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GoodRx Holdings, Inc.

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Business Summary

GoodRx Holdings, Inc. operates a consumer-focused digital healthcare platform in the United States, aiming to help Americans save time and money on medications . The company's core business model revolves around providing price transparency and affordability solutions for generic and brand medications to consumers, healthcare providers, pharmacies, and pharma manufacturers . Revenue is generated through a mix of prescription transactions, subscription offerings, and pharma direct solutions . The company processes over 420 billion pricing data points daily to offer dynamic, geographically relevant prescription pricing .

The core business model is centered on a price comparison tool for prescriptions, offering free access to discounted prices via GoodRx codes . The company generates revenue when a consumer uses a GoodRx code to fill a prescription and saves money compared to the list price, receiving fees from partners such as PBMs, pharma manufacturers, and pharmacies . This model results in high repeat activity, as consumers are not required to re-present their GoodRx code for subsequent refills or additional prescriptions at the same pharmacy . The company also offers subscription programs and telehealth services, and partners with pharma manufacturers to integrate affordability solutions .

The prescription marketplace segment includes the prescription transactions offering and supplemental subscription and telehealth offerings . Prescription transactions revenue, which constituted 68% of total revenue in 2025 , is generated when pharmacies fill prescriptions using GoodRx codes, with fees received from PBMs or partner pharmacies . The company also facilitates claim processing and delivery services for pharmacies . Subscription revenue, representing 11% of total revenue in 2025 , comes from offerings like GoodRx Gold and RxSmartSaver+, which provide lower prescription prices and other benefits for a monthly or annual fee . Condition-specific subscriptions, launched in June 2025, bundle clinician visits, prescriptions, and delivery for a single price .

The Pharma Direct offering, which accounted for 19% of total revenue in 2025 , partners with pharma manufacturers to advertise and integrate affordability solutions like co-pay cards and patient assistance programs onto the platform . This offering aims to improve access and affordability for brand medications and is expected to deliver incremental margin by leveraging the existing consumer base . Other revenue, comprising 2% of total revenue in 2025 , primarily consists of telehealth revenue generated from completed telehealth visits with qualified medical professionals .

For the fiscal year ended December 31, 2025, total revenue increased by 1% to $796.9 million from $792.3 million in 2024 . Net income for 2025 was $30.4 million, with a net income margin of 3.8%, compared to $16.4 million and 2.1% respectively in 2024 . Adjusted EBITDA was $270.5 million, with an Adjusted EBITDA Margin of 33.9%, up from $260.2 million and 32.8% in 2024 . Basic EPS was $0.09 and diluted EPS was $0.09 in 2025, compared to $0.04 for both basic and diluted EPS in 2024 . Cash and cash equivalents stood at $261.8 million as of December 31, 2025, down from $448.3 million in 2024 . Total debt, net, was $483.264 million in 2025, compared to $486.711 million in 2024 . Net cash provided by operating activities was $167.904 million in 2025 .

Year-over-year, prescription transactions revenue decreased by $33.5 million, or 6%, primarily due to a 14% decrease in Monthly Active Consumers, broader changes in the retail pharmacy landscape including store closures, and a volume reduction in one of the integrated savings programs . This was partially offset by improved unit economics from contracting and favorable sales mix changes, with 2025 acquisitions contributing approximately 1% to prescription transactions revenue . Subscription revenue decreased by $2.8 million, or 3%, driven by a decrease in subscription plans from 684 thousand in 2024 to 674 thousand in 2025 . Pharma direct revenue, however, increased by $44.1 million, or 41%, due to organic growth and expanded market penetration . Cost of revenue increased by $9.4 million, or 19%, mainly due to higher processing fees . Sales and marketing expenses decreased by $35.6 million, or 10%, driven by a $13.2 million decrease in stock-based compensation, a $12.4 million decrease in third-party marketing, and an $8.1 million decrease in advertising expenses . Depreciation and amortization increased by $15.7 million, or 23%, due to higher amortization related to capitalized software .

During 2025, GoodRx launched its first condition-specific subscription program for erectile dysfunction, expanding to hair loss and weight loss . The company also announced a collaboration with a pharmaceutical manufacturer to offer eligible patients two in-demand GLP-1 medications at a significantly lower cash price through its platform . In October 2025, GoodRx acquired ScriptDrop, Inc., a prescription delivery technology platform, for $13.4 million in cash, aiming to enhance prescription delivery solutions . In January 2025, the company acquired VCRx, a prescription savings business, for $30.0 million in cash, expanding its consumer reach in prescription transactions . In early May 2025, Rite Aid's bankruptcy and store closures led to PBMs removing Rite Aid from their networks, adversely impacting prescription transactions revenue . A material volume reduction in one of the integrated savings programs also negatively affected prescription transactions revenue in the first half of 2025 .

Business Outlook

Management anticipates that prescription transactions revenue will be impacted by recent and future retail pharmacy store closures, and subscription revenue may decrease, while pharma direct revenue is expected to continue to grow as a percentage of total revenue in the near to medium term . The combined total impact to prescription transactions revenue from external factors such as retail pharmacy landscape changes and integrated savings program volume reduction is estimated to be $35.0 million to $40.0 million in 2025 . The company expects near-term impact on prescription transactions unit economics and revenue in 2026 as it increases investment in pharma direct and subscription offerings .

GoodRx plans to continue attracting new consumers by growing awareness of existing offerings and expanding its platform into other areas of healthcare lacking price transparency . The company aims to increase the number of monetization channels used by existing consumers, which is expected to result in higher consumer satisfaction and be accretive to consumer lifetime value and margins in the medium to long term, without significant additional consumer acquisition costs . The company also intends to continue building the GoodRx brand to educate healthcare consumers about prescription pricing and its platform .

The company plans to deepen relationships with retail pharmacy partners to enhance pricing competitiveness, improve the consumer experience, and drive increased prescription volume . This involves leveraging scale, data insights, and integrated technology solutions to align incentives with pharmacy partners and expand offerings . GoodRx will also invest in product offerings, specifically expanding its pharma direct offering by increasing engagement with pharma manufacturers, brand penetration, and the number of solutions used, as well as enhancing existing and introducing new integrated technology solutions . Subscription offerings are also a focus, with plans to increase their value proposition by bundling existing and new offerings into affordable packages, as these offerings are believed to have higher lifetime value than prescription transactions .

GoodRx sees future expansion opportunities in markets such as clinical trials, insurance marketplaces, in-person doctor visits, and prescription delivery, as well as differentiated features for healthcare providers like its Provider Mode platform . The company also introduced Employer Direct, a new platform to help employers address gaps in traditional insurance coverage with integrated cash pricing . As brand awareness and consumer base grow, selling additional products and services into the large acquired base is expected to drive attractive incremental margin opportunities .

The company will continue to pursue strategic partnerships and acquisitions to strengthen its market position and enhance capabilities . For example, in 2025, GoodRx continued to grow its consumer direct pricing and collaborated with a pharmaceutical manufacturer to offer eligible patients two in-demand GLP-1 medications at a significantly lower cash price through its platform .

Management has flagged several structural headwinds and execution risks. The enactment of the One Big Beautiful Bill Act (OBBBA) in July 2025, which cuts federal funding for Medicaid and tightens ACA Marketplace eligibility, is expected to decrease Medicaid enrollment and covered services, potentially increasing the number of uninsured individuals and adversely affecting their ability to receive prescriptions . The impact of OBBBA on GoodRx and the pharmaceutical industry is likely to be significant . The launch of "TrumpRx.gov" in February 2026, a government-sponsored direct-to-consumer platform offering drug discounts, with GoodRx as a key integration partner, has an unclear but potentially significant impact on the business . The Trump administration is also pursuing drug pricing policies through proposed regulations, Globe and Guard, which would implement mandatory payment models based on Most-Favored-Nation pricing for Medicare-reimbursed drugs, with a likely significant impact if finalized . The resolution of the semaglutide shortage by the FDA on February 21, 2025, and the conclusion of the enforcement discretion period on May 22, 2025, has constrained and is expected to continue to constrain the ability to provide access to compounded semaglutide on the platform .

Risk Factors

GoodRx faces material risks including the potential for unsuccessful broad market education and changing consumer purchasing habits, as consumers may be hesitant to use the platform due to lack of awareness of price disparities or concerns about perceived health, safety, or quality risks . The company relies significantly on its prescription transactions offering, and any decline in its use or in fees received from partners would have a pronounced impact on revenue . The business is subject to changes in medication pricing and pricing structures negotiated by industry participants, over which GoodRx has no control, and changes in these structures could adversely affect revenue . GoodRx relies on a limited number of PBMs and national pharmacy chains, with the three largest PBM customers accounting for 22% of revenue in 2025 , and the loss of any large PBM customer could negatively impact pricing breadth . The company operates in a highly competitive industry, and failure to differentiate offerings or respond to new technologies could impair its ability to attract and retain consumers . Cybersecurity threats, including cyberattacks and security incidents, could lead to unauthorized access to confidential information, reputational damage, and significant costs, with the costs potentially exceeding cybersecurity insurance limits . The use of AI and machine learning in the business poses risks of reputational harm, competitive harm, and legal liability if applications are deficient, inaccurate, or biased, or if regulatory frameworks evolve unfavorably . Government regulation of the internet and e-commerce is evolving, and non-compliance or unfavorable changes could substantially harm the business . Actual or perceived failures to comply with data protection, privacy, and security laws, including the FTC Order, CCPA, and MHMDA, could result in claims, proceedings, monetary penalties, and reputational damage . The company estimated a probable loss of $30.5 million relating to an ongoing settlement negotiation in the Northern District of California with respect to a class-action lawsuit involving privacy and information sharing practices as of December 31, 2025 . Restructuring and cost reduction efforts may not realize expected benefits, leading to unforeseen delays, business disruptions, and decreased employee morale . The ability to utilize net operating loss carryforwards and other tax attributes may be limited due to ownership changes or tax law changes . The company's capital structure, including the dual-class and controlled company structure, may adversely affect the trading market for its Class A common stock .

Management Priorities

Management emphasizes that the company's mission is to help Americans save time and money on medications by building a leading consumer-focused digital healthcare platform . They highlight the launch of condition-specific subscription programs and a collaboration with a pharmaceutical manufacturer to offer discounted GLP-1 medications as key developments in 2025 . Management acknowledges the evolving healthcare landscape, noting that while changes like the One Big Beautiful Bill Act and the launch of TrumpRx.gov present opportunities and validate their mission, rapid changes in the U.S. retail pharmacy landscape, including store closures and PBM renegotiations, have adversely impacted prescription transactions revenue . The combined total impact to prescription transactions revenue from these external factors is estimated to be $35.0 million to $40.0 million in 2025 . Despite near-term impacts on prescription transactions unit economics and revenue expected in 2026 due to increased investment in pharma direct and subscription offerings, management believes this transition enhances long-term growth prospects and sustainable value creation . Strategic priorities include continuing to attract new consumers, facilitating existing consumers' adoption of multiple offerings, building the GoodRx brand, deepening relationships with retail pharmacies, and investing in product offerings, particularly pharma direct and subscription services .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
  2. [2] Item 1, Business — Overview
  3. [3] Item 2, Summary of Significant Accounting Policies — Revenue
  4. [4] Item 1, Business — Overview
  5. [5] Item 1, Business — Overview
  6. [6] Item 1, Business — Our Offerings — Prescription Transactions Offering
  7. [7] Item 1, Business — Our Offerings — Prescription Transactions Offering
  8. [8] Item 1, Business — Overview
  9. [9] Item 1, Business — Our Offerings — Prescription Marketplace
  10. [10] Item 7, MD&A — Results of Operations — Revenue
  11. [11] Item 2, Summary of Significant Accounting Policies — Revenue — Prescription Transactions Revenue
  12. [12] Item 1, Business — Our Offerings — Prescription Transactions Offering
  13. [13] Item 7, MD&A — Results of Operations — Revenue
  14. [14] Item 1, Business — Our Offerings — Subscription Offerings
  15. [15] Item 1, Business — Our Offerings — Subscription Offerings
  16. [16] Item 7, MD&A — Results of Operations — Revenue
  17. [17] Item 1, Business — Our Offerings — Pharma Direct Offering
  18. [18] Item 1, Business — Our Market Opportunity — Pharma Direct (formerly Pharma Manufacturer Solutions) Opportunity
  19. [19] Item 7, MD&A — Results of Operations — Revenue
  20. [20] Item 2, Summary of Significant Accounting Policies — Revenue — Other Revenue
  21. [21] Item 7, MD&A — Overview
  22. [22] Item 7, MD&A — Overview
  23. [23] Item 7, MD&A — Overview
  24. [24] Item 8, Consolidated Statements of Operations — Earnings (loss) per share
  25. [25] Item 7, MD&A — Liquidity and Capital Resources
  26. [26] Item 7, MD&A — Liquidity and Capital Resources
  27. [27] Item 7, MD&A — Cash Flows
  28. [28] Item 7, MD&A — Results of Operations — Revenue
  29. [29] Item 7, MD&A — Results of Operations — Revenue
  30. [30] Item 7, MD&A — Results of Operations — Revenue
  31. [31] Item 7, MD&A — Results of Operations — Revenue
  32. [32] Item 7, MD&A — Results of Operations — Cost of revenue, exclusive of depreciation and amortization
  33. [33] Item 7, MD&A — Results of Operations — Sales and marketing
  34. [34] Item 7, MD&A — Results of Operations — Depreciation and amortization
  35. [35] Item 7, MD&A — Overview
  36. [36] Item 7, MD&A — Overview
  37. [37] Item 3, Business Combinations and Disposition — Business Combinations — ScriptDrop
  38. [38] Item 3, Business Combinations and Disposition — Business Combinations — VCRx
  39. [39] Item 7, MD&A — Overview
  40. [40] Item 7, MD&A — Overview
  41. [41] Item 1A, Risk Factors — Risks Related to Our Limited Operating History and Historical Growth Rates — Our historical growth rates may not be sustainable or indicative of future growth.
  42. [42] Item 7, MD&A — Overview
  43. [43] Item 7, MD&A — Overview
  44. [44] Item 1, Business — Our Growth Strategy
  45. [45] Item 1, Business — Our Growth Strategy
  46. [46] Item 1, Business — Our Growth Strategy
  47. [47] Item 1, Business — Our Growth Strategy
  48. [48] Item 1, Business — Our Growth Strategy
  49. [49] Item 1, Business — Our Growth Strategy
  50. [50] Item 1, Business — Our Growth Strategy
  51. [51] Item 1, Business — Our Growth Strategy
  52. [52] Item 1, Business — Our Growth Strategy
  53. [53] Item 1, Business — Our Growth Strategy
  54. [54] Item 1, Business — Our Growth Strategy
  55. [55] Item 1, Business — Our Growth Strategy
  56. [56] Item 1A, Risk Factors — Risks Related to the Healthcare Industry — The impact of healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending on us is currently unknown, but may adversely affect our business, financial condition, and results of operations.
  57. [57] Item 1A, Risk Factors — Risks Related to the Healthcare Industry — The impact of healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending on us is currently unknown, but may adversely affect our business, financial condition, and results of operations.
  58. [58] Item 1A, Risk Factors — Risks Related to the Healthcare Industry — The impact of healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending on us is currently unknown, but may adversely affect our business, financial condition, and results of operations.
  59. [59] Item 1A, Risk Factors — Risks Related to the Healthcare Industry — The impact of healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending on us is currently unknown, but may adversely affect our business, financial condition, and results of operations.
  60. [60] Item 1A, Risk Factors — Risks Related to the Healthcare Industry — The impact of healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending on us is currently unknown, but may adversely affect our business, financial condition, and results of operations.
  61. [61] Item 1A, Risk Factors — Risks Related to Our Business — We may be unsuccessful in achieving broad market education and changing consumer purchasing habits.
  62. [62] Item 1A, Risk Factors — Risks Related to Our Business — We rely significantly on our prescription transactions offering and may not be successful in expanding or maintaining our offerings within our markets, particularly the U.S. prescriptions market, or to other segments of the healthcare industry.
  63. [63] Item 1A, Risk Factors — Risks Related to Our Business — Our business is subject to changes in medication pricing and is significantly impacted by pricing structures negotiated by industry participants.
  64. [64] Item 1A, Risk Factors — Risks Related to Our Business — We rely on a limited number of industry participants.
  65. [65] Item 1A, Risk Factors — Risks Related to Our Business — We rely on a limited number of industry participants.
  66. [66] Item 1A, Risk Factors — Risks Related to Our Business — We operate in a very competitive industry and we may fail to effectively differentiate our offerings and services from those of our competitors, which could impair our ability to attract and acquire new consumers and retain existing consumers.
  67. [67] Item 1A, Risk Factors — Risks Related to Our Business — We depend on our information technology systems, and those of our third-party vendors, contractors, and consultants, and any failure or significant disruptions of these systems, security breaches or loss of data could materially adversely affect our business, financial condition and results of operations.
  68. [68] Item 1A, Risk Factors — Risks Related to Our Business — We use and may expand our use of AI and machine learning in our business and challenges with properly managing their use could result in reputational harm, competitive harm and legal liability, and adversely affect our results of operations.
  69. [69] Item 1A, Risk Factors — Risks Related to Our Business — Government regulation of the internet and e-commerce is evolving, and unfavorable changes or failure by us to comply with these laws and regulations could substantially harm our business and results of operations.
  70. [70] Item 1A, Risk Factors — Risks Related to Our Business — Actual or perceived failures to comply with applicable data protection, privacy and security, advertising and consumer protection laws, regulations, standards, and other requirements could adversely affect our business, financial condition and results of operations.
  71. [71] Item 13, Commitments and Contingencies — Legal Contingencies
  72. [72] Item 1A, Risk Factors — Risks Related to Our Business — We may be unable to realize expected benefits from our restructuring and cost reduction efforts and our business might be adversely affected.
  73. [73] Item 1A, Risk Factors — Risks Related to Our Business — Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.
  74. [74] Item 1A, Risk Factors — Risks Related to Our Organizational Structure, including Agreements and Relationships with Significant Stockholders — Our capital structure may adversely affect the trading market for our Class A common stock.
  75. [75] Item 7, MD&A — Overview
  76. [76] Item 7, MD&A — Overview
  77. [77] Item 7, MD&A — Overview
  78. [78] Item 7, MD&A — Overview
  79. [79] Item 7, MD&A — Overview
  80. [80] Item 1, Business — Our Growth Strategy

Analysis on 5/21/2026