GoodRx pairs unusually strong cash conversion with declining revenue and a failed Rule of 40 test, while the engine's asymmetry gate reads negative and the technical setup is an overbought recovery attempt from a death cross.
Thesis pillars
- Excellent Cash Conversion Despite Decline→Stable
- Revenue Decline Growth Failure↑Improving
- Negative Asymmetry Gate Failure→Stable
- +1 more pillar — see the Why tab for full reasoning
GoodRx Holdings, Inc. (GDRX) Stock Analysis
Healthcare · Health Information Services
Sell if holding. Analyst target reached at $3.73 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: prescription transactions offering (68.0%).
GoodRx Holdings operates a consumer digital healthcare platform that aggregates prescription pricing from PBMs, pharmacies, and pharma manufacturers, giving U.S. consumers discounted prices via GoodRx codes alongside subscription and telehealth offerings. The company earns... Read more
Sell if holding. Analyst target reached at $3.73 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: prescription transactions offering (68.0%). Chart setup: No clear chart pattern; technical signals are mixed. Score 4.8/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news boost analyst 0.65, earnings proximity 79d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About GoodRx Holdings, Inc.
About GoodRx Holdings, Inc.
GoodRx Holdings' prescription transactions offering, which lets U.S. consumers use GoodRx codes to access PBM-negotiated pharmacy discounts, generated 68% of the company's revenue in 2025, down from 73% in each of the prior two years. The platform processes more than 420 billion pricing data points daily across pharmacy benefit managers, pharmacies, and pharma manufacturers, and in February 2026 GoodRx became an integration partner for pharma manufacturers on the federal TrumpRx.gov discount platform.
GoodRx earns transaction fees from PBMs and partner pharmacies each time a consumer redeems a GoodRx code, plus subscription fees from Gold and RxSmartSaver+ members and advertising and affordability-program fees from pharma manufacturers under the Pharma Direct offering. PBMs supply most of the underlying pricing data, though GoodRx has layered in direct contracts with select pharmacies since 2022 to reduce reliance on any single PBM relationship; the 10-K states no significant PBM has terminated a relationship with the company to date, and several PBM contracts continue to pay GoodRx for consumer activity even after termination. Consumers largely pay cash at the point of sale rather than through commercial or government insurance, a dynamic the company expects to intensify as the 2025 One Big Beautiful Bill Act tightens Medicaid eligibility and shifts more prescription cost burden onto individuals.
Show full overview
GoodRx sits at an inflection point created by federal drug-pricing policy rather than by its own product roadmap. The 10-K discloses that GoodRx became a launch-partner integration for TrumpRx.gov, a government-sponsored direct-to-consumer discount platform some major drug manufacturers joined in February 2026 alongside a renewed push for Most-Favored-Nation pricing, though the company states any effect on its results is unclear and could be significant. That policy shift compounds an existing structural dependence: 68% of 2025 revenue came from the prescription transactions offering, so any migration of consumers or manufacturers toward government-run discount channels could pressure the segment that funds the rest of the platform.
See also: Healthcare · Health Information Services
From GoodRx Holdings, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-08-16Recent Developments — GoodRx Holdings, Inc.
Latest news
- NEWS GoodRx Holdings Inc (GDRX) Financial Health: Profitability & Balance Sheet Analysis - TradingKey — TradingKey neutral
- NEWS Is GoodRx Holdings Inc (GDRX) Undervalued After Q2 Earnings? EPS - GuruFocus — GuruFocus positive
- NEWS GoodRx (NASDAQ:GDRX) Reports Upbeat Q2 CY2026, Stock Soars - FinancialContent — FinancialContent positive
- NEWS GoodRx (NASDAQ:GDRX) Reports Upbeat Q2 CY2026, Stock Soars - financialcontent.com — financialcontent.com positive
- NEWS GoodRx Holdings, Inc. Revenue Breakdown – NASDAQ:GDRX - TradingView — TradingView neutral
Generated 2026-08-16T18:42:21Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- HIGHProductprescription transactions offering68%10-K Item 1A: 'Revenue from our prescription transactions offering represented 68%, 73%, and 73% of our revenue for the years ended December 31, 2025, 2024, and 2023, respectively.'
Material Events(8-K, last 90d)
- 2026-04-24Item 5.02LOWOn April 23, 2026, the Board appointed Thomas Chan, VP Corporate Controller, as Chief Accounting Officer and principal accounting officer, effective immediately, with a base salary increase to $310,000.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Revenue shrinking — -1.3% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $3.73 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: prescription transactions offering (68.0%). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $3.47. Score 4.8/10, moderate confidence.
Take-profit target: $3.81 (-7.8% upside). Prior stop was $3.47. Stop-loss: $3.47.
Concentration risk — Product: prescription transactions offering (68.0%); Analyst target reached - limited upside remaining; Euphoria warning: extreme positivity (+0.89) + overbought RSI 70.
GoodRx Holdings, Inc. trades at a P/E of 62.2 (forward 10.4). TrendMatrix value score: 6.6/10. Verdict: Sell.
21 analysts cover GDRX with a consensus score of 3.6/5. Average price target: $4.
What does GoodRx Holdings, Inc. do?GoodRx Holdings operates a consumer digital healthcare platform that aggregates prescription pricing from PBMs,...
GoodRx Holdings operates a consumer digital healthcare platform that aggregates prescription pricing from PBMs, pharmacies, and pharma manufacturers, giving U.S. consumers discounted prices via GoodRx codes alongside subscription and telehealth offerings. The company earns transaction fees when consumers redeem GoodRx codes at the pharmacy counter -- prescription transactions represented 68% of 2025 revenue -- plus advertising fees from pharma manufacturers under its Pharma Direct offering.