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GoodRx Holdings, Inc. (GDRX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 revenue was $203.0M (up 3% YoY), EPS (GAAP) was $0.03 and Adjusted EPS $0.09; revenue was in line while margins beat as Adjusted EBITDA rose 11% YoY to $69.8M (34.4% margin) .
  • Versus Street: revenue modestly beat ($203.0M vs $202.2M*), EPS materially beat ($0.09 vs $0.04*), and Adjusted EBITDA was above consensus ($69.8M vs $67.3M*). Key driver was improved unit economics and mix despite MACs pressure from selective price increases .
  • Guidance: FY25 revenue maintained at $810–$840M; FY25 Adjusted EBITDA raised/narrowed to $273–$287M; Q2 revenue guided up sequentially with EBITDA margin roughly similar to Q1 (~34%) .
  • Stock reaction catalysts: sustained margin outperformance and raised EBITDA guide, plus tangible progress on retail e‑commerce integration and pharma point‑of‑sale (POS) programs that can compound through 2025 .

What Went Well and What Went Wrong

  • What Went Well

    • Margin execution: Adjusted EBITDA $69.8M (+11% YoY) and margin 34.4% (+270 bps YoY) on improved unit economics and mix; GAAP net income swung to $11.1M (5.4% margin) from a loss .
    • Strategic traction with manufacturers: Pharma manufacturer solutions revenue +17% YoY; management reiterated a robust pipeline and 20% growth conviction for 2025, citing POS buy‑downs scaling from insulin to five additional brands and >15x ROI in a vaccine program .
    • Retail/e‑commerce progress: Launched integrated e‑commerce flow (inventory check, Rx validation, pay online) with Hy‑Vee; positions GoodRx as “digital front door” for pharmacies and can streamline costs-to-fill .

  • What Went Wrong

    • MACs pressure: Monthly Active Consumers declined to 6.4M (from 6.7M YoY) as GoodRx supported pharmacy profitability, including some price increases; management acknowledged ISP and overall MAC headwinds near term .
    • Subscriptions down: Subscription revenue fell 7% YoY on continued roll-off of Kroger Savings Club; subscription plans ended Q1 at 680K vs 778K a year ago .
    • Cash flow variability: Operating cash flow decreased to $9.4M (from $42.6M) on timing of working capital, and cash declined due to $100.9M buyback and $30M acquisition; cash ended at $301.0M with total debt $498.8M .

Financial Results

QTD trend and estimates (oldest → newest):

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$195.251 $198.583 $202.970
Revenue Consensus Mean ($M)$195.655*$199.733*$202.203*
GAAP Diluted EPS ($)$0.01 $0.02 $0.03
Primary EPS Consensus Mean ($)$0.02*$0.03*$0.04*
Adjusted EPS ($)$0.08 $0.09 $0.09
Adjusted EBITDA ($M)$65.0 $67.075 $69.805
Adjusted EBITDA Consensus Mean ($M)$62.779*$66.447*$67.287*
Net Income Margin (%)2.0% 3.4% 5.4%
Adjusted EBITDA Margin (%)33.3% 33.8% 34.4%

Segment revenue mix (Q1 2025 vs Q1 2024):

Segment ($USD Millions)Q1 2024Q1 2025YoY
Prescription Transactions$145.395 $148.923 +2.4%
Subscription$22.601 $21.017 -7.0%
Pharma Manufacturer Solutions$24.509 $28.648 +16.9%
Other$5.375 $4.382 -18.5%
Total Revenue$197.880 $202.970 +2.6%

Key KPIs (trend):

KPIQ3 2024Q4 2024Q1 2025
Monthly Active Consumers (Millions)6.5 6.6 6.4
Subscription Plans (Thousands)701 684 680

Notes: Consensus estimates marked with * are Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance (Q1 print)Change
RevenueFY 2025$810–$840M (2/27/25) $810–$840M (5/7/25) Maintained
Adjusted EBITDAFY 2025$270–$286M (2/27/25) $273–$287M (5/7/25) Raised & narrowed
RevenueQ2 2025—“Up sequentially” vs Q1’s $203M New qualitative
Adjusted EBITDA MarginQ2 2025—“Roughly similar” to Q1 (~34%) New qualitative

Management emphasized greater conviction in the lower half of the FY revenue range given macro and execution variables, with upside to the upper half from strategic initiatives .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4 2024)Current Period (Q1 2025)Trend
Pharma Manufacturer Solutions growthMomentum; 20%+ growth outlook for FY25 articulated in Q3 commentary +17% YoY in Q1; management “20% growth line of business” conviction reiterated Positive, building
Retail partnerships & e‑commerceDebt refi, steady retail environment noted; no e‑comm detail in Q3/Q4 press Launched integrated e‑commerce with Hy‑Vee; positioning as pharmacies’ digital front door Positive; new capability
Pricing & MACsMACs up YoY in 2024; subscription roll-off ongoing Selective price increases to support pharmacy profitability; MACs down to 6.4M and ISP pressured Near-term headwind on volumes; margin tailwind
GLP‑1 / brand POS programsPOS programs growing in 2024; vaccine ROI cited Manufacturers expanded POS to 5 more brands; embedding/partnering discussions continue; pushing for true cash POS buydowns Positive, strategic optionality
PBM cost‑plusNot prominent in Q3/Q4 pressIndifferent to reimbursement rails; cost‑plus can lift base prices and create more cash‑pay opportunities Neutral→Potentially constructive
Retail closures/bankruptcyAnticipated retail choppiness in 2024 backdrop Rite Aid <5% 2025 revenue; not embedded in guidance; expect “smooth transitions” via file buys Managed risk
Capital allocationRepurchases in Q3/Q4 ($5.3M; $158.8M) $100.9M repurchased in Q1; ~$189.4M remaining authorization; buybacks seen as accretive Shareholder-friendly

Management Commentary

  • “We are in a very strong position to deliver meaningful value across the pharmacy ecosystem… focused on high‑impact initiatives that will drive our business forward in compelling ways.” — CEO Wendy Barnes .
  • “Some prescription pricing has increased across our platform as we ensure pharmacies are able to achieve a sustainable level of profitability… As a result… we have seen pressure on overall monthly active consumers (MACs).” .
  • “We launched a new [e‑commerce] experience for retail pharmacies… check inventory, validate the user’s prescription, and enable the consumer to pay on GoodRx before picking up… soon to be delivered to their home.” .
  • “Rite Aid is currently forecasted to be less than 5% of our total revenue in 2025… not included in our guidance… these scripts will continue to be filled somewhere.” — CFO Chris McGinnis .
  • “We are slightly increasing and narrowing [FY25] Adjusted EBITDA… to between $273 and $287 million.” — CFO .

Q&A Highlights

  • Pricing vs MACs: Management balanced pharmacy profitability with consumer affordability, acknowledging near-term MAC headwinds while seeing headroom to enhance per-script margins via mix optimization .
  • Pharma growth durability: Pipeline suggests 20%+ growth in manufacturer solutions; POS buydowns scaling, and vaccine program delivered >15x ROI leading to expansion .
  • GLP‑1 channel strategy: Manufacturers’ direct programs limit immediate POS discounts, but GoodRx is pushing to embed programs on-platform and expects opportunity to expand as molecules proliferate .
  • PBM cost‑plus: GoodRx is “somewhat indifferent” to reimbursement rails; higher base prices in cost‑plus can expand cash-pay opportunities .
  • Retail disruption: Rite Aid impact likely well below 5% given file-buy transitions; not in guidance due to process uncertainty .
  • Capital allocation: Continued investment in software and integrated capabilities; repurchases prioritized at current valuation .

Estimates Context

  • Q1 revenue: $203.0M vs $202.2M consensus* (in line to slight beat) .
  • Q1 Primary EPS: $0.09 vs $0.04 consensus* (material beat). Adjusted EPS also $0.09 .
  • Q1 Adjusted EBITDA: $69.8M vs $67.3M consensus* (beat), with margin 34.4% .
  • FY25: Company maintained revenue guide ($810–$840M) and raised/narrowed Adjusted EBITDA ($273–$287M), above SPGI consensus EBITDA baseline* .
    Note: Values marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Margin-led upside: In-line top line with significant EPS/EBITDA beats underscores mix/unit-economics gains; margin profile (~34%) looks sustainable near term per guidance .
  • Durable growth vectors: Manufacturer solutions (20% trajectory commentary) and expanding POS programs provide non-MAC growth levers with attractive ROIs .
  • Retail embeddedness: The Hy‑Vee e‑commerce launch evidences deeper retail workflow integration that can reduce cost-to-fill and support pharmacy profitability, creating defensibility and volume capture over time .
  • Managed headwinds: MACs softness and subscription roll-off are known and contained; management is transparent about revenue range bias to the lower half, with upside tied to strategic wins .
  • Risk watchlist: Retail bankruptcy transitions (Rite Aid) are not guided but likely manageable given file-buy dynamics; macro/tariff/policy remain variables .
  • Capital deployment: Aggressive buybacks ($100.9M in Q1; $189.4M capacity remaining) signal confidence while maintaining liquidity ($301.0M cash) .
  • Near-term setup: Q2 revenue up sequentially with stable margins implies continued operational discipline; catalysts include new retail/e‑commerce partners and additional pharma POS programs .