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GoodRx Holdings (GDRX)
NASDAQ:GDRX
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GoodRx Holdings
(NASDAQ:GDRX)
67Neutral
Positive Factors
Earnings Growth
Management expects to see revenue growth above 20%, underpinned by growth in POS programs, copay and patient support programs, and e-commerce solutions.
Market Share
GDRX believes its market share of the prescription discount segment grew 3%.
Negative Factors
Management Changes
Investors may have been concerned that the CFO departure was a signal of risk of further financial deterioration at the company.
Pharmacy Closures
Heightened retail pharmacy store closure risk prompts a conservative price target.
GoodRx Holdings (GDRX) vs. S&P 500 (SPY)
Market Cap
$1.73B
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)106.1
Beta (1Y)1.04
Revenue Growth5.61%
EPS GrowthN/A
CountryUS
Employees738
SectorHealthcare
Sector Strength64
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding106,740,326
10 Day Avg. Volume1,688,383
30 Day Avg. Volume1,827,698
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.25
Price to Cash Flow (P/CF)10.00
P/FCF Ratio15.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.61Price Target Upside46.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
GoodRx Holdings Business Overview & Revenue Model
Company DescriptionGoodRx 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. It serves pharmacy benefit managers that manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was incorporated in 2015 and is headquartered in Santa Monica, California.
How the Company Makes MoneyGoodRx makes money primarily through advertising and referral fees from pharmacy benefit managers (PBMs) and pharmacies when consumers use its discount codes to purchase medications. Additionally, the company generates revenue from subscriptions to its GoodRx Gold membership program, which offers even larger discounts on prescription drugs. GoodRx also earns from its telehealth services by charging fees for virtual doctor consultations. Key partnerships with PBMs and pharmacies are significant factors contributing to its earnings, as they allow GoodRx to offer competitive discounts and access to a wide network of pharmacies.
GoodRx Holdings Financial Statement Overview
Summary
GoodRx Holdings demonstrates robust revenue growth and improving profitability, supported by a strong balance sheet with reduced leverage. Cash flow management is stable, though historical volatility in net income and cash flows suggests some risk.Income Statement
GoodRx Holdings shows a consistent increase in revenue over recent years, indicating healthy growth. The gross profit margin is strong, over 90%, suggesting effective cost management. However, net profit margins have fluctuated, with recent improvements after earlier losses. EBIT and EBITDA margins have shown positive trends, moving from negative to positive, indicating improved operational efficiency.75
Positive
Balance Sheet
GoodRx Holdings maintains a healthy equity ratio, reflecting a solid financial base with stockholders' equity making up over 50% of total assets. The debt-to-equity ratio has improved, indicating reduced leverage risk. However, the company has experienced volatility in net income, impacting the return on equity, which has been negative in recent years but is now positive.70
Positive
Cash Flow
The company's free cash flow has improved, although it experienced some fluctuations in recent years. The operating cash flow to net income ratio suggests adequate cash generation relative to net income, despite previous years of negative net income. Free cash flow to net income ratio is stable, indicating effective cash management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 792.32M | 750.26M | 766.55M | 745.42M | 550.70M | Gross Profit |
| 744.11M | 683.34M | 701.48M | 698.71M | 521.11M | EBIT |
| 65.85M | -27.01M | 11.01M | 13.41M | -275.72M | EBITDA |
| 153.92M | 108.82M | 68.54M | 48.00M | -257.11M | Net Income Common Stockholders |
| 16.39M | -8.87M | -32.83M | -25.25M | -293.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 448.35M | 672.30M | 757.16M | 941.11M | 968.69M | Total Assets |
| 1.39B | 1.59B | 1.60B | 1.61B | 1.47B | Total Debt |
| 56.68M | 711.07M | 717.02M | 702.33M | 704.92M | Net Debt |
| -391.67M | 38.77M | -40.14M | -238.78M | -263.77M | Total Liabilities |
| 663.41M | 826.84M | 789.80M | 775.95M | 758.75M | Stockholders Equity |
| 724.66M | 761.96M | 814.83M | 831.68M | 711.36M |
| Cash Flow | Free Cash Flow | |||
| 163.00K | 82.53M | 91.57M | 144.32M | 95.52M | Operating Cash Flow |
| 163.00K | 138.29M | 146.78M | 178.78M | 131.34M | Investing Cash Flow |
| -70.35M | -55.77M | -210.50M | -178.73M | -91.62M | Financing Cash Flow |
| -337.50M | -167.40M | -120.23M | -30.53M | 905.82M |
GoodRx Holdings Technical Analysis
Negative
4.52
Price Trends
4.75
Negative
4.76
Negative
6.21
Negative
Market Momentum
-0.06
Positive
44.23
Neutral
35.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDRX, the sentiment is Negative. The current price of 4.52 is below the 20-day moving average (MA) of 4.63, below the 50-day MA of 4.75, and below the 200-day MA of 6.21, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 35.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDRX.
GoodRx Holdings Risk Analysis
GoodRx Holdings disclosed 70 risk factors in its most recent earnings report. GoodRx Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GoodRx Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $84.73B | 18.18 | 6.07% | 3.96% | 4.02% | -43.51% | |
71 Outperform | $7.09B | 59.69 | 30.71% | ― | 69.33% | ― | |
67 Neutral | $1.73B | 106.10 | 2.21% | ― | 5.61% | ― | |
51 Neutral | $9.65B | ― | -60.05% | 9.01% | 5.62% | -1637.59% | |
49 Neutral | $6.86B | 0.72 | -52.93% | 2.49% | 20.83% | 1.11% | |
45 Neutral | $1.49B | ― | -52.46% | ― | -1.26% | -338.56% | |
43 Neutral | $126.28M | ― | -54.13% | ― | -1.81% | 70.88% |
* Healthcare Sector Average
Performance Comparison
GDRX
GoodRx Holdings
4.52
-2.58
-36.34%
CVS
CVS Health
67.59
-8.50
-11.17%
WBA
Walgreens Boots Alliance
11.16
-7.11
-38.92%
TDOC
Teladoc
8.56
-6.29
-42.36%
HIMS
Hims & Hers Health
31.92
16.26
103.83%
AMWL
American Well
8.09
-7.34
-47.57%
GoodRx Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -7.57% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reveals significant growth and achievements in consumer reach, pharmacy partnerships, and financial metrics, with a few notable challenges in subscription revenue and ISP program expansion.Highlights
Increased Consumer Use and Savings
In 2024, nearly 30 million consumers used GoodRx, which is almost 5 million more than in 2023, resulting in nearly $17 billion in medication savings.
Growth in Prescription Discount Segment
The share of the prescription discount segment grew by 3% year-over-year in the fourth quarter, reinforcing GoodRx's position as a leading platform for medication savings.
Pharmacy Partner Profitability
Partner pharmacies saw profitability increase by over 20% per script in January 2025 compared to the same period in 2024.
Manufacturer Solutions Revenue Growth
Pharma manufacturer solutions revenue increased by 26% year-over-year, growing the number of brands from 150 in 2023 to over 200 in 2024.
Financial Growth
Full year 2024 revenue was $792.3 million, up 6%, with adjusted EBITDA growing 20% year-over-year to $260.2 million.
Lowlights
Decline in Subscription Revenue
Subscription revenue declined by 8% to $86.5 million, largely due to the sunset of a retailer-specific prescription savings program.
Retail Challenges Impacting Prescription Transactions
Headwinds on monthly active consumers are expected due to retail pharmacy challenges and store rationalizations.
ISP Program Expansion Challenges
Integrated Savings Program (ISP) expansion has been slower than anticipated, with ongoing negotiations needed to include non-covered brands.
Company Guidance
During the GoodRx earnings call for the fourth quarter and full year 2024, the company provided guidance for 2025, expecting revenue to range between $810 million and $840 million, representing a growth of approximately 4% at the midpoint. The adjusted EBITDA is projected to be between $270 million and $286 million, indicating around 7% growth. In the fourth quarter of 2024, the company achieved revenue of $198.6 million and an adjusted EBITDA of $67.1 million, contributing to a full-year revenue of $792.3 million, up 6% year-over-year, and an adjusted EBITDA of $260.2 million, marking a 20% increase. The prescription transactions revenue grew 5% to $577.5 million, while subscription revenue declined by 8% to $86.5 million. The Pharma Manufacturer Solutions revenue saw a 26% increase, reaching $107.2 million. The company also noted improvements in pharmacy profitability, with a 20% increase per script in their partner pharmacies' book of business in January 2025 compared to the previous year. GoodRx highlighted the expansion of its integrated savings program and manufacturer solutions, aiming to enhance medication access and drive growth.GoodRx Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
GoodRx Holdings Appoints Christopher McGinnis as CFO
Positive
Feb 5, 2025
On February 4, 2025, GoodRx Holdings appointed Christopher A. McGinnis as Chief Financial Officer and Treasurer. McGinnis brings extensive experience from his previous roles in pharmacy benefits management and healthcare financial operations. This strategic appointment aligns with GoodRx’s efforts to strengthen its executive team and enhance its financial management capabilities. McGinnis’s employment agreement includes a competitive salary, incentive bonuses, and stock options, signaling a significant investment in leadership to drive future growth and operational efficiency.
Executive/Board Changes
GoodRx Holdings Appoints Scott Wagner as Co-Chair
Neutral
Jan 22, 2025
On January 21, 2025, GoodRx Holdings announced the appointment of Scott Wagner as a Class II director and Co-Chair of the Board, following his tenure as Interim CEO. Wagner’s extensive leadership experience, including his role at GoDaddy, is expected to enhance the company’s strategic direction. Simon Patterson resigned from the Board, with no disagreements cited, and his vacancy was filled by Wagner. Wagner will receive compensation in line with GoodRx’s Non-Employee Director Compensation Program.
Executive/Board Changes
GoodRx Holdings CFO Resigns, Interim CFO Appointed
Neutral
Jan 13, 2025
GoodRx Holdings has announced that its Chief Financial Officer, Karsten Voermann, has resigned for personal reasons, effective January 17, 2025. The company has appointed Romin Nabiey, the current Chief Accounting Officer, as the Interim Chief Financial Officer while they search for a permanent replacement. The transition is amicable, with no disagreements cited between Voermann and the company. Voermann will enter into a Separation Agreement, allowing him to retain certain stock options and bonuses, while also agreeing to non-disparagement and confidentiality clauses.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.