GoodRx Q1 2025 Earnings Call Transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the GoodRx First Quarter twenty twenty five Earnings Call. As a reminder, today's conference is being recorded. I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations. Ms. Reynolds, you may begin.

Aubrey Reynolds
Aubrey Reynolds
Director & Head - Investor Relations at GoodRx

Thank you, operator. Good morning, everyone, and welcome to GoodRx's earnings conference call for the first quarter twenty twenty five. Joining me today are Wendy Barnes, our chief executive officer, and Chris McGinnis, our chief financial officer. Before we begin, I'd like to remind everyone that this call will contain forward looking statements. All statements made on this call that do not relate to matters of historical fact should be considered forward looking statements, including without limitation, statements regarding management's plans, strategies, goals and objectives, our market opportunity, our anticipated financial performance, underlying trends in our business and industry, including ongoing changes in the pharmacy ecosystem, and the impact of our store closures and announced bankruptcy of one of our retail partners on our business, our value proposition, our long term growth prospects, our retail our direct and hybrid contracting approach, collaborations and partnerships with third parties, including our point of sale cash program and our integrated savings program, our ecommerce strategy, and our capital allocation priorities.

Aubrey Reynolds
Aubrey Reynolds
Director & Head - Investor Relations at GoodRx

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties, and other important factors. These factors, including the factors discussed in the risk factors section of our annual report on 10 on form 10 k for the year ended 12/31/2024 and our other filings with the Securities and Exchange Commission could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward looking statements made on this call. Any such forward looking statements represents management's estimates as of the date of this call, and we disclaim any obligation to update these statements even if subsequent events cause our views to change. In addition, we will be referencing certain non GAAP metrics in today's remarks. We have reconciled each non GAAP metric to the nearest GAAP metric in the company's earnings press release, which can be found on the overview page of our investor relations website at investors.gutteracts.com.

Aubrey Reynolds
Aubrey Reynolds
Director & Head - Investor Relations at GoodRx

I'd also like to remind everyone that a replay of this call will become available there shortly as well. With that, I'll turn it over to Wendy.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Thank you, Aubrey, and thanks to everyone joining us today. I've now completed my first one hundred days as CEO, and I want to share progress we've seen in the business, how we're strengthening our foundation, and the opportunities ahead. Then Chris will take you through the highlights of our first quarter results and guidance. Since stepping into this role, I have dedicated my time strengthening our leadership team, gaining a deeper understanding of our business, meeting with key partners, understanding the macroeconomic environment, and identifying key capabilities and growth opportunities. I can confidently say that we are in a very strong position to deliver meaningful value across the pharmacy ecosystem.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Furthermore, we are focused on high impact initiatives that will drive our business forward in compelling ways. I firmly believe that our success starts with having the right individuals in the right roles, knowledgeable leaders who bring vision, expertise, and a commitment to our mission. I've made some important leadership changes to strengthen our business. In March, we appointed Erin Crittenden as president of our Rx marketplace. Erin previously played a pivotal role in building our pharma manufacturer solutions business and has a track record of scaling partnership.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

In this new role, Aaron will focus on expanding GoodRx's presence at the pharmacy counter to streamline workflows, improve pharmacy economics, and ensure GoodRx is the first and best choice for consumers at the point of sale. He will also be responsible for expanding and reimagining how we work with PBM and health plan partners in an integrated solution to further deliver the value of GoodRx. We also appointed Scott Pope, PharmD, as our chief pharmacy officer and head of clinical engagement. Scott will be focused on enhancing GoodRx engagement with all health care professionals or HCPs, doctors, pharmacists, supporting staff, and other constituents. Finally, we recently appointed Gary Klein as senior vice president of government affairs.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Gary will be focused on advancing our government affairs strategy and strengthening relationships at the federal level to support our policy and advocacy goals. I am confident that our leadership team is well positioned to navigate the complex prescription medication landscape, position us for growth, and deliver on our strategy. Our value proposition to consumers and HCPs remains strong. We help Americans save both time and money when filling medications, complementing their insurance coverage by bridging inevitable and growing coverage gaps, and reducing friction in the system so people can get the care they deserve. In the first quarter of twenty twenty five, over 12,000,000 consumers and over 750,000 HCPs used GoodRx, demonstrating the strength of our platform and trust we've earned in the health care system.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We continue to see engagement across all stakeholder groups. In particular, pharmacies continue to actively partner with us to solve customer affordability issues while also delivering on their profitability goals. We see pharmacies responding with enthusiasm to our e commerce offering, recognizing the value we bring the consumer experience. And pharma manufacturers continue to expand their portfolios with us, deepening our partnerships and reinforcing the strength and reach of our platform to deliver access and affordability offers to consumers for brand medications. These are powerful signals that validate our unique ability to connect and deliver value across the pharmacy ecosystem.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

I want to acknowledge the ongoing uncertainty in the macroeconomic environment driven by factors that could influence our business, including regulatory and policy changes, shifting consumer sentiment, tariffs, and evolving government initiatives. I also want to acknowledge the news pertaining to the Rite Aid bankruptcy announcement this week. This is recent news, we are actively working to understand more. What we know today is that they have reentered bankruptcy and are pursuing a sale of substantially all of their assets. It is too early to know how this will exactly play out, but we do believe that we are well positioned to engage consumers and other pharmacy partners to ensure smooth patient transitions.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Ultimately, these prescriptions will be filled somewhere and we are in active dialogue with pharmacy partners to make sure we are best positioned to service our consumers. I would also highlight that our efforts to broadly engage pharmacy partners over the past several months have put us in a strong position for productive dialogue with potential buyers or landing spots for these patients. And we believe that we can create unique and mutually beneficial arrangements to support such patient transition. Despite these potential challenges, the strength of the GoodRx brand remains clear across all economic conditions. Our leading platform is built to deliver consumers savings and access to their medication, regardless of the state of the economy and retail pharmacy environment.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Our role will be even more critical as consumers prioritize essentials and seek ways to save. This is why we will continue to invest in our brand and its impact. We believe our value resonates strongly with consumers, and we are proud that GoodRx was recently recognized as one of Newsweek and USA Today's twenty twenty five most trusted brands. Now let's dive into our prescription marketplace and manufacturer solutions offerings, starting with our prescription marketplace. During the first quarter, we provided meaningful value to our pharmacy partners.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We helped retail pharmacies solve challenge challenges they face around lower reimbursement and rising store costs. As we advance our position as an ally to pharmacies, we do want to be transparent that some prescription pricing has increased across our platform as we ensure pharmacies are able to achieve a sustainable level of profitability. We believe strongly that partnerships need to benefit all parties, the retailer, GoodRx, and most notably, the consumer. So it is important that we facilitate a marketplace of fair, affordable pricing. We will always put consumer affordability front and center in our offering in a way that is sustainable.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

As a result of some of these price increases, we have seen pressure on overall monthly active consumers, or MACs, and in our integrated savings program, or ISP offering. Yet, we have extended our leadership position in prescription affordability segment as demonstrated by our growth in segment share, which has increased over 300 basis points year over year in the first two months of the quarter. Partnering closely with pharmacies on pricing sets us up strongly for the long term durability of our offering and enables us to have unique partnership opportunities with pharmacies. One such partnership involves our e commerce capabilities. During the quarter, we launched a new experience for retail pharmacies that improves how consumers get their medications via the GoodRx platform.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Our directly integrated e commerce solution checks medication inventory, validates a user's prescription, and enables the consumer to pay on GoodRx before picking up their prescription in store and soon to be delivered to their home. This integrated solution is compelling for consumers and also helpful to pharmacies by streamlining workflows, reducing cost to fill, and enhancing the digital experience. Ecom is a core component of our broader strategy to modernize the prescription experience and embed GoodRx directly into pharmacy operations, creating deeper retail partnerships. We have launched this with one retail pharmacy partner and are actively engaged in conversations to expand to more pharmacies as we aim to further reduce friction for consumers and pharmacists. Now turning to our integrated savings program or ISP, which provides consumers with a complement to their health insurance for covered generics.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We continue to partner with PBMs in this offering and are actively evaluating how to best evolve this solution moving forward to deliver more value. One area that we are excited about is extending the offering into non covered medications. We have received positive feedback from PBMs and pharma manufacturers regarding the integration of GoodRx's negotiated brand price points into commercial plans where there are gaps in coverage. We view this as a win for patients, plans, pharma manufacturers, and PBMs. We are in active dialogue with a number of partners on this extension.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Now turning to pharma manufacturer solutions. During the first quarter, we continued to drive our access and affordability solutions forward, partnering with even more pharmaceutical brands and delivering meaningful return on investment for partners. The power of our brand and associated consumer and HCP traffic makes partnering with GoodRx a must have for pharma brands to surface their access and affordability programs. We're especially excited about our growing brand point of sale discount programs, which enable pharma manufacturers to set a cash price of their choosing and deliver it straight to consumers with minimal friction at the checkout counter through a GoodRx coupon at the point of sale. This is a key differentiator in our ability to partner with retailers as well as PBM.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We have strong proof points that our point of sale discount programs are resonating. For example, in 2023, we launched a point of sale buy down program with an insulin brand and generated significant incremental sales without cannibalizing existing business. Based on that success, the manufacturers expanded their partnership in 2025 to five additional brands. We are pleased that pharma manufacturers are recognizing the value of our offering and are continuing to expand their portfolios. Proven business results for our other access programs are also driving 2025 renewals and expansions.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

As an example, for a vaccine brand partner, we were the number one source of scheduled vaccine appointments through an integration on GoodRx. This drove an ROI of over 15 times to the client and led to an expansion of the partnership to other vaccines in the partner's portfolio. The momentum and traction in our pharma manufacturer solutions offering is also impactful to our broader business. Winning with brands further enhances our ability to win with consumers, pharmacies, and HCPs, which fuels more platform demand and utilization. In closing, I am very optimistic about the future of GoodRx and believe that we have tremendous opportunity to expand our business to help even more Americans save on their medications.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Our value proposition across the pharmacy ecosystem sets the foundation for why our business is durable and resilient. We are focused on initiatives that will help expand our value to key constituents. First, serving as an ally to pharmacies through our pharmacy profitability efforts and technological capability initiatives, which help pharmacies better engage with consumers, improve workflows, lower cost to fill, and elevate pharmacies' digital footprint. Second, helping digital We will continue to extend our footprint both in integrating brand co pay programs as well as point of sale buy downs.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Building out the prescriber's office as a go to market channel. This is a strategic focus area for our chief pharmacy officer, and we look forward to updating you on the progress we make in future quarters. And finally, continuing to invest in our brand to ensure that we remain the number one place that Americans go for medication access and affordability. We've laid the groundwork, sharpened our focus, and are now leaning into the opportunities ahead. With the right strategy, team, and partnerships in place, we're positioned to grow durably and profitably.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

With that, I'll turn it over to Chris to discuss our first quarter highlights and guidance.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Thank you, Wendy, and good morning, everyone. For the first quarter, total revenue was in line with our expectations at $2.00 $3,000,000 up 3% versus the prior year. Prescription transaction revenue and manufacturer solutions were up 217%, respectively, versus the prior year. For the first quarter, adjusted EBITDA of $69,800,000 rose 11% versus the prior year, which constitutes an adjusted EBITDA margin of 34.4%. This is an improvement of 60 basis points compared to the fourth quarter, and while ahead of our expectations for the quarter, we believe this will be within a sustainable range for the remainder of the year.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

We continue to have a strong balance sheet ending the quarter with $3.00 $1,000,000 in cash with $91,700,000 of unused capacity on our revolving line of credit, resulting in total liquidity of $392,700,000 During the first quarter, we deployed approximately $100,000,000 of cash on hand to repurchase 23,300,000.0 shares of our stock at an average price of $4.32 per share. Given our stock price, we continue to believe that stock repurchases are accretive and the best use of cash. At the end of the first quarter, approximately $189,000,000 of capacity remained under our $450,000,000 share repurchase program. Turning now to our outlook for the remainder of the year. As we discussed last quarter, Wendy and I are committed to a transparent approach to guidance.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

And given our limited time in our respective roles, we provided a range of outcomes within which we have confidence while providing ample room to adjust as we gain deeper understanding of the business. For the full year 2025, we continue to believe that revenue will be in the range of $810,000,000 to $840,000,000 representing 2% to 6% growth compared to 2024. There are a number of factors that influence revenue, including macro conditions such as consumer confidence and spending trends, tariffs and other policies related to drug pricing, economic client climate, and our ongoing business development efforts driving our strategic initiatives. It's hard to predict the impact that these variables will ultimately have on our full year revenue, but in an effort to be as transparent as possible, at this point in the year, we have greater conviction and visibility at the lower half of our range with achievement of strategic initiatives providing opportunities to deliver in the upper half of our range. As Wendy noted, we're aware of Rite Aid's announcement on Monday to pursue a sale substantially all of its assets through a voluntary bankruptcy process.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Given the timing of this announcement, we have not included any estimate of the impact of this process on our guidance. However, Rite Aid is currently forecasted to be less than 5% of our total revenue in 2025. As Wendy noted, these scripts will continue to be filled somewhere, and we will leverage our retail partner relationships to maximize a smooth transition of these scripts. We will keep you informed in future quarters as this continues to unfold. With respect to our guidance for full year adjusted EBITDA, we are slightly increasing and narrowing the range, now believing it will be between $273,000,000 and $287,000,000 which represents approximately 5% to 10% growth compared to 2024.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

With full year guidance as context, for the second quarter, we expect revenue to be up sequentially from the $2.00 $3,000,000 we reported in the first quarter, with an adjusted EBITDA margin roughly similar to the first quarter. With that, I will now turn the call over to the operator for questions.

Operator

Certainly. And one moment for our first question, which comes from Lisa Gill of JPMorgan. Your line is open.

Lisa Gill
Lisa Gill
Managing Director at JP Morgan

Thanks very much and good morning. If I could ask two things. One, Wendy, when I think about bigger picture, you talked about high impact initiative. I want to just understand what you think are most important. I think you highlighted a few things, whether it's retail, manufacturing, the prescriber, investing in the business, etcetera.

Lisa Gill
Lisa Gill
Managing Director at JP Morgan

But which of those do you think will really drive what Chris talked about, which is the upper end of the range? And then I know it's hard to put a number around Rite Aid. I appreciate this is all new news. But can you give us from a historical perspective, they have been closing stores, CVS has been closing stores. What has been the rate that you've been able to recapture or maintain that relationship with that consumer when stores have closed?

Lisa Gill
Lisa Gill
Managing Director at JP Morgan

Just to give us an idea of historically if there's a way

Lisa Gill
Lisa Gill
Managing Director at JP Morgan

to think about it.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yeah. Hi, Lisa. Thank you for the question. Good to hear from you. I will start with your first question, noting the strategic initiatives that we've got high confidence in, and just can't share additional detail on this call.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Let me start first with the closer partnerships with retail pharmacies. That absolutely would be item number one. And what I mean by that more specifically is directly contracting, embedding at the counter, where it becomes a much tighter partnership, such that we have much better line of sight to capturing those cash prescriptions also included in that e commerce partnership that you heard me outline. When we're connected in that manner, we effectively become the digital front door for our retail pharmacy partners. And when you point to also manufacturers, it becomes a bit of, a triangulation with us sitting at the center, if you will.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

So those brand partnerships, as we're continuing to add additional brands, to our portfolio where we've got this point of sale cash buy downs, we additionally are conveying that value to the retail pharmacy partner. But the additive note there is that now our PBM partners also remain interested in wrapping or auto wrapping those non covered brands. So it all starts to convey with us at the middle, connecting these pieces both to the payer PBM, the retail pharmacy, and of course, the consumer ends up benefiting whether or not they are someone standing at the retail counter separate and aside from their coverage, or potentially as an employer beneficiary utilizing their benefit and then finding out that a drug isn't covered when they initially perhaps would have intended to use their coverage at the counter. So it really puts us at the center with an ability to drive those things. And while I can't tell you specific partnerships today, because they're we're not able to announce them yet, what I will tell you is that we're well beyond conversations on these particular opportunities.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We are actively contracting, working out T's and C's, and it's very much my hope that we'll have the ability to comment on these in an upcoming earnings call. The last item I would point you to strategically is that of the HCP or healthcare professionals. As we look at the prescriber office and the supporting staff and the pharmacist and the pharmacy counter, what we are now seeing with what we're partnering with manufacturers on is that we have an ability to drive a much tighter partnership there, and we are candidly not taking as great of an advantage of that as we should be today, given the connectivity that we have to HCPs. And with Doctor. Pope in his role, we are now laying out the strategy that I believe is going to produce material benefit to us.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

And again, we look forward to describing that to you, in a future quarter. As to the second question, as it pertains to additional store closures, I'm going to, send that over to Chris for commentary.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Yeah. I appreciate the the question, Lisa. I suspect, look, I don't have we don't have specific data, around, you know, conversions and and retention of those scripts. But this is but to the spirit of your question, there is, let's talk about what we do know about Rite Aid. This situation is a little different than past store closures.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Right? So we now have a process. We know their intention is to sell substantially all their assets, and they actually announced the process. Right? So they're they've sought a voluntary bankruptcy process, which does a couple things.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

And for Rite Aid, for its part, announced in its press release that they want continuity of service. Right? They wanna make sure that patients have access to their prescription medications, and they want a smooth transition. So what that means as a part of the bankruptcy is that a number of bidders will come into that process. In our in our terminology, we believe that's going to be sort of what we call a file buy, right?

Chris McGinnis
Chris McGinnis
CFO at GoodRx

They're going buy the patient's records and transition to a different pharmacy. So, working to to create a smooth transition, we are already in conversations with some of our retail partners, which we believe will believe will be, you know, credible bidders for a portion of these assets, and we will work to smoothly transition those scripts. And by smoothly transition, we mean when they take the file over, that is a GoodRx customer, and it'll come over and it'll refill and it'll look the same at a new retailer as it did at Rite Aid. Right? So to the extent that that doesn't happen in terms of a, quote, smooth transition, look, these are these are GoodRx customers.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

And to the the they came to our platform to begin with because they were looking for an affordable, you know, solution to access their medications. So to the extent that there's something, you know, happens that's not a, quote, smooth transition, we believe those customers are coming back to our platform. It's you know, we've got one of the best brand names in health care. As Wendy noted, we've been named one of the most trustworthy brands in health care for 2025. We think these patients are they're not on benefit for a reason, and so we think they'll continue to do that.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

So trying to scale the issue again to the spirit of your question, it's less than 5% of our projected revenue for 2025. The chance that that's the impact is remote on us. Right? So it's going to be something less than that. And so it's also the other part of the process that they now outlined because we have visibility to a bankruptcy process.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

And the reason we can't put it in our guidance is I don't we don't know today whether this is gonna take three, four, five bidders or dozens of bidders, to buy substantially all those assets. We don't know the timeline for negotiations. We know, there'll be some approval process with a bankruptcy trustee or some, you know, some stakeholders or creditor committees. And then, of course, other, you know, closing conditions, regulatory approvals, etcetera, and ultimately close, and then the script gets filled. So the timeline that those all happen on, how many transactions that takes, and, you know, ultimately transitioning these, you know, these scripts out, it's really hard to know how that will impact us in 2025.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

But look, at the end of the day, while we've scaled it as less than 5% of our business, I can't stress enough that's a remote possibility that it's that level of impact to us. And our job is to work to mitigate the impact and make sure that that smooth transaction happens in concert with our, you know, our retail network.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Lisa, I would just, add on because I suspect this question is gonna be on most everyone's mind, on the call. Again, noting that it's it's less than 5% of our forecast. That would be on a twelve month view, so we're already five months into the year. Clearly, all of these prescriptions are going to disappear, right? We know that it's going to be a significantly smaller portion than that.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We also don't think this is all happen in the next four to six weeks. I mean, is gonna be something that's probably gonna be stair stepped over time. Beyond that though, I also do want to reiterate and reemphasize the relationships that we have with pharmacies are in a significantly different place at this point in time than they were last year. We are speaking top to top around those that are interested in obtaining these file buys, perhaps doing so in partnership with some. So we're just in a very different position to be able to take advantage, when these scripts transition.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

I would also note that of our millions of users, the percentage for which we have contactability is materially higher than it was in years past. So we also have the ability to directly communicate to the same consumers who are filling medications with us, and that was not the case. Certainly not as ubiquitously last year as it is today. You also did ask a question as it pertains to, I think, other retail closures. Look, what I would say is some of the others that you've pointed to, they've been in smaller pockets, and largely, those have been thinning in current markets such that the same retailer largely maintained those scripts and transferred them to themselves, which is also a far different scenario.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

So as to the the few others that you pointed to, nothing material that we would have pointed out that created an impact to us from a closure perspective.

Lisa Gill
Lisa Gill
Managing Director at JP Morgan

Thank you.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Thanks, Lisa.

Operator

And our next question will be coming from John Ransom of RJF. Your line is open, John.

John Ransom
John Ransom
Managing Director, Director of Healthcare Research at Raymond James Financial

Hey, good morning, everybody. I'm just, on the legacy business, you know, the old model, as you know, was to aggregate all these PBM price out goes mostly from the smaller PBMs. You know, we're seeing the larger PBMs go to cost plus pricing. CVS has said they want to have it all cost plus next year as an example. What do you see with the small PBMs?

John Ransom
John Ransom
Managing Director, Director of Healthcare Research at Raymond James Financial

Are they moving to cost plus for their pharmacy networks? And if so, is that a good guy, a bad guy, or neutral for your legacy model?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yeah, appreciate the question. Good to hear from you, John. So, to be clear, a significant percentage of our business today already runs on cost plus rails. We're somewhat indifferent to the reimbursement mechanism to the pharmacy. So, that actually is kind of the point of clarity there.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

This is about how the pharmacy gets paid, but it really doesn't overly influence how many drugs aren't covered at the end of the day. That's largely what drives the pool of opportunity for cash prescriptions. And I would also point out that cost plus or not cost plus, when you're in a cost plus environment, notably, most base prices tend to increase. And so as a result of that, there's also going to be more pressure on the consumer in their funded plan to create an opportunity for a cash prescription. And as you've kind of heard me outline in our first quarterly call, and we're continuing to use similar language, my overall vision for the company is that this cash offering of which we hold the number one position simply be a compliment to insurance.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

It really shouldn't be an or, it should really run alongside as an and. And that is what we're doing by in embedding as ecommerce partners with retailers such that it's just always gonna present itself whenever it's more compelling from a cost perspective to utilize the cash benefit. And I I would also remind you, given the pressure on price, what we know around so many brand medications is that there's almost 1,000,000,000 prescriptions per year that go unfilled due to price. And so again, that just continues to create a pool of opportunity for us, to go after from a cash perspective.

John Ransom
John Ransom
Managing Director, Director of Healthcare Research at Raymond James Financial

Great. Thank you. And my my other question, you know, the old management team, so I won't put you, make you responsible for this, but they they were pretty excited about the theoretical opportunity with GLPs. But as you've seen, Novo has struck deals with HIMSS and they struck deals with CVS. Is that I know you connect people to the Novo patients assistance programs, but is the GLP opportunity still out there to be had, or is that is that just maybe not gonna happen?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

No, it absolutely continues to be an opportunity and I again, I very much appreciate, the question. So let's start first with kind of grounding in what is happening with Novo and Lilly today. So they've both created their own direct program with their own direct discounted price. And to be clear, the partnerships that have been announced are largely with telemedicine pharmacies or pharmacies, you know, inclusive of CVS, whereby those pharmacies are effectively redirecting the script to those direct programs at the manufacturer offered price. Having said that, we are continuously dialoguing with Novo and Lilly all the way at the top around how we can continue to be of assistance.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

So yes, their affordability programs are already embedded in our platform such that we are helping them engage consumers to get to their affordability program. Clearly, we're not the fulfilling pharmacy. So the ability to actually fulfill those scripts isn't an opportunity for us, and they're doing it through either their own pharmacy or a few select home delivery pharmacies today. So that's how they're approaching the program. And again, I want to be clear though that through those programs, it is their own discounted price that only they are honoring.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

No one at present has a discounted cash point of sale buy down price. I continue to believe there absolutely is an opportunity to get that, but I also believe it's going to take time for more molecules to launch to put pressure on those manufacturers to produce a cash price buy down at point of sale. Now having said that, with the two large manufacturers out there today, I think it'll probably be evident which one would likely be more receptive to a cash price just knowing where they sit from a market position, and I would leave you with this, that those are the conversations we're having. I additionally have asked both of these manufacturers why from a consumer experience perspective, even with their direct program, they wouldn't want to embed those direct programs directly on the GoodRx platform. If you think about it from a consumer perspective, nobody wants to have to go to 10 different places to get their basket of drugs.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

And while I applaud both of these manufacturers for putting a lower price point in market through their direct offering, it's still asking consumers to go through a different experience to get those drugs. At the end of the day, the basket of drugs just doesn't look like that. It's not specific to one manufacturer. So we are also in conversations to potentially embed some of their programs with us, which I think should also be the long term goal, because we know that we've got over 2,500,000 consumers on our site in any given quarter, and that number is specific and accurate to our first quarter searching for these GLP-one drugs. So in summary, John, I would say the opportunity continues to be a large one, but we also are pushing hard for a true cash discounted price that we can buy down at the point of sale.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

And right now neither manufacturer is doing that.

John Ransom
John Ransom
Managing Director, Director of Healthcare Research at Raymond James Financial

Thanks so much, Wendy.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

You're welcome.

Operator

Thank you. And our next question will be coming from Charles Rhyee of TD Cowen. Your line is open, Charles.

Charles Rhyee
Managing Director at TD Cowen

Thanks for taking the questions. Maybe to follow-up on John's question there. Wendy, you just mentioned that the two large manufacturers for GLP-one currently are not offering sort of this cash price book. And the argument that you make to provide a better consumer experience certainly makes sense to me here. What are the reasons that they are not yet kind of moving forward with that?

Charles Rhyee
Managing Director at TD Cowen

Perhaps, and I'm sure they would understand sort of wanting to provide patients with a better experience as well. What are some of the reasons they're providing that this is not the right time to do something like that yet?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yeah, I think the short answer is we're close. To be clear, they do see the value and also clearly understand that their patients often with the script already in hand are already looking on our GoodRx platform. I think it's for a couple of reasons. The first of which is, look, they pretty recently just came out of their supply shortage situation. Compounding pretty recently just effectively got put to bed.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

There have been a number of moving parts here. As such, their direct models continue to make a fair bit of sense, but very soon they won't. As more molecules continue to launch and there's more pressure in this class of drugs, that will change the dynamic just like it does in any class of drugs as more molecules launch, which is why I think we're going to be in a good position to take advantage of that.

Charles Rhyee
Managing Director at TD Cowen

Okay, that makes sense. And guess the other question, I think it was Lisa's question earlier was, you talked about sort of the opportunity with ACPs. If I remember a year ago, I think the company had really talked about that the top 10 percentile of HCPs in the network were already driving something like 50% of the max for GoodRx. Is that still the case? And so, it seemed like that was a focus already last year.

Charles Rhyee
Managing Director at TD Cowen

Just trying to understand what wasn't working last year to drive that further because it seemed like if you get that next 20% next decile to perform at the first, that would be a meaningful increase. I'm just curious, what are you looking to do differently now that maybe you weren't doing last year?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yeah, no, good question. Look, first of all, Scott is pretty new in role, as I mentioned. But as we continue to look at the number of HCPs that are engaged with us, so let's just start with this year, we've already had over 750,000 unique physician and prescriber NPIs engaged on the platform. So we know that there continues to be more opportunity to engage directly. And of course you heard us quote that over 1,000,000 in 2024 were engaged.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

What we know is that that particular audience has over 90% awareness of our brand. And so said differently with what we're doing today, I think you've heard us talk about HCP mode on our platform, we believe that there's a larger opportunity to take advantage of their presence on our pages in partnership with pharma, and we simply aren't pulling that through today. I think it could look, very different depending upon which specific strategies we pursue. We've we've got a list of several items at present that I would really like, Scott to share on a future call, but primarily this will involve partnering with pharma to pull through the engagement we already have with HCPs and monetizing that opportunity.

Charles Rhyee
Managing Director at TD Cowen

Okay. Thank you. Look forward to hearing more about it later.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Thank you.

Operator

And one moment for our next question, which will be coming from Jalandra Singh of Truist Securities. Your line is open.

Jailendra Singh
Jailendra Singh
Managing Director at Truist Securities

Thank you and good morning. Thanks for taking my questions. So I want to follow-up on the guidance commentary on having comfort with the lower half of range. How much of that is driven by PMS business? You talked about macro environment.

Jailendra Singh
Jailendra Singh
Managing Director at Truist Securities

Can you be a little bit more specific? Have you seen any cautionary pharma behavior or less willingness to spend? Or is it that that you want to be more prudent given all the uncertainty?

Chris McGinnis
Chris McGinnis
CFO at GoodRx

It's really the latter, Jalinda. So it's it's, the way I think about revenue, and you mentioned the the pharma solutions business, that that's sort of a traditional selling cycle. So we have, you know, conversations with manufacturers, and what we're seeking to do is obviously not only expand the number of manufacturers we're working with, but obviously penetrate deeper into the drug portfolios of those manufacturers we're working with. And so those are, that's a traditional selling cycle where you're having conversations, you're deepening the relationship. So we've got a funnel, we got a pipeline funnel, we probability weighted.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

So that revenue sort of, you know, you fill and build build. Right? So you sort of fill the pipe the the funnel the pipeline, and you you you you bring those deals, through the funnel. And so we have to sort of probability weight based on, you know, the pipeline at the beginning of the year. So revenue builds throughout the year.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

I still have strong conviction that, the manufacturing solutions business will be a 20 growth, line of business for us. The 17% in the first quarter is sort of like on on, you know, on track for us cause it'll build throughout the year. So right now, as we just build the revenue profile of the company, we're I've got strong conviction in the lower half of that range. And then I think continuing to execute on the core, continuing to drive some of the, you know, strategic initiatives that Wendy had outlined, drives us to the upper part of the range.

Jailendra Singh
Jailendra Singh
Managing Director at Truist Securities

Thank you. And my follow-up, Max in the quarter at down mid single digits, slightly below street expectation, not sure if anything to highlight there. On the flip side, you clearly saw some better unit economics, which is something you guys expected as mix of lower margin pharmacies fall out of system and drive more revenue per script. How should we think about MAC and revenue per MAC for the rest of the year? How much more runway is left in pushing that revenue per MAC metrics higher from current levels?

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Yeah. I mean, so first of I appreciate you calling it out. We alluded to this back in February that we felt like, I know probably missed Streets expectations, this is actually in line with our expectation around MAC. We knew based on some of our strategic alignment around the, you know, balancing both retail profitability and economics with our core mission of ensuring that patients have access to medication at affordable pricing. Right?

Chris McGinnis
Chris McGinnis
CFO at GoodRx

There's a balance there. And so how we ultimately, you know, hit that equilibrium of balancing that equation, I think scripts continue to fall out of the system while that happens, and then it gets rebased. And then look, we're we wanna be a growth company. Ultimately, we wanna grow those scripts over the long term. But how we how that sort of lands, you know, is is we're kind of we we still think there's a little bit of headwind on sort of Mac, volume.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

In terms of, you know, the ability to drive, you know, the margin profile of of those scripts, I still think there's headroom. I think there's opportunity as we sort of still call out and optimize the right mix that will enhance that margin profile, I think, to continue to enhance it. But look, the customer's always front and center of everything we're doing and trying to find that equilibrium and working with our retail partners, but both have to be true. We have to we have to we have to achieve our core mission of making drugs accessible and affordable, but we need a healthy retail network out there so we wanna align to their economics as well. So that's the that's the strategy.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Over the long term, we think that will be, you know, add, you know, the most value to us. But in the meantime, it's probably a little headwind on MAC.

Jailendra Singh
Jailendra Singh
Managing Director at Truist Securities

Great. Thank you.

Operator

Thank you. And one moment for our next question. Our next question will be coming from Craig Hettenbach of Morgan Stanley. Your line is open, Craig.

Craig Hettenbach
Craig Hettenbach
Analyst at Morgan Stanley

Great, thanks. Wendy, can you touch on capital allocation? You've been buying back stock and understanding the multiples low. At the same time, there's a discussion here, kind of wanting to be a growth company. So how are you thinking about kind of the current portfolio as it is?

Craig Hettenbach
Craig Hettenbach
Analyst at Morgan Stanley

Are there any other capabilities from a tuck in perspective that you would consider?

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Yes. I mean, I'll take a stab first and let Wendy weigh in. So in terms of capital allocation priorities, obviously, we're investing in our business. I mean, terms of you look at our capitalized software, it continues to go up. We're continuing to build out suite of capabilities as we integrate further and deeper with both on the pharma side and tie it back to the retail network.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

So we'll continue to spend money, you know, on ourselves, first and foremost. And then look, absent other sort of strategic opportunities that come up, given the stock price, certainly where it is, we'll continue to put money back into stock repurchases. It's just to us, it's it's highly accretive. The stock's undervalued. And so in terms of returning excess cash to, to stakeholders, you know, right now, we'll continue to to to execute against share repo.

Craig Hettenbach
Craig Hettenbach
Analyst at Morgan Stanley

Great. And then just as a follow-up, if you were able to do 20% growth in Mansol, mean, that's a very good outcome, particularly given some of the uncertainty in the pharma. So can you maybe just talk about what that represents just from a greenfield perspective for you guys, kind of where you're at with that business and ability for kind of penetration to be able to drive that type of growth?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yes. So we don't this is Wendy. We don't specifically call out by brand, by manufacturer, obviously, publicly. What I will tell you is the pipeline is robust. There does continue to be a significant amount of room for growth.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We remain convicted at 20% plus for this year. What we also know is that we're continuing to expand not just the list of brands, which is a combination of affordability programs at media, we're also continuing to expand those point of sale direct MSA cash buy downs, which involve directly negotiating with the manufacturer. And what we're proving over and over again is an incredibly strong ROI. So what I'm equally excited about is we're delivering results to the partners we already have. They're broadening their portfolio with us, so it's also going deeper with those same manufacturers, and we're continuing to increase the deal size with each of those partners.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

So that's really where the headroom fits, and we continue to be incredibly bullish on that opportunity.

Craig Hettenbach
Craig Hettenbach
Analyst at Morgan Stanley

Thank you.

Operator

And one moment for our next question. Our next question will come from George Hill of Deutsche Bank. Your line is open.

George Hill
George Hill
Analyst at Deutsche Bank

Good morning Wendy. I have a question just to make sure I'm thinking about something right. I wanted to talk about Medicare and with the benefit changes that kick in this year with the maximum out of pockets. I would have imagined you would have had Medicare beneficiaries in prior years that hit the catastrophic phase that then had a coinsurance payment where they might have tried to use a GoodRx card. Now that they're going to have a maximum out of pocket, they're going to get to the second quarter, third quarter of this year, and they're not going to have an out of pocket component where they might have been looking to use a cash pay card or discount card.

George Hill
George Hill
Analyst at Deutsche Bank

I understand the complexities with GoodRx as it relates to Medicare and other government paid businesses, but I guess is there any dynamic that you're seeing there in the Medicare population? Maybe just remind us what your exposure was to Medicare users at the end of 'twenty four, at the start of 'twenty five?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Sure. I appreciate the question. It's good to hear from you. About less than thirty percent of our users are Medicare eligible, but to be clear, about two percent to 3% tend to hit their MAC or their maximum out of pocket or deductible phase. So I think that the bigger point to think about regardless of the closing of the donut hole is that there will continue to be pressure on these same consumers for where they're spending their dollars.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

And ultimately, Medicare is also going to be limited on what drugs they in fact do cover. So there is always going to be a large, large list of drugs that are not covered regardless of what the out of pocket is for those that are in fact covered. And so we really don't see a headwind pertaining to this. We continue to see the overall opportunity for cash use irrespective of whether or not someone is Medicare eligible is growing.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

George, just put a fine point on what Wendy said, when you think about less than a third of our business are Medicare eligible and our data showing, you know, less than three percent of those actually hit their move or their max out of pocket, that if you extrapolate those two, it's less than 1% of impact on us closing that donut hole.

George Hill
George Hill
Analyst at Deutsche Bank

Maybe if I could have

George Hill
George Hill
Analyst at Deutsche Bank

a quick follow-up. You guys have

George Hill
George Hill
Analyst at Deutsche Bank

the biosimilar strategy going on with HUMIRA and Boehringer. I guess, can you talk about how effective that's been given initiatives by PBMs to be pretty restrictive in the channel? Has been a tailwind or a headwind to execution there?

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Gosh, appreciate the question. I mean, think we've seen reasonable uptake on pricing on the BioSim. I mean, I think we continue to believe that BioSim represent in general and align with our affordability narrative. So, to the extent we can continue to obtain favorable pricing on any of those molecules, we want them to be available on our platform. I think the short answer because it can be the better price point to consumers and we know overall, particularly in that RA and derm category where Biossims first launched that the uptake in percentage of overall sales of biosims has been increasing nicely.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

So, given that, I think we will continue to pursue contract and pricing for any class of biosims where it makes sense for us.

George Hill
George Hill
Analyst at Deutsche Bank

Thank you.

Operator

And our next question will be coming from Steven Valiquette of Mizuho Securities. Your line is open, Steven.

Steven Valiquette
MD & Senior Equity Research Analyst - Covering Health Care Technology & Distribution at Mizuho Securities

Thanks. Yeah, good morning, Wendy and Chris. Thanks for taking the questions. So there was a question earlier around the revenue per MAC, which I think you kind of answered in sort of talking more about margin. By our math, that was up about 7% year over year and was actually the first time in years that actually went up.

Steven Valiquette
MD & Senior Equity Research Analyst - Covering Health Care Technology & Distribution at Mizuho Securities

I was just curious if there were any other factors that drove that metric besides what kind of Jalendra alluded to earlier. I'm wondering, first was there a shift in mix to higher priced drugs this year? Are you maybe seeing more brand volume versus generic? And I guess also, are you seeing just generic inflation in the overall market this year? Just curious if there's any other variables driving that 7% growth in that revenue per MAC?

Steven Valiquette
MD & Senior Equity Research Analyst - Covering Health Care Technology & Distribution at Mizuho Securities

Thanks.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Yeah. Thanks, Steve. I mean, I think you've sort of answered it. I think it's all of the above. It's mix shift, it's higher drug use, it's inflation.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

It's just there's nothing other than that that I would call out specifically that's driving it other than sort of just a mixed bag of the factors you've kind of highlighted.

Steven Valiquette
MD & Senior Equity Research Analyst - Covering Health Care Technology & Distribution at Mizuho Securities

Okay. Got it. Okay. That's it for me. Thanks.

Operator

Thank you. And our next question will be coming from Allen Lutz of Bank of America. Your line is open.

Allen Lutz
Allen Lutz
Analyst at Bank of America

Good morning and thanks for taking the questions. I want to follow-up on Stephen Gillinger's question. Wendy, at the top of the call, I think that you mentioned that there are higher prices in the GoodRx app. Just want to check to see if that is driving maybe the higher revenue per MAC at all. And then last quarter, during the call, you talked about store closures potentially driving the MAC lower.

Allen Lutz
Allen Lutz
Analyst at Bank of America

As we think about higher prices and store closures, is there any way to bifurcate between those two what's driving the MAC in 1Q? Thanks.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yeah, no, I wouldn't call out delineation between those two items you just noted. I mean, the primary driver is the mix shift to higher margin Rxs at the pharmacy counter, as again, we seek to bolster and enable the retail pharmacies so that they can continue to fill these prescriptions. But to be clear, we're absolutely balancing that with a competitive and fair price for the consumer. It's just in some instances, it might look a little higher than, say, it did three months ago, but still wildly competitive when you contemplate a cash price as a complement to insurance. But that is the primary driver.

Allen Lutz
Allen Lutz
Analyst at Bank of America

Okay. Thank you very much. And then for my follow-up, the VCRX acquisition in the quarter, can you talk about that a little bit? Is there anything you could share around how many members, how much revenue? And then are the members that you added there included in the MAC at the end of the quarter?

Allen Lutz
Allen Lutz
Analyst at Bank of America

Thanks.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Yeah. So it's it's in terms of the total revenue profile, it's it's immaterial as we called out in the queue. But this was a this was a strategic retail partner that had a cash pay program and and, you know, it's private labeled. So this is really as much about deepening our relationship with that partner and and, some of the other offerings that we've kind of highlighted and announced with this partnership. So less of about a contribution of revenue and more about deepening a relationship with that strategic partner.

Allen Lutz
Allen Lutz
Analyst at Bank of America

Great. Thank you.

Operator

And our next question will be coming from Michael Cherny of Leerink Partners. Your line is open.

Michael Cherny
Senior Managing Director & Senior Research Analyst at Leerink Partners

Good morning and congrats on a nice quarter. Maybe just one for me here on the margin side. As you think about the strong EBITDA performance both in the quarter embedded in the guidance going forward, having taken the full range out for the year, how do you think about the moving pieces for what's in your control versus market oriented? What I try to mean by that is, are you seeing a how much of it is a combination of better pull through on your revenue line items, your improvements year over year versus cost containment issues you're pursuing so we can understand the durability of what's obviously been still a fairly strong EBITDA margin beyond this year?

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Yes. So it's certainly a mix of both in terms of revenue and the cost side of the equation. And I don't have a specific breakout of contribution that's driving that, uplift in the EBITDA and margin profile and the percentage. But what I would say is, in terms of what you ask about what's levers in our control, obviously, the revenue side's a little there are components of that that are less within our control. Obviously, there's, you know, you know, a lot going on.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

I can't remember a year quite like this in terms of trying to plan and predict, you know, in terms of, you know, volatility and consistency and those things. So, so I certainly feel like I got a lot more control and more levers to control on the cost side. And I do so I think I think that's, you know, from a mix perspective, I think there's more levers to control there. And I think it'll bounce around a little bit. We have some elective spending I think we'll do in the second half of the year.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

Wendy mentioned to reinvest in our brands. So I think we'll see a little bit of marketing spend pickup as the plan right now is a little light in the first quarter, but I think we'll pick that up in second half, offset by some operational efficiencies, which we'll continue to press on. I mean, we're just really rolling up our sleeves there. So I think there's probably more offsets to be done there. So, you know, we're committed to being good stewards of shareholder money.

Chris McGinnis
Chris McGinnis
CFO at GoodRx

We'll we'll operate the business as efficiently as possible, but we're absolutely going to invest in our brand and initiatives that drive future growth of the company. So a little bit of a lot more control, I'd say, that side of the equation.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

And I would just, add, as we think about the strategic opportunities that I believe, Lisa may have asked about, at the top of the call when we opened Q and A, And I was also very purposeful in my remarks on, using the word durable. A lot of where we're investing are in strategic initiatives that deepen a partnership, whether it's with pharma, the PBM, or the retailer, that becomes a little more difficult to unwind when you're conveying value to all parties in a meaningful way. And given our brand presence, the way we attract consumers, I'm thinking about this in terms of what could a competitor come in and do and potentially supplant. It becomes a little more difficult with the way we're building some of the things we're talking about becoming the digital front door and partner. And the brand value that we're conveying, a number of our competitors don't have to be able to share with retailers or to wrap to those non covered offerings inside PBM.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

So that's how we're thinking about our strategic pillars. And and the word durable, again, was used purposely for that very reason, because I want these things to become more in our control and more difficult to replace for our partners.

Operator

Thank you. And our last question will be coming from Daniel Grosslight of Citi. Your line is open Daniel.

Daniel Grosslight
Daniel Grosslight
Analyst at Citigroup

Thanks for taking the question and congrats on the strong quarter here. You know, we've seen a pretty significant expansion of direct to consumer distribution of GLP-one via NovoCare and Lilly Direct. I'm curious as you think about growth in Farmamantel and your relationships with Novo and Lilly, if there's an opportunity to become a kind of bigger front door to some of those direct to consumer cash pay only programs, whether through Novo or Lilly Direct, thinking about your telehealth assets combined with your pharma distribution strength there? Thanks.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Yes. It's as if you've been sitting in some of my strategic conversations. Timely question. The short answer is yes, we agree with you. We're having the same conversations with the manufacturers you note, and potentially others that may have, you know, molecules either in this particular class or in classes that lend themselves to direct programs, because we know that when any type of program is embedded in our platform compared to a distinct and separate environment that pharma has, it can be anywhere from five, ten to 15 times the lift through us as compared to that unique manufacturer program.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Again, just because there isn't a lot of consumer awareness on how to utilize those platforms, and we've already got the trusted engagement of not only the consumer, but I think it's important to also note the HCP, and that again is something we alluded to earlier. They also are looking at these price points in office trying to assist their patients, and we believe that continues to be a pretty large opportunity that candidly we've not monetized as well as we should. And so you heard me allude to what will be a much larger strategy there as well. And we do have a partnership with a telehealth provider. We partner with Wheel.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

We also think there's an opportunity to better leverage that partnership should we contemplate becoming more of that all encompassing telehealth taking care of the visit in addition to servicing the script.

Daniel Grosslight
Daniel Grosslight
Analyst at Citigroup

Thank you.

Operator

And I would now like to turn the call back to Wendy for closing remarks.

Wendy Barnes
Wendy Barnes
President & CEO at GoodRx

Thank you, and a sincere thanks to everyone for joining us today. GoodRx has an exceptional value proposition and market position. We deeply understand the interconnected business relationships that drive consumer medication access and affordability, and we are ideally positioned to deliver value to all of our stakeholders by fulfilling our brand purpose to the end consumer, which is especially important during times of economic and retailer uncertainty. Thank you again for joining us today.

Operator

And this concludes today's conference call. Thank you for your participation. You may now disconnect.

Executives
    • Aubrey Reynolds
      Aubrey Reynolds
      Director & Head - Investor Relations
    • Wendy Barnes
      Wendy Barnes
      President & CEO
    • Chris McGinnis
      Chris McGinnis
      CFO
Analysts

Key Takeaways

  • GoodRx reported Q1 revenue of $203 million (up 3% YoY) and adjusted EBITDA of $69.8 million (up 11% YoY), and maintained full-year guidance of $810–840 million in revenue and $273–287 million in EBITDA.
  • To support pharmacy profitability, GoodRx implemented selective prescription price increases, which pressured monthly active consumers but drove a 300 bps YoY gain in its prescription affordability segment share.
  • The company launched a directly integrated e-commerce solution with a retail partner that validates prescriptions, checks inventory, and processes payments for in-store pickup or home delivery.
  • GoodRx’s manufacturer solutions business gained momentum with expanded point-of-sale buy-down programs—evidenced by an insulin coupon success scaled to five brands—and delivered a 15× ROI for a vaccine client.
  • After Rite Aid’s bankruptcy filing (<5% of projected 2025 revenue), GoodRx is working with other pharmacy partners to ensure smooth patient script transitions and capture displaced prescriptions.
AI Generated. May Contain Errors.
Earnings Conference Call
GoodRx Q1 2025
00:00 / 00:00

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