One-glance verdict
Undervalued
$22.68 our estimate vs market $3.47
Wall Street consensus: $3.95 (-82.6% lower than our fair-value estimate)
85% below our estimate, below the bear case
Fundamentals snapshot
GoodRx Holdings, Inc.
GDRX · NMS · Healthcare · Health Information Services
Current price
$3.47
52-week range
$1.77 - $3.89
Market cap
$1.18B
Balance sheet
Stretched
2.05x Stretched
Net debt $242.84M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Returns 2.5% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
GoodRx Holdings, Inc.
GoodRx helps people in the U.S. find lower prices on their prescription medications and also offers pet medications and telehealth services. The money they make primarily comes from allowing drug companies to advertise to their users and from pharmacies paying to be part of their savings program. This is important because it shows how they connect drug makers, pharmacies, and consumers to create a business around making healthcare more affordable.
How the company got here
GoodRx was founded in 2011 by Doug Hirsch, Trevor Bezdek, and Scott Marlette, who noticed that prescription drug prices varied wildly between pharmacies, even for the same medication. [4, 13] They realized that while many things could be compared online, prescription drug prices were a confusing exception. [13] The company's mission was to bring transparency to drug pricing and make healthcare more affordable and accessible for everyone, regardless of insurance status. [13, 15] GoodRx went public on the Nasdaq in September 2020, raising over $1.1 billion in its initial public offering. [1]
What it actually does
GoodRx operates a digital healthcare platform that helps consumers find lower prices for their prescription medications. [7, 15] It provides a free website and mobile app where users can compare prices for drugs across different pharmacies in the United States. [1, 6] The platform also offers discount coupons that can be used at the pharmacy to reduce the cost of prescriptions. [6, 7] In addition to price comparison and discounts, GoodRx offers telehealth services, allowing users to consult with healthcare providers online for various medical needs. [1, 6]
Prescription Transactions
This is GoodRx's primary business line, where it earns revenue by acting as an intermediary between consumers, pharmacies, and pharmacy benefit managers (PBMs). [2, 7] When a consumer uses a GoodRx coupon to get a discounted prescription, the pharmacy processes the transaction through the PBM network and pays a fee to GoodRx. [7] This fee is essentially a commission for facilitating the sale and connecting the consumer to a lower price. [7, 9] While this has historically been GoodRx's largest revenue source, it has seen some decline as the company shifts its focus. [3, 8]
Pharma Manufacturer Solutions
This segment involves GoodRx partnering with pharmaceutical companies to help them promote their affordability solutions, such as copay cards and patient assistance programs, directly to consumers on the GoodRx platform. [2, 7] Pharmaceutical manufacturers pay GoodRx for this advertising and integration service, making it a growing revenue stream for the company. [7, 14] This business line is becoming increasingly important as GoodRx seeks to diversify its income beyond traditional prescription transactions. [3, 14]
Subscription Services
GoodRx offers subscription plans, such as GoodRx Gold, which provide members with additional savings on prescriptions and, in some cases, free home delivery of certain medications. [2, 5] These subscription services aim to create a more recurring revenue stream for the company by offering enhanced benefits to loyal users. [5] The subscription model is a key area of focus for GoodRx as it looks to build more predictable income and customer retention. [3, 5]
Telehealth Services
Through its GoodRx Care platform, the company provides telehealth services, allowing users to consult with doctors online and obtain prescriptions for certain conditions. [1, 6] GoodRx generates revenue from these services through consultation fees, which can be a set price or part of a subscription package. [6, 9] This segment represents a growing area for GoodRx, as it expands its offerings beyond just prescription price comparison to include direct healthcare access. [3, 5]
What management is betting on now
GoodRx's management is currently focused on scaling its "Pharma Direct" (which includes Pharma Manufacturer Solutions) and subscription services to offset declines in its traditional prescription transaction revenue. [3, 12] They are investing in these areas to create more durable and predictable revenue streams for the long term. [3, 12] The company is also working on integrating telehealth services more closely with its prescription savings offerings to provide a more seamless customer journey. [5] While these strategic shifts are expected to impact short-term financial results, management believes they are crucial for the company's future growth and stability. [3, 12]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$86.46M
FY2024 Q4
$44.58M
FY2025 Q1
$9.27M
FY2025 Q2
$49.19M
FY2025 Q3
$74.28M
FY2025 Q4
$31.65M
FY2026 Q1
$10.70M
FY2026 Q2
$80.47M
Revenue
$200.41M
Net income
$8.54M
Diluted EPS
0.02
Operating cash flow
$80.83M
Free cash flow
$80.47M
Fetching…
Sources
Revenue
$194.01M
Net income
$1.17M
Diluted EPS
0.00
Operating cash flow
$11.84M
Free cash flow
$10.70M
Fetching…
Sources
Revenue
$194.78M
Net income
$5.42M
Diluted EPS
0.02
Operating cash flow
$32.89M
Free cash flow
$31.65M
Fetching…
Sources
Revenue
$196.03M
Net income
$1.12M
Diluted EPS
0.00
Operating cash flow
$76.02M
Free cash flow
$74.28M
Fetching…
Sources
Revenue
$203.07M
Net income
$12.84M
Diluted EPS
0.04
Operating cash flow
$49.58M
Free cash flow
$49.19M
Fetching…
Sources
Revenue
$202.97M
Net income
$11.05M
Diluted EPS
0.03
Operating cash flow
$9.41M
Free cash flow
$9.27M
Fetching…
Sources
Revenue
$198.58M
Net income
$6.74M
Diluted EPS
0.01
Operating cash flow
$44.74M
Free cash flow
$44.58M
Fetching…
Sources
Revenue
$195.25M
Net income
$3.96M
Diluted EPS
0.01
Operating cash flow
$86.86M
Free cash flow
$86.46M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.68 vs current price $3.47
Wall Street consensus is the average analyst price target: $3.95 (-82.6% lower than our fair-value estimate).
Our most-likely fair value is $22.68 a share — about 553.7% above today's price of $3.47, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $242.8M. Interest coverage 2.1x.
Net debt
$242.84M
Interest coverage
2.05x
GoodRx Holdings, Inc.'s profit covers its interest bill about 2.1 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
GDRX
BASELINE
GoodRx Holdings, Inc.
Total debt $538.95M Interest coverage 2.05x This is the baseline the peer rows are being compared against.
Total debt $1.04B Interest coverage -8.29x -100% vs GDRX This peer has almost no interest-payment cushion compared with GDRX.
Total debt $9.67M Interest coverage 6.02x +193% vs GDRX Carries about 2.9x more debt cushion than GDRX.
Total debt $6.02M Interest coverage -5.64x -100% vs GDRX This peer has almost no interest-payment cushion compared with GDRX.
Total debt $2.98M Interest coverage -27.68x -100% vs GDRX This peer has almost no interest-payment cushion compared with GDRX.
What you should know
The case for and against GDRX
2 Rewards
0 Risks
Rewards
-
Returns 2.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
69.40x
Forward P/E
9.86x
P/B
1.82x
P/S
1.51x
EV/EBITDA
13.12x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
90.8%
Operating margin
11.8%
Net margin
2.1%
ROE
2.5%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.83x
Current ratio
1.38x
Quick ratio
0.42x
Total debt
$538.95M
Total cash
$296.11M
Growth
How the business has been compounding
Revenue TTM
$785.23M
Revenue 5Y CAGR
1.7%
EPS TTM
0.05
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$201.58M
Free CF TTM
$164.38M
FCF margin
20.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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