OptimizeRx (OPRX) AI Stock Analysis

• Market Cap: $281.13M
• Dividend Yield: N/A
• Average Volume (3M): 360.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: 20.66%
• EPS Growth: 17.97%
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.08
• Shares Outstanding: 18,495,111
• 10 Day Avg. Volume: 434,074
• 30 Day Avg. Volume: 360,253
• PEG Ratio: <0.01
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.70
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: -4.93
• 1Y Price Target: $17.20
• Price Target Upside: 20.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: $15.00 ▲(5.12%Upside)

OptimizeRx's strong revenue growth and strategic enhancements, particularly the transition to a subscription model, are significant positives. Technical indicators show bullish momentum, supporting a positive outlook. However, profitability challenges and valuation concerns moderate the overall score.

Positive Factors

Financial Performance

OptimizeRx reported solid first-quarter results, with financial metrics that came in ahead of expectations across the board.

Revenue Growth

Management signed 26 DAAP deals in 4Q and closed 48 during 2024, compared to 24 in all of 2023.

Strategic Potential

The stock has been a year-to-date winner, with shares up around 90%, and the company could be a compelling takeout target for a strategic partner.

Negative Factors

Acquisition Concerns

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

Acquisition Cost Scrutiny

The price paid for the Medicx acquisition is questioned due to current challenges affecting its growth.

Leadership Challenges

The departure of the former CEO has left a vacancy, providing a significant opportunity to evaluate strategic options.

OptimizeRx Business Overview & Revenue Model

Company Description

OptimizeRx (OPRX) is a leading digital health company operating within the healthcare and pharmaceutical sectors. The company specializes in providing digital health solutions that facilitate communication between healthcare providers, patients, and pharmaceutical companies. Through its digital platforms, OptimizeRx offers services such as electronic health record (EHR) integration, patient engagement, and adherence solutions, driving improved health outcomes and streamlined healthcare processes.

How the Company Makes Money

OptimizeRx makes money primarily through its digital communication platforms that connect pharmaceutical companies with healthcare providers and patients. The company's revenue model is based on offering digital solutions that enable pharmaceutical companies to deliver promotional content, clinical information, and patient support programs directly through EHRs. Key revenue streams include fees from pharmaceutical companies for access to its platforms, subscription-based services, and partnerships that enhance its offerings. Additionally, the company's strategic collaborations with EHR providers and healthcare organizations help expand its reach and effectiveness, contributing significantly to its earnings.

OptimizeRx Financial Statement Overview

Summary

OptimizeRx shows steady revenue growth and strong cash flow improvements. However, ongoing negative net profit margins and ROE present profitability challenges despite a robust equity position and low leverage.

Income Statement

OptimizeRx has demonstrated steady revenue growth, with a 29.5% increase from 2023 to 2024 and a 2.4% increase into the TTM. However, profitability remains a concern as the company continues to report negative EBIT and net income margins. The TTM shows a gross profit margin of 64.1%, which is strong, yet the net profit margin is -16.3%, indicating ongoing operational challenges.

Balance Sheet

The balance sheet showcases stability with a solid equity base, as reflected by an equity ratio of 69.3% in the TTM. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and low financial risk. However, the consistent losses have impacted return on equity, which remains negative.

Cash Flow

Cash flow analysis shows positive free cash flow in the TTM, with a growth rate of 32.1% from the previous year. The operating cash flow to net income ratio is positive at -0.43, which is an improvement, reflecting enhanced cash generation relative to net losses. Despite this, the company needs to sustain and further improve its cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
94.36M	92.13M	71.52M	62.45M	61.29M	43.31M
	Gross Profit
59.42M	59.38M	42.90M	38.97M	35.64M	24.11M
	EBIT
-10.79M	-13.71M	-26.40M	-12.29M	361.10K	-2.14M
	EBITDA
-6.27M	-8.90M	-21.31M	-9.42M	2.33M	-131.24K
	Net Income Common Stockholders
-15.41M	-20.11M	-17.57M	-11.44M	378.08K	-2.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.57M	13.38M	13.85M	74.14M	84.68M	10.52M
	Total Assets
167.77M	171.17M	183.37M	134.65M	140.99M	60.33M
	Total Debt
32.80M	33.19M	36.82M	234.43K	327.71K	448.75K
	Net Debt
-12.96M	19.81M	22.97M	-17.97M	-84.35M	-10.07M
	Total Liabilities
51.50M	54.17M	56.82M	8.54M	9.61M	10.35M
	Stockholders Equity
116.27M	117.00M	126.55M	126.11M	131.38M	49.97M
Cash Flow		Free Cash Flow
6.31M	4.78M	-8.11M	10.41M	240.04K	-6.44M
	Operating Cash Flow
6.63M	4.89M	-7.24M	10.65M	726.04K	-6.31M
	Investing Cash Flow
-381.00K	-450.00K	-25.34M	-58.18M	-486.00K	-124.72K
	Financing Cash Flow
-4.86M	-4.91M	28.22M	-18.95M	73.92M	-1.90M

OptimizeRx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.27 is above the 20-day moving average (MA) of 13.14, above the 50-day MA of 10.59, and above the 200-day MA of 7.28, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 77.40 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	70 Outperform	$281.13M	―	-12.90%	―	20.66%	17.97%
HCAT	61 Neutral	$277.01M	―	-19.80%	―	4.88%	37.87%
DH	57 Neutral	$531.21M	―	-86.36%	―	-3.04%	-152.59%
SOPH	55 Neutral	$193.81M	―	-60.75%	―	4.66%	11.33%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
AMWL	50 Neutral	$113.51M	―	-44.04%	―	2.79%	58.22%

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.