OptimizeRx — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $21.6 million, a 17% decrease from $26.1 million in Q3 2025.
• GAAP net income for Q3 2026 was $1.2 million ($0.06 per share), compared to $0.8 million ($0.04 per share) in Q3 2025.
• Non-GAAP net income for Q3 2026 was $3.8 million ($0.20 per diluted share), compared to $3.1 million ($0.16 per diluted share) in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $6.3 million, an increase from $5.1 million in Q3 2025.
• Operating cash flow for the nine months ended September 30, 2026, was $12.9 million.
• Cash and cash equivalents were $22.3 million as of September 30, 2026, down from $23.4 million as of December 31, 2025.
• Total assets were $162.1 million as of September 30, 2026, compared to $176.9 million as of December 31, 2025.
• Total liabilities were $28.2 million as of September 30, 2026, compared to $48.6 million as of December 31, 2025.
• Stockholders' equity was $133.9 million as of September 30, 2026, compared to $128.3 million as of December 31, 2025.
• Net revenue retention was 83% for the rolling twelve months ended September 30, 2026, compared to 121% in the prior year period.
• Average revenue per top 20 pharmaceutical manufacturer was $2,504 for the rolling twelve months ended September 30, 2026, compared to $3,087 in the prior year period.
• Revenue per average full-time employee was $706 for the rolling twelve months ended September 30, 2026, compared to $820 in the prior year period.

Guidance and Future Outlook:

• Fiscal year 2026 revenue guidance has been updated to $87 million to $93 million.
• Fiscal year 2026 adjusted EBITDA guidance remains unchanged at $21 million to $25 million.
• Management expects growth in contracted revenue for 2027, citing a strong start to the RFP season.
• The company anticipates renewed spending in the fourth quarter from a previously significant customer.
• Management notes indications of pent-up demand as customers execute against marketing budgets for the 2027 RFP season.

Business Segments and Product Lines:

• The company highlighted its Dynamic Audience Activation Platform (DAAP) and expanding AI-enabled audience intelligence capabilities.
• Partnerships with DeepIntent, The Trade Desk, and PulsePoint are broadening programmatic access to the company's proprietary network.
• The company continues to focus on strengthening commercial leadership and broadening product capabilities.
• The company utilizes Micro-Neighborhood Targeting (MNT) as part of its AI-driven tools.

Market and Competitive Landscape:

• The company identifies three fundamental competitive advantages: its scalable AI-enabled platform, proprietary healthcare data and solutions, and its deeply integrated EHR network.
• The company aims to increase network utilization, expand customer reach, and capture a greater share of pharmaceutical marketing budgets.
• The company serves life sciences companies helping them reach healthcare professionals (HCPs) and patients.

Risks and Challenges:

• In-year contracted revenue continues to track below prior-year levels, leading to the revenue guidance revision.
• Forward-looking statements involve risks including government regulation, seasonal trends, and dependence on a concentrated group of customers.
• Risks include changes in the timing, amount, or renewal of customer contracts and marketing budgets.
• Potential risks include the ability to successfully develop and achieve market acceptance of AI-enabled products, reliance on third-party partners, and cybersecurity incidents.
• The company faces risks related to its indebtedness and the ability to maintain contracts with electronic prescription platforms and EHR networks.

Management Commentary and Tone:

• CEO Stephen L. Silvestro stated that Q3 revenue and adjusted EBITDA exceeded consensus expectations.
• Management attributed the results to continued margin expansion, disciplined execution, and the resilience of the operating model.
• Adjusted EBITDA margins expanded over 900 basis points year-over-year, demonstrating the benefits of improved product mix and cost management.
• Management expressed encouragement regarding growth in contracted revenue for 2027 and believes the company is positioned for sustainable, profitable growth.

Other Key Points:

• The company repaid $9.3 million in debt principal since June 30, 2026.
• Current outstanding debt principal was reduced to $10.4 million as of the reporting date.
• The definition of "top 20 pharmaceutical manufacturers" was updated to be based on Fierce Pharma's 2025 revenue list, resulting in restated prior periods for comparative purposes.
• The company is unable to provide guidance for GAAP net income or the most directly comparable GAAP measure to adjusted EBITDA due to the uncertainty of certain components like compensation and acquisition expenses.
• The company hosted a conference call on November 11, 2026, and provided individual meeting invitations for portfolio managers and analysts.