Q2 2026 GoodRx Holdings Inc Earnings Call

August 6, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by, and welcome to the GoodRx second quarter 2026 earnings call. As a reminder, today's conference call is being recorded.

Operator: Ladies and gentlemen, thank you for standing by, welcome to the GoodRx Q2 2026 Earnings Call. As a reminder, today's conference call is being recorded. I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations. Ms. Reynolds, you may begin.

Speaker #1: hosts for today's call: Aubrey Reynolds, Director of Investor Relations; Ms. Reynolds, you may begin.

Aubrey Reynolds: Thank you, operator. Good morning, everyone, welcome to GoodRx's earnings conference call for Q2 2026. Joining me today are Wendy Barnes, our Chief Executive Officer, and Justin Fengler, 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: management's plans, Including strategies, goals and objectives, are market opportunity, are anticipated financial performance, underlying trends in our business and industry, including ongoing changes in the pharmacy ecosystem, are value proposition, are long-term growth prospects, are direct and hybrid contracting approach, collaborations and partnerships with third parties, including our point-of-sale cash programs, and are integrated savings program, are e-commerce strategy, and are capital allocation priorities.

Speaker #2: These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties, and other important factors. These factors—including those discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 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.

Aubrey Reynolds: 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 31 December 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.

Speaker #2: 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.

Speaker #2: 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 in the overview page of our Investor Relations website at investors.goodrx.com.

Aubrey Reynolds: 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.

Speaker #2: 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.

Speaker #3: 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.

Wendy Barnes: Thank you, Aubrey, and thank you to everyone for joining us today. The Q2 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 H1 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.

Wendy Barnes: Thank you, Aubrey, and thank you to everyone for joining us today. The Q2 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 H1 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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.

Wendy Barnes: 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.

Speaker #3: 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.

Speaker #3: That gives manufacturers, retail pharmacy partners, and plan sponsors a scaled channel to make pricing, access, and savings programs visible and usable for consumers. And 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.

Speaker #3: 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.

Wendy Barnes: 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. 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 Q2 into sustained growth.

Speaker #3: For example, in the ACA marketplace, nearly 3 million fewer people are enrolled following the expiration of enhanced subsidies, and early 2027 rate filings point to another year of significant premium increases.

Speaker #3: Employers are under the same pressure, and 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.

Speaker #3: 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.

Speaker #3: 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.

Wendy Barnes: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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.

Wendy Barnes: 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 update. 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, 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: We now have more than 135 consumer-direct pricing programs, including the addition of top brands like Jardiance, Nurtec, Otezla, and Repatha. Reinforcing the role GoodRx is playing in helping manufacturers bring affordability programs directly to consumers at scale.

Speaker #3: GLP-1s remain one of the clearest examples of the value of that model. Demand remains strong, coverage remains limited or inconsistent, and the categories evolving rapidly as new therapies, formulations, and price points come to market.

Wendy Barnes: 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 US, 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.

Speaker #3: During the quarter, we supported several important launches and expansions, including Ozempic Pill, Wegovy HD, Foundeo, and Zepbound QuickPen. 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: Coverage models are also changing, such as the Medicare 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.

Wendy Barnes: Coverage models are also changing, such as the Medicare Bridge Program that launched on 1 July 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.

Speaker #3: We are watching adoption closely, but Medicare-age consumers represent a platform today, and this program includes specific authorization, eligibility, and processing requirements that naturally limit its reach.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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.

Wendy Barnes: 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.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: 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.

Wendy Barnes: 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.

Speaker #3: 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.

Speaker #3: Companion is available for $1,499 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.

Speaker #3: It is especially valuable for consumers managing chronic conditions, taking multiple medications, or navigating coverage limitations or out-of-pocket costs can be difficult to anticipate. While we are not discontinuing gold, Companion is now our primary subscription offering, with a broader nationwide pharmacy network, richer benefits, and consistently lower prices.

Speaker #3: Early adoption has been encouraging, and we believe Companion gives us a broader membership platform to beat more of consumers' everyday healthcare needs. In addition, we continue to see growth across our condition-specific subscription offerings.

Wendy Barnes: Early adoption has been encouraging, and 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.

Speaker #3: 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.

Speaker #3: That is why we are reorienting more of the GoodRx experience around subscriptions, including making them the primary call to action across key services such as our homepage, and price pages.

Speaker #3: 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: Performance in the second quarter was in line with our expectations, reflecting the sequential moderation we discussed on our last call and our decision to direct more marketing and product investment toward our subscription offerings.

Wendy Barnes: Performance in Q2 was in line with our expectations, reflecting the sequential moderation we discussed on our last call and our decision to direct more marketing and product investment toward our subscription offerings. As subscriptions grow, some transactions that would have historically flowed through Rx Marketplace will instead be served through our subscription offerings. That will moderate prescription transactions revenue and MACs over time, but we view it as a positive evolution of the business. Consumers receive more value, pharmacies benefit from increased prescription volume and stronger patient retention, and GoodRx builds deeper consumer relationships while generating subscription revenue with higher lifetime value. Companion is a clear example of how we are providing value to both consumers and our retail pharmacy partners.

Speaker #3: As subscriptions grow, some transactions that would have historically flowed through Rx Marketplace will instead be served through our subscription offerings. That will moderate prescription transaction revenue and max over time, but we view it as a positive evolution of the business.

Speaker #3: Consumers receive more value, pharmacies benefit from increased prescription volume and stronger patient retention, and GoodRx builds deeper consumer relationships while generating subscription revenue with higher lifetime value.

Speaker #3: Companion is a clear example of how we are providing value to both consumers and our retail pharmacy partners. It gives members access to meaningfully lower prices than they would receive through a traditional prescription discount, while allowing them to continue filling at the pharmacies they already know and trust.

Wendy Barnes: It gives members access to meaningfully lower prices than they would receive through a traditional prescription discount while allowing them to continue filling at the pharmacies they already know and trust. It also delivers that value at no additional cost to retail partners. That makes Companion an important way to strengthen the consumer experience while reinforcing the value of our retail pharmacy network. We are also continuing to strengthen the network itself. Our direct contracting model gives us a better foundation to support retailer economics and improve the consumer experience at the counter. Our e-commerce capability is now live at nearly 6,000 pharmacies nationwide, allowing consumers to engage digitally before arriving at the pharmacy and helping retail partners reduce friction and better capture demand. We are also extending the reach of our network into new channels.

Speaker #3: It also delivers that value at no additional cost to retail partners. That makes Companion an important way to strengthen the consumer experience while reinforcing the value of our retail pharmacy network.

Speaker #3: We are also continuing to strengthen the network itself. Our direct contracting model gives us a better foundation to support retailer economics and improve the consumer experience at the counter.

Speaker #3: Our e-commerce capability is now live at nearly 6,000 pharmacies nationwide, allowing consumers to engage digitally before arriving at the pharmacy and helping retail partners reduce friction and better capture demand.

Speaker #3: We are also extending the reach of our network into new channels. In May, we brought our nationwide pharmacy access to TrumpRx as a launch partner for generics, giving consumers more choice in where they fill.

Wendy Barnes: In May, we brought our nationwide pharmacy access to TrumpRx as a launch partner for generics, giving consumers more choice in where they fill. Turning to Employer Direct. Building on the work we introduced last quarter, we are developing a significant and growing pipeline, with partners expected to go live in Q4 and into Q1. Our initial focus is GLP-1s, where we combine manufacturer pricing enabled by Pharma Direct with the consumer-facing care and engagement model we built through GoodRx for Weight Loss. We also plan to integrate GoodRx Companion, giving employers the ability to subsidize the membership cost for employees and expand access to affordable generic medications. Employer Direct creates the channel to bring those capabilities to plan sponsors at scale, helping lower costs for employers and out-of-pocket prices for employees, including through employer-funded wellness accounts that can be used toward eligible medication costs and related care.

Speaker #3: Turning to Employer Direct: Building on the work we introduced last quarter, we are developing a significant and growing pipeline, with partners expected to go live in Q4 and into Q1.

Speaker #3: Our initial focus is GLP-1s, where we combine manufacturer pricing enabled by pharma direct with the consumer-facing care and engagement model we built through GoodRx for weight loss.

Speaker #3: We also plan to integrate GoodRx Companions, giving employers the ability to subsidize the membership cost for employees and expand access to affordable generic medications.

Speaker #3: Employer direct creates the channel to bring those capabilities to planned sponsors at scale, helping lower costs for employers and out-of-pocket prices for employees, including through employer-funded wellness accounts that can be used toward eligible medication costs and related care.

Speaker #3: While still early, the employer response reinforces our view that GoodRx can help planned sponsors address prescription affordability in a more flexible and targeted way.

Justin Fengler: Thank you, Wendy, and good morning, everyone. We delivered another strong Q2 with revenue of $200.4 million and adjusted EBITDA of $63.7 million, representing an adjusted EBITDA margin of 31.8%. Our results were driven by continued momentum across our Pharma Direct and subscriptions offering, which are becoming a larger portion of overall revenue. Turning to our revenue performance by offering, prescription transactions revenue was $106.4 million, in line with the outlook we previously provided. Monthly active consumers totaled 5 million, down 12% year-over-year and down sequentially, reflecting normal seasonality in our integrated savings program and a deliberate shift of product and marketing investment towards our new subscription offerings. Overall, these trends are unfolding as planned and consistent with the operating assumptions underlying our guidance.

Speaker #3: We plan to have more to report in future quarters as these programs target serving larger employee populations. As we scale these growth initiatives, we are also focused on improving how quickly and efficiently we execute.

Speaker #3: AI is becoming a more intentional part of the GoodRx operating model, with the focus on redesigning workflows, reducing manual work, and helping teams execute faster.

Speaker #3: We are hiring talent and investing in capabilities to embed AI more deeply into how we build and scale the platform, which we believe can accelerate product delivery and support greater operating leverage over time.

Speaker #3: I will now turn the call over to Justin to discuss second quarter results.

Speaker #1: Thank you, Wendy, and good morning, everyone. We delivered another strong quarter with revenue of $200.4 million and adjusted EBITDA of $63.7 million, representing an adjusted EBITDA margin of 31.8%.

Speaker #1: Our results were driven by continued momentum across our Pharma Direct and Subscriptions offerings, which are becoming a larger portion of overall revenue. Turning to our revenue performance by offering, prescription transactions revenue was $106.4 million, in line with the outlook we previously provided.

Speaker #1: Monthly active consumers totaled 5 million, down 12% year over year, and down sequentially, reflecting normal seasonality in our integrated savings program and a deliberate shift of product and marketing investment towards our new subscription offerings.

Speaker #1: Overall, these trends are unfolding as planned and consistent with the operating assumptions underlying our guidance. Pharma direct revenue was $61.6 million up 76% year over year, as we continue to deepen manufacturer partnerships and expand our consumer direct pricing platform.

Justin Fengler: Pharma Direct revenue was $61.6 million, up 76% year-over-year as we continue to deepen manufacturer partnerships and expand our consumer direct pricing platform. Our growth reflected continued momentum in our GLP-1 access programs, complemented by strong execution across our non-GLP-1 business. Subscription revenue increased to $28.5 million, up 39% year-over-year, driven by the ongoing demand for our condition subscription specific offerings, particularly weight loss. The number of our subscription plans increased 14% year-over-year, also benefiting from the launch of GoodRx Companion in May. Turning now to our outlook for the rest of the year. Based on our strong H1 performance and continued execution, we're raising our full year revenue guidance to a range of $790 to $805 million.

Speaker #1: Our growth reflected continued momentum in our GLP-1 access programs, complemented by strong execution across our non-GLP-1 business. Subscription revenue increased to $28.5 million up 39% year over year, driven by the ongoing demand for a conditioned subscription, specific offerings particularly weight loss.

Speaker #1: The number of our subscription plans increased 14% year over year, also benefiting from the launch of GoodRx Companion in May. Turning now to our outlook for the rest of the year, based on our strong first-half performance and continued execution, we're raising our full-year revenue guidance to a range of $790 to $805 million.

Speaker #1: At the midpoint, we would return to year-over-year growth earlier than we had previously anticipated, demonstrating that our strategy to diversify our revenue base is delivering results ahead of plan.

Justin Fengler: At the midpoint, we would return to year-over-year growth earlier than we had previously anticipated, demonstrating that our strategy to diversify our revenue base is delivering results ahead of plan. This improved outlook reflects the continued strength of the business, particularly within Pharma Direct, where we now expect revenue to grow more than 70% year-over-year. As we progress through the H2 of the year, we expect the growth generated by Pharma Direct and our subscriptions offerings to more than offset declines in prescription transactions revenue. Based on the strength of our operating performance, coupled with our continued focus on disciplined execution, we are also raising our adjusted EBITDA guidance to a range of $240 to 250 million, underscoring our ability to drive profitable growth while continuing to invest in our strategic priorities. With that, I will turn the call back over to Wendy.

Speaker #1: This improved outlook reflects the continued strength of the business, particularly within pharma direct, where we now expect revenue to grow more than 70% year over year.

Speaker #1: As we progress through the second half of the year, we expect the growth generated by Pharma Direct and our subscription offerings to more than offset declines in prescription transactions revenue.

Speaker #1: Based on the strength of our operating performance, coupled with our continued focus on disciplined execution, we are also raising our adjusted EBITDA guidance to a range of $240 to $250 million.

Speaker #1: Underscoring our ability to drive profitable growth while continuing to invest in our strategic priorities. And with that, I will turn the call back over to Wendy.

Speaker #2: Thanks, Justin. The second quarter showed that our strategy is working. We delivered results ahead of expectations, raised our full-year outlook, and saw continued growth in pharma direct and subscriptions, the two growth engines we said would drive the business this year.

Wendy Barnes: Thanks, Justin. The Q2 showed that our strategy is working. We delivered results ahead of expectations, raised our full year outlook, and saw continued growth in Pharma Direct and subscriptions, the two growth engines we said would drive the business this year. From here, our focus is consistent execution, driving the programs already in market and in our pipeline towards sustained utilization, while continuing to strengthen the experience that keeps consumers coming back. As we deliver against that plan, we are confident it will translate into a more durable growth profile and long-term value for consumers, partners, and shareholders. With that, I'll turn the call over to the operator for questions.

Speaker #2: From here, our focus is consistent execution: driving the programs already in market and in our pipeline towards sustained utilization, while continuing to strengthen the experience that keeps consumers coming back.

Speaker #2: As we deliver against that plan, we are confident it will translate into a more durable growth profile and long-term value for consumers, partners, and shareholders.

Speaker #2: With that, I'll turn the call over to the operator for questions.

Speaker #3: Thank you. At this time, we will conduct the question-and-answer session. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Charles Rhyee with TD Cowen. Please go ahead.

Speaker #3: To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Charles Rye with TD Cowan.

Speaker #3: Please go ahead.

Speaker #4: Oh, yeah. Thanks for taking the question. Want to talk about sort of overall performance for the business because, obviously, we now have these different subgroups PTR, pharma direct, subscriptions, and each of these has different kind of metrics.

Charles Rhyee: Yeah, thanks for taking the questions. Wanted to talk about sort of overall performance for the business, because obviously we now have these different subgroups, PTR, Pharma Direct, subscriptions, and each of these has different kind of metrics. Ultimately, at the end of the day, is it right to think that people are going using GoodRx, getting prescriptions filled? If that's really the case, can you give us a sense of how many prescriptions you are filling across the different buckets? As you talk about a return to growth, maybe talk conceptually, what are the kind of metrics that you are thinking about providing investors?

Speaker #4: But ultimately, at the end of the day, is it right to think that people are going using GoodRx, getting prescription filled, and if that's really the case, can you give us a sense of how many prescriptions you are filling across the different buckets?

Speaker #4: And as you talk about a return to growth, maybe talk conceptually what are the kind of metrics that you are thinking about providing investors?

Speaker #4: Because I feel like the way the business is set up right now, it kind of makes it difficult for people to figure out where this growth obviously, we see revenue growth, but if we think about what people are really focused on.

Charles Rhyee: I feel like the way the business is set up right now, it kind of makes it difficult for people to figure out where this. Obviously, we see revenue growth, if we think about what people are really focused on. I ask that because you see MACs continues to kind of decline year-over-year, and just, it's kind of hard to gain a lot of confidence if we don't see that number start to flatten a little bit. Anything that you could help us in terms of maybe more like a prescription type of metric would be helpful.

Speaker #4: And I ask that because we see max continues to kind of decline year over year, and it's just kind of hard to gain a lot of confidence if we don't see that number start to flatten a little bit.

Speaker #4: So anything that you could help us in terms of maybe more like a prescription type of metric would be helpful.

Speaker #1: Yeah, that's a great comment, Charles. And thanks for the question. I know we've alluded in periods past to evaluating KPIs that we provide to the street and things like that.

Justin Fengler: Yeah. It's a great comment, Charles, and thanks for the question. I know we've alluded in periods past to evaluating KPIs that we provide to the Street and things like that. I think you're exactly right in terms of the MACs number, because that just pertains to prescription transactions revenue, isn't necessarily perfect, and is also not necessarily an indicator of success in the business. As we kind of talked about on the call, we're actively transitioning more people into subscription offerings, which allow us to have a closer relationship with the customer, allows us to drive more value for the customer, and allows us to have a higher lifetime value with those people. If anybody goes to our website now, they'll see us certainly pushing that on the homepage, the price page, things of that nature.

Speaker #1: I think you're exactly right in terms of the max number, because that just pertains to prescription transaction revenue, isn't necessarily perfect and is also not necessarily an indicator of success in the business.

Speaker #1: As we kind of talked about on the call, we're actively transitioning more people into subscription offerings, which have a closer allow us to have a closer relationship with the customer, allows us to drive more value for the customer, and allows us to have a higher lifetime value with those people.

Speaker #1: So and as you if anybody goes to our website now, they'll see us certainly pushing that on the homepage, the price page, things of that nature.

Speaker #1: So to the point of what are the KPIs that we're pushing, we're still evaluating that. We're not going to come out this quarter and say, "Hey, we're going to move to this batch or the other." Number of prescriptions, things of that nature, certainly things that we're looking at.

Justin Fengler: To the point of what are the KPIs that we're pushing, we're still evaluating that. We're not going to come out this quarter and say, "Hey, we're going to move to this, that, or the other." Number of prescriptions, things of that nature, are certainly things that we're looking at. I think that at some point in the future, you would expect us to have something a bit different. It's certainly too early today for us to talk about that. As we think about what are the goals that we're looking for, it's long-term durable revenue, and how are we actually leveraging the power of our brand to deliver value to consumers and ultimately have a durable revenue base that's growing. As we're transitioning the business from a PTR base more into pharma and such, we think that that's a good evolution of the business.

Speaker #1: 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 too early, certainly too early today for us to talk about that.

Speaker #1: But as we think about what are the goals that we're looking for. Long-term durable revenue, and how are we actually leveraging the power of our brand to deliver value to consumers and ultimately have durable revenue base that's growing?

Speaker #1: And as we're transitioning the business from a PTR base more into pharma and subs, we think that that's a good evolution of the business.

Speaker #2: Yeah, I would.

Wendy Barnes: Yeah, I would add.

Charles Rhyee: If I could follow-

Speaker #4: And.

Wendy Barnes: Not much. No, please, go ahead.

Speaker #2: No, please. Go ahead. What's your follow-up question? No, no. No, please.

Charles Rhyee: Sorry, go ahead.

Wendy Barnes: What's your follow-up question? No, please.

Charles Rhyee: I was going to ask, so I understand that, right? I'm just curious to the extent that, when you're working with pharma companies, with Pharma Direct, clearly they're looking at the GoodRx platform saying, "Hey, look at this significant number of consumers that constantly come to this site to engage and look up prices for drugs," which at the core was built around the PTR model. What is the right level in PTR that you would say you need to have that critical mass that makes it relevant for pharma to want to-

Speaker #4: Oh, no. Yeah, no, I was going to ask so I understand that, right? But I'm just curious to the extent that when you're working with pharma companies, with pharma direct, clearly they're looking at the GoodRx platform saying, "Hey, look at this significant number of consumers that constantly come to this site to engage and look at prices for drugs." Which at the core was built around the PTR model.

Speaker #4: What is the right level in PTR that you would say you need to have—that critical mass that makes it relevant for pharma to want to work with you guys?

Justin Fengler: Yeah

Charles Rhyee: work with you guys?

Speaker #4: And it's.

Justin Fengler: It's interesting, Charles, because, yeah, when you think about PTR revenue, that's only a sub-component of the monetization, because when you think about people coming to brand drug price pages, they're not actually a MAC necessarily, right? They're people that are looking for copay affordability or things like that would never actually make their way into that MAC number. What we look at here, and kind of what everything starts with at GoodRx, is the power of the brand. Like, how many people know about us? Is it a good story? Do we have a high NPS? Are people resonating? We have over 280 million people that are coming to our site. Or, sorry, we have over 280 million site visits every year.

Speaker #1: It's interesting, Charles, because yeah, when you think about PTR revenue, that's actually only a subcomponent of the overall monetization. Because when you think about people coming to brand drug price pages, they're not actually a max necessarily, right?

Speaker #1: They're people that are looking for copay affordability or things like that that would never actually make their way into that max number. What we look at here and kind of what everything starts with at GoodRx is the power of the brand.

Speaker #1: How many people know about us? Is it a good story? Do we have a high NPS? Are people resonating? And we have over 280 million people that are coming to our site or sorry, we have over 280 million site visits every year.

Speaker #1: And I think that's certainly those people or those site visits and the number of those site visits that make their way into price pages and into subscriptions is a leading indicator of how we look at that strength.

Justin Fengler: I think that certainly, those people or those site visits and the number of those site visits that make their way into price pages and into subscriptions is a leading indicator of how we look at that strength.

Speaker #2: Yeah. And Charles, I would just add to your pointed question regarding the types of things that pharma is looking for and partnering with us, clearly they're looking for a high-intent audience that is going to help drive volume to their specific brand programs and we have delivered time and time again for them on those specific programs so much so that when we benchmark utilizing third-party sources to do so as to how those programs would have performed either in their own brand dot com or with other channels that they could choose, to push cash pricing in, we perpetually outperform.

Wendy Barnes: Yeah. Charles, I would just add, to your pointed question regarding the types of things that pharma is looking for in partnering with us, clearly, they're looking for a high-intent audience that is going to help drive volume to their specific brand programs. We have delivered time and time again for them on those specific programs. So much so that when we benchmark utilizing third-party sources to do so as to how those programs would have performed, either in their own brand dot com or with other channels that they could choose to push cash pricing in, we perpetually outperform. These ROI comparisons sometimes can be eight, 10, 12, 16, 18 times, given the high-intent audience we have. That is tied to a number of things.

Speaker #2: I mean, these ROI comparisons sometimes can be 8, 10, 12, 16, 18 times given the high-intent audience we have. And that is tied to a number of things.

Speaker #2: And by high intent, more descriptively, we mean consumers that are showing up very frequently with the prescription already in hand and they're simply looking for the right channel for affordability.

Wendy Barnes: By high intent, more descriptively, we mean consumers that are showing up very frequently with the prescription already in hand, and they're simply looking for the right channel for affordability. As we've pointed out in a couple previous calls, and interestingly, a significant percentage of that audience also has insurance. Again, they've compared it to ostensibly what their out-of-pocket would've been, having been covered, and in many instances, choosing the cash option. For that reason, that is one of the reasons that the number of pharma programs, I believe at this point exceeding 135 direct-to-consumer programs, that's why those continue to proliferate and why we are going deeper in our pharma partnerships. That's kind of how we're thinking about certainly how we measure KPIs with that direct relationship.

Speaker #2: And as we've pointed out in a couple of previous calls, interestingly, a significant percentage of that audience also has insurance. And so again, they've compared it to ostensibly what their out-of-pocket would have been, having been covered, and in many instances, choosing the cash option.

Speaker #2: And so for that reason that is one of the reasons that the number of pharma programs I believe at this point exceeding 135 direct-to-consumer programs that's why there's continued to proliferate and why we are going deeper in our pharma partnerships.

Speaker #2: So that's kind of how we're thinking about certainly how we measure KPIs with that direct relationship. I don't know that those are things we necessarily contemplate as a metric in the broader sense for the company, but those certainly are metrics that are trending incredibly strong within the different components of the business.

Wendy Barnes: I don't know that those are things we'd necessarily contemplate as a metric in the broader sense for the company, but they certainly are metrics that are trending incredibly strong within the different components of the business. We hear you, we understand the ask for a broader business metric, and it's something we continue to kick around with our board. It's certainly a bit of a challenge when you're in transition of your business model, and certainly changing a metric in the middle of your fiscal year is never a good idea. We're contemplating what that potentially could be going into 2027.

Speaker #2: But we hear you. We understand the ask for a broader business metric. And it's something we continue to kick around with our board. It's certainly a bit of a challenge when you're in transition of your business model.

Speaker #2: And certainly, changing a metric in the middle of your fiscal year is never a good idea, but we're contemplating what that potentially could be going into '27.

Speaker #4: Oh, great. I appreciate the comments. Thank you.

Charles Rhyee: Oh, great. I appreciate the comments. Thank you.

Speaker #2: Thank you.

Wendy Barnes: Thank you.

Speaker #3: Thank you. One moment for our next question. Our next question comes from the line of Daniel Grosslight with Citi. Please go ahead.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Daniel Grosslight with Citi. Please go ahead.

Speaker #5: Hi. Thanks for taking the question. Some really nice results in patient direct.

Daniel Grosslight: Hi. Thanks for taking the question. Some really nice results in Pharma Direct. That's great to see. I'm wondering if you could kind of double-click a little bit on Pharma Direct and maybe quantify or provide some commentary around how important the GLP-1 drug class is to Pharma Direct, particularly the launch of orals. As we think about the Bridge program, and perhaps some leveling off of the new launches, how we should be thinking about a sustainable growth rate in the Pharma Direct segment. Thanks.

Speaker #1: It's great to see you . I'm wondering if you could kind of double click a little bit on on patient direct and , , maybe quantify or provide some commentary around how , important the , , the GLP one drug classes to , to patient direct , particularly the launch of , of orals .

Speaker #1: , and as we think about the bridge program , , and perhaps , , some leveling off of , of the new launches , how we should be thinking about a sustainable growth rate in the pharma direct segment .

Speaker #1: Thanks .

Speaker #2: Thank you for the question . , and one , candidly , we , we probably presumed that we would get today , we'll probably have it in the same conversation and several follow ups to look , there's unequivocally GLP ones have been an important part of our pharma direct growth story .

Wendy Barnes: Thank you for the question. One, candidly, we probably presumed that we would get today. We'll probably have it in this same conversation and several follow-ups, too. Unequivocally, GLP-1s have been an important part of our Pharma Direct growth story, and they will continue to be. As we look forward through even 2030, 2031, the ongoing growth opportunity, both in Medicare-eligible and non-Medicare-eligible consumers, is considerable. That's, in my mind, a bit of thing one. I think it's also important to point out that we have grown considerably in our non-GLP-1 drug partnerships. All of those deals in both of those categories are up substantially year-over-year.

Speaker #2: And they will continue to be I mean , as we look forward through even 20 , 30 , 20 , 31 , the ongoing growth opportunity , both in Medicare eligible and Non-medicare eligible consumers is considerable .

Speaker #2: So that's in my mind , a bit of thing one , but I think it's also important to point out that we have grown considerably in our non drug partnerships .

Speaker #2: , all of those deals in both of those categories are up substantially year over year . , and we think the , the ongoing partnership pointing more back to the , you GLP one component , our ability to , to support , you know , telehealth , our subscription offering around weight loss will continue to be more important to support that category .

Wendy Barnes: We think the ongoing partnership, pointing more back to the GLP-1 component, our ability to support telehealth, our subscription offering around weight loss, will continue to be more important to support that category, to include the launch of additional molecules in the coming years. As it pertains to the other portion of your question around the orals, we've seen considerable growth in those particular formulations, and we're continuing to see that. Without specific commentary on some of the comments, earnings-wise, from manufacturers as to what they're seeing in their broader book, I can just simply tell you that within our consumer set, it continues to be healthy and growing. Other things you'd add, Justin?

Speaker #2: , to include , the launch of additional molecules in the coming years as it pertains to the other , , you know , portion of your question around the orals , you know , we've seen considerable growth in those particular formulations and we're continuing to see that without specific commentary on , you know , some of the , , comments , , earnings wise from manufacturers as to what they're seeing in their broader book .

Speaker #2: I can just simply tell you that within our consumer set , it can , it continues to be healthy and growing . , are there things you'd add , Justin

Speaker #1: No . Look , I think that Wendy commented on the GLP . I would say what we see , , on our site is not just strength in that segment .

Justin Fengler: No. Look, I think Wendy commented on the GLP-1s. I would say what we see on our side is not just strength in that segment. I think that that part, the component or Pharma Direct is very strong, but also on the non-GLP side as well, we see good growth there. I think we're excited for the segment. Obviously, we increased the Pharma Direct guidance range from 50% to 70% this quarter. I think certainly this year it's going to be a really strong year, and certainly on the GLP-1 side, there's many more years of strength as this category continues to add new launches and grows. We're not getting into the game of long-term guidance here, and we're certainly going to talk about next year when next year arrives. It's certainly an area of the business that is performing very strong.

Speaker #1: I think that that part of the , you know , the component or pharma direct is very strong , but also , , you know , on the non GLP side as well , we see good growth there .

Speaker #1: So , , you know , I think that we're excited for , for the segment , obviously , we increased the pharma direct .

Speaker #1: , guidance range from 50% to 70% this quarter . , I think that certainly this year it's going to be a really , really strong year .

Speaker #1: And , certainly on the GOP side , there's , , you know , many , many more years of strength as this category continues to have new launches and grows .

Speaker #1: We're not getting into the game of long term guidance here . And we're certainly going to talk about next year , when next year arrives .

Speaker #1: , but it's certainly an area of the business that is performing very strong . Thank you

Michael Cherny: Thank you.

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of Michael Cherny with Leerink Partners . Please go ahead .

Operator: Thank you. One moment for our next question. Our next question comes from the line of Michael Cherny with Leerink Partners. Please go ahead.

Speaker #4: , good morning and thank you for taking the question . Maybe if I can in on Pharma direct and the growth and positioning of the business , obviously , it's been a standout in the quarter and the year .

Michael Cherny: Good morning, and thank you for taking the question. Maybe if I can just dive in on Pharma Direct and the growth and positioning of the business. Obviously, it's been a standout in the quarter, and the year, and the acceleration of guidance. As you think about the continued ramp with new manufacturer partners, anything about capacity that you have to worry about, manage for, and is there any balance or incremental investments needed to support this level of growth above and beyond what you would typically expect for a ramp on a new project? Thank you.

Speaker #4: The acceleration of guidance . As you think about the continued ramp , new manufacturer partners , anything about capacity that you have to worry manage for ?

Speaker #4: And is balance or incremental investments needed to support this level of growth above and beyond what you would typically expect for a ramp on a new project ?

Speaker #4: Thank you

Speaker #2: Morning , Michael . Thank you for the question . , no , the short answer is that , you know , I don't anticipate a ton of incremental cost to continue to scale pharma direct .

Wendy Barnes: Morning, Michael. Thank you for the question. 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. Be that as it may, Laura, who I think you've met on previous calls, who's our Chief Commercial Officer, has full permission to come to us as she sees fit, managing that P&L, if she thinks there are different supportive resources she needs. There's nothing I'm anticipating, even in the short or midterm, that would require significant cost to support growth there. We're largely set up to continue to add additional consumer direct partnerships with pharma. What would you add from your lens, Justin?

Speaker #2: We've largely already invested in the appropriate sales force and supporting infrastructure . You know , be that as it may , , Laura , who I think you've met on previous calls , he's our chief commercial officer .

Speaker #2: You know , has has full permission to , you know , come to us as she sees fit managing that P and L if she thinks there are different supportive resources she needs .

Speaker #2: But there's nothing I'm anticipating , even in the short or mid-term , that would require significant cost to support growth . There . We're largely set up to continue to , , add additional consumer direct , partnerships with pharma .

Speaker #2: What would you add from your lens ? Justin .

Speaker #1: Yeah . Look , I think from the from the pharma business , , that's 31% of our revenue this quarter . So it's certainly already becoming a scale part of the , , of the offering .

Justin Fengler: Yeah, look, I think from the pharma business, that's 31% of our revenue this quarter, so it's certainly already becoming a scale part of the offering. We have an established team here that's been with the business for many years. In terms of incremental investment, I think we'll assess that in the future. I don't expect anything dramatic as we look to continue to expand the business. Again, I think a lot of that comes back to the power of the brand and the platform, 280 million site visits. A lot of this stuff is built in terms of how we're monetizing and reaching consumers, which is an amazing part of the GoodRx brand.

Speaker #1: And we have an established team here that's been with the , you know , the business for , for many , many years .

Speaker #1: So in terms of incremental investment , I think we'll , you know , assess that in the future . I don't expect anything dramatic as we look to continue to expand the business .

Speaker #1: And again , I think a lot of that comes back to the power of the brand and the platform . 280 million site visits .

Speaker #1: A lot of this stuff is , is built in , , in terms of how we're monetizing and reaching consumers , which is an amazing part of the brand .

Wendy Barnes: Mm-hmm. Yeah.

Speaker #1: Yeah

Operator: Thank you. One moment for our next question. Our next question comes from the line of Stan Berenshteyn from Wells Fargo Securities. Please go ahead.

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of Stan Bernstein from Wells Fargo Securities . Please go ahead .

Speaker #5: Hi . Good morning . Thanks for taking my questions . Maybe I'll follow up on on Pharma direct as we think about the balance of the year , how active is your pipeline there , and can you compare that to same time last year and maybe just a quick follow up on gross margin ?

Stan Berenshteyn: Hi. Good morning. Thanks for taking my questions. Maybe I'll follow up on Pharma Direct. As we think about the balance of the year, how active is your pipeline there, and can you compare that to same time last year? Maybe just a quick follow-up on gross margin. If we just think about the revenue mix persisting here, where do you expect gross margin will shake out going forward here? Thanks.

Speaker #5: If we just think about the revenue mix persisting here , , you know , where do you expect gross margin will shake out , you know , going forward here .

Speaker #5: Thanks .

Speaker #1: Yeah . Thanks for the question , Stan . So from a , from a bookings perspective , , you know , much of the , of the bookings happen , , at the , you know , at the beginning of the year , even before the year began .

Justin Fengler: Yeah. Thanks for the question, Stan. From a bookings perspective, much of the bookings happen at the beginning of the year, even before the year began. We have really good line of sight for the full year revenue picture for Pharma Direct. I think it's not something where we're chasing a whole bunch of stuff in the back half of the year. In terms of gross margin, we're not going to guide to a particular number there. I think that you've seen that cost to revenue number come up on a year-over-year basis. Some of that's due to the cost to serve some of the subscription offerings as those become a bigger part of the revenue mix. Not something that we're guiding to and not something that we're going to see material changes on throughout the rest of the year.

Speaker #1: So we have , , you know , really good line of sight , , you know , for , for the full year revenue picture for pharma direct .

Speaker #1: , so I think it's not something where we're chasing a whole bunch of stuff in the back half of the year . , in terms of , , you know , gross margin , you know , we're not , we're not going to guide to a particular number there .

Speaker #1: , you know , I think that you've seen that cost revenue number come up on a year over year basis . , you know , some of that's due to , , the cost to service and the subscription offerings as those become a bigger part of , , you know , of the , , of the revenue mix , , but not something that we're guiding to and not something that we're going to see material changes on throughout the rest of the year .

Stan Berenshteyn: Got it. Thank you.

Speaker #5: Thank you

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of Jailendra Singh with Truist Securities . Please go ahead .

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jailendra Singh with Truist Securities. Please go ahead.

Speaker #6: Thank you , and thanks for taking my questions . , so with all that , with all the coverage changes , we've been seeing year to date around Medicaid exchanges , have you seen any of that impact your business positively or negatively thus far , or are you capturing any of these developments in your updated outlook for second half and any general thoughts you can share around these developments would be helpful ?

Jailendra Singh: Thank you, and thanks for taking my questions. With all the coverage changes we've been seeing year to date around Medicaid exchanges, have you seen any of that impact your business positively or negatively thus far? Are you capturing any of these developments in your updated outlook for H2? Any general thoughts you can share around these developments would be helpful.

Speaker #2: Hi , Jailendra , good morning , and thank you for the question . , look , being as you transparent as I can on a macro level , , we , we do absolutely believe that the continued drop in coverage coupled with whether it's a c , a , , whether it's Medicaid rosters or whether it's just candidly , a number of employers who are reducing coverage , either number of drugs they're covering and , or increasing the out burden on their employees .

Wendy Barnes: Hi, Jailendra. Good morning, and thank you for the question. Look, being as transparent as I can, on a macro level, we do absolutely believe that the continued drop in coverage coupled with, whether it's ACA, whether it's Medicaid rosters, or whether it's just candidly a number of employers who are reducing coverage, either number of drugs they're covering and/or increasing the out-of-pocket burden on their employees. We unequivocally believe that those are tailwinds pointing towards both our Companion product being a complement to insurance in addition to traditional coupon usage. As to my ability as of this first week of August to tell you definitively that we've tracked some of those trends, specifically being tied to volume in our business, I mean, the short answer is no. I can't tell you that with conviction.

Speaker #2: We unequivocally believe that those are tailwinds pointing towards both our companion product being a complement to insurance . In addition to traditional coupon usage .

Speaker #2: As to my ability , as of this first week of August to tell you definitively that we've , you know , tracked some of those trends specifically being tied to , , volume in our business .

Speaker #2: I mean , the short answer is no , I can't tell you that with conviction , but on a macro level , all of those things do seem to point to , , a pretty large opportunity for cash .

Wendy Barnes: On a macro level, all of those things do seem to point to a pretty large opportunity for cash. I think when you just couple that with what is the pipeline of employers with interest in our Employer Direct and/or Companion, in tandem with the really strong uptake we've had since launching Companion, it would indicate that those things appear to be related. I can't tell you that definitively with data.

Speaker #2: And I think when you just couple that with what is the pipeline of employers with interest in our employer direct and or companion in tandem with the really strong uptake we've had since launching companion , it would indicate that those things appear to be related .

Speaker #2: But I can't tell you that definitively with data .

Speaker #6: Great . And one quick follow up with all the recent developments and interest around peptides market , I was just curious to get your thoughts on the opportunity there .

Jailendra Singh: Great. One quick follow-up. With all the recent developments and interest around peptides market, I was just curious to get your thoughts on the opportunity there. Is that on your radar, or will this market be ever of your interest, and what would you need to see before leaning more meaningfully into this market? Just any thoughts would be helpful.

Speaker #6: Is that on your radar or will this market be aware of your interest and what would you need to see before leaning more meaningfully into this market ?

Speaker #6: Is any thoughts would be helpful ?

Speaker #2: Yeah . Gosh , it's , , it's actually generated a fair bit of conversation . , both amongst our leadership team and , and candidly , with our board .

Wendy Barnes: Yeah, 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. With what the FDA met on, it was either last week or the week prior, to be clear, that wasn't explicit approval. I mean, at this point, it still would require a regulatory review before those specific molecules would be approved for either compounding pathways supported by the FDA. Be that as it may, we're watching it quite closely. What we do know is that if they pass all of the rigor through the FDA, that our ability to play, we think, would be strong. We would do so from a position of strong clinical integrity, in addition to a well-vetted/credentialed compounding pharmacy partnership or partnerships.

Speaker #2: The short answer is yes , we think it could be an opportunity . , you know , with what the FDA , , met on , it was either last week or the week prior , to be clear , that wasn't explicit approval .

Speaker #2: I mean , at this point , it still would require , , regulatory review before those specific molecules would be approved for either , , either compounding pathway supported by the FDA .

Speaker #2: Be that as it may , we're watching it quite closely . And what we do know is that if if they pass all of the rigor through the FDA that our ability to play , we think would be strong , but we would do so from a position of strong clinical integrity in addition to , a well vetted slash credentialed compounding pharmacy partnership or partnerships .

Speaker #2: , again , in keeping with really how we've approached , you know , giving consumers access to affordable prescriptions , we would , we would approach it very similarly .

Wendy Barnes: Again, in keeping with really how we've approached giving consumers access to affordable prescriptions, we would approach it very similarly. Perhaps in summary, I would just say, yes, it's of interest. Yes, we're contemplating it, provided that those additional regulatory pathways receive check marks through the government.

Speaker #2: So perhaps in summary , I would just say , yes , it's of interest . Yes , we're contemplating it provided that those additional regulatory pathways , you know , receive check marks through the government

Speaker #6: Great . Thanks a lot

Jailendra Singh: Great. Thanks a lot.

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of Craig Hettenbach with Morgan Stanley . Please go ahead .

Operator: Thank you. One moment for our next question. Our next question comes from the line of Craig Hettenbach with Morgan Stanley. Please go ahead.

Speaker #7: Hi . This is Jay on for Craig . , thanks for taking my question . So on condition specific offerings like the Ed hair loss and weight loss .

[Company Representative] (LifeSci Advisors): Hi, this is Jay on for Craig. Thanks for taking my question. On condition-specific offerings like the ED, hair loss, and weight loss, now that some cohorts are reaching the eight to 12 month mark, can you share kind of how are the retention and churn trending? And then specifically within weight loss, can you share any early read on GLP-1 persistence or churn relative to your other offerings, even though the data is still early? Thank you.

[Analyst] (LifeSci Advisors): Hi, this is Jay on for Craig. Thanks for taking my question. On condition-specific offerings like the ED, hair loss, and weight loss, now that some cohorts are reaching the eight to 12 month mark, can you share kind of how are the retention and churn trending? And then specifically within weight loss, can you share any early read on GLP-1 persistence or churn relative to your other offerings, even though the data is still early? Thank you.

Speaker #7: Now that some cohorts are reaching the 8 to 12 month mark , can you share kind of how the retention and churn trending and then specifically within weight loss , can you share any early read on GLP one persistence or churn relative to your , , other offerings ?

Speaker #7: Even though the data is still early ? Thank you .

Speaker #1: Yeah . Thanks for the , for the question , Jay . , you know , in terms of churn and retention amongst the offerings , it's not a KPI or metric that we're putting out there right now .

Justin Fengler: Yeah, thanks for the question, Jay. In terms of churn and retention amongst the offerings, it's not a KPI or metric that we are putting out there right now. I would say you are right on the condition-specific offerings. For weight loss and ED and hair loss, those have been in the market for a while. We are continuing to invest in product marketing, reactivation, kind of all of those good, normal features that you would have. I think we continue to internally look at those as things that we want to move the needle on. Companion, look, we just launched that offering in May, and I think the early progress on that has been strong, and we are very encouraged by that. I think that we feel good about where we are, which you can see from a revenue growth perspective of 39% year over year and 17% quarter over quarter.

Speaker #1: I'd say you're right on the , on the condition specific offerings . , you know , for weight loss and Ed and hair loss , those , , have been in the market for a while .

Speaker #1: We're continuing to invest and , you know , product marketing , , reactivation , kind of all of those good , , you know , normal features that you would have .

Speaker #1: , and I think we continue to internally look at those as things that we want to move the needle on . , companion .

Speaker #1: Look , we just launched that , that offering in May . And I think the early progress on that has been strong . And we're very encouraged .

Speaker #1: By that . So , , I think that we feel good about where we are , which you can see from a revenue growth perspective , , up 39% year over year and 17% quarter over quarter .

Justin Fengler: I think that we feel good about where we are, which you can see from a revenue growth perspective of 39% year over year and 17% quarter over quarter. From a subscription plan perspective, if you also look at those, certainly the value of the subscription is going up as well, because revenue is obviously outpacing the number of plans. From kind of that ARPU perspective, we feel good about where the business is headed. All of these are things that we have been Big teams and a lot of investment moving towards because we know they're such important metrics for us.

Speaker #1: , and from a subscription plan perspective , , if you also look at those , you know , certainly the value of the prescription of the subscription is going up as well .

Justin Fengler: From a subscription plan perspective, if you also look at those, certainly the value of the subscription is going up as well, because revenue is obviously outpacing the number of plans. From kind of that ARPU perspective, we feel good about where the business is headed. All of these are things that we have been Big teams and a lot of investment moving towards.

Speaker #1: , because revenue is obviously outpacing the number of plans . So , , from kind of that perspective , we feel good about where the business is headed .

Speaker #1: And all of these are things that we have had big teams and a lot of investment moving towards, because we know they're such important metrics for us.

Justin Fengler: because we know they're such important metrics for us.

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of Brian Tanquilut with Jefferies . Please go ahead

Operator: Thank you. One moment for our next question. Our next question comes from the line of Brian Tanquilut with Jefferies. Please go ahead.

Speaker #2: Good morning Brian . You might be muted .

Wendy Barnes: Good morning, Brian. You might be muted.

Speaker #8: Oh , good morning . Sorry about that . , congrats on the quarter . Maybe Chris , my question for you is I think about the strong free cash flow performance during the quarter and the buyback that you spent .

Brian Tanquilut: Good morning. Sorry about that. Congrats on the quarter. Maybe Chris, my question for you as I think about the strong free cash flow performance during the quarter and the buyback that you spent, I mean, just curious how you're thinking about capital allocation, especially given where the stock's valuation is today. Thanks.

Speaker #8: I mean , just curious how you're thinking about capital allocation , especially given where the stock's valuation is today . Thanks .

Speaker #1: Yeah . So this is , , this is Justin on . Good to talk to you . , you know , from a capital allocation standpoint , , I don't think anything has really changed in terms of how we're looking at that .

Justin Fengler: This is Justin. Good to talk to you. From a capital allocation standpoint, I don't think anything has really changed in terms of how we're looking at that. We didn't do any buybacks this last quarter. Free cash flow, as you said, was very good. The first thing that we're going to look at from an allocation of capital perspective is investing in the business, and in particular there, the areas that we highlighted where we have right to win and a lot of momentum, which is what we're doing with subscriptions and what we're doing with pharma. Certainly opportunistically, we're going to look at M&A and other capital items, not something that we have active plans we're going to talk about here. I would say first and foremost, it's investing in the business for long-term durable growth. That's our number one, two, and three priority.

Speaker #1: So we didn't do any buybacks , this , this last quarter , free cash flow , as you said , was , was very good .

Speaker #1: You know , the first thing that we're going to look at from a allocation of capital perspective is investing in the business and in particular , they are the areas that we highlighted where we have , , you know , a right to win and a lot of momentum , which is what we're doing with subscriptions and what we're doing with pharma .

Speaker #1: , you know , certainly opportunistically , we're going to look at M&A and other capital items . , not something that , , you know , we have active plans for , we're going to talk about here .

Speaker #1: , but I would say first and foremost , it's investing in the business for long term durable growth . That's our number one , two and three priority

Brian Tanquilut: Thank you.

Speaker #8: Thank you

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of Allen Lutz with Bank of America . Please go ahead .

Operator: Thank you. One moment for our next question. Our next question comes from the line of Allen Lutz with Bank of America. Please go ahead.

Speaker #9: Good morning , and thanks for taking the questions . , for Wendy or for Justin here . I want to follow up on Charles question at the top , just around the , , you know , there's a lot of moving pieces here as we think about the different parts of the business .

Allen Lutz: Good morning. Thanks for taking the question. For Wendy or for Justin here, I want to follow up on Charles' question at the top. There's a lot of moving pieces here as we think about the different parts of the business, and obviously the business is in flux. Would love to just, from a high level, talk about the expectations around prescription transactions revenue over the next couple quarters, the expectation for MACs into the end of the year, and then maybe offsetting that, the expectations for subscription revenue and subscriber growth. I guess, maybe talk about those together. Can they offset each other? Just trying to get a sense of how those two items are going to transition into the end of the year and into 2027. Thanks.

Speaker #9: And obviously the business is in flux . Would love to just from a high level talk about the expectations around prescription transaction revenue over the next couple quarters , the , , the expectation for Max into the end of the year and then maybe offsetting that , the expectations for subscription revenue and subscriber growth , I guess , you know , , maybe talk about those together .

Speaker #9: Can they offset each other ? Just trying to get a sense of how those two items are going to , transition into the end of the year and into 2027 .

Speaker #9: Thanks .

Speaker #1: Yeah . Thanks for the question . Allen . , you know , good question . And certainly in our prepared remarks , we talked about , , you know , active decisions that we're making around , , pushing more people into our subscriptions offering , whether it's companion or condition .

Justin Fengler: Yeah. Thanks for the question, Allen. Good question, and certainly in our prepared remarks, we talked about active decisions that we're making around pushing more people into our subscriptions offering, whether it's GoodRx Companion or condition. I think that that's something from a durability of revenue perspective and ability of value, or amount of value that we're able to deliver to consumers is something that we're going to actively push. A lot of these choices are active decisions that are good, that we feel like are good for the business long term. In terms of what that means for Max, there's certainly, I think we would expect continued moderation on that line as we move more people into subscriptions. The one thing that I would just note so that we're not getting too far ahead of ourselves is that subscriptions, particularly GoodRx Companion, is a new offering.

Speaker #1: , I think that that's something from a durability of revenue perspective and ability of value or amount of value that we're able to , to deliver to consumers is something that we're going to actively push .

Speaker #1: So a lot of these choices are active decisions that are good, that we feel are good for the business long term.

Speaker #1: In terms of , , what that means for Max , you know , there's certainly , I think we would expect continued moderation .

Speaker #1: , on that line as we move more people into subscriptions , the one thing that I would just note so that we're not getting too far ahead of ourselves is that subscriptions , particularly companion , , is a new offering .

Speaker #1: We just launched that in May of this year . So as we , , you know , manage kind of the acquisition funnels for that , the retention tactics and things of that nature .

Justin Fengler: We just launched that in May of this year. As we manage kind of the acquisition funnels for that, the retention tactics and things of that nature, it's going to be growth in terms of how well-developed that product is. Certainly Q3, Q4 as we go into next year, I think we expect to get sequentially better. We're focused on moving those big KPIs. Really, we're not looking at that as optimizing revenue from a subscriptions perspective for 2026. We're really focused on investing in things that are going to help us in the long term, 2027, 2028, 2029, et cetera, and building a really good foundation that makes this product the best product out there in the market.

Speaker #1: , you know , it's going to be , , you know , growth in terms of how well developed that product is . So , you know , certainly the third quarter .

Speaker #1: Fourth quarter , as we , as we go into next year , I think we expect to get sequentially better . , and , you know , we're focused on moving those , those , you know , big KPIs , but really , we're not looking at that as optimizing revenue from a subscription perspective for 2026 .

Speaker #1: We're really focused on investing in things that are going to help us in the long term . 27 , 28 , 29 , etc.

Speaker #1: and building a really good foundation that makes this product , you know , the best product out there in the market

Speaker #10: Thank you

Allen Lutz: Thank you.

Speaker #3: Thank you . One moment for our next question Our next question comes from the line of George Hill of Deutsche Bank . Please go ahead

Operator: Thank you. One moment for our next question. Our next question comes from the line of George Hill of Deutsche Bank. Please go ahead.

Speaker #11: Yeah . Good morning guys , and thanks for taking the question . I just kind of wanted to focus on the emerging companion direct and the employer direct offering .

George Hill: Yeah. Good morning, guys, and thanks for taking the question. I just kind of wanted to focus on the emerging Companion Direct and the Employer Direct offering, and I wanted to talk about product positioning. The Companion Direct product actually seems pretty interesting. It seems like it could fit well in almost the alternative health plan space, given how it's constructed and what it looks like. I could see pretty interesting growth there. With Employer Direct, I also see you would kind of technically be going head to head against your PBM partners, who probably don't love that idea. It's an interesting needle to try to thread with how both of those products are positioned in the market.

Speaker #11: And I wanted to talk about product positioning because the companion direct product actually seems pretty interesting . It seems like it could fit well in , like almost the alternative health plan space , given , you know , how it's constructed and what it looks like .

Speaker #11: And I could see pretty interesting growth there . But with Employer direct , I also see you would kind of technically be going head to head against your PBM partners who probably don't love that idea .

Speaker #11: So it's an interesting needle to try to thread with how both of those products are positioned in the market . So my question is just I'd love to hear how you guys think about navigating the positioning of those products and navigating your partnership relationships both up and downstream as you go to market with those products .

George Hill: My question is just, I'd love to hear how you guys think about navigating the positioning of those products and navigating your partnership relationships both up and downstream as you go to market with those products.

Speaker #2: Yeah . Good morning George , this is Wendy . Thank you for the question . You know , interestingly , I think the the two concepts actually overlap .

Wendy Barnes: Yeah. Good morning, George. This is Wendy. Thank you for the question. Interestingly, I think the two concepts actually overlap pretty nicely. Let me start with maybe Employer Direct. Of course, the thesis of which most of the employers that we're dialoguing with, well, all of them, they already have benefit offerings. They're looking at partnering with us as more of a complement to their insurance. Let's not forget that the overwhelming majority of the early focus is on GLP-1s, the majority of which these employers have dropped coverage. In that instance, the PBMs are actually looking at us as a very nice partner in this instance, because the employer couldn't really afford to do it through the funded channel.

Speaker #2: Pretty , pretty nicely . , so let me start with maybe employer direct . Of course , the thesis of which , you know , most of the employers that were dialoguing , dialoguing with , well , all of them , I mean , they , they already have benefit offerings .

Speaker #2: So they're looking at partnering with us as more of a complement to their insurance . And , you know , let's not forget that the overwhelming majority of the early focus is on GLP one , the majority of which these employers have dropped coverage .

Speaker #2: So in that instance , the PBMs are actually looking at us as a very nice partner in this instance , because the employer couldn't really afford to do it through the funded channel .

Speaker #2: And so as such , the employer direct offering , when they're partnering with us , gives them access to our direct to consumer pricing in partnership with a potential additional buy down from the employer in a wellness type account , which is really good for all parties , not the least of which , of course , is the employee who otherwise would have been on their own , , to figure this out .

Wendy Barnes: As such, the Employer Direct offering, when they're partnering with us, gives them access to our direct-to-consumer pricing in partnership with a potential additional buydown from the employer in a wellness type account, which is really good for all parties, not the least of which, of course, is the employee, who otherwise would have been on their own to figure this out. Companion, to be clear, is not an insured product, but you're not wrong that when you think about 200+ free generics, plus hundreds more at 10 or less, in addition to all of the adjunctive offerings, be it telehealth, vision, dental, so on and so forth, that is a fantastic complement to a broader offering and also an excellent way for an employer to complement their benefit offering to include perhaps employees that otherwise weren't going to qualify for benefit at all.

Speaker #2: Companion . To be clear , is not an insured product , but you're not wrong that when you think about , you know , 200 plus free generics plus hundreds more at ten or less , in addition to all of the adjunctive offerings , be it , you know , telehealth , vision , dental , , so on and so forth .

Speaker #2: That is a fantastic complement to , , a broader offering . And also an excellent way for an employer to complement their benefit offering to include perhaps employees that otherwise weren't going to qualify for benefit at all .

Speaker #2: And so we've had employers say , yeah , this makes a ton of sense for us to fold in as well . , and so far , I would say , you know , there hasn't been explicit pushback from PBMs .

Wendy Barnes: We've had employers say, "Yeah, this makes a ton of sense for us to fold in as well." 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. At the end of the day, benefit coverage continues to get skinnier. This just really fits nicely with really the holes that a lot of insured consumers are already experiencing. Maybe more broadly, if I may, look, I will say the regulatory advocacy that we've been pressing upon in DC to both have really all cash pricing count towards out-of-pocket maximums, and also pressing upon the ability to use HSA, FSA dollars, those membership expenses to be able to be reimbursed through those particular vehicles.

Speaker #2: Now transparently , am I out soliciting their input as to what they think about it ? No , not necessarily . But at the end of the day , benefit coverage continues to get skinnier .

Speaker #2: And so this just really fits nicely with really the holes that a lot of insured consumers are already experiencing . And maybe more broadly , if I may look , I will say the the regulatory advocacy that we've been pressing upon in DC to both have really all cash pricing count towards out of pocket maximums .

Speaker #2: , and also pressing upon the ability to use HSA , FSA dollars . , those membership , , expenses to be able to be reimbursed through those particular vehicles .

Speaker #2: These are all things that have gained a great deal of interest . And when you triangulate that with some of the larger PBM settlements where they've largely already said that they will support , , cash out of pocket expenses , counting towards deductibles .

Wendy Barnes: These are all things that have gained a great deal of interest. When you triangulate that with some of the larger PBM settlements where they've largely already said that they will support cash out-of-pocket expenses counting towards deductibles. Candidly, George, I think we're all racing towards the same solution here, and GoodRx is well-positioned to take advantage of it.

Speaker #2: Candidly , George , I think we're all racing towards the same solution here . And good RX is is well positioned to take advantage of it .

Speaker #11: I think we're generally thinking about it the same . Thank you

George Hill: I think we're generally thinking about it the same. Thank you.

Speaker #3: Thank you. One moment for our next question. Our next question comes from the line of Steven Valiquette with Mizuho Securities. Please go ahead.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Steven Valiquette with Mizuho Securities. Please go ahead.

Speaker #12: Yeah , great . Thanks . Good morning . , so I know that more of the company's , , overall growth may be tied more heavily to brand drugs these days , but it is worth noting , you know , for the overall US market that really calendar two Q 26 represented one of the strongest quarters ever for new first time generic drug launches .

Steven Valiquette: I know that more of the company's overall growth may be tied more heavily to brand drugs these days, but it is worth noting, for the overall US market that really calendar to Q2 2026 represented one of the strongest quarters ever for new first-time generic drug launches. We have seen some other companies in the pharma supply channel capture some immediate financial benefit from that. I guess my question is really, directionally, this should be quite positive for certain segments of your overall business as well. I'm wondering if you can just provide a little more color on your observations around this dynamic and whether the company could see maybe some greater leverage of this in the back half of 2026, or is this maybe more of an elongated benefit for the company just based on how it flows? Thanks.

Speaker #12: We have seen some other companies in the pharma supply channel capture some immediate financial benefit from that . So I guess my question is really , I mean , directionally , this should be quite positive for certain segments of your overall business as well .

Speaker #12: So I'm wondering if you can just provide a little more color on your observations around this dynamic and whether the company could see maybe some greater leverage of this in the back half of 26 ?

Speaker #12: Or is this maybe more of an elongated benefit for the company ? Just just based on how it flows ? Thanks .

Speaker #2: I appreciate the question and good morning . , I'll start . Justin may have additional financial commentary . I mean , look , unequivocally from just a percentage of fill standpoint , you're , you , you're spot on .

Wendy Barnes: Appreciate the question, and good morning. I'll start. Justin may have additional financial commentary. Look, unequivocally from a just a percentage of fills standpoint, you are spot on. Most of the fills in the US, 85% and 90% are in fact generics, and it's one of the reasons our companion product is hyper-fixated on $0 generics. Again, those typically are the first-line therapies that really any consumer pursues, particularly if they have cost-conscious limitations, which most of us do these days. Having said that other 10% are often the ones that hit the bottom line the hardest for consumers. As such, those programs and partnerships with pharma will continue to be immensely important, just knowing that those tend to be the ones that consumers have a far more difficult time getting. Usually it's due to cost at the counter.

Speaker #2: I mean , most of the fills in the US , you know , 85 , 90% are in fact generics . And it's one of the reasons our companion product is hyper fixated on $0 generics .

Speaker #2: , because again , those , those typically are the first line therapies that really any consumer pursues , particularly if they , you know , have , have cost conscious limitations , which most of us do these days , having said that , that other 10% are often the ones that , , you know , hit the bottom line the hardest for consumers .

Speaker #2: And so as such , those programs and partnerships with pharma will continue to be , you know , immensely important . Just knowing that those tend to be the ones that consumers have a far more difficult time getting .

Speaker #2: And usually it's due to cost at the counter . And , you know , by , by our estimates , over 1 billion brand scripts are , are abandoned at any given year , which is , you know , just a drain on the health care system .

Wendy Barnes: By our estimates, over 1 billion brand scripts are abandoned in any given year, which is just a drain on the healthcare system as prescribers writing those therapies to then be unable to get your patient ultimately onto therapy. More broadly, I think your question pointing toward generics supports our companion strategy and offering. To be clear, my goodness, yes, the overwhelming number of prescriptions supported by GoodRx are generics, will continue to be generics, and our ability to drive the most competitive generic pricing possible will continue to be of the utmost importance to our strategy. We absolutely don't intend to abandon that. Justin, anything you'd add?

Speaker #2: As prescribers, writing those therapies to then be unable to get your patient ultimately onto therapy. But more broadly, I think your question pointing toward generics supports our companion strategy.

Speaker #2: And offering . , and to be clear , I mean , my goodness , yes , the overwhelming number of prescriptions . , supported by Goodrx X our generics will continue to be generics .

Speaker #2: And our ability to drive the most competitive generic pricing possible will continue to be of the utmost importance to our strategy . We absolutely don't intend to abandon that .

Speaker #2: Justin , anything you'd add ?

Speaker #1: No , I think that that's right . Wendy . Thank you

Justin Fengler: Nope. I think that that's right, Wendy. Thank you.

Speaker #12: All right . Great . Thanks

Steven Valiquette: All right. Great. Thanks.

Speaker #3: Thank you . I'm showing no further questions at this time . Thank you for your participation in today's conference . This does conclude the program .

Operator: Thank you. I'm showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Q2 2026 GoodRx Holdings Inc Earnings Call

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