GDRX

Strategic Overview

• Q2 2026 performance exceeded revenue expectations while maintaining disciplined profitability, putting the company on track to return to year-over-year revenue growth earlier than previously anticipated.
• Core 2026 strategic priorities are scaling PharmaDirect and growing the subscription business, which management expects will build a more durable long-term growth profile.
• The company benefits from a trusted brand, large high-intent audience (over 280 million annual platform visits), and nationwide pharmacy network, which creates value for partners and consumers amid growing healthcare affordability pressures.

PharmaDirect Updates

• PharmaDirect now has over 135 active consumer direct pricing programs with pharmaceutical manufacturers, including new partnerships for top brands like Jardiance, Nurtec, O'Tesla, and Rapapa.
• GLP-1 therapies remain a key growth driver: GoodRx is a leading US consumer access channel for GLP-1s, and supported multiple new product launches/expansions in Q2, including Ozempic Pill, Wegovy HD, Foundeo and Zepbound Quick Pen. Management expects strong demand for transparent self-pay GLP-1 access to persist despite new coverage programs like the Medicare Bridge Program, which has limited reach on the company's platform.
• Growth is not concentrated in GLP-1: the company is deepening partnerships with a focused group of large manufacturers with leading high-value brands, leading to increased average deal size year-over-year and diversified growth.

Subscription Updates

• GoodRx launched GoodRx Companion, its new primary subscription offering, in May 2026. Companion is priced at $14.99/month ($9.99/month for annual plans) and includes 200 free generic medications, additional low-cost generics, affordable online care visits, and savings on dental, vision, labs and imaging, with a focus on consumers managing chronic conditions.
• Companion replaces the older Gold offering as the company's primary subscription, with a broader pharmacy network, richer benefits, and lower consistent prices. Early adoption of Companion has been encouraging.
• The company is reorienting its platform around subscriptions, making them the primary call-to-action on high-traffic surfaces like the homepage and price pages, to build deeper consumer relationships and drive durable recurring revenue.

Rx Marketplace and Network Updates

• Rx Marketplace performance was in line with expectations, with sequential revenue moderation as the company shifts investment to subscriptions. Over time, some transactions will move from the marketplace to subscription offerings, which management views as a positive long-term business evolution that delivers higher lifetime value.
• The company's direct contracting model supports retailer economics and improves consumer experience; its e-commerce capability is now live at nearly 6,000 pharmacies nationwide. GoodRx also partnered with Trump Rx as a launch partner for generics to expand consumer choice.

EmployerDirect Updates

• EmployerDirect, which brings GoodRx's affordability capabilities to plan sponsors at scale, has a growing pipeline of partners, with the first programs expected to go live in Q4 2026 and Q1 2027.
• Initial focus is on GLP-1s, combining PharmaDirect manufacturer pricing with GoodRx for weight loss's consumer engagement model, with plans to integrate GoodRx Companion and allow employers to subsidize membership costs for employees. Early employer response has been positive.

Operational Initiatives

• The company is embedding AI into its operating model to redesign workflows, reduce manual work, accelerate product delivery, and support greater operating leverage over time, with targeted hiring and capability investment.

• Management raised full-year 2026 revenue guidance to a range of $790 to $805 million, up from prior guidance, with the midpoint representing a return to year-over-year revenue growth earlier than previously anticipated.
• PharmaDirect full-year 2026 revenue is now expected to grow more than 70% year-over-year, up from the prior expectation of 50% growth.
• Management also raised full-year 2026 adjusted EBITDA guidance to a range of $240 to $250 million, reflecting strong operating performance and continued disciplined execution.
• Management expects growth from PharmaDirect and subscriptions to more than offset ongoing declines in prescription transaction revenue in the second half of 2026.
• Management expects continued sequential improvement in subscription performance through the second half of 2026 and into 2027, as the new Companion offering matures, with current focus on long-term foundation building rather than near-term 2026 revenue optimization.

Total company revenue for Q2 2026 was $200.4 million, with an adjusted EBITDA of $63.7 million (31.8% adjusted EBITDA margin).

• Prescription Transactions (Rx Marketplace): Revenue was $106.4 million, in line with prior guidance. Monthly active consumers were 5 million, down 12% year-over-year due to deliberate investment reallocation to subscriptions and normal seasonality. This segment accounts for ~53.1% of total Q2 2026 revenue.
• PharmaDirect: Revenue was $61.6 million, up 76% year-over-year and 18% quarter-over-quarter. This segment accounts for ~30.7% of total Q2 2026 revenue, with growth driven by both GLP-1 access programs and expanded non-GLP-1 manufacturer partnerships.
• Subscriptions: Revenue was $28.5 million, up 39% year-over-year. The number of total subscription plans grew 14% year-over-year, with growth led by condition-specific offerings (weight loss, ED, hair loss) and the May 2026 launch of GoodRx Companion. This segment accounts for ~14.2% of total Q2 2026 revenue.
• EmployerDirect is still in early development, with no material revenue contribution in Q2 2026.

No new material standalone risks were discussed on the call. The company referenced that forward-looking statements are subject to existing known and unknown risks disclosed in prior SEC filings, including risks related to the ongoing transition of the company's business model, changes to prescription coverage and healthcare affordability trends, regulatory changes, and competitive dynamics that could cause actual results to differ from forward-looking guidance.

Q: Analyst asks for clarity on cross-business prescription metrics, noting that declining monthly active consumers (MAC) for prescription transactions hurts investor confidence, and asks what critical mass of prescription transaction volume is needed to keep PharmaDirect relevant for manufacturer partners. / A: Management acknowledges the request for updated KPIs and confirms the team is evaluating new metrics to disclose to investors, but will not change metrics mid-fiscal year during the ongoing business model transition, with potential updates planned ahead of 2027. Management explains that MAC only counts prescription transaction revenue, and does not capture the 280 million annual high-intent site visits from consumers looking for drug pricing, which drive PharmaDirect value; GoodRx consistently outperforms other channels (including manufacturer-owned sites) on ROI for pharma programs because its audience is already actively seeking affordable medications, even many consumers with existing insurance. This strong performance has driven the growth to over 135 direct consumer programs, with continued deepening of partnerships.

Q: Analyst asks how large GLP-1s are to PharmaDirect growth, and comments on recent oral GLP-1 launches and the new Medicare GLP-1 Bridge Program. / A: Management confirms GLP-1s have been and will continue to be an important driver of PharmaDirect growth, with considerable long-term opportunity as the category expands through 2030 and beyond. It also notes that non-GLP-1 PharmaDirect partnerships have grown substantially year-over-year, diversifying the segment's revenue base. Oral GLP-1 formulations have seen healthy, ongoing growth on GoodRx's platform, and while the Medicare Bridge Program will bring new coverage to some patients, it has limited eligibility and processing requirements that will restrict its reach, leaving strong ongoing demand for self-pay GLP-1 access.

Q: Analyst asks whether GoodRx needs to make material incremental investments to support continued PharmaDirect scaling, or if existing capacity is sufficient. / A: Management says no significant incremental costs are expected to support continued PharmaDirect growth, as the company has already invested in the required sales force and supporting infrastructure. PharmaDirect already makes up 31% of total quarterly revenue, with an established experienced team; the platform's existing large audience means most capabilities needed to support new partnerships are already built into the GoodRx brand. Management notes it will approve incremental investment only if needed, but does not anticipate any dramatic spending increases.

Q: Analyst asks how recent coverage reductions in ACA exchanges and Medicaid have impacted GoodRx, and asks about the opportunity for compounded peptides. / A: Management confirms that broader trends of reduced coverage and higher out-of-pocket costs across ACA, Medicaid, and employer plans are macro tailwinds for GoodRx's subscription offerings and traditional discount products, as more consumers seek cash affordability options. For compounded peptides, GoodRx is watching regulatory developments closely; the segment is of interest, but GoodRx will only enter if the products receive full FDA regulatory approval, and would only operate with clinically vetted, credentialed compounding pharmacy partners to maintain consumer trust.

Q: Analyst asks how GoodRx navigates partnership relationships when launching EmployerDirect and GoodRx Companion, noting potential conflict with existing PBM partners. / A: Management explains that EmployerDirect is structured as a complement to existing employer and PBM offerings, not a replacement. Most early EmployerDirect conversations are focused on GLP-1s, which many employers have already dropped coverage for, so PBMs view GoodRx as a helpful partner to serve employee need. Companion is not an insured product, but works well as a complement to existing benefits, including for part-time employees who do not qualify for full employer benefits. GoodRx's advocacy for counting cash pricing towards out-of-pocket maximums aligns with recent PBM settlement commitments, so the company's positioning aligns with broader industry trends.