Strong Q1 2025 Performance and Raised EBITDA Guidance Justify Buy Rating for GoodRx Holdings

Analyst Daniel Grosslight of Citi maintained a Buy rating on GoodRx Holdings (GDRX – Research Report), retaining the price target of $6.75.

Daniel Grosslight’s rating is based on GoodRx Holdings’ strong financial performance in the first quarter of 2025, which exceeded expectations in several key areas. The company’s revenue increased by 2.6% year-over-year, aligning with guidance and surpassing both Citi and consensus estimates. Notably, the adjusted EBITDA showed significant improvement, expanding by 266 basis points year-over-year and exceeding the high end of guidance by approximately $2 million.
Furthermore, the Prescription Transaction Revenue (PTR) outperformed expectations, growing by about 2.5% year-over-year, which helped offset some challenges in other areas. Despite a slight miss in Pharma Manufacturer Solutions revenue, the overall profitability was impressive, driven by efficiencies in sales and marketing. These positive financial indicators, along with the raised EBITDA guidance for the full year, underpin Grosslight’s Buy rating for GoodRx Holdings.

In another report released on April 29, Wells Fargo also maintained a Buy rating on the stock with a $7.00 price target.