GoodRx Holdings (GDRX) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.87
• Revenue Growth: 3.20%
• EPS Growth: N/A
• Country: US
• Employees: 738
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.09
• Shares Outstanding: 98,580,670
• 10 Day Avg. Volume: 3,201,684
• 30 Day Avg. Volume: 5,028,164
• PEG Ratio: -0.38
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 15.80
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 11.48
• 1Y Price Target: $5.29
• Price Target Upside: 40.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $4.00 ▲(6.10% Upside)

GoodRx Holdings shows strong financial performance with significant improvements in profitability and cash flow generation. However, technical indicators suggest a bearish trend, and the stock's high P/E ratio raises valuation concerns. The earnings call provided a mixed outlook with strong segment growth but notable revenue challenges. Overall, the stock presents a balanced risk-reward profile with potential for growth if strategic initiatives succeed.

Positive Factors

Revenue Growth

Strong growth in the Pharma Manufacturer Solutions segment indicates robust demand and effective monetization strategies, supporting long-term revenue expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and providing a buffer against economic downturns.

New Product Launch

The launch of new subscription products diversifies revenue streams and taps into new consumer segments, potentially driving sustained growth and market expansion.

Negative Factors

Rite Aid Bankruptcy Impact

The bankruptcy of a major partner disrupts distribution channels and reduces revenue, posing a challenge to maintaining growth and market presence.

Integrated Savings Program Volume Decline

Decreased volume in savings programs can lead to reduced revenue, highlighting potential vulnerabilities in partnerships and customer retention strategies.

Prescription Transaction Revenue Decline

A decline in transaction revenue suggests challenges in maintaining user engagement and competitive pricing, impacting overall revenue growth potential.

GoodRx Holdings Business Overview & Revenue Model

Company Description

GoodRx Holdings, Inc. is a healthcare technology company that operates in the digital health sector, primarily focused on providing prescription drug price transparency and savings solutions. Through its platform, GoodRx enables consumers to compare prices for medications at various pharmacies, access coupons, and find discounts, ultimately aiming to make healthcare more affordable. The company's core products include its website and mobile applications that offer price comparisons, telehealth services, and pharmacy discount cards, catering to a wide range of consumers seeking to lower their prescription drug costs.

How the Company Makes Money

GoodRx generates revenue through several key streams. The primary source of income comes from the fees it earns when consumers use its platform to obtain discounts on prescription medications. When a user redeems a coupon at a pharmacy, GoodRx receives a transaction fee from the pharmacy or pharmacy benefit manager (PBM). Additionally, GoodRx partners with healthcare providers and telehealth services, earning revenue from telehealth consultations and prescriptions facilitated through its platform. The company also explores advertising opportunities and partnerships with pharmaceutical companies, allowing for additional income through sponsored listings and promotions. These diverse revenue streams contribute to GoodRx's overall earnings, leveraging both consumer engagement and partnerships within the healthcare ecosystem.

GoodRx Holdings Financial Statement Overview

Summary

GoodRx Holdings shows strong financial health with significant improvements in profitability and cash flow generation. The company has effectively reduced its leverage, enhancing financial stability. Continued focus on operational efficiency could further improve EBIT margins, supporting sustained growth.

Income Statement

GoodRx Holdings has shown a strong revenue growth rate of 30.8% in the TTM, with a high gross profit margin of 93.68%. The net profit margin has improved significantly to 7.05% from a negative margin in previous years, indicating enhanced profitability. However, the EBIT margin is relatively low at 8.82%, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.10 in the TTM, indicating a strong reduction in leverage compared to previous years. The return on equity has increased to 8.29%, reflecting better utilization of equity. However, the equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

GoodRx Holdings has demonstrated a robust free cash flow growth rate of 56.24% in the TTM, with a strong operating cash flow to net income ratio of 1.08. The free cash flow to net income ratio is healthy at 0.77, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	799.87M	792.32M	750.26M	766.55M	745.42M	550.70M
Gross Profit	729.55M	744.11M	683.34M	701.48M	698.71M	521.11M
EBITDA	178.12M	153.92M	108.82M	68.54M	48.00M	-257.11M
Net Income	42.89M	16.39M	-8.87M	-32.83M	-25.25M	-293.62M
Balance Sheet
Total Assets	1.32B	1.39B	1.59B	1.60B	1.61B	1.47B
Cash, Cash Equivalents and Short-Term Investments	281.32M	448.35M	672.30M	757.16M	941.11M	968.69M
Total Debt	547.54M	543.39M	711.07M	717.02M	702.33M	704.92M
Total Liabilities	675.67M	663.41M	826.84M	789.80M	775.95M	758.75M
Stockholders Equity	643.03M	724.66M	761.96M	814.83M	831.68M	711.36M
Cash Flow
Free Cash Flow	157.56M	113.55M	82.53M	91.57M	144.32M	95.52M
Operating Cash Flow	190.60M	183.89M	138.29M	146.78M	178.78M	131.34M
Investing Cash Flow	-102.69M	-70.35M	-55.77M	-210.50M	-178.73M	-91.62M
Financing Cash Flow	-331.49M	-337.50M	-167.40M	-120.23M	-30.53M	905.82M

GoodRx Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.77 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.20, and below the 200-day MA of 4.44, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDRX.

GoodRx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDRX	―	$1.37B	40.63	5.27%	―	3.20%	―
CCLD	―	$128.66M	―	22.69%	―	0.04%	98.87%
PHR	―	$1.41B	―	-8.76%	―	15.31%	77.02%
OMDA	―	$1.49B	―	―	―	47.99%	44.25%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMWL	―	$86.25M	―	-38.52%	―	5.83%	61.94%
TDOC	―	$1.67B	―	―	―	-2.37%	77.84%

GoodRx Holdings Corporate Events

GoodRx Earnings Call: Growth Amid Challenges

During GoodRx Holdings, Inc.’s latest earnings call, the sentiment was a mix of optimism and caution. The company showcased strong growth in its pharma manufacturer solutions segment and improved EBITDA margins, which were promising. However, these positives were tempered by significant disruptions, notably the Rite Aid bankruptcy and a decline in ISP program volume, which have had an immediate financial impact. Despite these challenges, GoodRx remains committed to growth initiatives and new partnerships that show potential for future success.

GoodRx Reports Steady Q2 2025 Financial Results

GoodRx Holdings, Inc. is a leading platform for medication savings in the United States, connecting consumers with healthcare professionals, payers, and pharmacies to facilitate cost-effective prescription purchases. In its second quarter of 2025, GoodRx reported revenue of $203.1 million and a net income of $12.8 million, both aligning with previous guidance. The company saw a significant 32% year-over-year increase in pharma manufacturer solutions revenue, despite a slight overall revenue growth of 1% compared to the previous year. Key financial metrics included an adjusted EBITDA of $69.4 million and a net cash flow from operating activities of $49.6 million, highlighting operational efficiency and financial stability. However, the company faced challenges with a 3% decrease in prescription transactions revenue and a 7% drop in subscription revenue, attributed to changes in the retail pharmacy landscape and a reduction in subscription plans. Looking forward, GoodRx remains optimistic about its growth prospects, with management anticipating an increase in full-year 2025 revenue compared to 2024, despite external challenges such as the Rite Aid bankruptcy and volume reductions in savings programs. The company continues to focus on strategic initiatives to drive long-term growth and maintain its position as a key player in the healthcare ecosystem.