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GoodRx Holdings, Inc. (GDRX)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $198.6M and GAAP diluted EPS was $0.02; Adjusted EBITDA was $67.1M with a 33.8% margin, and net cash from operations was $44.7M .
  • FY 2024 delivered $792.3M revenue (+6% YoY) and Adjusted EBITDA of $260.2M (+20% YoY), with margin expanding to 32.8% .
  • 2025 guidance: FY revenue $810–$840M and Adjusted EBITDA $270–$286M; Q1 2025 revenue $201–$205M and Adjusted EBITDA margin ~33% .
  • Strategic catalysts: accelerating brand point-of-sale discount programs (78 signed brands, ~3x in 2024), deeper retail partnerships (8 of top 10 direct/hybrid), and potential GLP‑1 cash pricing as supply normalizes .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion and profitability: Adjusted EBITDA margin grew sequentially through 2024 from 31.7% in Q1 to 33.8% in Q4; FY Adjusted EBITDA +20% YoY to $260.2M, driven by top-line growth and run-rate savings post VitaCare restructuring .
  • Pharma manufacturer solutions momentum: FY revenue +26% to $107.2M, with 78 signed brand point‑of‑sale programs and over 200 brands on platform; “we are becoming the starting point for brand medication access” .
  • Retail partner value: “partner pharmacies’ profitability… up over 20% per script in Jan 2025 vs Jan 2024,” supported by cost‑plus, pricing partnerships and brand solutions; Kroger relationship improving with more runway ahead .

What Went Wrong

  • Subscriptions declined: FY 2024 subscription revenue −8% to $86.5M, reflecting the sunset of Kroger Savings Club (from $9.0M in 2023 to $1.1M in 2024) .
  • Retail headwinds and store rationalization: Management anticipates headwinds on Monthly Active Consumers from retail closures/rightsizing; prescription transactions revenue expected to grow via mix, but consumers may face pressure .
  • Slight shortfall vs Q4 guidance ranges: Q4 revenue (~$200M guided) came in at $198.6M and Q4 Adjusted EBITDA margin (~34% guided) was 33.8% .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$200.6 $195.3 $198.6
GAAP Diluted EPS ($)$0.02 $0.01 $0.02
Adjusted Diluted EPS ($)$0.08 $0.08 $0.09
Net Income Margin (%)3.3% 2.0% 3.4%
Adjusted EBITDA Margin (%)32.6% 33.3% 33.8%
Operating Income ($USD Millions)$19.9 $20.4 $18.2
Net Cash from Operations ($USD Millions)$9.7 $86.9 $44.7

Segment revenue breakdown:

Segment ($USD Millions)Q2 2024Q3 2024Q4 2024
Prescription Transactions$146.7 $140.4 $145.0
Subscription$22.0 $21.3 $20.7
Pharma Manufacturer Solutions$26.5 $28.1 $28.1
Other$5.4 N/A$4.8

KPIs:

KPIQ2 2024Q3 2024Q4 2024
Monthly Active Consumers (Millions)6.6 6.5 6.6
Subscription Plans (Thousands)696 701 684

Notes:

  • Other revenue for Q3 2024 was not disclosed in the Q3 press release excerpts we reviewed; total revenue and segment contributions were provided .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance / ActualChange
RevenueQ4 2024~$200M $198.6M (Actual) Slightly below
Adjusted EBITDA MarginQ4 2024~34% 33.8% (Actual) Slightly below
RevenueFY 2024~$794M $792.3M (Actual) Slightly below
Adjusted EBITDAFY 2024$255–$260M $260.2M (Actual) Achieved high end
RevenueQ1 2025N/A$201–$205M New
Adjusted EBITDA MarginQ1 2025N/A~33% New
RevenueFY 2025N/A$810–$840M New
Adjusted EBITDAFY 2025N/A$270–$286M New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Brand POS discount programsScaling brand offerings; pharma solutions +9% YoY in Q2 Expect ~20% YoY growth Q4 and 20%+ FY25 78 signed brands (~3x in 2024), 200+ brands on platform; Pfizer menopause programs reversing share declines Upward
Integrated Savings Program (ISP) & ISP wrapMACs growth tied to ISP expansion Noted retail choppiness but category share gains ISP wrap to bridge coverage gaps (non-covered brands); active PBM dialogues; adding another ISP partner Building
Retail partnerships; Direct/Hybrid contractingValue proposition amid retail choppiness Continued pharmacy support; margin expansion goal 8 of top 10 pharmacies direct/hybrid; multichannel optimization; partner profitability +20% per script Strengthening
GLP‑1 therapies——~2M Q4 price seekers; 9M in 2024; working toward competitive cash POS pricing; supply stabilizing; “matter of when, not if” Potential catalyst
Capital allocationRepurchases and refinancing $290.2M unused repurchase capacity CFO: strong FCF; ~$290M board authorization; lean into repo at current valuation Ongoing
Policy/regulatory——Possible DTC restrictions could redirect spend to GoodRx’s platform; could be tailwind Watching

Management Commentary

  • CEO Wendy Barnes: “I am here to help GoodRx accelerate its ability to solve the varied pain points that consumers currently face in getting medication… I’m thrilled to be here and am optimistic about the endless opportunities we have” .
  • Barnes on retail value: “Our partner pharmacies’ profitability… was up over 20% per script in January 2025 compared to the same period in 2024,” driven by cost‑plus reimbursement, pricing partnerships and brand drug solutions .
  • Barnes on manufacturer solutions: “We are becoming the starting point for brand medication access… ended the year with 78 signed brands… nearly 3x the number we began with in 2024” .
  • CFO Chris McGinnis: “For FY 2025, we expect revenue of $810–$840M and Adjusted EBITDA of $270–$286M… Q1 Adjusted EBITDA margin ~33%” .
  • McGinnis on FY 2024: Adjusted EBITDA +20% YoY; margin up 420 bps to 32.8% from 28.6%, driven by pull‑through and run‑rate savings post restructuring .

Q&A Highlights

  • ISP and ISP wrap rollout: Continued engagement with Express Scripts and Caremark; evolving to wrap non‑covered brands to broaden value; working to add another ISP partner; programs are complex but progressing .
  • Pharma manufacturer solutions growth: Confidence in ~20% growth market; 78 brand POS discounts signed; 5–10x traffic vs brand.com; proving ROI to expand portfolios (e.g., Pfizer menopause therapies) .
  • Retail relationships and contracting mix: 8 of top 10 pharmacies are direct/hybrid; multichannel model lets GoodRx optimize script routing and economics; direct volume ~35% and growing .
  • Kroger channel: Relationship “in a fantastic place”; volume improving; more runway ahead (specifics early to call) .
  • GLP‑1 opportunity: Strong consumer interest; aiming for competitive POS cash prices; supply stabilizing and compounding curtailed, raising branded demand .
  • Cost‑plus dynamics: ~70% of volume already on cost‑plus basis; viewed as neutral to positive; aligns long‑term with retailer health and better shared economics .

Estimates Context

  • We attempted to retrieve S&P Global consensus estimates for Q4 2024 and surrounding periods, but data was unavailable at the time of analysis due to a daily request limit on the SPGI service. As a result, we cannot provide formal “vs. consensus” beat/miss assessments for revenue or EPS (SPGI service error: “Daily Request Limit Exceeded”).
  • In lieu of consensus comparison, management indicated Q4 and FY 2024 results were “substantially in-line with previous guidance,” which we corroborate against guided ranges and actuals .

Key Takeaways for Investors

  • GoodRx’s profitability trajectory remains robust: FY 2024 Adjusted EBITDA rose 20% YoY and margins expanded sequentially through the year; Q4 margin at 33.8% positions the company well entering 2025 .
  • Mix shift is a positive lever: Brand POS discount programs (78 signed) and direct/hybrid retail contracts should support revenue per script even amid retail footprint rationalization .
  • Subscriptions remain a headwind post Kroger Club sunset; focus is shifting to manufacturer solutions, ISP expansion, and prescriber-office initiatives to drive growth .
  • 2025 outlook is modest top-line growth with sustained margins (FY revenue $810–$840M; Adjusted EBITDA $270–$286M; Q1 margin ~33%), suggesting continued operating discipline and cash generation .
  • Capital allocation is supportive: strong liquidity ($448.3M cash, $500.0M debt at YE 2024) and ~$290M repurchase authorization; management indicated leaning into buybacks given valuation .
  • Potential upside catalysts: GLP‑1 cash pricing, further brand portfolio expansion, additional ISP partners, and deeper retail tech integrations to reduce pharmacy labor costs .
  • Risks: retail store closures and PBM-pharmacy negotiation dynamics may pressure MACs; however, multichannel routing and mix improvements can offset consumer headwinds .