GoodRx (GDRX -1.67%) was founded in 2011 by Doug Hirsch and Trevor Bezdek. In 2010, Doug Hirsch was shocked by the high price of his own prescription, only to find that the same medication was significantly cheaper at a different pharmacy. The core problem that Hirsch and Bezdek recognized was the lack of price transparency in the prescription drug market, which is complicated by various middlemen like pharmacy benefit managers (PBMs).
GoodRx aims to make medications more affordable for consumers by providing a free app and website that compares prescription prices and offers coupons from partner pharmacies and PBMs. The platform is designed to help a wide range of Americans, including the uninsured and those with high deductibles, save money on their prescriptions. Management says that GoodRx has helped consumers save billions of dollars on prescriptions since its founding.
GoodRx expanded its services in 2019 by acquiring telemedicine company HeyDoctor in an effort to integrate virtual healthcare into its platform. GoodRx subsequently went public on September 23, 2020. The company's initial public offering (IPO) raised $1.1 billion in capital. In 2022, GoodRx completed its acquisition of VitaCare Prescription Services to expand its pharmacy services and manufacturer solutions business.
Over the last few years, GoodRx shares have struggled as a rapidly evolving and competitive market, a decline in active users, and other hurdles in the digital healthcare landscape have brought fresh headwinds for the business. Here's what you need to know about what GoodRx does, how it makes money, its current financial situation, and more.
Revenue
What does GoodRx do?
What does GoodRx do?
GoodRx currently offers a range of services, including prescription discount cards and coupons, telehealth through its GoodRx Care service, and the GoodRx Gold subscription for enhanced savings on medications and doctor visits. The company acts as a bridge between consumers and drug manufacturers, pharmacies, and healthcare providers with its diverse online marketplace. GoodRx also provides coupons for some over-the-counter products and pet medications.
GoodRx is actively moving away from its traditional reliance on PBMs and forging direct relationships with pharmacies. This is a major change to its business model, which historically aggregated prices from multiple PBMs to provide consumers with discount coupons.
The new system allows GoodRx to contract directly with specific pharmacies to create custom pricing agreements. This offers pharmacies more control over their pricing, potentially more favorable margins, and allows GoodRx to provide more transparency and customized discounts to consumers.
GoodRx users simply go to the GoodRx website or app and enter the name of the prescription they need, look for the lowest prices at nearby pharmacies (which can vary significantly even for the same drug), select a deal, and generate a free coupon.
The consumer then shows the coupon to their pharmacist at the time of purchase to get the discounted price. Consumers can’t combine GoodRx with insurance, so they must choose the option that gives the lower price at the pharmacy counter. That said, GoodRx discounts can range up to 80% off traditional prices in some cases.
Revenue sources
How does GoodRx make money?
GoodRx stock still makes most of its money through prescription transaction fees paid by pharmacies and PBMs. When a customer uses a GoodRx coupon, the pharmacy processes it through the PBM network and pays a fee to GoodRx as a commission on the sale.
GoodRx's fastest-growing revenue stream is its pharma manufacturer solutions, which includes advertising and integrations for pharmaceutical companies. For example, GoodRx collects revenue from pharmaceutical manufacturers who pay to feature their copay cards and patient assistance programs on the GoodRx platform. GoodRx also makes money by selling space on its website and mobile app to other advertisers.
Another revenue stream is its monthly subscription, GoodRx Gold. GoodRx also earns revenue from its telehealth services through its own provider and by taking fees for directing users to third-party telehealth providers and labs through its marketplace.
Financials
GoodRx’s financials
In 2024, GoodRx's revenue grew 6% from the prior year to $792.3 million, and the company turned a profit of $16.4 million, a reversal from a net loss in 2023. GoodRx reported that high demand for weight loss drugs like Zepbound and Wegovy contributed to the company's growth in 2024, with prescription fills increasing by more than 300% for Zepbound and over 100% for Wegovy.
Total revenue in the second quarter of 2025 increased by 1.2% year over year to $203.1 million, propelled by 32% growth in its pharma manufacturer solutions segment, and despite continued declines in prescription transaction revenue (-3%) and subscription revenue (-7%). The company reported net income of $12.8 million in Q2 2025, a 92% increase compared to the same period in 2024.
GoodRx's user metrics continue to show notable weaknesses. Monthly active consumers fell 14% year over year in Q2 2025, and the number of subscription plans also decreased. The company's cash position is improving, as it generated $49.6 million in operating cash flow in the quarter.
Recent developments
Recent developments
GoodRx has seen a material decline in its monthly active consumers and a shrinking subscription base over the last few years. Part of this is because the PBM and pharmacy sectors are consolidating, which could give these large players even more negotiating power than they already wield. For example, PBMs like Cigna Group's (CI 2.82%) Express Scripts, UnitedHealth Group’s (UNH -0.04%) OptumRx, and CVS’s (CVS 1.53%) Caremark have created their own discount programs that compete directly with GoodRx.
Since its launch in 2020, Amazon’s (AMZN -0.61%) Amazon Pharmacy has also emerged as a significant competitor. Even prescription discount cards like SingleCare and new market entrants like Mark Cuban’s Cost Plus Drug Company also compete for GoodRx's customers. Mass retail pharmacy closures and bankruptcies have also directly contributed to a decline in GoodRx's active consumers.
In 2023, the Federal Trade Commission fined GoodRx for sharing sensitive user health data with third parties like Alphabet’s (GOOGL 0.82%) (GOOG 0.86%) Google and Meta Platforms’ (META 0.82%) Facebook without consent. The company reached a class-action settlement over the allegations in 2025. In 2024 and 2025, multiple major PBMs were hit with antitrust lawsuits filed by independent pharmacies alleging that GoodRx conspired with PBMs to fix and suppress reimbursement rates for generic drugs. Litigation remains ongoing.
Related investing topics
While all of these factors have contributed to GoodRx’s struggles, there are some recent positive developments to note. In August 2025, GoodRx partnered with Novo Nordisk (NVO -3.0%) to offer Ozempic and Wegovy at a fixed price of $499 per month for eligible self-paying patients. In October 2025, GoodRx announced a new partnership with pharmaceutical company Amgen (AMGN 1.16%) to provide almost 60% savings on the cholesterol-lowering drug Repatha.
The company also announced an expanded partnership with Kroger (KR 0.37%) through a new program called RxSmartSaver to provide instant access to discounts on branded medications at Kroger's pharmacies. GoodRx is also reportedly in talks with the Trump administration about joining the planned direct-to-consumer prescription drug portal TrumpRx. GoodRx is showing signs of improving its growth story through increased profitability and strong performance in specific business areas, although overall revenue gains remain modest.
FAQ
How does GoodRx make money: FAQ
Who pays for GoodRx discounts?
GoodRx discounts are paid for through a combination of fees collected from pharmacies and PBMs, a share of the price that PBMs pay for the prescription, and revenue from its other services, like its subscriptions and advertising.
How can GoodRx sell drugs so cheaply?
GoodRx offers low prices by acting as an intermediary to reveal hidden PBM rates, which are often far lower than a pharmacy's inflated cash prices. GoodRx does not sell or dispense the drugs itself. Instead, it provides consumers with coupons for discounted prices at their local pharmacy.
Does GoodRx make a profit?
Yes, GoodRx is making profits right now, although its profitability has fluctuated significantly in recent years.
Is GoodRx publicly traded?
Yes, GoodRx is publicly traded and its stock is available on the Nasdaq Stock Exchange under the ticker GDRX. The company went public in September 2020.
