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GoodRx Holdings (GDRX)
NASDAQ:GDRX
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GoodRx Holdings
(NASDAQ:GDRX)
Rating:67Neutral
Price Target:
$5.00
▲(11.61%Upside)
Positive Factors
Market Position
Web Traffic Data Suggests Favorable Odds for GoodRx's ED Pivot, with GoodRx leading in monthly site traffic relative to identified ED subscription competitors.
Operational Efficiency
There is more room for GDRX to improve operating efficiency while additionally investing in future growth, which reinforces the view that the company can balance impressive profitability and growth.
Revenue Growth
GoodRx is leveraging its strong brand to create new revenue streams.
Negative Factors
Bankruptcy Impact
Although the second Rite Aid bankruptcy may create some choppiness, total exposure is manageable (around 5% of revenue), and management is already in discussions with potential file buyers to ensure continuity of GDRX access throughout the process.
Competitive Environment
GDRX’s offering is ~20% cheaper than HIMS, though not as cheap as AMZN’s offering.
Pharmacy Closures
Maintain our Underperform rating on GDRX given pharmacy closure and reimbursement model headwinds.
GoodRx Holdings (GDRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)1.60M
Price to Earnings (P/E)60.3
Beta (1Y)0.98
Revenue Growth4.35%
EPS GrowthN/A
CountryUS
Employees738
SectorHealthcare
Sector Strength48
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding100,300,160
10 Day Avg. Volume1,702,112
30 Day Avg. Volume1,595,495
Financial Highlights & Ratios
PEG Ratio-2.24
Price to Book (P/B)2.36
Price to Sales (P/S)0.00
P/FCF Ratio21.01
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit2.58
Enterprise Value/Ebitda3.45
Forecast
1Y Price Target
$6.34Price Target Upside41.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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 generates revenue primarily through its prescription transaction revenue model. The company earns money by providing consumers with access to discounts on prescription drugs; when a consumer uses a discount at a pharmacy, GoodRx receives a fee from the pharmacy or the pharmacy benefit manager (PBM). Additionally, GoodRx offers a subscription service called GoodRx Gold, which provides consumers with even deeper discounts on prescriptions for a monthly fee. GoodRx also generates revenue through advertising and telehealth services, partnering with pharmaceutical manufacturers and healthcare providers to reach consumers through its platform. Key partnerships with major pharmacies and PBMs play a significant role in facilitating these transactions and ensuring wide acceptance of GoodRx discounts.
GoodRx Holdings Key Performance Indicators (KPIs)
Any
Monthly Active Consumers
Shows the number of unique users engaging with the platform each month, highlighting user retention, platform popularity, and potential for monetization.
Shows the number of unique users engaging with the platform each month, highlighting user retention, platform popularity, and potential for monetization.
Data provided by:
Main Street Data
Main Street DataGoodRx Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 18.21%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook with several positive developments such as revenue growth, strong financial performance, and expanding manufacturer solutions. However, challenges like the Rite Aid bankruptcy, pressure on monthly active consumers, and macroeconomic uncertainties present potential setbacks.Q1-2025 Updates
Positive Updates
Revenue Growth and Strong Financial Performance
Total revenue for the first quarter was $203 million, up 3% versus the prior year, with adjusted EBITDA of $69.8 million rising 11%. The company has a strong balance sheet with $301 million in cash and $392.7 million in total liquidity.
Manufacturer Solutions Growth
Manufacturer solutions grew by 17% year-over-year, with an expectation of 20% growth for the full year, driven by expanded partnerships and deeper drug portfolio penetration.
New Leadership Appointments
Wendy Barnes completed her first 100 days as CEO, appointing key leaders like Aaron Crittenden as President of RX Marketplace and Scott Pope as Chief Pharmacy Officer, strengthening the leadership team.
Recognition and Brand Trust
GoodRx was recognized as one of Newsweek and USA Today's 2025 Most Trusted Brands, highlighting its strong consumer trust and brand presence.
Negative Updates
Impact of Rite Aid Bankruptcy
The recent announcement of Rite Aid's bankruptcy is creating uncertainty, though it is forecasted to be less than 5% of total revenue in 2025.
Pressure on Monthly Active Consumers (MACs)
Due to increased prescription pricing, there has been pressure on monthly active consumers, with MACs down mid-single digits year-over-year.
Challenges in the Macroeconomic Environment
Ongoing uncertainties in the macroeconomic environment, including regulatory changes, tariffs, and shifting consumer sentiment, could impact business performance.
Company Guidance
During the GoodRx First Quarter 2025 Earnings Call, the company provided guidance for the fiscal year, projecting total revenue between $810 million and $840 million, with anticipated growth of 2% to 6% compared to 2024. The company also slightly increased and narrowed its full-year adjusted EBITDA guidance to a range between $273 million and $287 million, representing 5% to 10% growth from the previous year. In the first quarter, GoodRx reported total revenue of $203 million, a 3% increase from the prior year, and an adjusted EBITDA of $69.8 million, reflecting an 11% year-over-year rise and a margin of 34.4%. GoodRx's prescription transaction revenue and manufacturer solutions revenue grew by 2% and 17%, respectively. The company ended the quarter with $301 million in cash and deployed approximately $100 million to repurchase shares, with $189 million remaining under its repurchase program. The guidance did not incorporate potential impacts from the recent Rite Aid bankruptcy announcement, as Rite Aid is projected to represent less than 5% of GoodRx's 2025 revenue.GoodRx Holdings Financial Statement Overview
Summary
GoodRx Holdings exhibits a robust financial profile with strong revenue growth, high profitability margins, and healthy cash generation. The company's low leverage and solid equity position provide stability. Despite some historical fluctuations in profitability, recent improvements indicate a positive trajectory.Income Statement
GoodRx Holdings has demonstrated strong revenue growth, with a notable increase from $550.7 million in 2020 to $797.4 million in TTM (Trailing-Twelve-Months) 2025. Gross profit margins remain robust, consistently above 85%, indicating effective cost management. The net profit margin has improved substantially to 6.0% in TTM 2025, reflecting enhanced profitability. EBITDA margins have strengthened to 18.0% in TTM 2025, showcasing operational efficiency. However, historical volatility in EBIT and net income margins poses a risk.76
Positive
Balance Sheet
GoodRx Holdings maintains a solid balance sheet with a debt-to-equity ratio of 0.08 in TTM 2025, indicating low leverage. The equity ratio stands at 50.5%, reflecting a healthy proportion of equity financing. However, the return on equity (ROE) is modest at 7.3% in TTM 2025, suggesting room for improvement in generating returns from equity. The company's strong cash position and low net debt further enhance financial stability.68
Positive
Cash Flow
The company exhibits a positive trend in operating cash flow, with a high operating cash flow to net income ratio of 3.14 in TTM 2025, highlighting effective cash conversion. Free cash flow growth is noteworthy, although it has seen fluctuations over the years. The free cash flow to net income ratio of 2.10 in TTM 2025 underscores strong cash generation relative to earnings.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 797.41M | 792.32M | 750.26M | 766.55M | 745.42M | 550.70M | Gross Profit |
| 731.34M | 744.11M | 683.34M | 701.48M | 698.71M | 521.11M | EBIT |
| 82.58M | 65.85M | -27.01M | 11.01M | 13.41M | -275.72M | EBITDA |
| 143.64M | 153.92M | 108.82M | 68.54M | 48.00M | -257.11M | Net Income Common Stockholders |
| 47.98M | 16.39M | -8.87M | -32.83M | -25.25M | -293.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 300.98M | 448.35M | 672.30M | 757.16M | 941.11M | 968.69M | Total Assets |
| 1.30B | 1.39B | 1.59B | 1.60B | 1.61B | 1.47B | Total Debt |
| 55.35M | 543.39M | 711.07M | 717.02M | 702.33M | 704.92M | Net Debt |
| -245.63M | 95.04M | 38.77M | -40.14M | -238.78M | -263.77M | Total Liabilities |
| 640.92M | 663.41M | 826.84M | 789.80M | 775.95M | 758.75M | Stockholders Equity |
| 654.35M | 724.66M | 761.96M | 814.83M | 831.68M | 711.36M |
| Cash Flow | Free Cash Flow | ||||
| 100.84M | 113.55M | 82.53M | 91.57M | 144.32M | 95.52M | Operating Cash Flow |
| 150.72M | 183.89M | 138.29M | 146.78M | 178.78M | 131.34M | Investing Cash Flow |
| -101.61M | -70.35M | -55.77M | -210.50M | -178.73M | -91.62M | Financing Cash Flow |
| -281.43M | -337.50M | -167.40M | -120.23M | -30.53M | 905.82M |
GoodRx Holdings Technical Analysis
Positive
4.48
Price Trends
4.28
Positive
4.49
Negative
5.12
Negative
Market Momentum
0.08
Negative
58.99
Neutral
66.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDRX, the sentiment is Positive. The current price of 4.48 is above the 20-day moving average (MA) of 4.10, above the 50-day MA of 4.28, and below the 200-day MA of 5.12, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 66.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDRX.
GoodRx Holdings Risk Analysis
GoodRx Holdings disclosed 71 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.85B | 38.21 | 10.11% | ― | 9.47% | -7.81% | |
67 Neutral | $1.57B | 60.30 | 4.43% | ― | 4.35% | ― | |
64 Neutral | $836.09M | 43.83 | 5.40% | 0.45% | 3.36% | 7.51% | |
59 Neutral | $1.53B | ― | -43.33% | ― | 22.29% | -32.89% | |
57 Neutral | $553.16M | ― | -86.36% | ― | -3.04% | -152.59% | |
54 Neutral | $5.25B | 3.27 | -44.35% | 6.27% | 16.79% | -0.10% | |
48 Neutral | $1.24B | ― | -54.49% | ― | -2.54% | -322.03% |
* Healthcare Sector Average
Performance Comparison
GDRX
GoodRx Holdings
4.48
-3.32
-42.56%
HSTM
HealthStream
27.42
-0.05
-0.18%
TDOC
Teladoc
7.01
-2.64
-27.36%
PGNY
Progyny
21.65
-3.69
-14.56%
SDGR
Schrodinger
21.05
2.10
11.08%
DH
Definitive Healthcare Corp
3.80
-1.64
-30.15%
GoodRx Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
GoodRx Holdings Holds Annual Stockholder Meeting
Positive
Jun 4, 2025
On June 3, 2025, GoodRx Holdings, Inc. conducted its Annual Meeting of Stockholders, where significant decisions were made regarding the company’s governance and financial oversight. Stockholders elected three Class II directors, ratified the appointment of PricewaterhouseCoopers LLP as the independent public accounting firm for 2025, and approved the executive compensation plan, reflecting strong shareholder support for the company’s leadership and strategic direction.
The most recent analyst rating on (GDRX) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on GoodRx Holdings stock, see the GDRX Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.