GoodRx’s first quarter results were met with a positive market response, reflecting management’s progress in refocusing the company’s strategy and strengthening its leadership team. CEO Wendy Barnes, in her first 100 days, emphasized key organizational changes, including the appointment of Aaron Crittenden as President of the RX Marketplace and Scott Pope as Chief Pharmacy Officer, aimed at deepening pharmacy partnerships and enhancing engagement with healthcare professionals. Management highlighted the company’s ability to navigate a challenging environment marked by pharmacy partner bankruptcies and store closures, noting that GoodRx’s platform continues to demonstrate resilience and relevance for consumers seeking medication affordability.
Is now the time to buy GDRX? Find out in our full research report (it’s free).
GoodRx (GDRX) Q1 CY2025 Highlights:
- Revenue: $203 million vs analyst estimates of $202.3 million (2.6% year-on-year growth, in line)
- Adjusted EPS: $0.09 vs analyst estimates of $0.10 (in line)
- Adjusted EBITDA: $69.81 million vs analyst estimates of $67.29 million (34.4% margin, 3.7% beat)
- The company reconfirmed its revenue guidance for the full year of $825 million at the midpoint
- EBITDA guidance for the full year is $280 million at the midpoint, in line with analyst expectations
- Operating Margin: 11.5%, up from 3.7% in the same quarter last year
- Customers: 6.4 million, down from 6.6 million in the previous quarter
- Market Capitalization: $1.81 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions GoodRx’s Q1 Earnings Call
- Lisa Gill (JPMorgan) asked which strategic initiatives will most influence results and how GoodRx historically retained customers after store closures. CEO Wendy Barnes highlighted direct retail partnerships and stronger pharmacy integrations as key, and CFO Chris McGinnis shared that most prescriptions are expected to transition smoothly due to improved consumer outreach.
- John Ransom (RJF) questioned the effects of cost-plus pricing by pharmacy benefit managers (PBMs) and the relevance of GLP-1 drug opportunities. Barnes explained GoodRx’s business is largely agnostic to PBM reimbursement models and confirmed ongoing dialogue with manufacturers regarding GLP-1 programs.
- Charles Rhyee (TD Cowen) probed barriers to embedding direct manufacturer programs for GLP-1 drugs and differences in healthcare professional engagement. Barnes cited recent industry supply constraints and predicted future market changes will create new opportunities for GoodRx involvement.
- Jailendra Singh (Truist Securities) inquired about the guidance range’s conservatism and trends in monthly active customers (MACs). McGinnis explained guidance reflects caution given macro and industry uncertainty, while recent MAC declines are part of a planned shift to higher-margin transactions.
- Craig Hettenbach (Morgan Stanley) asked about capital allocation priorities and the scalability of manufacturer solutions. McGinnis stated that investment will focus primarily on internal capabilities, with share repurchases continuing as long as market conditions remain favorable.
Catalysts in Upcoming Quarters
Over the coming quarters, our team will closely monitor (1) the pace of retail pharmacy integration and expansion of direct e-commerce partnerships, (2) growth and renewal trends in the manufacturer solutions segment, and (3) retention of prescription volume during transitions stemming from retail pharmacy bankruptcies. Strong execution in these areas will be key to achieving GoodRx’s strategic and financial objectives.
GoodRx currently trades at $4.77, up from $3.78 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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