Q3 2025 OptimizeRx Corp Earnings Call
Speaker #4: Good afternoon everyone , and thank you for joining Optimus's third quarter Fiscal Year 2025 Earnings Conference Call . With us today is Chief Executive Officer Steve Silvestro .
Speaker #4: He is joined by Chief Financial and Strategic officer at Chief Legal and Administrative Officer Marian Odense Ford . And chief business officer Andrew DeSilva .
Speaker #4: At the conclusion of today's call , I will provide some important cautions regarding forward looking statements made by management during today's call . The company will also be discussing certain non-GAAP financial measures , which it believes are useful in evaluating the company's operating results .
Speaker #4: A reconciliation of such non-GAAP financial measures is included in the company's in the earnings release , the company issued this afternoon , as well as in the Investor Relations section of the company's website .
Speaker #4: I would now I would like to remind everyone that today's call is being recorded and will be made available for replay on audio recording in the conference call on the Investor Relations section of the company's website .
Speaker #4: Now , I would like to turn the call over to OPTIMIZERx Corp CEO Stephen Silvestro . Mr. Silvestro , please go ahead .
Speaker #5: Thank you . Operator and good afternoon to everyone joining our third quarter 2020 earnings call . We had a strong third quarter with results ahead of both consensus estimates and our internal expectations .
Speaker #5: Our Q3 revenues increased 22% year over year to 26.1 million , and our adjusted EBITDA was 5.1 million , an improvement of over 2 million from the same period last year .
Speaker #5: Our contracted revenue remains well ahead of last year's pace , underscoring the success of our focus on operational excellence . Our dedication to delighting customers and deepening relationships with trusted partners .
Speaker #5: Before we move on , I want to take a moment to thank the OPTIMIZERx Corp team . We deeply appreciate their dedication and hard work as we navigate an increasingly complex and rapidly evolving digital pharma marketing landscape .
Speaker #5: The industry is in the midst of a major transformation , and the company's products and services are positioned to fundamentally redefine how pharmaceutical companies , patients and prescribers connect our mission driven culture fuels this progress and enables us to attract , retain and strengthen the relationships that make us a trusted and enduring technology partner .
Speaker #5: With that said , I'm happy to report we are increasing our guidance for the year and are looking for revenue to come in between 105 and 109 million , with adjusted EBITDA to be between 16 and 19 million .
Speaker #5: Moreover , while it is still very early , we are seeing favorable RFP trends for 2026 . As a result , we are introducing initial fiscal year guidance for 2026 , with revenue expected to be between 118 and 124 million and adjusted EBITDA expected to be between 19 and 22 million .
Speaker #5: In addition , subsequent to the end of our third quarter , we paid down an additional 2 million of our term loan principal on top of the debt payment schedule .
Speaker #5: At this time , given the cash flow , we are seeing , we intend to continue to pay down our debt at an accelerated rate and do not believe we will need to access the equity capital markets for the foreseeable future , as evidenced by our strong results .
Speaker #5: We are firmly hitting our stride . Disciplined cost management and targeted cross-selling strategies grounded in enabling customers to optimize budget allocation and maximize script lift .
Speaker #5: Are driving sustained momentum into Q4 2025 and beyond . Our strong third quarter performance makes it clear that our goal of becoming a sustained rule of 40 company is within our sights .
Speaker #5: Perhaps most notably , average revenue for our five largest customers over the last 12 months continues to grow . And now stands at over $11 million .
Speaker #5: We believe OPTIMIZERx Corp is uniquely positioned to drive meaningful long term growth in sustainable shareholder value , with one of the nation's largest point of care networks .
Speaker #5: We provide pharmaceutical manufacturers the ability to reach healthcare providers directly at the moments that matter most . Building on this foundation , we've developed a purpose built omnichannel technology platform that integrates advanced patient finding tools like DAP and Micro neighborhood targeting .
Speaker #5: These capabilities are redefining how pharmaceutical companies , physicians and patients connect , communicate , and act , helping to improve patient outcomes while transforming engagement across the healthcare ecosystem .
Speaker #5: Our reach across both the point of care and direct to consumer channels provides a durable and defensible competitive advantage . Optimize our X is the only player with the scale , technology and data integration to engage providers and patients seamlessly , enabling us to deliver the industry's most comprehensive commercialization platform .
Speaker #5: This allows us to support customers across the full product life cycle , deepen client relationships , and capture greater share of long term value .
Speaker #5: As we've discussed on previous calls , a key focus moving forward is to further showcase our reach , scalability , and our role as a trusted , strategic partner , helping pharma manufacturers address some of their most pressing commercialization challenges .
Speaker #5: These include enhancing brand visibility , reducing script abandonment , improving interoperability , and supporting the growing shift toward complex specialty medications . I believe our success in helping our customers address these challenges is best evidenced by our strong ability to build on the relationships and increase our engagements with our largest customers .
Speaker #5: I'm confident that continued execution in these areas , combined with our ability to deliver strong ROI and drive impact in script lift for our customers , will translate into meaningful long term shareholder value .
Speaker #5: We believe our momentum positions us to capture greater market share and expand our participation in the pharma industry's multibillion-dollar digital ecosystem. Our customers remain deeply connected with our integrated HCP and DTC offerings, and our goal is to keep them engaged across the full patient care journey.
Speaker #5: And with that , I'd like to turn the call over to our CFO , Edward Stelmakh , who will walk us through our financial results .
Speaker #5: Editor .
Speaker #6: Thanks , Steve , and good afternoon , everyone . The press release was issued with the financial results of our third quarter ended September 30th , 2025 .
Speaker #6: A copy is available for viewing be downloaded from the Investor Relations section of our website . And additional information can be obtained through our forthcoming 10-q .
Speaker #6: and may gross margin expansion is tied to a favorable product mix . Economies of scale , as well as a favorable channel partner mix .
Speaker #6: Third quarter revenue was 26.1 million , an increase of 22% from 21.3 million during the same period in 2020 . For gross margin for the quarter increased from 63.1% in the quarter ended September 30th , 2024 , to 67.2% in the quarter ended September 30th , 2025 .
Speaker #6: Our operating expenses for the quarter ended September 30th , 2025 decreased by $6.5 million year over year to 15.5 million as the third quarter of last year was impacted by 7.5 million impairment charge .
Speaker #6: Meanwhile , our cash OpEx increased to 12.4 million from 10.8 million , largely due to higher bonus and commission payouts , which is directly tied to the company's strong year to date performance .
Speaker #6: As a result , we had a GAAP net income of 0.8 million , or $0.04 per basic and diluted share , for the three months ended September 30th , 2025 .
Speaker #6: As compared to a GAAP net loss of 9.1 million , or $0.50 per fully basic and fully diluted share , for the same three month period in 2020 .
Speaker #6: For . On a non-GAAP basis , our net income for the third quarter of 2025 was 3.9 million , or $0.20 per diluted share outstanding , as compared to a non-GAAP net income of 2.3 million , or $0.12 per diluted share outstanding .
Speaker #6: In the same year-ago period, our adjusted EBITDA came in at $5.1 million for the third quarter of 2025, compared to $2.7 million during the third quarter of 2020.
Speaker #6: For operating cash flow was 11.6 million for the for the first nine months of 2025 , and we ended the quarter with 19.5 million cash balance as compared to 13.4 million on December 31st , 2020 .
Speaker #6: For the remaining principal on our term , loan debt financing at the end of the third quarter was 28.8 million and subsequent to the quarter's end , we paid down an additional $2 million in principal with our total principal pay down for the year .
Speaker #6: Standing at 7.5 million . At this time , we intend to pay down the principal on our term loan faster than originally expected .
Speaker #6: As we look to continuously lower our cost of capital . With that said , we continue to believe that our healthy balance sheet will help us execute against their operational goals .
Speaker #6: Now let's turn to our KPIs for the third quarter of 2020 . Five . Average revenue per top 20 pharmaceutical manufacturer now stands at 3.1 million as compared to 2.9 million for the third quarter of 2020 .
Speaker #6: For net revenue , retention rate remained strong at 120% . Meanwhile , revenue per FTE came in at 820,000 , topping the 732,000 we posted in the third quarter of 2020 .
Speaker #6: For we're encouraged by the improvements of our KPIs as we continue to execute against our strategy of driving profitable growth . As a leader in our space .
Speaker #6: Now , with that , I'll turn the call back over to Steve . Steve .
Speaker #5: Thank you . Operator . Now let's move to Q&A .
Speaker #4: Thank you . We will now begin the question and answer session . To ask a question , you may press star , then one on your telephone keypad .
Speaker #4: If you are using a speakerphone , please pick up your handset before pressing the keys . If any time your question has been addressed and you would like to withdraw it , please press star then two .
Speaker #4: At this time , we will pause momentarily to assemble the roster . And the first question comes from Ryan Daniels with William Blair .
Speaker #4: Please go ahead . Mr. Daniels , your line is live .
Speaker #7: Sorry , guys . Can you hear me now ? Yes . Can you guys hear me now ? We can hear you , Ryan .
Speaker #7: We can hear you . Sorry about that . Yeah . Congrats on the strong print . Want to start with the 2026 outlook ?
Speaker #7: It's nice to see that so early in the year . One of the few companies doing that . And I'm curious if you could just offer a little bit more color there on why you're providing it at this time .
Speaker #7: I assume it's due to some enhanced visibility with the contracts , and then maybe question number two , you mentioned the strong RFP activity being part of that .
Speaker #7: Are you just seeing more new clients ? Is it more shift towards digital , more omnichannel , more shift towards , you know , HCP , given some of the DTC challenges , any color , what's driving that ?
Speaker #7: Thanks so much, guys. Congrats again.
Speaker #8: Thanks , Ryan . Good . Good to hear your voice . So start with the first one . You know , we've been really articulating to the street and also to our clients and investors that we're going to give more visibility on our visibility into the future .
Speaker #8: As we've been migrating more toward a predictive model . We've quoted in the past descriptive momentum . And so we're going to continue to push that throughout the remainder of the year .
Speaker #8: And as a result of that , we're now getting more visibility into the out years , including 2026 . In terms of the RFP situation , Ryan .
Speaker #8: RFP season's been very strong for the business . We do see more people coming into the digital space and making investments on the client side .
Speaker #8: And and we're seeing , you know , equal parts HCP and DTC at this point . Interest in the RFP cycle , I would say the parts of DTC that we cover at OPTIMIZERx Corp are CTV , ATV , the pieces that you're aware of .
Speaker #8: And in the event that we have a linear television ban or reduction or any of those pieces , our view and thesis is that our solution set will continue to benefit disproportionately from those types of moves .
Speaker #8: So I would say at this point , both DTC and HCP are looking very healthy . So I appreciate the question .
Speaker #7: Perfect . Thank you so much . I'll hop back in the queue .
Speaker #8: You got it . Thanks , man .
Speaker #4: Thank you . And the next question comes from Richard Roth capital .
Speaker #9: Thanks . When you look at the implied guidance for fourth quarter revenue , it would be actually slightly down year over year at the top end of guidance .
Speaker #9: You talk about either any one time year ago issues or other things because your net retention would argue that that's sort of difficult to do .
Speaker #8: Yeah . Thanks for the question , Richard . Good to hear from you . So I mean , what we're looking at is really a full year guide at this point .
Speaker #8: And trying to give a good range of what we believe will come in at we moved away from quoting pipeline as everybody on the call knows and have moved .
Speaker #8: Principally toward contracted revenue . And what are really what our real visibility is . And so the new guidance that we've updated with is truly what our , our visibility is , it doesn't count bluebirds that might happen by apps that might happen that are not accounted for right now or we don't have visibility in years past we would have thought about that more in terms of pipeline , pipeline and probabilities .
Speaker #8: But what you're seeing in the guidance now is , I think , reflective of our true visibility that we know we can , that we can deliver on .
Speaker #8: And again , we're going to continue to be very transparent , very conservative , not sandbagging , but look to look to beat the numbers that we we put out there every time .
Speaker #8: So hopefully you appreciate the transparency and conservatism .
Speaker #9: Yeah .
Speaker #6: And just to that yes . Sorry . Just to add a little bit , as Steve said , I think we do need to look at it on a full year basis rather than a quarter by quarter , as you know , you know , Q1 two and three have been extremely strong .
Speaker #6: So it is more of a smoother sort of a phasing this year than it was in the past . So again , I just encourage you to look at the full year performance versus last year .
Speaker #8: And part of it is , is the the enhancement to the revenue model , right . Rich part of it is we've been successful at migrating away from , you know , periodic revenue drops and getting to a more smooth revenue model .
Speaker #8: And so that's what what Ed is referring to there .
Speaker #9: Got it . It's it's just implicitly a little hard to look at it as a full year . We only have 90 days left .
Speaker #9: So so same question I think I'm going to get similar answer . But if you look at the adjusted EBITDA guidance , you'd have an up revenue quarter , maybe 10% plus sequentially .
Speaker #9: But the adjusted EBITDA either be slightly down to narrowly , possibly up again . Is there any one time expenses year end things that trigger up higher , that create more of a headwind ?
Speaker #9: Because it wouldn't it'd still be down year over year as well . Thanks .
Speaker #8: Sure . Do you want to take that one ?
Speaker #6: Yeah , I can take that one . Yeah . Yeah . Look , I mean , we're assuming it's a conservative gross margin number nothing really in the operating expense line that's going to pop .
Speaker #6: So it's more of just being a little bit more conservative on what we think is going to happen with with the channel and product mix .
Speaker #6: We do believe that , you know , we're shooting for hitting or beating the top end of the range .
Speaker #9: Got it . Thanks .
Speaker #8: Thanks , Rich . Appreciate the support .
Speaker #4: Thank you . And the next question comes from David Grossman with Stifel Financial .
Speaker #7: Great .
Speaker #8: Thanks . Hey , David .
Speaker #7: Hey , guys . Maybe we could just .
Speaker #10: Expand a little bit on on the line of questioning . You just went through and and maybe Steve , take a minute just to remind us of fundamentally , you what may be going on in the business that may be smoothing out the quarters or maybe giving you better visibility , and then I have another question after that .
Speaker #10: But just curious again , fundamentally , some of the changes that you guys have made that may be creating a little better visibility and again , giving you the confidence , for example , to guide to 2026 at this point ?
Speaker #8: Sure , yeah . Happy to talk to it . And then Andy and Ed can chime in also . But I mean , if you think about our business , David , the way that we've talked about it , you know , over time you've got our audience businesses , which is DAP principally , and then you've got micro neighborhood audience , which is that targeting capability for DTC .
Speaker #8: Both of those are data driven technologies that are lend themselves to becoming more prescriptive in nature . Then you've got our execution functions both at point of care and the other omnichannel components for HCP .
Speaker #8: And you've got that for DTC . And those are obviously going to be transactional , largely because that's the way that component of not just our business , but the ecosystem operates .
Speaker #8: And so what we've seen is outsized growth in DAP . Like we've talked about in your months past . And we've seen a resurgence of micro neighborhood audience growth .
Speaker #8: And so those those pieces not only give us a smoothing of the revenue because of the revenue models , but they also give us a renewable view into what , 2026 will look like .
Speaker #8: And those contracts start earlier than we would normally do for transaction level . You know , transaction level contracting , right ? So that's that's the big part of it .
Speaker #8: And yet feel free to chime in if you want to add more .
Speaker #10: Yeah .
Speaker #6: I mean .
Speaker #9: It's really .
Speaker #11: Go ahead .
Speaker #6: No I was going to say I mean as you guys know , I mean vast majority of our business comes from renewals . So if you take that into account and then add some of the successes that drove this year on top of it with more visibility into into next year in terms of signed contracts , as we sit here today , we feel like we're in a position to say , all right , we're looking at next year we can start to make at least a , you know , general guide around bookings that we're going to shoot for .
Speaker #6: And as things progress forward , we'll continue to tighten that range . Go ahead , Andy , you can answer that .
Speaker #11: No you got it . Both . You nailed it . All right . Yeah . Thanks .
Speaker #10: So thanks for all those details . So if if I recall last quarter we talked about these managed services type of contracts that come in .
Speaker #10: How much of that was present in the third quarter ? And are you kind of making the same assumption that you did last quarter where you're not assuming any of that comes to bear in the fourth quarter in terms of the guidance that you provided , as well as the outlook for 26 , is , is that the way to think about it ?
Speaker #8: Yeah . Andy , why don't you take that one ?
Speaker #11: Yeah . So it went back to more of a normalized rate in the third quarter as it relates to that managed services business .
Speaker #11: We're the only thing that we're including in the forecast period for managed services business is stuff that we've already won and is starting to burn into revenue right now .
Speaker #11: We're not really including anything that's , in pipeline . We don't have visibility to . So again , we're taking a very conservative approach to providing guidance with bookends that we feel very comfortable with .
Speaker #10: Right . So as we kind of think of your guidance for 26 , can you help us kind of bracket the kind of retention , you know , that is the baseline , if you will , to to achieve that range ?
Speaker #11: Yeah . So historically between five and 15% of our business comes from new logos every year . You know . So the remaining would be what you would consider net revenue retention on a normalized basis .
Speaker #10: Okay . And that's the assumption underlying your 26 guidance .
Speaker #8: It is .
Speaker #11: Yeah . Yeah . We don't really guide based on net revenue retention . Right . But that's kind of how it just shakes out as every year progresses .
Speaker #10: Got it . Great . And just .
Speaker #8: On that note , David , on that note , just one other one other quick bullet for you . Just . And you and I spoke about this last time we were together .
Speaker #8: We are seeing a good growth in the mid the mid-tier segment of our business , meaning the mid-tier segment of clients coming to the table who may not be in that top 20 , 25 , 30 manufacturers that are coming in with outsized spend , mostly because we're we're able to provide capabilities that , you know , can supplement , not just supplement .
Speaker #8: Frankly , replace a lot of the stuff that they can't afford to do internally . Whereas the big the big manufacturers might have kind of Cadillac support .
Speaker #8: So to speak , the mid-tier businesses do not . But using the technology that we've got allows them to compete on level ground .
Speaker #8: And so that's why we're seeing such a drive there . And our commercial organization that Teresa's leading has done a wonderful job of driving that .
Speaker #8: So just wanted to call that out as a key point .
Speaker #10: Got it . Very helpful . Thanks very much . Appreciate it .
Speaker #8: You got it . Great to hear your voice . We'll talk soon .
Speaker #12: Yep .
Speaker #4: Thank you . And the next question comes from Eric Martinuzzi with Lake Street .
Speaker #10: Hey , I wanted to dive in on the RFP trends . You talked about there . Improved . I was just curious to know , is that your win rate is the same , and the number of RFPs is improved , or is your win rate improving on a flat RFP trend ?
Speaker #10: What can you tell us there ?
Speaker #8: Yeah , I'll start and then I'll have Andy chime in too . But all of the above , Eric , we're seeing more RFPs come in .
Speaker #8: The RFPs are more directly pointed at what we want them to be , which I think is good . The market is seeing what we're shifting the business model to over time .
Speaker #8: So the RFPs are definitely reflective of what we're providing the market , providing our clients . And I would say our our win rate as a result of that is getting better .
Speaker #8: Again , I want to give some credit to our commercial team . They're doing an excellent job of getting out ahead of all of this stuff .
Speaker #8: And engaging with clients . And when you're engaging with clients more intimately , you can tend to drive the crafting of the RFP so that they get written at an appropriate level to something that you can respond versus a just a random spray and pray request for information .
Speaker #8: Right . And when we get those , the hit rate will be lower because there was no prior engagement . So hats off to Jim Dwyer .
Speaker #8: Teresa Greco , and the entire commercial team for doing a great job there .
Speaker #10: All right . And then you talked about the the smoothing of the business . Maybe I could use a tutorial on the transactional where you said that those started later in the year , as opposed to the , the DAP and the micro neighborhood that are more sort of level loaded .
Speaker #10: The kicks off of each of those types of campaigns .
Speaker #8: Sure . Yeah . Happy to talk about it . I mean , you know , you think about what DAP and what MMT or M&A does .
Speaker #8: It's principally audience creation , and it's the data that drives all of the campaigns , right ? It's the technology that's producing , finding those patients wherever they're going to be .
Speaker #8: And so, because that is more of a software-like play that lends itself to a normal planning cycle where renewals are going to happen earlier, that's just the way pharma manages that segment of their budget.
Speaker #8: And then the transactional components , which is typically message distribution , whether it's at an HCP
Speaker #8: if it's something that's going through brief a DSP , like a Trade Desk or some other other way , typically is budgeted and accounted for on a quarterly basis , and it's based on performance and driven that way .
Speaker #8: So bringing DAP to the table and getting it more mature , which we've been working very hard on , as you know , over the last several years since we launched it .
Speaker #8: And now bringing in what we acquired through the medics acquisition with MMT , that is really started to transform the profile of the business .
Speaker #8: And that's what you're seeing reflected in the performance of this year as well . You're seeing it front and center , but it will reflect into 2026 as well .
Speaker #8: That's given us great visibility . I think everyone feels better about what we're what we're doing and we're significantly up year over year .
Speaker #8: On visibility for next year .
Speaker #10: Is there a what's the right way to think about the percentage of the revenue in 2025 versus the percentage of the revenue in 2026 ?
Speaker #10: Between those two buckets .
Speaker #8: We don't break it out . We don't break it out at a product level .
Speaker #10: Okay . Thanks for taking my questions .
Speaker #8: You got it . Great question . Thanks .
Speaker #4: Thank you . And the next question comes Madison Schrock B Riley Securities .
Speaker #7: Hi .
Speaker #13: Thank you for taking the questions . And congratulations on another really strong quarter . So first could you provide some color on the partnership with Lamar Advertising and on the size of the opportunity here ?
Speaker #13: And I guess will this gradually roll out in specific regions . Or is this going live across their entire national inventory ?
Speaker #8: Yeah . Happy to talk about it . Great to hear from you . So the whole idea with Lamar is they're looking to transform their business model .
Speaker #8: Right . And their current business model is billboards . And one of the things that OPTIMIZERx Corp does really well , which you're acutely aware of , is patient finding and an ability to be more precise in the way that we deploy messages across our omnichannel ecosystem .
Speaker #8: So think about the capability of doing that to enable a screen that's in a desperate location that might move from a random billboard to maybe a digital screen .
Speaker #8: That's large , right ? And that's really what Lamar is , is after they're the size of the opportunity is very large . I'm not going to I'm not going to take a stab at the Tam because it's not mine to take a stab at .
Speaker #8: It's really theirs . But the partnership is going to start rolling out , you know , a pretty rapidly , I would say .
Speaker #8: And it's still early for us to start quoting projections on what we think it will do . It's really piloting at this point , but we're feeling pretty optimistic about the initial testing that we've done , and we'll release more information on it as we get some more results .
Speaker #8: But early stages look pretty , pretty encouraging .
Speaker #13: Okay . Got it . And then I guess just current guidance that you've provided for 2026 . Factor in any contributions from this partnership .
Speaker #8: No . Zero nothing too early for us to start factoring it into forecasts . We're just not going to do it yet . Great question .
Speaker #12: Though .
Speaker #13: Yeah . And then could you talk about the gross margin expansion in the third quarter ? What really drove this ? And how should we be thinking about margins going forward in the fourth quarter and also into 2026 ?
Speaker #8: Sure . Do you want to take that one ?
Speaker #6: Yeah , sure . Yeah . So I mean , it's typically driven by our product mix or solution mix . And the channel partner mix .
Speaker #6: As we said before, as we scale the business, we have much more ability to negotiate more favorable deals with our channel partners.
Speaker #6: So that's reflecting itself in the numbers as well as growth in , in DAP and the DTC platform . So those two things together contributed to where we are right now for the year and the Q4 going forward .
Speaker #6: I would say we're kind of stabilizing in that upper 50s to low 60s range from a guidance perspective . But you can see there's certainly upside to that number as the year progresses .
Speaker #13: Okay .
Speaker #9: Got it .
Speaker #11: I'll add just one quick thing to that . There Anderson . So we also in the third quarter had a lot more or in the second quarter had a lot more managed services revenue .
Speaker #11: And we did not have nearly as much in the third quarter and managed services revenue is our lowest margin product .
Speaker #13: Okay . Got it . Thank you for that . And congrats again on the great quarter .
Speaker #8: Thank you . Thanks . Great to hear from .
Speaker #12: You .
Speaker #4: Thank you . And once again , please press star . Then one . If you would like to ask a question . And the next question comes from Jeff Garrett with Stephens .
Speaker #14: Yeah . Good afternoon . Thanks for taking the question . I want to ask on the 2026 guide and the profitability side , if I calculate it right at the midpoints , I see about 60 basis points of EBITDA margin expansion .
Speaker #14: Was hoping you could talk about the mix of gross margin expansion . Maybe dependent on on channel mix versus operating on operating leverage .
Speaker #14: And then any areas of potential variability that could could lead to more or less margin expansion than what we see at the midpoint there .
Speaker #14: Thanks .
Speaker #8: Yeah , Jeff , I'm happy to happy to answer it topically . And we won't get too deep into happy to answer topically .
Speaker #8: And what Andy just said is really a clear articulation of the dynamics of the business that really govern it . Right ? So as we continue to see our audiences grow over time through the DAP and MMT products , margin expansion will continue to be front and center .
Speaker #8: We will also manage the channel partner mix on the other side of that , looking for optimal margin . And that gives us the dynamic of being able to continue to improve over time .
Speaker #8: Execution will be what it's going to be . As you know , from this business . And that's fairly predictable . On the highs and lows .
Speaker #8: But those are the dynamics that are sort of shaping how we're thinking about 2026 gross margin expansion opportunities and where we've landed . And hopefully that's helpful .
Speaker #14: Yeah , maybe a follow up on the operating leverage side of things . You're certainly seeing , I think a quarter over quarter decline in adjusted operating expenses this quarter seem really good .
Speaker #14: Leverage and maybe not expecting that to be the the persistent trend over the next five or so quarters , but just a little more color commentary on your ability to to drive additional operating leverage in the business would be helpful .
Speaker #14: Thanks .
Speaker #12: Yeah , No
Speaker #12: yeah .
Speaker #8: problem . I think we're going to consistently go ahead . Yeah . Why don't you take it ? Go ahead .
Speaker #6: Yeah . So opex as we said before , I we have a highly leveraged business model as it is now . So as I said on the cash basis , that was actually a bit of an increase , about $2 million versus last year .
Speaker #6: And that most of that is driven by the fact that our bonuses and variable comp are tracking our overperformance on the top line this year .
Speaker #6: So once you dial that back , you can pretty much assume a relatively stable operating expense run rate on a cash basis .
Speaker #14: Understood. Thanks for taking the questions, guys. Congrats again.
Speaker #15: Thank you .
Speaker #4: Thank you . And this concludes our question and answer session . I would like to turn conference back over to Steve Silvestro for any closing comments .
Speaker #8: Thank you . Operator . And thank you all for joining us today . We're pleased to be building a strong operational and financial momentum .
Speaker #8: Our foundation is solid . Our patient focused strategy is working , and we're confident in the path ahead . What you heard today reinforces our belief and our ability to achieve both our near-term goals and our long term growth objectives .
Speaker #8: I remain deeply optimistic about the future of our business and the opportunities before us. We look forward to speaking with all of you again on the next earnings call and meeting many of you in the upcoming investor conferences and one-on-one meetings in the coming weeks.
Speaker #8: Wishing everyone a wonderful rest of your day and a wonderful holiday season with your families and friends .
Speaker #4: Thank you , Mr. Silvestro . Before we conclude today's call , I would like to provide the company's safe harbor statement that includes important cautions regarding forward looking statements made during today's call .
Speaker #4: Statements made by management during today's call may include forward looking statements within the definition of section 27 A and the Securities Act of 1933 , as amended , and section 21 E of the Securities Act of 1934 , as amended .
Speaker #4: These forward looking statements should not be used . It should not be used to make investment decisions . The words anticipate , estimate , expect possible and seeking , and similar expressions identify forward looking statements .
Speaker #4: They may . They may speak only to the date that such statements are made . Forward looking statements in this call include statements made defining how pharmaceutical companies , patients and prescribers connect our value or growth plans , creating shareholder value , becoming a rural 40 company estimated 2025 revenue and adjusted EBITDA ranges , capturing greater market share and expanding our participation in the pharma industry's digital ecosystem .
Speaker #4: Our technology and growth opportunities , and building a strong operational and financial momentum . Forward looking statements also include the management's expectations for the rest of the year .
Speaker #4: The company undertakes no obligation to publicly update or revise any forward looking statements , whether as a result of new information , future events or otherwise .
Speaker #4: Forward looking statements are inherently subject to risks and uncertainties , some of which cannot be predicted or qualified . Future events and actual results could differ materially from those set forth in and contemplated by or underlying these forward looking statements .
Speaker #4: The risks and uncertainties to which forward looking statements are subject to include , but are not limited to , the effects of government regulation , compensation , dependence on concentrated group of customers , cybersecurity incidents that could disrupt operations , the ability to keep pace with growing and evolving technology , the ability to maintain contacts with electronic prescription platforms and electronic health records networks and other material risks discussed on the company's annual report on Form 10-K for the year ended December 31st , 2020 .
Speaker #4: Four and other company's . The company has made and may make with the SEC in the future . These filings , when made , are available on the company's website and on the SEC website at sec.gov .
Speaker #4: Before we end today's conference , I would like to remind everyone that an audio recording of this conference call will be available for replace starting later this evening .
Speaker #4: Running through for a year on the investor section of the company's website. Thank you for joining us today. This concludes today's conference, and you may now disconnect your lines.