OptimizeRx Corporation Q4 FY2025 earnings call

Delivered strong fourth quarter, exceeding consensus estimates. Full year results demonstrate strength of operating model and market opportunity. Solid top-line performance across large and new customers. Improvements in product mix and channel partner strategy led to higher gross margins. AI has minimal disruption, may serve as tailwind. Strong momentum in medtech sector with client expansions. Positioned as comprehensive commercialization partner supporting full product lifecycle.

Fourth quarter revenue was $32.2 million, adjusted EBITDA was $12 million. Full year revenue totaled $109.4 million, with adjusted EBITDA of $24.3 million. Improvements in product mix and channel partner strategy contributed to higher gross margins in 2025. Combined with cost optimization initiatives and the benefits of the fixed-cost, highly scalable operating model, adjusted EBITDA and free cash flow more than doubled year over year.

2026 revenue expected in the range of $109 million to $114 million and adjusted EBITDA between $21 and $25 million. Updated guidance due to market shift away from managed services and clients' conservative spending in early 2026, but focused on profitability.

Softness in year-to-date contracted revenue due to market shift from managed services and clients' conservative spending. Risks include government regulation, competition, dependence on concentrated customers, cybersecurity incidents, and ability to keep pace with evolving technology.

Q: Curious in your commentary on some of the end market weakness...

A: We're seeing a broader pause across all clients...; Q: Are you seeing any nuances between DTC and HCP marketing...

A: It's about the same across the board...; Q: You mentioned during the quarter, gross margins were obviously great...

A: In Q4 2025 had favorable channel partner mix...; Q: You mentioned you're not seeing any disruption from AI...

A: AI creates efficiency and speed within organizations...; Q: Historically, you've been able to give some color on the percent of revenue that's under contract...

A: Roughly 15% to 20% behind last year's numbers...; Q: Steve, you highlighted in your prepared remarks performance from mid-tier and smaller manufacturers...

A: We can supplement what those clients don't have infrastructurally...; Q: Just in terms of capital deployment...

A: We'll look at every opportunity, likely spend on paying down debt...; Q: What have you contemplated in guidance in terms of approximate NRR for the year...

A: NRR above 100% as good marker...; Q: I wanted to ask a few more follow-ups on the end market dynamics...

A: Everyone is a little bit distracted with MFN negotiations...; Q: Just to kind of level set on maybe the macro assumptions underlying the revised guide for 26...

A: Slower start to the year, expecting improvement in Q2, Q3...; Q: Steve, at the end of 26, you guys announced a few new partnerships...

A: Focused on expanding EHR and point of prescribed footprint...