19-05-2025
GoodRx Offers Value Proposition As Pharmacy Costs Shifts To Consumers: Analyst
JP Morgan analyst Lisa C. Gill revised her 2025 outlook on GoodRx Holdings (NASDAQ:GDRX) following the company's first-quarter earnings. Gill reaffirmed an Overweight rating on the stock and maintained her $7 price forecast.
The company reported first-quarter 2025 revenue of $203 million (above the $202.21 million estimate), up 3% year-over-year. Adjusted EBITDA rose to $69.8 million, with margins improving to 34.4% from 31.7%. Net income came in at $11.1 million, reversing a $1 million loss in the prior year.
Pharma Manufacturer Solutions' revenue climbed 17%, while subscription revenue declined 7%, primarily due to the phaseout of the Kroger Savings reaffirmed its full-year 2025 revenue outlook of $810-$840 million and raised its adjusted EBITDA forecast to $273–$287 million, compared to $260.2 million in 2024.
The analyst revised her 2025 revenue estimate slightly downward to $817 million (3% year-over-year growth), citing added ~$5 million in Rite Aid (RAD) headwinds, offset by strength in Pharma Manufacturer Solutions and improved margins.
She increased her adjusted EBITDA projection to $279 million (7% growth), with a 135 basis-point margin expansion to 34.2%. Despite a slight increase in sales and marketing expenses in the second half of 2025, margin strength is expected to persist.
Gill noted the trend of pharmacy costs shifting to consumers and the efforts of pharmacies/PBMs to capture abandoned scripts create a favorable environment for GoodRx's value proposition.
The analyst anticipates solid growth, execution, and margin expansion with benefits from ISP adoption and increased consumerism in healthcare in 2025 and beyond.
JP Morgan maintained its December 2025 price target of $7, based on a 9x EV/EBITDA multiple on the 2026 forecast of $298 million and a sustained mid-to-high-single-digit EBITDA growth trajectory.
Price Action: GDRX shares are trading lower by 0.88% to $3.93 at last check Monday.
Image by Aria Armoko via Shutterstock
Date
Firm
Action
From
To
Mar 2022
Barclays
Maintains
Overweight
Mar 2022
Morgan Stanley
Maintains
Equal-Weight
Mar 2022
Raymond James
Maintains
Outperform
View More Analyst Ratings for GDRX
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