Healthcare tech company GoodRx (NASDAQ: GDRX) reported revenue ahead of Wall Streets expectations in Q3 CY2025, but sales were flat year on year at $196 million. Its non-GAAP profit of $0.08 per share was 12.3% below analysts’ consensus estimates.
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GoodRx (GDRX) Q3 CY2025 Highlights:
- Revenue: $196 million vs analyst estimates of $193.9 million (flat year on year, 1.1% beat)
- Adjusted EPS: $0.08 vs analyst expectations of $0.09 (12.3% miss)
- Adjusted EBITDA: $66.28 million vs analyst estimates of $64.42 million (33.8% margin, 2.9% beat)
- EBITDA guidance for the full year is $270 million at the midpoint, in line with analyst expectations
- Operating Margin: 7.5%, down from 10.5% in the same quarter last year
- Customers: 5.4 million, down from 5.7 million in the previous quarter
- Market Capitalization: $1.13 billion
StockStory’s Take
GoodRx’s third quarter results were met with a moderate positive market response, as the company’s revenue modestly exceeded Wall Street expectations despite being flat year-over-year. Management highlighted a mix of strategic wins, such as expanded partnerships with pharmaceutical manufacturers and new pharmacy integrations, as key drivers. CEO Wendy Barnes cited the launch of direct-to-consumer pricing programs with major brands like Novo Nordisk and Amgen, as well as the rollout of the RxSmartSaver solution at Kroger, as evidence of execution on core priorities. However, the ongoing impact of Rite Aid closures and lower transaction volume in certain programs continued to weigh on prescription marketplace activity.
Looking ahead, GoodRx’s management is focused on leveraging its platform to capitalize on the ongoing transition toward greater drug price transparency and direct-to-consumer access. The company believes regulatory changes, such as the introduction of TrumpRx and potential most favored nation pricing, could drive long-term tailwinds for its Manufacturer Solutions business. CFO Chris McGinnis emphasized that, while near-term headwinds remain, GoodRx expects a shift in the healthcare environment to increase the number of uninsured or underinsured Americans, creating greater demand for affordable cash-pay solutions. Barnes noted, “We view these dynamics, combined with growing pharma investment and direct-to-consumer engagement, as supportive of our long-term growth opportunity.”
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to strong execution in Manufacturer Solutions, while prescription transaction volume was pressured by external factors and industry headwinds.
- Manufacturer Solutions momentum: GoodRx’s Manufacturer Solutions segment delivered 54% year-over-year revenue growth as more pharmaceutical brands turned to the platform for direct-to-consumer affordability programs. Management called out new deals with Novo Nordisk and Amgen as evidence of the company’s heightened relevance and reach within the industry.
- Rite Aid closures impact: The widespread closure of Rite Aid stores during the quarter negatively affected prescription transaction revenue, particularly in certain geographies, and led to a decline in monthly active customers. GoodRx is working with acquiring retailers and direct outreach to recapture displaced users, though management noted this recovery would take time.
- Retail pharmacy partnerships: Integration with large retail partners like Kroger, through solutions such as RxSmartSaver, is allowing GoodRx to embed its savings programs directly at the pharmacy counter. The company sees these collaborations as critical to capturing more of the prescription journey and improving consumer engagement.
- Brand investment and marketing: The launch of the Savings Wrangler brand campaign increased unaided brand awareness and search volumes, which management views as vital for maintaining consumer mindshare and supporting long-term growth. Marketing spend remains significant, but leadership argues it is justified by increased market share and positioning for future expansion.
- Evolving pharmacy benefit manager (PBM) relationships: Shifts in PBM models, such as the move toward point-of-sale discounts, are prompting GoodRx to adapt its integrated savings offering. Leadership views regulatory and industry changes as validation of the company’s strategy and believes GoodRx is well positioned to act as a complement to insurance as the market structure evolves.
Drivers of Future Performance
GoodRx expects that continued growth in its Manufacturer Solutions segment, combined with a shifting policy and insurance landscape, will shape its future results.
- Policy and regulatory tailwinds: Management anticipates that new policies, such as TrumpRx and most favored nation pricing, will drive more pharmaceutical manufacturers to adopt direct-to-consumer cash pricing, expanding opportunities for Manufacturer Solutions. The company is actively collaborating with government agencies to integrate its offerings with these policy initiatives.
- Cash pay market expansion: With the possibility of reduced insurance coverage and higher out-of-pocket drug costs for many Americans, GoodRx expects a larger addressable market for its cash-pay prescription solutions. Leadership believes this trend will reverse recent headwinds and generate renewed growth in its core prescription marketplace.
- Investment in digital and e-commerce: GoodRx is increasing investment in its digital capabilities, such as e-commerce pharmacy experiences and expanded subscription offerings, aiming to improve consumer convenience and retention. These initiatives are expected to strengthen the company’s competitive position as the pharmacy landscape shifts toward digital-first models.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be closely monitoring (1) the ability of Manufacturer Solutions to maintain growth momentum amid policy changes, (2) progress in recapturing prescription volume lost from Rite Aid closures and other retail disruptions, and (3) the success of new pharmacy partnerships and embedded counter solutions in driving customer engagement. Execution on digital innovation and further clarity on the regulatory landscape will also be important markers.
GoodRx currently trades at $3.33, up from $3.27 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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