen Silvestro noted that activity and strategic discussions have definitely increased. While there was significant consternation around MFN earlier in the year, manufacturers now understand the new normal and are re-engaging. The company is seeing positive buying signals for the back half, though it is not yet ready to predict a significant surge in Q4 buying. Q: Is the macroeconomic overhang on top 20 spending, such as inflation and geopolitical uncertainty, still a factor?A: CEO Stephen Silvestro acknowledged that macro concerns remain a slight overhang, as pharma has been a major target of the administration. However, he noted that spending is starting to normalize as manufacturers increase efforts to drive patient capture for the back half of the year. He also mentioned navigating potential strategic events like mergers and LOE (loss of exclusivity) in the marketplace. Q: Is the current operating expense run rate normalized for the third quarter, following the recent cost reduction actions?A: CFO Edward Stelmakh confirmed that the current cash OpEx run rate is a good baseline for Q3. The only potential variable would be items like bonus accruals, depending on performance versus budget, but generally, the company expects to remain in the current range. Q: Is the improved margin profile sustainable, what drove the upside in Q2, and how will profitability change as the DSP market is tapped?A: CEO Stephen Silvestro stated the new profitability level is the new normal, not episodic, and is driven by a favorable channel mix. He does not expect profitability to drop as they enter the DSP ecosystem. Chief Business Officer Andy D'Silva added that the company internally manages to a high 60% gross margin, with recent quarters being favorable, and this is how they will manage the business going forward. Q: Is the goal of becoming a sustainable Rule of 40 company still an objective, or will growth be prioritized over profitability?A: CFO Edward Stelmakh affirmed that Rule of 40 remains the objective. He noted that 2026 is an anomaly, and the company has proven it can be highly profitable even in a soft year. Once growth returns, which they are confident will happen in 2027, it will not take much to get back to Rule of 40. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

OptimizeRx Corp. (OPRX) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +45.46%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.14, delivering a surprise of +1300%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. OptimizeRx, which belongs to the Zacks Computer - Software industry, posted revenues of $20.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.11%. This compares to year-ago revenues of $29.19 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. OptimizeRx shares have lost about 43.6% since the beginning of the year versus the S&P 500's gain of 12.9%. While OptimizeRx has underperformed 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 OptimizeRx 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 $0.24 on $25.92 million in revenues for the coming quarter and $0.91 on $97.89 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, Computer - Software is currently in the top 29% 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. Synopsys (SNPS), 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 26. This maker of software used to test and develop chips is expected to post quarterly earnings of $3.68 per share in its upcoming report, which represents a year-over-year change of +8.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Synopsys' revenues are expected to be $2.44 billion, up 40.3% 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 OptimizeRx Corp. (OPRX) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

–  Q2 revenue totals $20.5 million–  Q2 net loss and adjusted EBITDA of $(0.7) million and $4.9 million, respectively–  Reaffirms fiscal year 2026 revenue guidance of $95 - $100 million and adjusted EBITDA guidance of $21 - $25 million–  Completed debt refinancing with $35 million traditional banking facility, including $25 million term loan and $10 million undrawn revolver; repaid $8.3 million of principal since inception WALTHAM, Mass., Aug. 12, 2026 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of healthcare technology solutions helping life sciences companies reach and engage healthcare professionals (HCPs) and patients, today announced results for the three months ended June 30, 2026. Financial Highlights Revenue decreased 30% to $20.5 million in Q2 2026, compared to $29.2 million in Q2 2025. GAAP net loss of $(0.7) million or $(0.04) per basic and diluted share in Q2 2026, compared to GAAP net income of $1.5 million, or $0.08 per basic and diluted share, in Q2 2025. Non-GAAP net income of $3.1 million, or $0.16 per diluted share in Q2 2026, compared to Non-GAAP net income of $3.7 million or $0.19 per diluted share, in Q2 2025. (See *Non-GAAP Measures below) Adjusted EBITDA of $4.9 million in Q2 2026 compared to $5.8 million in Q2 2025. (See *Non-GAAP Measures below) Cash and cash equivalents of $24.1 million as of June 30, 2026 compared to $23.4 million as of December 31, 2025. Stephen L. Silvestro, OptimizeRx CEO commented, “Second quarter revenue and adjusted EBITDA both exceeded consensus expectations, reflecting continued margin expansion, disciplined execution, and resilience in our operating model. While year-over-year revenue declined and contracted revenue remains below prior-year levels, these trends are concentrated among a small number of customers, and we are encouraged by increased investment across other portions of our customer base. Our continued investment in platform capabilities, including recent product launches and expanded programmatic initiatives, is strengthening customer engagement as we move into the 2027 planning cycle. Despite some variability in second-half timing and mix, our first-half performance and commercial momentum give us confidence to reiterate full-year 2026 guidance of $95 million to $100 million in revenue and $21 million to $25 million in adjusted EBITDA. We also expanded the long-term opportunity for OptimizeRx through three platform advancements: DeepIntent became the first healthcare demand-side platform (DSP) to integrate our authenticated electronic health record (EHR) network, we launched our patent-pending Natural Language Audience Builder, and we introduced CopayCue, our next-generation copay activation solution. These innovations strengthen our position in artificial intelligence (AI)-enabled audience intelligence, programmatic point-of-care activation, and clinical workflow engagement while creating opportunities for recurring growth. “Finally, we continued to strengthen our balance sheet by paying down $5.3 million of term loan principal during the quarter—$5.0 million ahead of schedule—and an additional $3.0 million subsequent to quarter-end. We believe our disciplined execution, expanding technology platform, improving customer engagement, and strong financial position leave us well positioned to create meaningful long-term shareholder value.” 2026 Financial Outlook The Company is reiterating its fiscal year 2026 guidance, and expects revenue of $95 million to $100 million and adjusted EBITDA of $21 million to $25 million. Conference Call Individual Meeting Invitation In an effort to increase relations with institutional investors, OptimizeRx management has dedicated time to hosting individual meetings with portfolio managers and analysts. If you are interested in scheduling a meeting with OptimizeRx management, please contact: [email protected] or [email protected]. *Non-GAAP Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and, for historical periods, a reconciliation of these measures to the most directly comparable GAAP measures are included in the supplemental tables that follow. Although the Company provides guidance for adjusted EBITDA, a non-GAAP financial measure, it is not able to provide guidance to the most directly comparable GAAP measure. Reconciliations for forward-looking figures would require unreasonable effort at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, acquisition expenses, other income, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. **Definition of Key Performance Indicators Top 20 pharmaceutical manufacturers: We have updated the definition of “top 20 pharmaceutical manufacturers” in our key performance indicators to be based upon Fierce Pharma’s most updated list of “The top 20 pharma companies by 2025 revenue”. We previously used “The top 20 pharma companies by 2024 revenue”. As a result of this change, prior periods have been restated for comparative purposes. Net revenue retention: Net revenue retention is a comparison of revenue generated from all clients in the previous period to total revenue generated from the same clients in the following year (i.e., excludes new client relationships for the most recent year). Revenue per average full-time employee: We define revenue per average full-time employee (FTE) as total revenue over the last 12 months (LTM) divided by the average number of employees over the LTM, which is calculated by taking our total number of FTEs at the end of the prior year period by our total FTE headcount at the end of the most recent period. About OptimizeRx OptimizeRx is a leading healthcare technology company that’s redefining how life science brands connect with patients and healthcare providers. Our platform combines innovative AI-driven tools like the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to deliver timely, relevant, and hyper-local engagement. By bridging the gap between HCP and direct-to-consumer (DTC) strategies, we empower brands to create synchronized marketing solutions that drive faster treatment decisions and improved patient outcomes. Our commitment to privacy-safe, patient-centric technology ensures that every interaction is designed to make a meaningful impact, delivering life-changing therapies to the right patients at the right time. Headquartered in Waltham, Massachusetts, OptimizeRx partners with some of the world’s leading pharmaceutical and life sciences companies to transform the healthcare landscape and create a healthier future for all. For more information, follow the Company on X, LinkedIn or visit www.optimizerx.com. Important Cautions Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates”, “believes”, “estimates”, “expects”, “forecasts”, “intends”, “plans”, “projects”, “targets”, “designed”, “could”, “may”, “should”, “will” or other similar words and expressions are intended to identify these forward-looking statements. All statements that reflect the Company’s expectations, assumptions, projections, beliefs or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to the Company’s future performance, expected revenues, expected adjusted EBITDA, AI-enabled audience intelligence, programmatic point-of-care activation, clinical workflow engagement creating opportunities for recurring growth, the Company's disciplined execution, expanding technology platform, increased customer investment, and strong financial position leaving the Company to be well-positioned to create meaningful long-term shareholder value, and other statements relating to future performance, plans, and expectations. These forward-looking statements are based on the Company’s current expectations and involve assumptions regarding the Company’s business, the economy, and other future conditions that may never materialize or may prove to be incorrect. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties including, but not limited to, the effect of government regulation, seasonal trends, dependence on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contracts with electronic prescription platforms and electronic health records networks, competition, and other factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, its subsequent Quarterly Reports on Form 10-Q, and in other filings the Company has made and may make with the Securities and Exchange Commission in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law. OptimizeRx ContactAndy D’Silva, Chief Business [email protected] Investor Relations ContactDouglas FarrellLifeSci Advisors, [email protected] OPTIMIZERX CORPORATIONRECONCILIATION of GAAP to NON-GAAP FINANCIAL MEASURES(in thousands, except share and per share data, unaudited) This earnings release includes certain financial measures that are not prepared in accordance with generally accepted accounting principles (GAAP). These non-GAAP financial measures are performance measures that are not defined under GAAP and should be considered in addition to, and not as a substitute for, the most directly comparable GAAP measures. They may also not be comparable to similarly titled measures reported by other companies. Management believes that presenting these non-GAAP financial measures provides useful supplemental information that facilitates comparison of the Company's historical operating results and trends, and offers transparency into how management evaluates the business. Management uses these measures in making financial, operating and planning decisions and in evaluating the Company's performance. Excluding items that management does not consider reflective of ongoing operating results improves the comparability of year-over-year results and helps investors better understand the Company’s underlying performance. These adjustments may include items such as asset impairment charges, amortization, stock-based compensation, acquisition expenses, severance related to executive departures and reductions in force initiatives, shareholder activist related fees, CEO search fees, CMO search fees, other income, estimated income tax impact from adjustments and other items that management believes are not related to the Company’s ongoing performance.

PTC Inc. (PTC) came out with quarterly earnings of $1.58 per share, missing the Zacks Consensus Estimate of $1.6 per share. This compares to earnings of $1.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.25%. A quarter ago, it was expected that this product development software maker would post earnings of $2.06 per share when it actually produced earnings of $2.69, delivering a surprise of +30.58%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. PTC Inc., which belongs to the Zacks Computer - Software industry, posted revenues of $600.05 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.9%. This compares to year-ago revenues of $643.94 million. The company has topped consensus revenue estimates three 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. PTC Inc. shares have lost about 26.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While PTC Inc. has underperformed 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 PTC Inc. 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 $1.76 on $646.28 million in revenues for the coming quarter and $8.01 on $2.72 billion 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, Computer - Software is currently in the top 37% 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. One other stock from the same industry, OptimizeRx Corp. (OPRX), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -54.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OptimizeRx Corp.'s revenues are expected to be $20.48 million, down 29.8% 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 PTC Inc. (PTC) : Free Stock Analysis Report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Commvault Systems (CVLT) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.34%. A quarter ago, it was expected that this data-management software company would post earnings of $1.09 per share when it actually produced earnings of $1.28, delivering a surprise of +17.43%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Commvault, which belongs to the Zacks Computer - Software industry, posted revenues of $314.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $281.98 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. Commvault shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 8.3%. While Commvault 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 Commvault 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 $1.20 on $313.2 million in revenues for the coming quarter and $5.22 on $1.31 billion 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, Computer - Software is currently in the bottom 40% 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. Another stock from the same industry, OptimizeRx Corp. (OPRX), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -54.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OptimizeRx Corp.'s revenues are expected to be $20.48 million, down 29.8% 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 CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pegasystems (PEGA) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -18.61%. A quarter ago, it was expected that this business software company would post earnings of $0.76 per share when it actually produced earnings of $0.46, delivering a surprise of -39.47%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Pegasystems, which belongs to the Zacks Computer - Software industry, posted revenues of $420.72 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.84%. This compares to year-ago revenues of $384.51 million. The company has topped consensus revenue estimates two 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. Pegasystems shares have lost about 46.9% since the beginning of the year versus the S&P 500's gain of 8.7%. While Pegasystems has underperformed 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 Pegasystems 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 $0.62 on $484.54 million in revenues for the coming quarter and $2.73 on $1.98 billion 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, Computer - Software is currently in the top 37% 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. One other stock from the same industry, OptimizeRx Corp. (OPRX), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -54.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OptimizeRx Corp.'s revenues are expected to be $20.48 million, down 29.8% 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 Pegasystems Inc. (PEGA) : Free Stock Analysis Report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research