TelyRx Holdings (TELY) investor relations material

Business model and market positioning

• Offers over 450 everyday medications with same-day delivery, no insurance, and transparent pricing, targeting routine needs rather than rare or complex cases.

• Operates in 48 states with two pharmacies, reaching 97% of the U.S. population and significant capacity for growth before further capital investment.

• Focuses on the $98 billion cash-pay prescription market, growing at 40% annually, largely unaddressed by major competitors due to regulatory and business model barriers.

• Maintains a diverse product portfolio with no single drug or category dominating revenue, reducing risk from market trends.

• Competitors are structurally blocked from replicating the integrated, cash-pay, end-to-end model due to insurance dependencies and regulatory constraints.

Financial performance and growth

• Achieved $43 million in revenue in 2025, with a 55% gross profit margin, and $19.4 million in Q1 2026, up 180% year-over-year.

• 70% of revenue comes from repeat customers, with nearly half of new customers converting to repeat, and 60% of those making a second purchase within 30 days.

• Customer acquisition cost is $113, with an average order value of $104 for first-time buyers and $110 overall; payback period is about three months.

• Marketing spend returns $3 for every $1 invested, with ongoing improvements in digital and organic traffic strategies.

• Gross profit margin improved from 37% to 55% between 2024 and 2025, with adjusted EBITDA and free cash flow near breakeven despite continued investment in growth.

Operational strategy and scalability

• Two pharmacy locations near major air hubs enable rapid, cost-effective national distribution, with current operations well below maximum capacity.

• Internalized all marketing functions, investing in analysts and content creation to drive organic and paid traffic.

• Focused on improving customer acquisition cost and retention through website enhancements, UI/UX improvements, and a robust call center.

• Plans to further increase margins through better purchasing power as scale grows, with no anticipated margin pressure.

• No immediate plans to expand product categories or geographies, confident in scaling within the current formulary.