OptimizeRx (OPRX) AI Stock Analysis

• Market Cap: $151.62M
• Dividend Yield: N/A
• Average Volume (3M): 934.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: 28.81%
• EPS Growth: -8.03%
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 65
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -1.10
• Shares Outstanding: 18,490,385
• 10 Day Avg. Volume: 193,915
• 30 Day Avg. Volume: 934,848
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.80
• Price to Cash Flow (P/CF): 22.20
• P/FCF Ratio: 25.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.67
• Price Target Upside: 39.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

OptimizeRx shows promising revenue growth and strong technical indicators, supported by recent strategic leadership changes. However, persistent operational losses and negative valuation metrics weigh on its overall stock attractiveness. The company needs to achieve consistent profitability for a stronger financial outlook.

Positive Factors

Financial Performance

Optimizerx Corporation reported solid fourth quarter results with financial metrics that came in ahead of expectations across the board.

Market Strategy

Management is moving to transition the data component of its DAAP business into a recurring, subscription-based model, which should drive improved financial visibility and predictability.

Revenue Growth

The company reported revenue of $32.3 million, up 14% on a year-over-year basis and 52% sequentially.

Negative Factors

Acquisition Challenges

The anticipated growth from the recently acquired Medicx platform has not met expectations, pressuring the direct-to-consumer growth.

Leadership Changes

The news of CEO Will Febbo's resignation was unexpected, as it came shortly after he purchased shares and right before a holiday.

Stock Performance

The stock has underperformed over the past three years, indicating challenges that need to be addressed for better stock valuation.

OptimizeRx Business Overview & Revenue Model

Company Description

OptimizeRx Corporation, a digital health technology company, provides various solutions to life sciences organizations, healthcare providers, and patients. The company's products and applications include financial messaging, a virtual patient support center that allows doctors and staff to access sample vouchers, co-pay coupons, and other patient support through their EMR and/or e-prescribe systems; and brand awareness and therapeutic support messaging services, such as brand awareness messages, reminder ads, and therapeutic support and unbranded messages. It also offers brand support services, which focuses on educating and working with pharmaceutical manufacturers on identifying, formulating, and implementing eRx media strategies, including drug file integration, sales force training, and strategy development services for promoting their products. In addition, the company operates cloud based Mobile Health Messenger platform that provides interactive health messaging for enhanced medication adherence and care coordination; and HIPAA-compliant automated mobile messaging platform, which allows pharmaceutical manufactures and related entities to directly engage with patients to enhance regimen compliance. Further, it offers patient programs with treatment and affordability information, lifestyle and condition trackers, internet device connectivity, forms, and surveys. Additionally, the company provides evidence-based physician engagement solution applied to real-world data to assist healthcare providers in identifying patients who may be qualified for specific therapies, raise awareness of patient access pathways, and identify early indicators of non-adherence among patient populations. It also offers therapy initiation workflow focused on accelerating patient access to treatments where time-consuming medical documentation is required of HCPs prior to pharmacies dispensing prescribed drugs. The company was found in 2006 and is headquartered in Rochester, Michigan.

How the Company Makes Money

OptimizeRx makes money through a revenue model that focuses on providing its digital health technology solutions to pharmaceutical companies, healthcare providers, and other stakeholders in the healthcare ecosystem. Key revenue streams include subscription fees, service fees, and transaction-based fees for the use of its platform. Pharmaceutical companies pay to utilize OptimizeRx's platform to enhance their reach to healthcare providers and patients, offering services such as e-coupon distribution, patient messaging, and adherence support. Significant partnerships with EHR systems and healthcare networks also contribute to its earnings by expanding its platform's reach and integration capabilities.

OptimizeRx Financial Statement Overview

Summary

OptimizeRx demonstrates robust revenue growth and a solid balance sheet with low debt levels. However, consistent operational losses and negative profitability margins pose concerns. Improvements in cash flow are encouraging, but sustained profitability is needed for stronger financial health.

Income Statement

OptimizeRx has shown significant revenue growth, with a 28.8% increase from the previous year to TTM. However, the company remains unprofitable, with a negative net profit margin of -16.9% and negative EBIT and EBITDA margins, indicating operational challenges.

Balance Sheet

The company has a strong equity base with a high equity ratio of 68.4% as of TTM. The debt-to-equity ratio is low at 0.02, indicating prudent leverage. However, the company has been incurring losses, which has impacted return on equity.

Cash Flow

OptimizeRx has improved its cash flow with positive operating cash flow of $4.69 million and free cash flow of $4.36 million in TTM, compared to negative figures in the previous year. However, the free cash flow to net income ratio is negative due to ongoing losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
92.13M	71.52M	62.45M	61.29M	43.31M
	Gross Profit
59.38M	42.90M	38.97M	35.64M	24.11M
	EBIT
-13.71M	-26.40M	-12.29M	482.23K	-1.89M
	EBITDA
-8.90M	-21.31M	-9.42M	2.33M	-59.43K
	Net Income Common Stockholders
-20.11M	-17.57M	-10.59M	273.93K	-2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.38M	13.85M	74.14M	84.68M	10.52M
	Total Assets
171.17M	183.37M	134.65M	140.99M	60.33M
	Total Debt
2.38M	36.82M	234.43K	327.71K	448.75K
	Net Debt
-11.00M	22.97M	-17.97M	-84.35M	-10.07M
	Total Liabilities
54.17M	56.82M	8.54M	9.61M	10.35M
	Stockholders Equity
117.00M	126.55M	126.11M	131.38M	49.97M
Cash Flow		Free Cash Flow
4.78M	-8.11M	10.41M	240.04K	-6.44M
	Operating Cash Flow
4.89M	-7.24M	10.65M	726.04K	-6.31M
	Investing Cash Flow
-450.00K	-25.34M	-58.18M	-486.00K	-124.72K
	Financing Cash Flow
-4.91M	28.22M	-18.95M	73.92M	-1.90M

OptimizeRx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRX, the sentiment is Positive. The current price of 8.38 is above the 20-day moving average (MA) of 8.24, above the 50-day MA of 7.19, and above the 200-day MA of 6.91, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRX.

OptimizeRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	68 Neutral	$151.62M	―	-16.51%	―	28.81%	-8.03%
HCAT	52 Neutral	$256.97M	―	-18.99%	―	3.60%	44.95%
Sector *	51 Neutral	$5.31B	3.33	-39.82%	2.92%	17.95%	1.84%
SOPH	49 Neutral	$194.48M	―	-50.41%	―	4.49%	22.49%
AMWL	46 Neutral	$121.76M	―	-54.13%	―	-1.81%	70.88%
DH	46 Neutral	$391.38M	―	-63.28%	―	0.31%	-99.23%

OptimizeRx Corporate Events

OptimizeRx Announces Plan to Appoint New Director

On April 18, 2025, OptimizeRx Corporation announced its plan to appoint a new independent director to its board in the second half of 2025, as part of its ongoing efforts to refresh and expand its board of directors. This decision follows constructive engagement with Whetstone Capital Advisors, which withdrew its notice to nominate director candidates for the company’s 2025 Annual Meeting. The addition of a new director aims to enhance the board’s expertise and support the company’s strategy to build market share and drive revenue growth under the leadership of new CEO Steve Silvestro.

Spark’s Take on OPRX Stock

According to Spark, TipRanks’ AI Analyst, OPRX is a Outperform.

OptimizeRx’s stock is buoyed by strong technical indicators and a positive earnings outlook. However, financial performance is hindered by operational losses, and valuation remains a concern due to negative profitability metrics. The appointment of a new CEO is a promising strategic move, aligning with the company’s growth objectives.

To see Spark’s full report on OPRX stock, click here.

OptimizeRx Appoints Stephen Silvestro as New CEO

On March 10, 2025, OptimizeRx Corporation announced the appointment of Stephen Silvestro as its new Chief Executive Officer. Silvestro, who has been with the company since 2019, brings over 20 years of experience in health technology and services. His leadership is expected to drive the next phase of the company’s growth, focusing on operational excellence and strategic partnerships. The appointment follows a rigorous search process and marks a pivotal moment for OptimizeRx as it aims to enhance its market position and shareholder value.