OptimizeRx Corp.

Second-quarter revenue was $20.5 million, down 30% from $29.2 million in the prior-year quarter. Net loss was $700 thousand, or $0.04 per basic and diluted share, versus net income of $1.5 million, or $0.08 per share, a year ago. Non-GAAP net income was $3.1 million, or $0.16 per diluted share, versus $3.7 million, or $0.19 per diluted share a year ago; adjusted EBITDA was $4.9 million versus $5.8 million last year. Operating cash flow was $8.1 million in the first half, cash ended at $24.1 million, and debt ended June at $19.7 million after $5.3 million of principal paid in the quarter and another $3 million paid after quarter-end. Management reaffirmed full-year 2026 revenue guidance of $95 million to $100 million and adjusted EBITDA guidance of $21 million to $25 million, and said Q4 is likely to represent 35% to 40% of full-year revenue. Gross margins are expected to normalize into the high 60% to low 70% range for full-year 2026.

Stephen L. Silvestro said the quarter showed disciplined execution, margin expansion, and resilience despite a difficult healthcare marketing backdrop. He emphasized that the business is evolving beyond point-of-care marketing toward what he called the "operating system for pharmaceutical marketers," with AI-enabled planning, authenticated audiences, and programmatic workflows as key growth drivers. He also highlighted three product launches or milestones: DeepIntent going live, the patent-pending NLAB, and CopayQ, framing them as evidence of a new phase of innovation.

Edward Stelmakh said revenue fell because of a few large customers using lower-margin managed services in 2025, one large customer that generated no revenue this quarter, and weaker demand tied to macro factors and MFN pricing dynamics. He said expenses declined $5.4 million year over year to $20.6 million, helped by lower cost of revenue, despite $1.7 million of severance expense, and said gross margins should normalize into the high 60% to low 70% range for full-year 2026. He also noted $8.1 million of operating cash flow in the first half, $24.1 million of cash on hand, $19.7 million of debt at quarter-end, and that the company paid down $5.3 million in principal during the quarter and another $3 million after quarter-end, with a stated intent to use free cash flow to accelerate debt repayment.

Analysts focused on the large customer that had previously disrupted revenue, the potential scale-up from DeepIntent and other DSP partnerships, the possible impact of FDA/HHS changes to DTC advertising disclosure rules, and how capital allocation might shift between debt paydown and buybacks. Management said it does not have any back-half revenue expectation baked in for the large customer yet, but discussions are open and some progress is starting to emerge. On DSPs, management said DeepIntent is live and bid flow has started, called the opportunity meaningful, and said 60% of buys in this space are now happening through programmatic channels. On capital allocation, Edward said the first priority remains debt paydown, though a 10b5-1 plan is in place to trigger buying under a $10 million approved buyback if the stock keeps falling.