Can you discuss the progress with DeepIntent and other DSPs, and the growth curve for the DSP opportunity over the next 24 months, given 60% of buys are programmatic?

DeepIntent integration is live, and bid flow is starting. This expands the near-term accessible market significantly. The company is speaking with other DSPs but is not ready to announce them yet. The programmatic shift is a major growth driver. “We've gone live with DeepIntent as of this last week, and so that's pretty exciting for us as a business. We're now starting to see bid flow happen over the platform.”

How would potential FDA/HHS elimination of the adequate provision framework for pharma advertising impact marketing budgets and channel allocation, potentially benefiting digital and point-of-care engagements?

Management views such moves as favorable, as they would likely push funds from other DTC channels into HCP-focused marketing channels where OptimizeRx is engaged. While not forecasted, the company is well-positioned to benefit. “Anything that would sort of limit the ability to execute across other DTC channels where we may not be engaged at scale will automatically push funds into some of the HCP focused marketing channels where we are connected and that are sort of our bread and butter.”

Given the implied second half adjusted EBITDA of $13 million to $17 million, how will the capital allocation strategy evolve between debt reduction and share buybacks?

The primary strategy is to pay down debt, which is currently at $16.7 million outstanding. If the stock price continues to drop, the company has a $10 million approved stock buyback program that can be triggered. “I think our strategy, as we said in the prepared remarks, will be first pay down the debt. We're down to $16.7 million of outstanding principal. And then secondly, if the price of the stock continues to drop, we have a [ 10b5-1 ] [indiscernible] to trigger buying with a $10 million approved stock buyback.”

OPRX

OptimizeRx (OPRX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 12, 2026

Source: earnings call transcript

Executive summary

OptimizeRx Q2 FY26 — Strong Profitability Amidst Revenue Headwinds and Strategic Innovation

OptimizeRx delivered strong profitability and cash flow in Q2 FY26, exceeding adjusted EBITDA consensus, despite a 30% year-over-year revenue decline attributed to specific large customer dynamics and a strategic shift away from lower-margin services. The company reiterated its full-year guidance, confident in its product innovation, expanding client base outside the top 20, and disciplined expense management. Strategic investments in AI-enabled platforms and programmatic integrations are positioning OptimizeRx as a core operating system for pharmaceutical marketers, expanding its addressable market and driving recurring revenue opportunities.

Highlights

Adjusted EBITDA of $4.9 million exceeded consensus expectations, demonstrating strong operational execution.
AI-enabled Dynamic Audience Activation Platform (DAAP) adoption increased over 30% year-over-year.
AI-enabled software offerings revenue grew 25% year-over-year, contributing to recurring revenue transition.
Operating cash flow was $8.1 million for the first half of 2026, with a cash balance of $24.1 million.
Gross margins are expected to normalize into the high 60% to low 70% range for full year 2026, driven by favorable product and channel partner mix.

Concerns

Second quarter revenue decreased 30% year-over-year to $20.5 million, primarily due to a limited number of large customers.
One large customer from 2025 did not generate revenue this quarter, contributing to the revenue decline.
Net revenue retention rate dipped to 90%, below prior period levels, driven by spend optimization from a small number of large accounts.
Net loss of $0.7 million for Q2 FY26, compared to a net income of $1.5 million in Q2 FY25.
Adjusted EBITDA decreased to $4.1 million in Q2 FY26 from $5.8 million in Q2 FY25.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$95 million to $100 million high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$21 million to $25 million high materiality	FY26	High
Full-year 2026 Gross Margins	high 60% to low 70% range medium materiality	FY26	High
Full-year 2026 Revenue Weighting	Q4 representing 35% to 40% of full year revenues medium materiality	Q4 · FY26	Medium

Product announcements

Product	Type	Timeline
DeepIntent Integration	launch	last week (as of call date)
Natural Language Audience Builder (NLab)	launch	—
CopayCue	launch	—

Deals & partnerships

DeepIntent Integration of DeepIntent's demand-side platform with OptimizeRx's authenticated EHR network.

DeepIntent became the first healthcare demand-side platform to integrate directly with OptimizeRx's authenticated EHR network. The implementation is now live, and bid flow is occurring.

Risks & headwinds

Revenue decline from limited large customers Q2 FY26

Q2 FY26 revenue decreased 30% YoY to $20.5 million; one large customer from 2025 did not generate revenue this quarter.

Mitigation:Focus on expanding footprint among mid-sized and emerging life science companies; active engagement with the challenging large client; new Chief Marketing Officer to help bridge gaps.

Transition away from lower-margin managed services Ongoing since Medicx acquisition in 2023

Revenue reduction largely contained to customers utilizing lower-margin managed services in prior periods.

Mitigation:Strategic transition towards higher-margin AI-enabled software offerings and recurring subscription revenue.

Macroeconomic factors and cautious spending Ongoing, but normalizing in H2 FY26

Health care marketing environment remains dynamic with budget timing variability and cautious spending behavior; MFN pricing dynamics.

Mitigation:Continued product innovation, disciplined expense management, and focus on value-driven engagement for life science organizations. Seeing normalization in back half of year.

Net revenue retention dip Q2 FY26

Net revenue retention rate dipped to 90%, below prior period levels.

Mitigation:Dip driven by spend optimization rather than broad-based churn; focus on expanding use of platform across additional brands and therapeutic areas with existing customers.

Competitive entry into high-growth franchises Ongoing

Not quantified, but mentioned as a general market dynamic.

Mitigation:Strengthening competitive position through platform capabilities, product launches, and expanded programmatic initiatives.

What to watch in Q3 FY26

Large client revenue contribution

H2 FY26

Current No revenue generated in Q2 FY26

Target Positive impact on back half revenue

Why it matters

The return of this client's revenue is crucial for overall top-line growth and reducing the impact of prior-period declines.

We, right now, don't have any expectation baked into the back half for that large client coming back, but we are starting to see some progress around it that will definitely positively impact the back half.

Find out whether OPRX delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the update on the large client that did not generate revenue, and what are the expectations for the back half of the year regarding this client?

Management has no revenue expectations baked into the back half for this client but is seeing progress and active engagement. The newly announced Chief Marketing Officer, who comes from this client, is expected to help bridge the gap.

“We, right now, don't have any expectation baked into the back half for that large client coming back, but we are starting to see some progress around it that will definitely positively impact the back half.”

asked by Unknown Analyst · answered by Stephen Silvestro

3 min read 7 chapters

Detailed narrative

Q2 Performance and Margin Expansion

OptimizeRx reported Q2 FY26 revenue of $20.5 million, a 30% decrease year-over-year from $29.2 million in Q2 FY25. This decline was primarily attributed to a few large customers, including one that generated no revenue this quarter, and a strategic transition away from lower-margin managed services.

Despite revenue headwinds, the company achieved adjusted EBITDA of $4.9 million and expects full-year gross margins to normalize into the high 60% to low 70% range due to favorable product and channel partner mix. Operating cash flow for the first half of 2026 was $8.1 million.

Strategic Platform Investments and Innovation

The company continues to invest in platform capabilities, strengthening customer engagement and competitive positioning. Adoption of the AI-enabled Dynamic Audience Activation Platform (DAAP) increased over 30% year-over-year, and AI-enabled software offerings revenue grew 25% year-over-year, supporting a transition towards recurring subscription revenue.

OptimizeRx aims to evolve from a point-of-care marketing company to an operating system for pharmaceutical marketers, leveraging proprietary healthcare data, authenticated clinical inventory, and workflow integration.

DSP Integration and Programmatic Shift

OptimizeRx announced a significant milestone with DeepIntent becoming the first healthcare demand-side platform (DSP) to integrate directly with its authenticated EHR network, which is now live and seeing bid flow. This integration expands the accessible market, as 60% of buys in this space occur through programmatic channels.

The company is also in discussions with other DSPs, aiming to position itself as the trusted infrastructure connecting premium point-of-care inventory with leading buying platforms.

Mid-sized and Emerging Life Science Companies Growth

The company is expanding its footprint among mid-sized and emerging life science companies, which are identified as a significant untapped opportunity. These organizations seek enterprise-grade technology solutions without the need for large-scale infrastructure investments, a demand OptimizeRx's platform is uniquely positioned to meet. This segment is growing at an accelerated rate, with one mid-tier account entering the top 10 list recently.

Leadership Transition in Finance

OptimizeRx announced a planned leadership transition in its finance organization. Edward Stelmakh will transition from Chief Financial and Strategy Officer by December 31, 2026, and will remain as a strategic adviser in 2027. Andy D'Silva, currently Chief Business Officer, will succeed him as CFO effective January 1, 2027, and Heather Pavaso will be promoted to Chief Accounting Officer on the same date.

This transition is described as a result of thoughtful planning and reflects the depth of talent within the organization.

Debt Reduction and Capital Allocation

The company refinanced its term loan with Fifth Third Bank, securing a SOFR plus 2.25% interest rate and access to a $10 million revolver. OptimizeRx paid $5.3 million in principal during Q2 FY26, $5 million ahead of schedule, reducing outstanding debt to $19.7 million.

A subsequent payment of $3 million further reduced debt to $16.7 million. The strategy is to deploy free cash flow to accelerate debt paydown, with a $10 million approved stock buyback program available if the stock price drops.

MFN Impact and Market Normalization

The pharmaceutical marketing landscape continues to experience budget timing variability and cautious spending, partly due to macroeconomic factors and the impact of Most Favored Nation (MFN) pricing dynamics. However, management noted a stabilization and normalization of spending behavior among many large customers, with increased activity levels and strategic discussions.

Potential FDA and HHS moves to eliminate the adequate provision framework for pharma advertising are viewed as favorable, potentially shifting funds to HCP-focused digital channels.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.