OptimizeRx Corporation Q2 FY2025 earnings call

• Strong second quarter results with revenue up 55% y-o-y to $29.2 million and adjusted EBITDA at $5.8 million.
• Contracted revenue increased over 30% y-o-y, positioning the company favorably for the second half of 2025.
• Increased guidance for 2025: revenue expected between $104 million and $108 million, adjusted EBITDA between $14.5 million and $17.5 million.
• Paid down $4.5 million of principal debt during Q2, with intent to accelerate debt repayment using free cash flow.
• Integrated an omnichannel technology platform with advanced patient finding tools, redefining healthcare engagement.
• Key KPIs improved, including net revenue retention rate at 121% and revenue per FTE at $767,000.

In the second quarter of 2025, OptimizeRx achieved significant financial growth. Revenue increased 55% year-over-year to $29.2 million. Adjusted EBITDA was $5.8 million, a year-over-year improvement of over $5 million. Gross margin expanded from 62.2% in Q2 2024 to 63.8% in Q2 2025, driven by favorable product mix, economies of scale, and channel partner mix. Key performance indicators included average revenue per top 20 pharmaceutical manufacturer at $3.1 million, net revenue retention rate of 121%, and revenue per FTE at $767,000 (up from $658,000 in Q2 2024). Contracted revenue grew over 30% year-over-year, and average revenue over the last 12 months for the largest 5 customers was over $11 million on average.

• Increased 2025 revenue guidance to $104M-$108M and adjusted EBITDA to $14.5M-$17.5M.
• Initial indications for 2026 are promising, with formal guidance to be provided as the 2026 RFP process progresses.
• Intend to use free cash flow to pay down debt at an accelerated rate to lower cost of capital.

• Government regulation affecting the pharma industry and company operations.
• Competition in the digital pharma marketing space.
• Dependence on a concentrated group of customers.
• Cyber security incidents that could disrupt operations.
• Ability to keep pace with evolving technology and maintain contracts with electronic prescription platforms and health records networks.

Q: Congrats on an incredible quarter. Last quarter, you talked about revenue cadence. How to think about extraordinary upside in Q2?

A: First half had managed service revenue above expectation; guidance is conservative but achievable, with managed service revenue not expected to continue into second half.

Q: On cost side, OpEx flat despite revenue up. How to think about OpEx in second half?

A: Operating leverage is at play; no need to add significant OpEx, with OpEx expected to remain at current run rate.

Q: ARPU of top 20 grew strongly but fell as a percent of total revenue. Is it due to faster growth of non-top 20?

A: Growth in mid-cap and small businesses is accelerating, with top 10 revenue continuing to improve.

Q: Contracted revenue up 30% y-o-y. Types of revenues contracted? Broad-based?

A: Contracted revenue is broad-based, including both top 20 and below top 20, with HCP and DTC sides performing well.

Q: Reduction in top 20 pharma revenue concentration. Better contract economics with mid-tier?

A: Mid-tier companies are adopting faster, with efficiencies and more logos from 20 to 100 mark contributing.

Q: Visibility on contracted revenue and year-end seasonality. How does Q2 outperformance impact visibility?

A: Gives better visibility on fourth quarter, but no buy-up seasonality is baked into guidance.

Q: Macro environment impact on pharma spend and OptimizeRx. Any pull forward of revenue?

A: No pull forward of revenue, but pharma is engaging earlier and making plans for back half, with OptimizeRx being a preferred efficient digital partner