OptimizeRx (OPRX) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 22% year-over-year to $26.1M, with gross profit up 30% to $17.5M, driven by growth in DTC and DAAP sales.

• Net income was $0.8M for Q3 2025, compared to a net loss of $9.1M in Q3 2024; non-GAAP net income was $3.9M, up from $2.3M.

• Operating expenses decreased 30% year-over-year in Q3 2025, mainly due to lower stock-based compensation and no goodwill impairment.

• Adjusted EBITDA for Q3 2025 increased to $5.1M from $2.7M a year ago.

• Strong operational and financial momentum continues, supported by a patient-focused strategy and improved revenue visibility.

Financial highlights

• Revenue for the nine months ended September 30, 2025, was $77.2M, up from $59.8M in the prior year period.

• Gross margin for Q3 2025 was approximately 67%, up from 63% in Q3 2024, driven by favorable product and channel mix.

• Cost of revenues as a percentage of revenue decreased to 33% in Q3 2025 from 37% in Q3 2024.

• Cash and cash equivalents rose to $19.5M at September 30, 2025, up from $13.4M at year-end 2024.

• Net cash provided by operating activities was $11.6M for the nine months ended September 30, 2025, up from $4.7M in the prior year period.

Outlook and guidance

• Fiscal year 2025 revenue guidance raised to $105–$109M, with adjusted EBITDA expected between $16–$19M.

• Initial 2026 guidance: revenue of $118–$124M and adjusted EBITDA of $19–$22M, based on contracted business and conservative assumptions.

• Guidance excludes potential upside from new partnerships such as Lamar Advertising.

• Revenue model enhancements and a shift to subscription-based contracts provide greater predictability and smoother revenue recognition.

• Gross margins are expected to stabilize in the upper 50s to low 60s percentage range, with potential upside as the business scales.