GICS Sector : Healthcare
GoodRx Holdings, Inc., through its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States.The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices through GoodRx codes that are used to save money on prescriptions across the United States.It also offers other healthcare products and services, including subscriptions, pharma manufacturer solutions, and telehealth services.
GoodRx's third quarter 2025 earnings report highlighted a total revenue of $196 million, up approximately $1 million versus the prior year. The company's adjusted EBITDA was $66.3 million, an increase of 2% versus the prior year. However, the actual EPS came out at $0.08, missing estimates of $0.09. The Pharma Manufacturer Solutions revenue grew 54% year-over-year, driven by strong execution and expansion across both new and existing brand partnerships, reaching $43.4 million.
Publication Date: Nov -14
The company's Pharma Manufacturer Solutions segment continues to be a significant growth driver, with revenue increasing by 54% compared to the prior year. This growth is attributed to the company's ability to deliver measurable results by helping manufacturers reach the right patients, drive adherence, and remove barriers to treatment. As Christopher McGinnis noted, the company expects the Manufacturing Solutions segment to drive manufacturing up for the year, possibly above the 35% growth rate.
GoodRx continued to expand its access and affordability programs with leading pharmaceutical manufacturers, including Novo Nordisk and Amgen, and strengthened its partnership with Kroger to launch RxSmartSaver at all pharmacies nationwide. The company's prescription marketplace continues to serve as a trusted ally to retail pharmacies, helping them improve profitability, reduce prescription abandonment, and drive innovation in the prescription experience.
With a P/E Ratio of 25.52 and a P/S Ratio of 1.3, the market seems to be pricing in a certain level of growth for GoodRx. Analysts estimate next year's revenue growth at 3.2%. The company's outlook for the remainder of the year remains unchanged, with full-year revenue expected to be above prior year or at least $792 million. Given the current valuation metrics and the company's growth prospects, it remains to be seen whether GoodRx can meet the market's expectations.
The company is investing in capabilities like directed media at the point-of-sale level and owning more of the Rx journey. GoodRx is also thinking through strategic initiatives that it believes will overcome the headwinds it faces in 2026, including the anniversary of Rite Aid and some revenue that occurred in 2025. With a strong performance in the Pharma Manufacturer Solutions segment and a solid financial position, GoodRx is well-positioned to drive growth in the future.
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GoodRx Holdings, Inc.'s 10% growth in Prescription Transactions is driven by increasing adoption of digital healthcare platforms, rising healthcare costs, and growing demand for prescription discounts. Additionally, the company's expanding network of pharmacy partners, improved user experience, and targeted marketing efforts contribute to the growth.
GoodRx's subscription growth is driven by increasing adoption of its prescription discount platform, expansion into new markets, and growing demand for affordable healthcare solutions. Additionally, the company's strategic partnerships with major pharmacies and telehealth providers, as well as its user-friendly interface and competitive pricing, contribute to its rapid growth.
GoodRx Holdings' Pharma Manufacturer Solutions segment growth is driven by increasing adoption of digital prescription technology, rising demand for affordable healthcare solutions, and strategic partnerships with pharmaceutical companies. Additionally, the company's data analytics capabilities and patient engagement platforms contribute to the segment's 9% growth.
GoodRx Holdings, Inc.'s 8% growth is driven by increasing adoption of its prescription discount platform, expansion into new markets, and growing demand for affordable healthcare solutions. Additionally, strategic partnerships with pharmaceutical companies and pharmacies, as well as investments in digital marketing and user experience, contribute to its growth momentum.
A subscription-based discount program that offers exclusive discounts on prescription medications
A free discount card that provides savings on prescription medications at participating pharmacies
A telemedicine platform that connects patients with healthcare providers for online consultations
A mail-order pharmacy service that delivers prescription medications directly to customers' homes
A healthcare platform that provides access to healthcare services, including telemedicine, mail-order pharmacy, and prescription discount cards
GoodRx Holdings, Inc. operates in a niche market, providing a unique service that allows users to compare prices and find discounts on prescription medications. The threat of substitutes is low because there are limited alternatives that offer the same level of convenience and savings.
GoodRx Holdings, Inc. has a large customer base, but individual customers do not have significant bargaining power. However, the company's revenue is concentrated among a few large pharmacy benefit managers, which gives them some bargaining power.
GoodRx Holdings, Inc. has a diverse supplier base, including pharmacies, wholesalers, and manufacturers. The company's suppliers do not have significant bargaining power due to the competitive nature of the industry.
The threat of new entrants in the prescription medication discount space is moderate. While there are barriers to entry, such as building a network of pharmacies and negotiating discounts, new entrants could potentially disrupt the market.
The intensity of rivalry in the prescription medication discount space is high. GoodRx Holdings, Inc. competes with other discount programs and cash-pay models, and the company must continually innovate and improve its services to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 46.52% |
| Debt Cost | 10.83% |
| Equity Weight | 53.48% |
| Equity Cost | 10.83% |
| WACC | 10.83% |
| Leverage | 86.97% |
Value: 4.0
Growth: 8.1
Quality: 6.5
Yield: 0.0
Momentum: 8.0
Volatility: 4.3
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Value: 0.3
Growth: 8.9
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Growth: 8.3
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Value: 2.3
Growth: 5.9
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Momentum: 7.0
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Value: 5.2
Growth: 5.9
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Value: 5.9
Growth: 3.2
Quality: 3.8
Yield: 0.0
Momentum: 2.5
Volatility: 2.0
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