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GoodRx Holdings, Inc. (GDRX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $196.0M and Adjusted EBITDA was $66.3M (33.8% margin), modestly up year over year; EPS (Primary/normalized) was $0.08. Revenue beat consensus by ~$1.5M and EPS beat by ~$0.045; sequential revenue declined vs Q2 due to deal timing, but margins held firm . Results vs S&P Global consensus marked with asterisks; values retrieved from S&P Global.
  • Mix shift continued: pharma manufacturer solutions revenue rose 54% YoY to $43.4M, while prescription transactions revenue fell 9% and subscriptions declined 3% YoY, largely from Rite Aid closures and lower integrated savings program volumes .
  • FY25 guidance reaffirmed: revenue “increase from 2024” and Adjusted EBITDA $265–$275M; management raised pharma manufacturer solutions outlook to ~35% YoY growth for 2025 and flagged Q4 revenue expected to decline sequentially due to Q3 pull-forward of deals .
  • Strategic catalysts: deeper manufacturer partnerships (e.g., Novo Nordisk GLP‑1 cash pricing; Amgen Repatha), pharmacy counter RxSmartSaver rollout at Kroger, and active engagement on TrumpRx API integration—all expected to support manufacturer solutions growth and counter PTR headwinds into 2026 .

What Went Well and What Went Wrong

What Went Well

  • Manufacturer Solutions strength: 54% YoY growth (to $43.4M) on expanded brand relationships and cash pricing programs; FY25 outlook raised to ~35% growth. “We delivered strong results...reinforcing our position as the go-to partner” .
  • Margin discipline and capital returns: Adjusted EBITDA of $66.3M (+2% YoY) with margin 33.8% (+50 bps YoY); repurchased 13.4M shares for $61.6M during Q3 .
  • Counter solutions and brand momentum: RxSmartSaver launched at Kroger across ~2,200 pharmacies; brand campaign (“Savings Wrangler”) driving search and awareness .

What Went Wrong

  • PTR and subscriptions declined: Prescription transactions revenue down 9% and subscription revenue down 3% YoY; MACs fell to 5.4M (from 6.5M YoY), due to Rite Aid store closures and reduced PBM integrated savings volumes .
  • Sequential revenue expected down in Q4: Several manufacturer deals closed earlier than planned in Q3; management now expects Q4 to decline sequentially vs Q3, which could weigh on near-term growth optics .
  • Ongoing headwinds: Continued retail reimbursement model changes raising consumer prices; 2025 cash market contraction and ISP partner multi-network approach; leadership acknowledged need to recapture volume and reassess MACs as a primary KPI .

Financial Results

Summary vs Prior Year and Prior Quarter

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$195.3 $203.1 $196.0
Net Income ($USD Millions)$4.0 $12.8 $1.1
Net Income Margin %2.0% 6.3% 0.6%
Adjusted Net Income ($USD Millions)$31.9 $33.9 $28.8
Primary/Adjusted EPS ($USD)$0.08 $0.09 $0.08
Adjusted EBITDA ($USD Millions)$65.0 $69.4 $66.3
Adjusted EBITDA Margin %33.3% 34.2% 33.8%

Notes:

  • EPS metrics reflect Adjusted/Primary EPS as presented and reconciled in exhibits .

Segment Revenue Breakdown

Segment ($USD Millions)Q1 2025Q2 2025Q3 2025
Prescription Transactions$148.9 $143.1 $127.3
Subscription$21.0 $20.5 $20.7
Pharma Manufacturer Solutions$28.6 $35.0 $43.4
Other$4.4 $4.6 $4.6
Total Revenue$203.0 $203.1 $196.0

KPIs

KPIQ1 2025Q2 2025Q3 2025
Monthly Active Consumers (Millions)6.4 5.7 5.4
Subscription Plans (Thousands)680 668 671

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$810–$840M (Q1 guide) “Increase from 2024” (Q2, reaffirmed Q3) Lowered in Q2; Maintained in Q3
Adjusted EBITDAFY 2025$273–$287M (Q1 guide) $265–$275M (Q2, reaffirmed Q3) Lowered in Q2; Maintained in Q3
Pharma Manufacturer Solutions Revenue GrowthFY 2025Not specified~35% YoY (raised) Raised
Revenue CadenceQ4 2025Q3 expected lower than Q4 (Q2) Q4 expected to decline sequentially vs Q3 (Q3) Changed (negative)
Share Repurchase CapacityAs of Q3 2025$143.0M unused (Q2) $81.4M unused (Q3) Decreased (buybacks executed)

Management also quantified ~$35–$40M revenue headwind in FY25 from Rite Aid bankruptcy and ISP volume reduction when lowering revenue expectations in Q2 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
Manufacturer Solutions growth+17% YoY in Q1; +32% YoY in Q2; core growth vector +54% YoY; FY25 raised to ~35%; deals pulled forward into Q3 Strengthening
Retail pharmacy ecosystem (Rite Aid closures)Headwinds noted; MAC impact begins in Q2 PTR down 9%; MACs down to 5.4M; closures complete; focus on recapture Headwind fading; recapture underway
Integrated Savings Program (ISP)Volume reduction in one PBM program flagged in Q2 Multi-network approach; status quo; no upside baked in Neutral/stable
TrumpRx and D2C cash pricingNot discussed in Q1 press release; Q2 context evolving Active API integration discussions; tailwind for D2C programs Emerging tailwind
Pharmacy counter solutionsE-commerce and Community Link launched in 2025 RxSmartSaver rolled out at Kroger nationwide Expanding
Marketing/BrandReinforced brand; cadence in Q1/Q2 “Savings Wrangler” campaign; unaided awareness and search up Improving
KPI emphasis (MACs)MACs down sequentially (Q1→Q2) Reassessing MACs as primary KPI Methodology shift
PBM POS rebatesN/AApplauded industry shift; aligns with GoodRx mission Structural tailwind medium-term

Management Commentary

  • “We expanded our manufacturer partnerships, launched innovative pharmacy counter solutions, and strengthened our brand as the most trusted name in prescription access and affordability” — Wendy Barnes (CEO) .
  • “Manufacturer solutions…up approximately 35% year-over-year [YTD]; fourth quarter revenue to decline sequentially due to timing of certain manufacturer deals that closed earlier than anticipated” — Chris McGinnis (CFO) .
  • “We will be a partner in participating in TrumpRx…integrate from an API perspective…TrumpRx is really functioning as just a repository of pricing” — Wendy Barnes (CEO) .
  • “As cash has contracted as a market, we’ve increased market share…we believe we’ll return to growth in our platform” — Chris McGinnis (CFO) .

Q&A Highlights

  • PTR stabilization and macro: 2025 cash market contraction from retail reimbursement changes; 2026 expected tailwinds from rising out-of-pocket costs and uninsured rates; GoodRx aims to “own” more of the pharmacy counter to capture more prescriptions .
  • Manufacturer solutions competitive edge: #1 digital prescription marketplace; demonstrated ROI with new Rx/refills and prescriber engagement; >200 brand affordability programs, ~80 cash prices .
  • PBM model evolution: Support for point-of-sale discounts (e.g., Cigna announcement) viewed as aligning with GoodRx’s mission; not immediate, but constructive longer-term .
  • TrumpRx operationalization: API-level integration; GoodRx positioned as conduit for pricing/fulfillment; launch timing aimed at early January (uncertain) .
  • ISP partner approach: Multi-network; GoodRx assumes status quo, not baking in upside .
  • Marketing spend effectiveness: Emphasis on brand investment; unaided awareness/search up; positioning to capture share as market expands in 2026 .

Estimates Context

Results versus S&P Global Wall Street consensus:

MetricQ1 2025Q2 2025Q3 2025
Revenue Actual ($)202,970,000203,070,000196,028,000
Revenue Consensus Mean ($)202,202,510*205,709,750*194,509,020*
Delta ($)+767,490-2,639,750+1,518,980
Primary EPS Actual ($)0.090.090.08
Primary EPS Consensus Mean ($)0.03784*0.04055*0.035*
Delta ($)+0.05216+0.04945+0.04500
  • Q3: Revenue beat ($1.5M) and EPS beat ($0.045). Q2: Revenue miss (~$2.64M) but EPS beat. Q1: Revenue and EPS beats. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Mix shift to higher-margin manufacturer solutions is accelerating; FY25 manufacturer solutions growth now ~35% YoY, supporting margins even as PTR headwinds persist .
  • Near-term cadence: Expect Q4 sequential revenue decline due to Q3 pull-forward; watch for 2026 pivot as macro tailwinds (higher OOP, uninsured) and policy initiatives (TrumpRx, PBM POS discounts) materialize .
  • Execution focus: Pharmacy counter RxSmartSaver, e-commerce flows, and HCP-targeted capabilities should deepen the funnel and improve conversion/retention, aiding PTR stabilization and recapture from Rite Aid closures .
  • Capital allocation: Ongoing buybacks (Q3: $61.6M) and strong cash ($273.5M) provide flexibility to invest in growth while supporting per-share metrics; ~$81.4M buyback capacity remains .
  • KPI evolution: Management is reassessing MACs as a primary KPI; monitor alternative engagement/transaction metrics more aligned with profitability and manufacturer solutions scaling .
  • Watch risks: Retail reimbursement/price dynamics, ISP program volumes, and potential timing variability in manufacturer deals can create quarterly lumpiness; management’s cadence commentary is key .
  • Trading lens: Despite Q4 sequential dip, consistent EPS beats and margin discipline, plus raised manufacturer solutions outlook, are positives; stock likely sensitive to updates on TrumpRx integration, GLP‑1 cash pricing traction, and PTR recapture trends .

Additional Data and Disclosures

  • Share repurchases: Q3 2025 13.4M shares ($61.6M); remaining authorization $81.4M .
  • Cash and debt: Cash & equivalents $273.5M; total debt $496.3M as of 9/30/25 .
  • Non-GAAP adjustments (Q3): Legal settlement expenses $5.5M; restructuring-related $5.5M; stock-based comp $18.1M; reconciliations provided in exhibits .
  • Retail rollout: RxSmartSaver at Kroger pharmacies nationwide; instant access to copay cards and ~80 cash prices at the counter .

Footnote: *Values retrieved from S&P Global.