GoodRx (GDRX) Q2 FY26 earnings call: guidance and Q&A

Given the different business segments and declining MACs, what metrics should investors focus on, and will GoodRx provide new prescription-based metrics to reflect the evolving business model?

MACs are not a perfect indicator for the evolving business, which is transitioning to subscriptions for higher customer lifetime value. The company is evaluating new KPIs, potentially prescription-based, for future disclosure, likely in 2027, but not this quarter. Pharma Direct's success is driven by a high-intent audience that consistently outperforms other channels.

“Number of prescriptions, things of that nature are certainly things that we're looking at. And I think that at some point in the future, you would expect us to have something a bit different. It's probably -- it's certainly too early today for us to talk about that.”

asked by Charles Rhyee · answered by Justin Fengler

How significant are GLP-1 drugs to Pharma Direct's growth, especially with oral launches and Medicare bridge programs, and what is the sustainable growth rate for the segment?

GLP-1s are and will continue to be an important part of Pharma Direct's growth story, with considerable long-term opportunity. However, non-GLP-1 partnerships are also growing considerably. Oral GLP-1 formulations are seeing healthy growth. The company raised Pharma Direct guidance to over 70% YoY growth for FY26, indicating strong performance beyond just GLP-1s.

“Look, there's -- unequivocally, GLP-1s have been an important part of our Pharma Direct growth story, and they will continue to be. I mean, as we look forward through even 2030, 2031, the ongoing growth opportunity, both in Medicare eligible and non-Medicare eligible consumers is considerable.”

asked by Daniel Grosslight · answered by Wendy Barnes

Are there any capacity concerns or significant incremental investments required to support the accelerated growth of Pharma Direct?

No significant incremental costs are anticipated to scale Pharma Direct further. The necessary sales force and supporting infrastructure are largely already in place. Pharma Direct already represents 31% of total revenue, and its growth leverages the existing brand power and platform, which sees 280 million site visits annually.

“No, the short answer is that I don't anticipate a ton of incremental costs to continue to scale Pharma Direct. We've largely already invested in the appropriate sales force and supporting infrastructure.”

asked by Michael Cherny · answered by Wendy Barnes

How active is the Pharma Direct pipeline for the rest of the year compared to last year, and what is the gross margin outlook given the changing revenue mix?

Most Pharma Direct bookings occur early in the year, providing good visibility for the full-year revenue picture. The company does not guide on gross margin, but noted that the cost of revenue has increased year-over-year due to the cost to serve subscription offerings as they become a larger part of the revenue mix. No material changes to gross margin are expected for the remainder of the year.

“So from a bookings perspective, much of the bookings happen at the beginning of the year, even before the year began. So we have really good line of sight for the full year revenue picture for Pharma Direct.”

asked by Stanislav Berenshteyn · answered by Justin Fengler

Have Medicaid/ACA coverage changes impacted the business, and what are GoodRx's thoughts on the peptides market opportunity?

Macro trends of declining coverage and increased out-of-pocket costs are seen as tailwinds for Companion and traditional coupon usage, though a definitive link to current volume is not yet established. The peptides market is of interest, and GoodRx is closely watching regulatory pathways. If approved, the company would approach it with strong clinical integrity and vetted compounding pharmacy partnerships.

“Yes, gosh, it's actually generated a fair bit of conversation both amongst our leadership team and candidly, with our Board. The short answer is, yes, we think it could be an opportunity.”

asked by Jailendra Singh · answered by Wendy Barnes

What are the expectations for prescription transaction revenue and MACs versus subscription revenue and subscriber growth for the rest of 2026 and into 2027, and can these offset each other?

The company expects continued moderation in MACs and prescription transaction revenue due to active decisions to push consumers towards subscription offerings. GoodRx Companion, launched in May, is a new offering, and the focus for 2026 is on investing in its long-term foundation for 2027, 2028, and 2029, rather than optimizing short-term revenue. The goal is to build a product that is the best in the market.

“In terms of what that means for MACs, there's certainly -- I think we would expect continued moderation on that line as we move more people into subscriptions.”

asked by Allen Lutz · answered by Justin Fengler

How does GoodRx navigate the positioning of Companion Direct and Employer Direct, especially concerning potential conflicts with PBM partners?

Employer Direct is positioned as a complement to existing insurance benefits, particularly for GLP-1s where employers have dropped coverage, making PBMs partners in this context. Companion is not an insured product but a strong complement to broader offerings. Regulatory advocacy for cash pricing to count towards out-of-pocket maximums and HSA/FSA reimbursement aligns with broader market trends and PBM settlements, suggesting a convergence of solutions.

“And so far, I would say there hasn't been explicit pushback from PBMs. Now transparently, am I out soliciting their input as to what they think about it? No, not necessarily.”

asked by George Hill · answered by Wendy Barnes

How do the strong generic drug launches in Q2 impact GoodRx's business, and will there be greater leverage in H2 2026?

Generics constitute 85-90% of U.S. fills, and the Companion product is 'hyper-fixated' on $0 generics, supporting its strategy. While brand drugs (10% of fills) are critical for consumer out-of-pocket costs and Pharma Direct partnerships, the overwhelming number of prescriptions supported by GoodRx are and will continue to be generics. The ability to drive competitive generic pricing remains paramount to the strategy.

“I mean, most of the fills in the U.S., 85%, 90% are, in fact, generics. And it's one of the reasons our Companion product is hyper-fixated on $0 generics because, again, those typically are the first-line therapies that really any consumer pursues.”

asked by Steven Valiquette · answered by Wendy Barnes