OptimizeRx (OPRX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $19.8 million, down 10% year-over-year, but exceeded consensus and net loss narrowed to $0.5 million from $2.2 million, reflecting improved cost structure and margin focus.

• Adjusted EBITDA rose to $3.3 million from $1.5 million year-over-year, with strong operational execution despite macro headwinds.

• The company is shifting toward higher-margin, enterprise-level and subscription-based solutions, leveraging proprietary AI-powered platforms.

• AI-enabled DAAP solution grew 60% year-over-year, with subscription revenue up 45%.

• Expansion into med tech and mid-tier/lower-tier life science clients is accelerating.

Financial highlights

• Q1 2026 revenue: $19.8 million, a 10% decrease from Q1 2025's $21.9 million.

• GAAP net loss narrowed to $0.5 million ($0.03/share) from $2.2 million ($0.12/share) year-over-year.

• Non-GAAP net income rose to $2.7 million ($0.14/share) from $1.5 million ($0.08/share) year-over-year.

• Adjusted EBITDA increased to $3.3 million from $1.5 million in Q1 2025.

• Cost of revenues decreased to $4.9 million (25% of revenue) from $8.6 million (39% of revenue) year-over-year.

Outlook and guidance

• 2026 revenue guidance updated to $95–$100 million, reflecting a more conservative outlook due to ongoing macro headwinds and client-specific disruptions.

• Adjusted EBITDA guidance maintained at $21–$25 million for 2026.

• Revenue expected to be weighted toward the second half of the year (approx. 40/60 split).

• Operating efficiency initiatives expected to save $3 million annually, including $1 million in 2026.

• Management expects continued seasonality with lower Q1 revenue and gradual increases in subsequent quarters.