GICS Sector : Healthcare
GoodRx Holdings, Inc., through its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States.The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices through GoodRx codes that are used to save money on prescriptions across the United States.It also offers other healthcare products and services, including subscriptions, pharma manufacturer solutions, and telehealth services.
GoodRx Holdings reported revenue of $194.8 million and Adjusted EBITDA of $65 million for the fourth quarter and full year 2025, in line with the company's latest guidance. Earnings per share (EPS) came in at $0.09, matching analyst estimates. The company's financial performance was characterized by a strong finish to the year, driven by disciplined execution across its strategic priorities, including expanding direct-to-consumer affordability programs and scaling differentiated subscription offerings.
Publication Date: Mar -01
The company's revenue growth is expected to be driven by Pharma Direct and Employer Direct, with Pharma Direct revenue anticipated to grow at least 30% in 2026 year-over-year. However, the company expects pressure on prescription transactions revenue in 2026 due to factors such as the non-recurrence of significant revenue from Rite Aid and partner programs in 2025, a shift of claims to Pharma Direct, and a decline in unit economics. The company's guidance for 2026 reflects a margin pressure of 400 basis points year-over-year.
With a P/E Ratio of 7.7 and an EV/EBITDA of 2.38, the market appears to have a relatively conservative view of the company's growth prospects. The company's ROE of 13.15% and ROIC of 7.49% indicate a decent return on equity and invested capital, respectively. The Free Cash Flow Yield of 17.06% is also attractive, suggesting that the company generates significant cash from its operations.
The company is making significant progress in its strategic shift towards a direct-to-consumer model, with over 100 brand self-pay programs live and integrated into TrumpRx. The company's condition-specific subscriptions, particularly weight loss, have seen strong early adoption, and it expects revenue from these programs to grow 4x-5x by December 2026. As Wendy Barnes noted, "We're executing against those choices with discipline and consistency, while continuing to strengthen the foundation of our platform."
Analysts estimate next year's revenue growth at 5.4%, which is relatively modest. However, the company's focus on high-growth areas such as Pharma Direct and Employer Direct, combined with its disciplined execution, is expected to drive long-term growth. The company's guidance for 2026 reflects its commitment to investing in new offerings and strengthening its platform, positioning it for stronger, more resilient long-term growth.
GoodRx Partners with Viatris to Offer Up to 85% Savings on Established Brand Medications
Mar -11
GoodRx to Expand Employer-Sponsored Access to Zepbound® KwikPen®
Mar -06
First Look: Broadcom (AVGO) AI Beat; Tech Power Pledge
Mar -05
GoodRx Holdings, Inc. (GDRX) Q4 2025 Earnings Call Transcript
Feb -26
GoodRx Targets Digital Subscription Growth Amid 14% Dip in Active Consumers
Feb -26
Here's What Key Metrics Tell Us About GoodRx (GDRX) Q4 Earnings
Feb -26
GoodRx Expands Into Employer Market With Launch of “GoodRx Employer Direct”
Feb -24
GoodRx (NASDAQ:GDRX) vs. Teladoc Health (NYSE:TDOC) Financial Comparison
Feb -19
GoodRx Holdings, Inc.'s 10% growth in Prescription Transactions is driven by increasing adoption of digital healthcare platforms, rising healthcare costs, and growing demand for prescription discounts. Additionally, the company's expanding network of pharmacy partners, improved user experience, and targeted marketing efforts contribute to the growth.
GoodRx's subscription growth is driven by increasing adoption of its prescription discount platform, expansion into new markets, and growing demand for affordable healthcare solutions. Additionally, the company's strategic partnerships with major pharmacies and telehealth providers, as well as its user-friendly interface and competitive pricing, contribute to its rapid growth.
GoodRx Holdings' Pharma Manufacturer Solutions segment growth is driven by increasing adoption of digital prescription technology, rising demand for affordable healthcare solutions, and strategic partnerships with pharmaceutical companies. Additionally, the company's data analytics capabilities and patient engagement platforms contribute to the segment's 9% growth.
GoodRx Holdings, Inc.'s 8% growth is driven by increasing adoption of its prescription discount platform, expansion into new markets, and growing demand for affordable healthcare solutions. Additionally, strategic partnerships with pharmaceutical companies and pharmacies, as well as investments in digital marketing and user experience, contribute to its growth momentum.
A subscription-based discount program that offers exclusive discounts on prescription medications
A free discount card that provides savings on prescription medications at participating pharmacies
A telemedicine platform that connects patients with healthcare providers for online consultations
A mail-order pharmacy service that delivers prescription medications directly to customers' homes
A healthcare platform that provides access to healthcare services, including telemedicine, mail-order pharmacy, and prescription discount cards
GoodRx Holdings, Inc. operates in a niche market, providing a unique service that allows users to compare prices and find discounts on prescription medications. The threat of substitutes is low because there are limited alternatives that offer the same level of convenience and savings.
GoodRx Holdings, Inc. has a large customer base, but individual customers do not have significant bargaining power. However, the company's revenue is concentrated among a few large pharmacy benefit managers, which gives them some bargaining power.
GoodRx Holdings, Inc. has a diverse supplier base, including pharmacies, wholesalers, and manufacturers. The company's suppliers do not have significant bargaining power due to the competitive nature of the industry.
The threat of new entrants in the prescription medication discount space is moderate. While there are barriers to entry, such as building a network of pharmacies and negotiating discounts, new entrants could potentially disrupt the market.
The intensity of rivalry in the prescription medication discount space is high. GoodRx Holdings, Inc. competes with other discount programs and cash-pay models, and the company must continually innovate and improve its services to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 46.52% |
| Debt Cost | 10.83% |
| Equity Weight | 53.48% |
| Equity Cost | 10.83% |
| WACC | 10.83% |
| Leverage | 86.97% |
Value: 3.6
Growth: 8.1
Quality: 6.6
Yield: 0.0
Momentum: 10.0
Volatility: 3.3
1-Year Total Return ->
Value: 2.0
Growth: 8.2
Quality: 8.2
Yield: 0.0
Momentum: 7.0
Volatility: 5.3
1-Year Total Return ->
Value: 1.3
Growth: 8.9
Quality: 9.5
Yield: 0.0
Momentum: 5.0
Volatility: 3.0
1-Year Total Return ->
Value: 6.5
Growth: 5.9
Quality: 7.1
Yield: 0.0
Momentum: 1.5
Volatility: 1.7
1-Year Total Return ->
Value: 3.3
Growth: 5.9
Quality: 5.7
Yield: 0.0
Momentum: 3.5
Volatility: 2.7
1-Year Total Return ->
Value: 5.8
Growth: 3.1
Quality: 4.0
Yield: 0.0
Momentum: 5.5
Volatility: 2.0
1-Year Total Return ->