GoodRx Holdings, Inc. Class A Common Stock 2026 Q2 Earnings Call

Thank you, operator. Good morning, everyone, and welcome to GoodRx's earnings conference call for the second quarter 2026. Joining me today are Wendy Barnes, our Chief Executive Officer, and Justin Fingler, our newly appointed Chief Financial Officer. Before we begin, I'd like to remind everyone that this call will contain forward-looking statements. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding management's plans, strategies, goals, and objectives, our market opportunity, our anticipated financial performance, underlying trends in our business and industry, including ongoing changes in the pharmacy ecosystem, our value proposition, our long-term growth prospects, our direct and hybrid contracting approach, collaborations and partnerships with third parties, including our point-of-sale cash programs and our integrated savings program, our e-commerce strategy, and our capital allocation priorities.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties, and other important factors. These factors, including the factors discussed in the Risk Factors section of our annual report on the Form 10-K for the year ended December 31st, 2025, and our other filings with the Securities and Exchange Commission, could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements made on this call. Any such forward-looking statements represent management's estimates as of the date of this call, and we disclaim any obligation to update these statements, even if subsequent events cause our views to change. In addition, we will be referencing certain non-GAAP metrics in today's remarks.

We have reconciled each non-GAAP metric to the nearest GAAP metric in the company's earnings press release, which can be found on the Overview page of our investor relations website at investors.goodrx.com. I'd also like to remind everyone that a replay of this call will become available there shortly as well. With that, I'll turn it over to Wendy.

Thank you, Aubrey, and thank you to everyone for joining us today. The second quarter was a strong quarter for GoodRx. We exceeded our revenue expectations, maintained disciplined profitability, and saw meaningful consumer engagement across the platform. That performance was driven by the two strategic priorities we outlined at the beginning of the year. First, Pharma Direct, which is scaling quickly due to growing manufacturer adoption of consumer direct pricing programs and sustained strength in GLP-1 access. Second, subscriptions, which are becoming a central part of how we serve and retain consumers, as illustrated by the launch of our newest offering, GoodRx Companion, in May. Based on our first full half performance and the trends we are seeing across the business, we are raising our full year revenue and adjusted EBITDA outlook, which we will discuss in more detail later in the call.

We are confident this puts us on a path to return to year-over-year revenue growth this year, earlier than previously anticipated, and reinforces our belief that GoodRx is building a more durable growth profile. That durability is rooted in a combination of assets that work together, a trusted brand, a large high intent audience, and a nationwide pharmacy network. Each year, we see over 280 million site visits across our platform when cost and access are shaping prescription decisions. That gives manufacturers, retail pharmacy partners, and plan sponsors a scaled channel to make pricing, access, and savings programs visible and usable for consumers. As more partners bring programs to GoodRx, we are able to deliver better prices, broader access, and more useful products directly to consumers, giving them more reasons to return to our platform, increasing engagement and strengthening our revenue base over time.

The market backdrop reinforces why this matters. Affordability pressures continue to intensify. Consumers are bearing more cost, facing less predictable coverage, and increasingly need to know what a medication will cost before they reach the pharmacy counter. For example, in the ACA marketplace, nearly 3 million fewer people are enrolled following the expiration of enhanced subsidies. In early 2027, rate filings point to another year of significant premium increases. Employers are under the same pressure. As costs rise, many are covering less or shifting more of the expense to employees. Across the board, coverage is becoming harder to maintain and more expensive to use. That makes execution our priority. Our focus now is to continue scaling the programs gaining traction, make them even easier for consumers to use, and turn the progress we demonstrated in the second quarter into sustained growth.

Before I move into the business updates, I want to address yesterday's leadership announcement. Chris McGinnis has transitioned from his role as Chief Financial Officer. On behalf of our board and management team, I want to thank Chris for his contributions to GoodRx, including his partnership during my first year as CEO and his leadership of the finance organization. Effective today, Justin Fengler, who currently serves as our Chief Strategy and Operations Officer, will take on the additional role of Chief Financial Officer. Justin has been with GoodRx for more than 10 years and has a deep understanding of the business, our financial model, our corporate development activities, and how we operate. In his current role, he has helped connect our corporate strategy to the priorities, investments, M&A, and execution plans that guide the company.

That experience, combined with his background in investment banking and consulting, makes him well positioned to lead the finance organization. You'll hear directly from Justin later in the call as he reviews our quarterly financial performance and outlook. With that, I'll turn back to the quarter and walk through our business updates. Starting with Pharma Direct. Q2 was a standout quarter, with revenue growing 76% year-over-year and 18% quarter-over-quarter, supported by strength in consumer direct pricing and advertising solutions that extend well beyond any single therapeutic category. We now have more than 135 consumer direct pricing programs, including the addition of top brands like JARDIANCE, Nurtec ODT, Otezla, and Rapaflo. Reinforcing the role GoodRx is playing in helping manufacturers bring affordability programs directly to consumers at scale. GLP-1s remain one of the clearest examples of the value of that model.

Demand remains strong, coverage remains limited or inconsistent, and the category is evolving rapidly as new therapies, formulations, and price points come to market. During the quarter, we supported several important launches and expansions, including Ozempic pill, Wegovy HD, Foundayo, and Zepbound KwikPen. These are in addition to our support of the Wegovy pill launch earlier this year, as well as continued partnership with all other FDA-approved GLP-1 brands. GoodRx has become one of the leading consumer access channels for GLP-1 medications in the U.S., giving manufacturers a scaled way to turn pricing strategies into consumer access. We believe GoodRx's role in GLP-1 access will remain important as the category evolves. Demand for GLP-1 therapies is growing rapidly, particularly in the self-pay segment, and we expect that momentum to persist for the foreseeable future.

Coverage models are also changing, such as the Medicare GLP-1 Bridge Program that launched on July 1st and runs through the end of 2027, offering $50 pricing on certain GLP-1 therapies to eligible Medicare beneficiaries. We are watching adoption closely, but Medicare-aged consumers represent a modest share of GLP-1 users on our platform today, and this program includes specific authorization, eligibility, and processing requirements that naturally limit its reach. Given the scale of demand and variation in coverage, we expect transparent self-pay access to maintain an important part of the market, creating ongoing opportunity across both Pharma Direct and GoodRx for Weight Loss. At the same time, the strength of Pharma Direct extends well beyond GLP-1. We continue to deepen our partnerships with a more focused group of large pharmaceutical manufacturers, prioritizing strategic relationships with companies that have leading high-value brands.

As a result, our average deal size has increased year-over-year, reflecting both the expansion of existing partnerships and greater alignment around enterprise scale programs. That breadth reduces concentration in any one category and gives us multiple avenues to compound growth over time. This strategy reinforces our ability to deliver meaningful value to manufacturers while driving more efficient, durable growth across our Pharma Direct offering. Turning to subscriptions. The number of subscription plans increased 14% year-over-year. Subscriptions are becoming a central part of how we serve and retain consumers, which is why we are shifting more product and marketing investment toward this model. They allow us to deliver value beyond an individual prescription, build deeper relationships with consumers, and help address a broader set of healthcare needs.

That is increasingly important as consumers face higher out-of-pocket costs and less predictable coverage and look for solutions that can complement insurance. A key step in that work was the launch of GoodRx Companion in May, our new subscription offering designed to make everyday healthcare more affordable and predictable. Companion is available for $14.99 per month or $9.99 per month with an annual plan and offers 200 free generic medications, hundreds more for under $10, affordable online care visits, and savings across dental, vision, labs, and imaging. It is especially valuable for consumers managing chronic conditions, taking multiple medications, or navigating coverage limitations where out-of-pocket costs can be difficult to anticipate. While we are not discontinuing GoodRx Gold, Companion is now our primary subscription offering with a broader nationwide pharmacy network, richer benefits, and consistently lower prices.

Early adoption has been encouraging. We believe Companion gives us a broader membership platform to meet more of consumers' everyday healthcare needs. In addition, we continue to see growth across our condition-specific subscription offerings led by GoodRx for Weight Loss, with ED and hair loss also contributing. Together with Companion, these offerings give us more ways to address healthcare needs where affordability, access, and convenience are meaningful barriers. That is why we are reorienting more of the GoodRx experience around subscriptions, including making them the primary call to action across key surfaces such as our homepage and price pages. We believe this more integrated membership model can deliver greater value to consumers, deepen engagement, improve retention, and support more durable recurring revenue. Now turning to Rx Marketplace.