OptimizeRx Corp SEC 10-Q Report
OptimizeRx Corp, a leading provider of digital health messaging solutions for the pharmaceutical industry, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant improvements in financial performance and outlines key business developments that underscore the company's strategic initiatives and market positioning.
Financial Highlights
Net Revenue: OptimizeRx reported net revenue of $21.928 million for the third quarter of 2025, marking an 11% increase from the same period in 2024. This growth was primarily driven by increased sales in direct-to-consumer (DTC) and digital advertising and audience platform (DAAP) related services.
Gross Profit: The company achieved a gross profit of $13.344 million, representing a gross margin of 60.9%. This is a slight decrease from the 62.0% gross margin reported in the prior year, attributed to changes in product and channel partner mix.
Loss from Operations: OptimizeRx reported a loss from operations of $(2.114) million, a significant improvement from the $(5.029) million loss recorded in the same period of 2024. This improvement reflects a reduction in operating expenses.
Net Loss: The net loss for the quarter was $(2.199) million, an improvement from the $(6.899) million net loss in the same period of 2024. The reduction in net loss was driven by increased revenue and decreased operating expenses.
Loss Per Share – Basic: The basic loss per share was $(0.12), an improvement from $(0.38) in the same period of 2024, reflecting the overall improvement in net loss.
Business Highlights
Revenue Segments: OptimizeRx has expanded its service offerings to include audience development, audience creation, and media execution across various messaging types and media distribution channels. The company employs a 'land and expand' strategy aimed at growing its existing customer base and generating more consistent revenues through enterprise-level engagements.
Customer Concentration: The company's revenue remains concentrated among the largest pharmaceutical companies, with approximately 100 pharmaceutical companies as customers. The top five customers accounted for approximately 49% of revenue for the year ended December 31, 2024.
Seasonality: The pharmaceutical brand marketing industry typically allocates the largest portion of its marketing budget to the fourth quarter. This results in lower activity levels and revenue in the first quarter, with gradual increases in subsequent quarters.
Impact of Macroeconomic Events: Economic uncertainty, including rising inflation and interest rates, as well as high levels of employee turnover in the pharmaceutical industry, could impact customer demand and the company's business operations.
Key Performance Indicators: The average revenue per top 20 pharmaceutical manufacturer increased, reflecting stronger DTC and DAAP related revenue streams. However, the percentage of total revenue attributable to the top 20 pharmaceutical manufacturers decreased, indicating growth in other customer segments.
Future Outlook: OptimizeRx aims to transition its DAAP customers to a more predictable subscription-based model for data services. This transition is expected to improve margins, increase visibility, and enhance the predictability of revenue streams over time.
SEC Filing: OptimizeRx Corp [ OPRX ] - 10-Q - May. 13, 2025