OptimizeRx Q2 FY26 earnings call OPRX

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.

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.

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.

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.

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.

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.

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.