GoodRx Holdings, Inc. Q2 FY2025 earnings call

• Pharma manufacturer solutions: Strengthened relationships with pharma manufacturers, achieved 32% year-over-year revenue growth, and anticipates continued strong performance. Monetization per brand has increased due to ROI validation and platform scale.
• Prescription marketplace: Made strides in pharmacy counter integrations and e-commerce, launched e-commerce solutions with a retailer, expanded the integrated savings program to include brand medications, and introduced condition subscription products like erectile dysfunction.
• Leadership changes: Welcomed Laura Jensen as Chief Commercial Officer and President of Pharma Solutions, with Dorothy Gemmell retiring after a transitional period.
• External impacts: Addressed challenges from Rite Aid's bankruptcy and ISP volume decline, working to recapture displaced consumers and emphasizing ISP's potential with brand drugs.
• Healthcare landscape: Discussed effects of the budget bill, rising costs, and government efforts on drug pricing, highlighting GoodRx's role in providing affordable medication.

Pharma manufacturer solutions delivered 32% year-over-year revenue growth in the second quarter, reaching $35 million. The prescription marketplace segment experienced progress in areas like pharmacy counter integrations and e-commerce, though it was impacted by external factors such as Rite Aid's bankruptcy and ISP volume decline. Pharma manufacturer solutions contributed significantly to overall revenue, with its 32% growth being a key driver.

• Total revenue for 2025 has been adjusted to account for the impact of Rite Aid and ISP, with a projected revenue loss of $35 million to $40 million.
• Full-year adjusted EBITDA is expected to be in the range of $265 million to $275 million, representing a 2% to 6% growth compared to 2024.
• Q3 revenue is expected to be lower than Q4, but full-year revenue is still anticipated to increase from 2024.

• Rite Aid bankruptcy led to immediate cessation of claims volume and store closures, negatively impacting revenue.
• Decline in ISP volume at one PBM partner, though ISP remains valuable with potential in brand drugs.
• Healthcare landscape changes, including the budget bill's effects, rising costs, and government efforts on drug pricing, which could affect business operations.

Q: Can you talk about ISP new partnerships and timeline for turnaround?

A: ISP is a critical product with new partnerships added, and there is upside in brands and direct-to-employer, but the turnaround timeline is metered with expectations for 2026.

Q: How to think about manufacturer solutions growth and bridge to 30%+ revenue growth?

A: Manufacturer solutions saw strong Q2 performance, driven by ROI studies and direct-to-patient strategies, with confidence in achieving 30%+ growth for the year.

Q: Guidance change and impact of Rite Aid and ISP?

A: Guidance was adjusted for a $35 million to $40 million revenue loss, roughly half from Rite Aid and half from ISP, with assumptions on recapture and market tailwinds.

Q: Subscription line declines and ED subscription impact?

A: Gold subscription declined, but the ED subscription showed progress, with plans to expand to weight loss and hair loss, leveraging existing ecosystem traffic.

Q: Consumer behavior and platform usage impact?

A: Higher consumer prices pushed some to benefits, but tailwinds are expected in 2026, with focus on brand initiatives and marketing spend.