Why GoodRx Holdings (GDRX) Is Among the Best Telehealth Stocks to Buy Now

The telehealth sector is booming, fueled by rising demand for affordable, accessible healthcare. Among the companies leading this transformation is GoodRx Holdings (NASDAQ: GDRX), a digital healthcare platform focused on prescription savings and telehealth services. With a robust financial foundation, strategic initiatives, and a market poised for explosive growth, GoodRx is primed to deliver strong returns for investors. Here’s why it’s worth considering now.

Telehealth’s Growth Potential: A Tailwind for GoodRx

The U.S. telehealth market is projected to grow at a 23.8% compound annual growth rate (CAGR) through 2030, reaching nearly $150 billion in value. McKinsey estimates up to $250 billion of U.S. healthcare spending could shift to virtual platforms, driven by consumer preference for convenience, government support for remote care, and advancements in digital health tools.

GoodRx sits at the intersection of two critical trends: price transparency and telemedicine. Its platform provides free telehealth consultations, connects users to discounted medications at over 70,000 pharmacies, and offers tools like the Prescription Cost Tracker to demystify out-of-pocket expenses. This integrated approach positions GoodRx to capture a significant share of the expanding market.

Financial Strength Anchors Growth

GoodRx’s financial performance in 2024 laid the groundwork for 2025’s ambitions:
- Revenue: Grew 6% year-over-year to $792.3 million, with Q1 2025 guidance projecting $201–$205 million, aligning with analyst estimates.
- Profitability: Achieved net income of $16.4 million in 2024—its first annual profit—after years of losses. Q4 2024 alone saw an EPS of $0.02, up from a loss of $0.06 in the prior year.
- Margin Health: Maintained a 94% gross profit margin and generated $182.7 million in free cash flow, signaling operational efficiency and liquidity.

Strategic Initiatives to Fuel Expansion

1. Manufacturer Solutions Segment: This segment, which partners with drugmakers to offer savings programs, is expected to grow 20% in 2025, expanding GoodRx’s reach beyond retail pharmacies.
2. New Product Launches:
3. GoodRx for Pets: A new initiative targeting the $83 billion U.S. pet healthcare market.
4. E-commerce Pharmacy Platform: Launched in April 2025 with partner Opill to streamline prescription fulfillment.
5. Data-Driven Tools: The Prescription Cost Tracker, launched in June . 2024, empowers users to compare prices in real time, reinforcing GoodRx’s role as a transparency leader.

Analyst Sentiment: Cautious Optimism

Analysts remain divided but increasingly bullish on GoodRx’s long-term prospects:
- Valuation: The stock trades at a P/E of 105x, but its $1.72 billion market cap is 65% below its intrinsic value estimate, according to recent analyses.
- Price Target: Analysts raised their target to $9.40 in May 2025—a 110% premium to its April 2025 price of $4.49—citing improved guidance and new initiatives.
- Growth Forecasts: Earnings are projected to grow 28.6% annually through 2027, with 2025 EPS expected to rise 31% year-over-year.

Risks to Consider

• Competitive Landscape: Telehealth is crowded, with rivals like Veeva Systems (VEEV) and Doximity (DOCS) vying for market share.
• Regulatory Uncertainty: A securities fraud class-action lawsuit filed in April 2024 adds legal risk.
• Execution Pressure: Missed earnings in 2024 and downward EPS revisions in early 2025 underscore the need for consistent execution.

Conclusion: A Compelling Opportunity for Patient Investors

GoodRx is a standout telehealth stock due to its financial stability, strategic growth initiatives, and strong alignment with sector trends. With a 23.8% CAGR tailwind, a platform that combines telehealth and price transparency, and a valuation offering significant upside, GDRX is a compelling buy for investors willing to look beyond short-term volatility.

The company’s Q1 2025 earnings report on May 7 will be a key catalyst, but the data tells a clear story: GoodRx’s $200+ million quarterly revenue, 20% growth in high-margin segments, and $270–$286 million adjusted EBITDA for 2025 suggest it’s well-positioned to capitalize on the telehealth boom. While risks exist, the stock’s undervaluation and long-term growth potential make it a standout pick in this space.

In a sector where convenience and cost savings reign, GoodRx has the tools—and the trajectory—to deliver outsized returns for investors who act now.