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.
Is now the time to buy GDRX? Find out in our full research report (it’s free for active Edge members).
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 estimates of $0.09 (in line)
- 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: $1.04 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 From GoodRx’s Q3 Earnings Call
- Michael Cherny (Leerink Partners) asked about the potential for stabilization and growth in the prescription transaction revenue environment, given evolving pricing transparency trends. CFO Chris McGinnis highlighted macro factors like insurance coverage changes and predicted a market expansion in 2026, while CEO Wendy Barnes emphasized the importance of capturing more volume at the pharmacy counter.
- Daniel Grosslight (Citi) questioned how PBM model changes, such as point-of-sale discounts, would affect GoodRx’s strategy. Barnes explained that GoodRx is prepared to integrate further with payers and sees itself as a complement to insurance, while McGinnis noted these changes align with the company’s long-term mission.
- Lisa Gill (JPMorgan Chase) asked whether there would be new products or changes to the integrated savings program in response to PBM evolution. Barnes indicated new strategies are being evaluated for 2026, including employer-focused cash pricing solutions, but declined to discuss specifics ahead of the next guidance update.
- Jailendra Singh (Truist Securities) inquired about progress in building pharmaceutical manufacturer solutions for healthcare professionals (HCPs). Barnes said investments in HCP-focused technology and sales capabilities are on track and expected to support the 2026 selling season.
- John Ransom (Raymond James) raised concerns about marketing spend relative to declining prescription transaction revenue. McGinnis defended the investment as necessary for brand growth and market share gains, especially in a contracting cash market.
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 $3.07, down from $3.27 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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