Roth Capital has increased its price target for OptimizeRx (OPRX, Financial) from $16 to $22, while maintaining a Buy rating on the stock. This adjustment follows the company's impressive first-quarter performance, where both revenues and adjusted EBITDA surpassed expectations, setting a positive tone for what is typically its slowest period of the year.
The company demonstrated a net dollar retention rate of 114%, which aligns with its projected revenue growth of 14% by 2025. Despite this growth trajectory, Roth Capital considers the updated revenue and EBITDA guidance for 2025 as still conservative, suggesting potential for further upward revision.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for OptimizeRx Corp (OPRX, Financial) is $11.04 with a high estimate of $16.00 and a low estimate of $6.00. The average target implies an upside of 19.95% from the current price of $9.20. More detailed estimate data can be found on the OptimizeRx Corp (OPRX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, OptimizeRx Corp's (OPRX, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OptimizeRx Corp (OPRX, Financial) in one year is $22.28, suggesting a upside of 142.17% from the current price of $9.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OptimizeRx Corp (OPRX) Summary page.
OPRX Key Business Developments
Release Date: May 12, 2025
- Revenue: $21.9 million, an increase of 11% year over year.
- Gross Margin: 60.9%, down from 62% in the previous year.
- Net Loss: $2.2 million or $0.12 per share, compared to a net loss of $6.9 million or $0.38 per share in the previous year.
- Non-GAAP Net Loss: $1.5 million or $0.08 per share, compared to $2 million or $0.11 per share in the previous year.
- Adjusted EBITDA: $1.5 million, compared to a $0.3 million loss in the previous year.
- Operating Cash Flow: $3.9 million for the first quarter.
- Cash Balance: $16.6 million at the end of the quarter.
- Debt Balance: $33.8 million, with $6.2 million of principal paid off in the first quarter.
- Committed Contracted Revenue: Exceeded $70 million, a greater-than-25% improvement year over year.
- Average Revenue per Top 20 Pharmaceutical Manufacturer: Approximately $3 million.
- Net Revenue Retention Rate: 114%.
- Revenue per FTE: $710,000, up from $641,000 in the previous year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OptimizeRx Corp (OPRX, Financial) reported Q1 2025 revenues of $21.9 million, an 11% increase year over year, surpassing both consensus estimates and internal expectations.
- The company improved its adjusted EBITDA to $1.5 million, a significant increase from a loss of $0.3 million in Q1 2024.
- Contracted revenue increased by more than 20% year over year, providing strong visibility and positioning for the remainder of the year.
- The company raised its full-year revenue guidance to between $101 million and $106 million, with adjusted EBITDA expected between $13 million and $15 million.
- Early momentum in transitioning to a subscription-based model, with over 5% of projected annual revenue already converted to subscription contracts for 2025.
Negative Points
- Gross margin decreased from 62% in Q1 2024 to 60.9% in Q1 2025, primarily due to product and channel partner mix.
- The company reported a net loss of $2.2 million for Q1 2025, although this was an improvement from a $6.9 million loss in Q1 2024.
- Despite improvements, the company still faces challenges in achieving multi-year subscription contracts due to the annual budgeting nature of the pharma industry.
- The transition to a subscription-based model may impact revenue recognition, spreading revenue over a 12-month period.
- The company has a debt balance of $33.8 million, although it has paid off $6.2 million of principal in Q1 2025.
