Healthcare tech company GoodRx (NASDAQ:GDRX) reported Q3 CY2025 results exceeding the market’s revenue expectations, but sales were flat year on year at $196 million. Its non-GAAP profit of $0.08 per share was 12.3% below analysts’ consensus estimates.
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GoodRx (GDRX) Q3 CY2025 Highlights:
- Revenue: $196 million vs analyst estimates of $193.9 million (flat year on year, 1.1% beat)
- Adjusted EPS: $0.08 vs analyst expectations of $0.09 (12.3% miss)
- Adjusted EBITDA: $66.28 million vs analyst estimates of $64.42 million (33.8% margin, 2.9% beat)
- EBITDA guidance for the full year is $270 million at the midpoint, in line with analyst expectations
- Operating Margin: 7.5%, down from 10.5% in the same quarter last year
- Free Cash Flow Margin: 58.1%, up from 44.3% in the same quarter last year
- Customers: 5.4 million, down from 5.7 million in the previous quarter
- Market Capitalization: $1.15 billion
Company Overview
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ:GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, GoodRx’s sales grew at a decent 9.4% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. GoodRx’s recent performance shows its demand has slowed as its annualized revenue growth of 3.5% over the last two years was below its five-year trend. 
We can dig further into the company’s revenue dynamics by analyzing its number of customers, which reached 5.4 million in the latest quarter. Over the last two years, GoodRx neither added nor lost customers. Because this number is lower than its revenue growth, we can see the average customer spent more money each year on the company’s products and services. 
This quarter, GoodRx’s $196 million of revenue was flat year on year but beat Wall Street’s estimates by 1.1%.
Looking ahead, sell-side analysts expect revenue to grow 2.4% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its products and services will face some demand challenges.
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Adjusted Operating Margin
GoodRx has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average adjusted operating margin of 25.4%.
Looking at the trend in its profitability, GoodRx’s adjusted operating margin decreased by 4.4 percentage points over the last five years, but it rose by 2.8 percentage points on a two-year basis. Still, shareholders will want to see GoodRx become more profitable in the future.
This quarter, GoodRx generated an adjusted operating margin profit margin of 24.3%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
GoodRx’s EPS grew at an unimpressive 1.2% compounded annual growth rate over the last five years, lower than its 9.4% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Diving into the nuances of GoodRx’s earnings can give us a better understanding of its performance. As we mentioned earlier, GoodRx’s adjusted operating margin was flat this quarter but declined by 4.4 percentage points over the last five years. Its share count also grew by 44.3%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. 
In Q3, GoodRx reported adjusted EPS of $0.08, in line with the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects GoodRx’s full-year EPS of $0.35 to grow 27.7%.
Key Takeaways from GoodRx’s Q3 Results
It was good to see GoodRx narrowly top analysts’ revenue expectations this quarter. On the other hand, its EPS missed and its customer base fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $3.28 immediately after reporting.
So should you invest in GoodRx right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.