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On Thursday, KeyBanc Capital Markets maintained its Overweight rating on GoodRx Holdings Inc. (NASDAQ:GDRX) with a steady price target of $6.00. The decision followed GoodRx’s financial results, which revealed a modest revenue outperformance and significant profitability beyond expectations for the quarter. According to InvestingPro analysis, the company appears undervalued, with strong financial health indicators and impressive gross profit margins of 93.91%.
GoodRx’s Prescription Transaction (JO:NTUJ) Revenue (PTR) segment experienced a 4% decline in Monthly Active Consumers (MAC), which was slightly more severe than KeyBanc’s anticipated 2.5% drop. This decline was attributed to changes in the retail pharmacy sector, including store closures. Despite this, GoodRx managed to improve unit economics, which helped to mitigate the impact of reduced volumes. InvestingPro data shows the company maintains a healthy current ratio of 5.32, indicating strong ability to meet short-term obligations.
In the pharmaceutical manufacturing solutions division, GoodRx fell short of projections but still achieved approximately 17% growth. This increase was partly driven by an expansion in point-of-sale discount programs. For the second quarter, GoodRx has forecasted a sequential rise in revenue from $203 million in the first quarter, with consensus estimates around $206 million. The company also expects adjusted EBITDA margins to be in line with the first quarter’s performance.
Looking at the full year, GoodRx has reiterated its revenue guidance, although it anticipates results to be at the lower end of its projected range. Additionally, the company has slightly increased its adjusted EBITDA range. In a significant move to enhance shareholder value, GoodRx has repurchased 23.3 million shares at an aggregate cost of $100.9 million.
GoodRx’s recent financial performance and strategic share repurchases reflect the company’s efforts to navigate a challenging retail pharmacy landscape while continuing to grow its core and ancillary services. KeyBanc’s reaffirmed rating and price target indicate confidence in GoodRx’s ability to maintain its market position and financial health.
In other recent news, GoodRx Holdings Inc. reported first-quarter revenue of $203.0 million, surpassing the consensus estimate of $202.59 million. The company also maintained its full-year revenue guidance of $810-$840 million, aligning with the $823.3 million analyst consensus. Despite a 4% decrease in Monthly Active Consumers (MACs), GoodRx’s prescription transactions revenue increased by 2% year-over-year to $148.9 million. Leerink Partners maintained an Outperform rating on GoodRx, citing the company’s solid start to 2025 and the positive outlook for continued growth in margins. In contrast, BofA Securities downgraded its price target for GoodRx to $4.00, maintaining an Underperform rating due to concerns about the decline in MACs. BofA highlighted that changes in the retail pharmacy sector, including store closures and new reimbursement models, could impact MAC figures. GoodRx’s adjusted earnings per share matched analyst projections at $0.09, and the company slightly raised its adjusted EBITDA outlook to $273-$287 million. The company’s strong quarterly results and maintained outlook contributed to a significant increase in its share price.
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