Goodrx 2025 Q2 Earnings Solid Performance as Net Income Surges 91.9%

Goodrx reported mixed results for Q2 2025, with revenue up slightly year-over-year while prescription transaction revenue declined. Management reaffirmed full-year guidance for revenue growth and a modest increase in Adjusted EBITDA despite downward revisions stemming from external factors like the Rite Aid bankruptcy and reduced volume in an integrated savings program.

Revenue
Goodrx’s total revenue rose 1.2% year-over-year to $203.07 million in Q2 2025, with the pharma manufacturer solutions segment showing robust growth. Prescription transactions revenue fell 3% to $143.06 million due to a 14% drop in Monthly Active Consumers, driven by retail pharmacy challenges. Subscription revenue declined 7% to $20.46 million as the number of plans decreased. Meanwhile, pharma manufacturer solutions revenue surged 32% year-over-year to $34.98 million, fueled by organic growth and expanded market penetration. Other revenue totaled $4.56 million, rounding out the revenue mix.

Earnings/Net Income
Net income soared 91.9% year-over-year to $12.84 million, or $0.04 per share, driven by improved operational efficiencies and cost controls. Adjusted net income came in at $33.9 million, with the 100% increase in EPS signaling strong underlying profitability, which bodes well for the company’s financial resilience.

Price Action
In the immediate aftermath of the earnings release, Goodrx’s stock fell 1.59% on the day, 11.25% for the week, and 8.44% month-to-date, reflecting market skepticism despite improved profitability.

Post-Earnings Price Action Review
Despite positive earnings results, a post-earnings trading strategy of buying GDRX and holding for 30 days yielded a stark loss of -91.06%, significantly underperforming the benchmark. This strategy highlighted minimal returns and a Sharpe ratio of -0.64, indicating high volatility and subpar risk-adjusted performance.

CEO Commentary
Wendy Barnes, CEO and President, highlighted GoodRx’s progress in expanding its pharma manufacturer solutions and launching new offerings like a condition-specific subscription for erectile dysfunction. She emphasized the company’s role in reducing medication access friction and its positioning as a complement to insurance, despite industry headwinds such as retail pharmacy closures and volume declines.

Guidance
For FY 2025, GoodRx expects revenue growth from FY 2024’s $792.3 million, with Adjusted EBITDA projected to range between $265 million and $275 million. This reflects a 2% to 6% increase over the prior year. Management also emphasized disciplined capital allocation, including share repurchases and strategic M&A.

Additional News
GoodRx repurchased 10.2 million shares of Class A common stock in Q2 for $46.4 million, with $143.0 million of unused share repurchase capacity remaining under its $450.0 million program. The company also announced new deals for pharmacy counter and e-commerce solutions and expanded its consumer direct pricing offerings. These moves align with GoodRx’s strategic focus on long-term growth and stakeholder value.