OptimizeRx Reports 11% Revenue Growth to $21.9 Million in Q1 2025

OptimizeRx Corporation reported its financial results for the first quarter of 2025, revealing a net revenue of $21.9 million, an increase of 11% from $19.7 million in the same period last year. The growth in revenue was primarily driven by an increase in direct-to-consumer (DTC) and Digital Audience Activation Platform (DAAP) related sales. Despite the revenue increase, the company recorded a net loss of $2.2 million, a significant improvement compared to the net loss of $6.9 million reported in the first quarter of 2024. The loss per share for the quarter was $(0.12), compared to $(0.38) in the prior year.

The company's cost of revenues rose to $8.6 million, up from $7.5 million in the previous year, reflecting a slight increase in the cost of revenues as a percentage of total revenue, which rose to approximately 39% from 38%. Gross profit for the quarter was $13.3 million, resulting in a gross margin of 60.9%, down from 62.0% in the same quarter last year. Operating expenses decreased by 10% to $15.5 million, primarily due to lower stock-based compensation and general administrative expenses.

In terms of operational metrics, OptimizeRx reported a total of approximately 100 pharmaceutical companies as customers, with the top five customers accounting for 49% of total revenue. The company continues to focus on expanding its customer base and enhancing its service offerings, including the integration of innovative solutions such as its patented Micro-Neighborhood Targeting and AI-powered DAAP. The average revenue per top 20 pharmaceutical manufacturer increased to $2.96 million for the twelve months ended March 31, 2025, compared to $2.59 million for the same period in 2024.

As of March 31, 2025, OptimizeRx had total current assets of approximately $51.7 million and current liabilities of $18.4 million, resulting in a working capital of $33.3 million. The company’s cash and cash equivalents increased to $16.6 million from $13.4 million at the end of the previous fiscal year. The company also reported compliance with all financial covenants related to its $40 million term loan, which was secured to partially fund the acquisition of Medicx Health.

Looking ahead, OptimizeRx aims to continue its growth trajectory by enhancing its product offerings and expanding its market presence. The company is optimistic about its ability to generate sufficient cash from operations to meet its obligations and support future growth initiatives. However, it acknowledges potential risks, including economic uncertainties and customer concentration, which could impact its financial performance.