OptimizeRx (OPRX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 11% year-over-year to $21.9 million, with strong momentum from Q4 and growth in DTC and DAAP sales.

• Net loss narrowed to $2.2 million ($0.12 per share) from $6.9 million ($0.38 per share) in Q1 2024, reflecting improved operating leverage and lower expenses.

• Adjusted EBITDA improved to $1.5 million from a $0.3 million loss in Q1 2024, marking a significant turnaround in a seasonally weak quarter.

• Cash, cash equivalents, and short-term investments rose to $16.6 million as of March 31, 2025, up from $13.4 million at year-end 2024.

• Operating expenses decreased 10% year-over-year, mainly due to reduced stock-based compensation and integration costs.

Financial highlights

• Q1 2025 revenue was $21.9 million, up 11% from $19.7 million in Q1 2024.

• Gross profit increased to $13.3 million (60.9% margin) from $12.2 million (62.0%) year-over-year.

• Net loss narrowed to $2.2 million, with non-GAAP net income of $1.5 million versus a $2 million loss last year.

• Adjusted EBITDA was $1.5 million, compared to a $0.3 million loss in Q1 2024.

• Operating cash flow was $3.9 million, with a quarter-end cash balance of $16.6 million, up from $13.4 million at year-end 2024.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $101–$106 million, with adjusted EBITDA expected between $13–$15 million.

• Over 80% of full-year revenue is already contracted, providing strong visibility and confidence in meeting guidance.

• Year-to-date contracted revenue up over 20% compared to the same period last year.

• Subscription-based revenue model gaining traction, with over 5% of projected annual revenue already converted.

• Management expects seasonality to continue, with Q1 typically the lowest revenue quarter.