OptimizeRx Corporation

Good afternoon, everyone, and thank you for joining OptumRx's third quarter fiscal year 2025 earnings conference call. With us today is Chief Executive Officer Steve Silvestro. He is joined by Chief Financial and Strategic Officer Ed Stilmach, Chief Legal and Administrative Officer Marion Odense-Ford, and Chief Business Officer Andrew DaSilva. At the conclusion of today's call, I will provide some important cautions regarding forward-looking statements made by management during today's call. The company will also be discussing certain non-GAAP financial measures, which it believes are useful in evaluating the company's operating results. A reconciliation of such non-GAAP financial measures is included in the earnings released the company issued this afternoon, as well as in the investor relations section of the company's website. I would like to remind everyone that today's call is being recorded and will be made available for replay on audio recording of the conference call on the investor relations section of the company's website. Now I would like to turn the call over to OptimRx's CEO, Steve Silvestro. Mr. Silvestro, please go ahead.

Thank you, Operator, and good afternoon to everyone joining our third quarter 2025 earnings call. We had a strong third quarter with results ahead of both consensus estimates and our internal expectations. Our Q3 revenues increased 22% year-over-year to $26.1 million, and our adjusted EBITDA was $5.1 million, an improvement of over $2 million from the same period last year. Our contracted revenue remains well ahead of last year's pace, underscoring the success of our focus on operational excellence, our dedication to delighting customers and deepening relationships with trusted partners. Before we move on, I want to take a moment to thank the OptimizeRx team. We deeply appreciate their dedication and hard work as we navigate an increasingly complex and rapidly evolving digital pharma marketing landscape. The industry is in the midst of a major transformation and the company's products and services are positioned to fundamentally redefine how pharmaceutical companies, patients, and prescribers connect. Our mission-driven culture fuels this progress and enables us to attract, retain, and strengthen the relationships that make us a trusted and enduring technology partner. With that said, I'm happy to report we are increasing our guidance for the year and are looking for revenue to come in between $105 and $109 million this with adjusted EBITDA to be between 16 and 19 million. Moreover, while it is still very early, we are seeing favorable RFP trends for 2026. As a result, we are introducing initial fiscal year guidance 2026 with revenue expected to be between 118 and 124 million and adjusted EBITDA expected to be between 19 and 22 million. In addition, subsequent to the end of our third quarter, we paid down an additional $2 million of our term loan principal on top of the debt payment schedule. At this time, given the cash flow we are seeing, we intend to continue to pay down our debt at an accelerated rate and do not believe we will need to access the equity capital markets for the foreseeable future. As evidenced by our strong results, we are firmly hitting our stride. Disciplined cost management and targeted cross-selling strategies grounded in enabling customers to optimize budget allocation and maximize script lift are driving sustained momentum into Q4 2025 and beyond. Our strong third quarter performance makes it clear that our goal of becoming a sustained rule of 40 company is within our sights. Perhaps most notably, average revenue for our five largest customers over the last 12 months continues to grow and now stands at over $11 million. We believe OptimizeRx is uniquely positioned to drive meaningful long-term growth and sustainable shareholder value. With one of the nation's largest point-of-care networks, we provide pharmaceutical manufacturers the ability to reach healthcare providers directly at the moments that matter most. Building on this foundation, we've developed a purpose-built omnichannel technology platform that integrates advanced patient-finding tools like DAP and micro-neighborhood targeting. These capabilities are redefining how pharmaceutical companies, physicians, and patients connect, communicate, and act. helping to improve patient outcomes while transforming engagement across the healthcare ecosystem. Our reach across both the point-of-care and direct-to-consumer channels provides a durable and defensible competitive advantage. OptimizerX is the only player with the scale, technology, and data integration to engage providers and patients seamlessly, enabling us to deliver the industry's most comprehensive commercialization platform. This allows us to support customers across the full product lifecycle, deepen client relationships, and capture greater share of long-term value. As we've discussed on previous calls, a key focus moving forward is to further showcase our reach, scalability, and our role as a trusted strategic partner, helping pharma manufacturers address some of their most pressing commercialization challenges. These include enhancing brand visibility, reducing script abandonment, improving interoperability, and supporting the growing shift toward complex specialty medications. I believe our success in helping our customers address these challenges is best evidenced by our strong ability to build on the relationships and increase our engagements with our largest customers. I'm confident that continued execution in these areas, combined with our ability to deliver strong ROI and drive impact and script lift for our customers, will translate into meaningful long-term shareholder value. We believe our momentum positions us to capture greater market share and expand our participation in the pharma industry's multibillion-dollar digital ecosystem. Our customers remain deeply connected with our integrated HCP and DTC offerings, and our goal is to keep them engaged across the full patient care journey. And with that, I'd like to turn the call over to our CFSO, Ed Stelmack, who will walk us through our financial results. Ed?

Thanks, Steve, and good afternoon, everyone. The press release was issued with the financial results of our third quarter ended September 30th, 2025. A copy is available for viewing and may be downloaded from the investor relations section of our website. And additional information can be obtained through our forthcoming 10Q. Third quarter revenue was 26.1 million, an increase of 22% from 21.3 million during the same period in 2024. Gross margin for the quarter increased from 63.1% in the quarter ended September 30th, 2024 to 67.2% in the quarter ended September 30th, 2025. Year-on-year gross margin expansion is tied to a favorable product mix, economies of scale, as well as a favorable general partner mix. Our operating expenses for the quarter ended September 30th, 2025 decreased by $6.5 million year-over-year to $15.5 million, as this third quarter of last year was impacted by a $7.5 million impairment charge. Meanwhile, our cash APEX increased to $12.4 million from $10.8 million, largely due to higher bonus and commission payouts, which is directly tied to the company's strong year-to-day performance. As a result, we had a gap net income of 0.8 million or 4 cents per basic and fully diluted share for the three months ended September 30th, 2025, as compared to a gap net loss of 9.1 million or 50 cents per basic and fully diluted share for the same three month period in 2024. On a non-GAAP basis, our net income for the third quarter of 2025 was 3.9 million or 20 cents per fully diluted share outstanding as compared to a non-GAAP net income of 2.3 million or 12 cents per fully diluted share outstanding in the same year-ago period. Our adjusted EBITDA came in at 5.1 million for the third quarter of 2025 compared to $2.7 million during the third quarter of 2024. Operating cash flow was $11.6 million for the first nine months of 2025, and we ended the quarter with $19.5 million cash balance, as compared to $13.4 million on December 31, 2024. The remaining principal on our term loan debt financing at the end of the third quarter was $28.8 million. And subsequent to the quarter's end, we paid down an additional $2 million in principal, with our total principal paid down for the year standing at $7.5 million. At this time, we intend to pay down the principal on our term loan faster than originally expected as we look to continuously lower our cost of capital. With that said, We continue to believe that our healthy balance sheet will help us execute against our operational goals. Now let's turn to our KPIs for the third quarter of 2025. Average revenue per top 20 pharmaceutical manufacturers now stands at $3.1 million, as compared to $2.9 million for the third quarter of 2024. Net revenue retention rate remains strong at 120%. Meanwhile, revenue per FTE came in at $820,000, topping the $732,000 we posted in the third quarter of 2024. We're encouraged by the improvements of our KPIs as we continue to execute against their strategy of driving profitable growth as a leader in our space. Now with that, I'll turn the call back over to Steve. Steve?