GoodRx Holdings (GDRX) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: N/A
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 47.1
• Beta (1Y): 0.95
• Revenue Growth: 3.20%
• EPS Growth: N/A
• Country: US
• Employees: 738
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.09
• Shares Outstanding: 98,580,670
• 10 Day Avg. Volume: 9,323,501
• 30 Day Avg. Volume: 4,062,994
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 11.48
• 1Y Price Target: $5.36
• Price Target Upside: 19.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: $5.00 ▲(11.36% Upside)

GoodRx Holdings demonstrates strong financial performance and strategic initiatives that support long-term growth. However, high valuation and recent challenges from external factors like the Rite Aid bankruptcy pose risks. The technical indicators suggest a neutral trend, and while there are promising growth initiatives, immediate financial outlook faces headwinds.

Positive Factors

Partnerships

GoodRx's agreement with Novo Nordisk to offer Ozempic and Wegovy at a discounted cash price is a significant win for the manufacturer solutions segment.

Platform Growth

The GDRX platform, with over 5.5 million monthly active consumers and connectivity with over 70,000 retail pharmacies across the US, has the scale to be a more significant direct-to-consumer biopharma advertising channel.

Revenue Growth

Manufacturing Solutions revenue was a bright spot, increasing 32%, highlighting growing interest from pharma partners.

Negative Factors

Evolving Pharmacy Landscape

GoodRx’s weak 2Q results relative to consensus and guidance reduction reflect the challenges the business is facing from the evolving pharmacy landscape.

Pharmacy Closures

Ongoing headwinds from pharmacy closures and reimbursement changes in the pharmacy ecosystem.

Revenue Challenges

Goodrx Holdings, Inc. missed second-quarter estimates and reduced its revenue guidance for 2025.

GoodRx Holdings Business Overview & Revenue Model

Company Description

GoodRx Holdings, Inc. is a leading American healthcare technology company that operates a digital platform designed to make healthcare more affordable and accessible to consumers. The company is primarily known for its mobile app and website that offer price comparison tools for prescription drugs, enabling consumers to find low prices and discounts at local pharmacies. GoodRx operates within the healthcare and technology sectors, offering services that benefit consumers, healthcare professionals, and pharmacies.

How the Company Makes Money

GoodRx 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 Financial Statement Overview

Summary

GoodRx Holdings exhibits strong revenue growth and high profitability margins, with a robust cash flow and low leverage. However, historical volatility in profitability and modest return on equity suggest areas for improvement.

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.

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.

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.

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: Positive
• Last Price: 4.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.49 is above the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.58, and below the 200-day MA of 4.57, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDRX.

GoodRx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	76 Outperform	$1.96B	38.30	10.94%	―	9.62%	-6.61%
HSTM	69 Neutral	$786.68M	39.89	5.81%	0.44%	3.50%	13.99%
GDRX	66 Neutral	$1.62B	47.09	5.27%	―	3.20%	―
Sector *	51 Neutral	$7.82B	-0.16	-39.78%	2.19%	21.38%	-1.56%
SDGR	50 Neutral	$1.43B	―	-44.40%	―	18.59%	10.96%
DH	49 Neutral	$540.01M	―	-64.27%	―	-5.24%	23.59%
TDOC	47 Neutral	$1.30B	―	-14.18%	―	-2.57%	79.86%

GoodRx Holdings Corporate Events

GoodRx Holdings Holds Annual Stockholder Meeting

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.