One-glance verdict
Undervalued
$24.90 our estimate vs market $7.59
Wall Street consensus: $12.40 (-50.2% lower than our fair-value estimate)
70% below our estimate, below the bear case
Fundamentals snapshot
OptimizeRx Corporation
OPRX · NCM · Healthcare · Health Information Services
Current price
$7.59
52-week range
$4.54 - $22.25
Market cap
$142.96M
Balance sheet
Healthy
2.28x Stretched
Net cash $4.62M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Returns 3.7% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Reward Trades at 30.4x P/E vs peer median 57.2x (46.9% cheaper).
What this company does
OptimizeRx Corporation
OptimizeRx helps drug companies communicate with doctors by placing targeted messages, like drug information or savings offers, directly into the software doctors use for prescriptions and patient records. The company makes money by charging pharmaceutical companies for this direct access, which is valuable because it can influence a doctor's decisions at the exact moment they are providing care.
How the company got here
Founded in 2006, OptimizeRx started with a simple idea: delivering digital coupons and copay assistance for medications directly to doctors and pharmacists through their own software systems. This placed the company at the intersection of healthcare technology and pharmaceutical marketing right from the beginning. Over the years, it has grown by acquiring other companies to add new capabilities, like patient text message reminders and, more recently, tools for reaching consumers directly with health information. This evolution has transformed it from a niche digital coupon vendor into a broader technology platform that helps drug companies with their overall sales and marketing efforts.
What it actually does
OptimizeRx operates a technology platform that acts as a communication bridge connecting pharmaceutical companies with doctors and patients. Imagine a doctor is electronically prescribing a medication for a patient; OptimizeRx's system can, at that exact moment, show the doctor information about brand-name drugs, patient savings programs, or educational materials. The company's main goal is to help patients start and stay on the medications their doctors prescribe by making information and financial assistance more accessible. The patients and doctors use this service for free; the pharmaceutical companies are the ones who pay OptimizeRx to deliver these messages through its network.
Healthcare Provider Marketing
This is the company's original and core business, focused on reaching doctors and other healthcare professionals (HCPs) directly within their daily workflow. When a doctor is using a patient's electronic health record (EHR) to make treatment decisions, OptimizeRx's platform delivers relevant messages from drug manufacturers. These messages can be anything from alerts about which pharmacies have a specialty drug in stock to details on financial aid programs for patients. Pharmaceutical companies pay OptimizeRx to place this information in front of doctors at the critical moment of prescribing, making it a key way the company earns revenue.
Direct-to-Consumer (DTC) Marketing
This is a newer and growing part of the business that focuses on reaching patients and consumers directly, rather than through their doctors. Using data analysis, the company helps pharmaceutical brands identify and target groups of consumers who might benefit from a specific therapy, without using anyone's personal health information. These messages are then delivered to those audiences through various digital channels like online ads, streaming TV, and social media. This segment expanded significantly after the 2023 acquisition of a company called Medicx Health, allowing OptimizeRx to offer a more complete marketing package to its pharmaceutical clients.
What management is betting on now
The company's main focus is on becoming a more essential, all-in-one platform for pharmaceutical marketing by tightly integrating its doctor-focused and patient-focused services. A key initiative is to better use data and artificial intelligence (AI) to predict when a patient might be eligible for a certain drug and then coordinate messages to both the patient and their doctor. Management is also working to shift more customers to a subscription-based model, which would make its revenue (the money it earns) more predictable over time. By expanding its technology to work with more advertising platforms, the company aims to unlock new sources of growth and become a more critical partner for its life sciences clients.
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
$1.77M
FY2024 Q4
$181.00K
FY2025 Q1
$3.84M
FY2025 Q2
$4.55M
FY2025 Q3
$3.19M
FY2025 Q4
$7.08M
FY2026 Q1
$-488.00K
FY2026 Q2
$8.58M
Revenue
$20.50M
Net income
$-703.00K
Diluted EPS
-0.04
Operating cash flow
$8.61M
Free cash flow
$8.58M
Fetching…
Sources
Revenue
$19.84M
Net income
$-495.00K
Diluted EPS
-0.03
Operating cash flow
$-467.00K
Free cash flow
$-488.00K
Fetching…
Sources
Revenue
$32.24M
Net income
$5.02M
Diluted EPS
0.27
Operating cash flow
$7.09M
Free cash flow
$7.08M
Fetching…
Sources
Revenue
$26.07M
Net income
$779.00K
Diluted EPS
0.04
Operating cash flow
$3.20M
Free cash flow
$3.19M
Fetching…
Sources
Revenue
$29.20M
Net income
$1.53M
Diluted EPS
0.08
Operating cash flow
$4.56M
Free cash flow
$4.55M
Fetching…
Sources
Revenue
$21.93M
Net income
$-2.20M
Diluted EPS
-0.12
Operating cash flow
$3.86M
Free cash flow
$3.84M
Fetching…
Sources
Revenue
$32.32M
Net income
$-79.00K
Diluted EPS
0.00
Operating cash flow
$198.00K
Free cash flow
$181.00K
Fetching…
Sources
Revenue
$21.31M
Net income
$-9.12M
Diluted EPS
-0.50
Operating cash flow
$1.79M
Free cash flow
$1.77M
Fetching…
Sources
Is it cheap or expensive?
Fair value $24.90 vs current price $7.59
Wall Street consensus is the average analyst price target: $12.40 (-50.2% lower than our fair-value estimate).
Our most-likely fair value is $24.90 a share — about 228.0% above today's price of $7.59, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $4.6M - more cash than debt. Interest coverage 2.3x.
Net debt
$-4.62M
Interest coverage
2.28x
OptimizeRx Corporation's profit covers its interest bill about 2.3 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.
Healthy
Worse cushion
Baseline
Better cushion
OPRX
BASELINE
OptimizeRx Corporation
Total debt $19.48M Interest coverage 2.28x This is the baseline the peer rows are being compared against.
Total debt $67.95M Interest coverage -0.95x -100% vs OPRX This peer has almost no interest-payment cushion compared with OPRX.
Total debt $538.95M Interest coverage 2.05x -10% vs OPRX Has roughly the same debt cushion as OPRX.
Total debt $218.81M Interest coverage -3.08x -100% vs OPRX This peer has almost no interest-payment cushion compared with OPRX.
Total debt $13.43M Interest coverage 6.06x +166% vs OPRX Carries about 2.7x more debt cushion than OPRX.
Total debt $970.43M Interest coverage -0.35x -100% vs OPRX This peer has almost no interest-payment cushion compared with OPRX.
What you should know
The case for and against OPRX
3 Rewards
0 Risks
Rewards
-
Returns 3.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 5/10 years.
-
Trades at 30.4x P/E vs peer median 57.2x (46.9% cheaper).
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)
30.36x
Forward P/E
7.18x
P/B
1.09x
P/S
1.45x
EV/EBITDA
8.86x
PEG ratio
1.61x
Profitability
How much profit each dollar creates
Gross margin
73.2%
Operating margin
-0.4%
Net margin
4.7%
ROE
3.7%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
5.58x
Quick ratio
5.27x
Total debt
$19.48M
Total cash
$24.10M
Growth
How the business has been compounding
Revenue TTM
$98.65M
Revenue 5Y CAGR
15.6%
EPS TTM
0.25
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$18.43M
Free CF TTM
$18.66M
FCF margin
18.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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