管理層發言
Good afternoon, and welcome to the GoodRx Second Quarter 2026 Earnings Call. As a reminder, today's conference call is being recorded. I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations. Ms. Reynolds, you may begin.
Thank you, operator. Good morning, everyone, and welcome to GoodRx's earnings conference call for the second quarter 2026. Joining me today are Wendy Barnes, our Chief Executive Officer; and Justin Fengler, our newly appointed Chief Financial Officer. Before we begin, I'd like to remind everyone that this call will contain forward-looking statements. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding management's plans, strategies, goals and objectives, our market opportunity, our anticipated financial performance, underlying trends in our business and industry, including ongoing changes in the pharmacy ecosystem, our value proposition, our long-term growth prospects, our direct and hybrid contracting approach, collaborations and partnerships with third parties, including our point-of-sale cash programs and our integrated savings program, our e-commerce strategy and our capital allocation priorities. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors. These factors, including the factors discussed in the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2025, and our other filings with the Securities and Exchange Commission could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements made on this call. Any such forward-looking statements represent management's estimates as of the date of this call, and we disclaim any obligation to update these statements even if subsequent events cause our views to change. In addition, we will be referencing certain non-GAAP metrics in today's remarks. We have reconciled each non-GAAP metric to the nearest GAAP metric in the company's earnings press release, which can be found on the overview page of our Investor Relations website at investors.goodrx.com. I'd also like to remind everyone that a replay of this call will become available there shortly as well. With that, I'll turn it over to Wendy.
Thank you, Aubrey, and thank you to everyone for joining us today. The second quarter was a strong quarter for GoodRx. We exceeded our revenue expectations, maintained disciplined profitability and saw meaningful consumer engagement across the platform. That performance was driven by the two strategic priorities we outlined at the beginning of the year. First, Pharma Direct, which is scaling quickly due to growing manufacturer adoption of consumer direct pricing programs and sustained strength in GLP-1 access. Second, subscriptions, which are becoming a central part of how we serve and retain consumers as illustrated by the launch of our newest offering, GoodRx Companion in May. Based on our first full half performance and the trends we are seeing across the business, we are raising our full year revenue and adjusted EBITDA outlook, which we will discuss in more detail later in the call. We are confident this puts us on a path to return to year-over-year revenue growth this year earlier than previously anticipated and reinforces our belief that GoodRx is building a more durable growth profile. That durability is rooted in a combination of assets that work together, a trusted brand, a large high-intent audience and a nationwide pharmacy network. Each year, we see over 280 million site visits across our platform when cost and access are shaping prescription decisions. That gives manufacturers, retail pharmacy partners and plan sponsors a scaled channel to make pricing, access and savings programs visible and usable for consumers. And as more partners bring programs to GoodRx, we are able to deliver better prices, broader access and more useful products directly to consumers, giving them more reasons to return to our platform, increasing engagement and strengthening our revenue base over time. The market backdrop reinforces why this matters. Affordability pressures continue to intensify. Consumers are bearing more cost, facing less predictable coverage and increasingly need to know what a medication will cost before they reach the pharmacy counter. For example, in the ACA marketplace, nearly 3 million fewer people are enrolled following the expiration of enhanced subsidies and early 2027 rate filings point to another year of significant premium increases. Employers are under the same pressure. And as costs rise, many are covering less or shifting more of the expense to employees. Across the board, coverage is becoming harder to maintain and more expensive to use. That makes execution our priority. Our focus now is to continue scaling the programs gaining traction, make them even easier for consumers to use and turn the progress we demonstrated in the second quarter into sustained growth. Before I move into the business updates, I want to address yesterday's leadership announcement. Chris McGinnis has transitioned from his role as Chief Financial Officer. On behalf of our Board and management team, I want to thank Chris for his contributions to GoodRx, including his partnership during my first year as CEO and his leadership of the finance organization. Effective today, Justin Fengler, who currently serves as our Chief Strategy and Operations Officer, will take on the additional role of Chief Financial Officer. Justin has been with GoodRx for more than 10 years and has a deep understanding of the business, our financial model, our corporate development activities and how we operate. In his current role, he has helped connect our corporate strategy to the priorities, investments, M&A and execution plans that guide the company. That experience, combined with his background in investment banking and consulting, makes him well positioned to lead the finance organization. You'll hear directly from Justin later in the call as he reviews our quarterly financial performance and outlook. With that, I'll turn back to the quarter and walk through our business updates. Starting with Pharma Direct. The second quarter was a standout quarter with revenue growing 76% year-over-year and 18% quarter-over-quarter, supported by strength in consumer direct pricing and advertising solutions that extend well beyond any single therapeutic category. We now have more than 135 consumer direct pricing programs, including the addition of top brands like Jardiance, Nurtec, Otezla and Rapaflo. Reinforcing the role GoodRx is playing in helping manufacturers bring affordability programs directly to consumers at scale. GLP-1s remain one of the clearest examples of the value of that model. Demand remains strong, coverage remains limited or inconsistent, and the category is evolving rapidly as new therapies, formulations and price points come to market. During the quarter, we supported several important launches and expansions, including Ozempic pill, Wegovy HD, Foundayo and Zepbound KwikPen. These are in addition to our support of the Wegovy pill launch earlier this year as well as continued partnership with all other FDA-approved GLP-1 brands. GoodRx has become one of the leading consumer access channels for GLP-1 medications in the U.S., giving manufacturers a scaled way to turn pricing strategies into consumer access. We believe GoodRx's role in GLP-1 access will remain important as the category evolves. Demand for GLP-1 therapies is growing rapidly, particularly in the self-pay segment, and we expect that momentum to persist for the foreseeable future. Coverage models are also changing, such as the Medicare bridge program that launched on July 1 and runs through the end of 2027, offering $50 pricing on certain GLP-1 therapies to eligible Medicare beneficiaries. We are watching adoption closely, but Medicare-age consumers represent a modest share of GLP-1 users on our platform today, and this program includes specific authorization, eligibility and processing requirements that naturally limit its reach. Given the scale of demand and variation in coverage, we expect transparent self-pay access to maintain an important part of the market, creating ongoing opportunity across both Pharma Direct and GoodRx for weight loss. At the same time, the strength of Pharma Direct extends well beyond GLP-1. We continue to deepen our partnerships with a more focused group of large pharmaceutical manufacturers, prioritizing strategic relationships with companies that have leading high-value brands. As a result, our average deal size has increased year-over-year, reflecting both the expansion of existing partnerships and greater alignment around enterprise scale programs. That breadth reduces concentration in any one category and gives us multiple avenues to compound growth over time. This strategy reinforces our ability to deliver meaningful value to manufacturers while driving more efficient, durable growth across our Pharma Direct offering. Turning to subscriptions. The number of subscription plans increased 14% year-over-year. Subscriptions are becoming a central part of how we serve and retain consumers, which is why we are shifting more product and marketing investment towards this model. They allow us to deliver value beyond an individual prescription, build deeper relationships with consumers and help address a broader set of health care needs. That is increasingly important as consumers face higher out-of-pocket costs and less predictable coverage and look for solutions that can complement insurance. A key step in that work was the launch of GoodRx Companion in May, our new subscription offering designed to make everyday health care more affordable and predictable. Companion is available for $14.99 per month or $9.99 per month with an annual plan and offers 200 free generic medications, hundreds more for under $10, affordable online care visits and savings across dental, vision, labs and imaging. It is especially valuable for consumers managing chronic conditions, taking multiple medications or navigating coverage limitations where out-of-pocket costs can be difficult to anticipate. While we are not discontinuing Gold, Companion is now our primary subscription offering with a broader nationwide pharmacy network, richer benefits and consistently lower prices. Early adoption has been encouraging, and we believe Companion gives us a broader membership platform to meet more of consumers' everyday health care needs. In addition, we continue to see growth across our condition-specific subscription offerings, led by GoodRx for weight loss with ED and hair loss also contributing. Together with Companion, these offerings give us more ways to address health care needs where affordability, access and convenience are meaningful barriers. That is why we are reorienting more of the GoodRx experience around subscriptions, including making them the primary call to action across key services such as our homepage and price pages. We believe this more integrated membership model can deliver greater value to consumers, deepen engagement, improve retention and support more durable recurring revenue. Now turning to Rx Marketplace. Performance in the second quarter was in line with our expectations, reflecting the sequential moderation we discussed on our last call and our decision to direct more marketing and product investment toward our subscription offerings. As subscriptions grow, some transactions that would have historically flowed through Rx Marketplace will instead be served through our subscription offerings, which will moderate prescription transaction revenue and MACs over time, but we view it as a positive evolution of the business. Consumers receive more value, pharmacies benefit from increased prescription volume and stronger patient retention and GoodRx builds deeper consumer relationships while generating subscription revenue with higher lifetime value. Companion is a clear example of how we are providing value to both consumers and our retail pharmacy partners. It gives members access to meaningfully lower prices than they would receive through a traditional prescription discount while allowing them to continue filling at the pharmacies they already know and trust. It also delivers that value at no additional cost to retail partners. That makes Companion an important way to strengthen the consumer experience while reinforcing the value of our retail pharmacy network. We are also continuing to strengthen the network itself. Our direct contracting model gives us a better foundation to support retailer economics and improve the consumer experience at the counter. Our e-commerce capability is now live at nearly 6,000 pharmacies nationwide, allowing consumers to engage digitally before arriving at the pharmacy and helping retail partners reduce friction and better capture demand. We are also extending the reach of our network into new channels. In May, we brought our nationwide pharmacy access to TrumpRx as a launch partner for generics, giving consumers more choice in where they fill. Turning to Employer Direct. Building on the work we introduced last quarter, we are developing a significant and growing pipeline with partners expected to go live in the fourth quarter and into the first quarter. Our initial focus is GLP-1s, where we combine manufacturer pricing enabled by Pharma Direct with the consumer-facing care and engagement model we built through GoodRx for weight loss. We also plan to integrate GoodRx Companion, giving employers the ability to subsidize the membership cost for employees and expand access to affordable generic medications. Employer Direct creates the channel to bring those capabilities to plan sponsors at scale, helping lower cost for employers and out-of-pocket prices for employees, including through employer-funded wellness accounts that can be used toward eligible medication costs and related care. While still early, the employer response reinforces our view that GoodRx can help plan sponsors address prescription affordability in a more flexible and targeted way. We plan to have more to report in future quarters as these programs target serving larger employee populations. As we scale these growth initiatives, we are also focused on improving how quickly and efficiently we execute. AI is becoming a more intentional part of the GoodRx operating model with a focus on redesigning workflows, reducing manual work and helping teams execute faster. We are hiring talent and investing in capabilities to embed AI more deeply into how we build and scale the platform, which we believe can accelerate product delivery and support greater operating leverage over time. I will now turn the call over to Justin to discuss second quarter results.
Thank you, Wendy, and good morning, everyone. We delivered another strong quarter with revenue of $200.4 million and adjusted EBITDA of $63.7 million, representing an adjusted EBITDA margin of 31.8%. Our results were driven by continued momentum across our Pharma Direct and subscriptions offering, which are becoming a larger portion of overall revenue. Turning to our revenue performance by offering. Prescription transactions revenue was $106.4 million, in line with the outlook we previously provided. Monthly active consumers totaled 5 million, down 12% year-over-year and down sequentially, reflecting normal seasonality in our integrated savings program and a deliberate shift of product and marketing investment towards our new subscription offerings. Overall, these trends are unfolding as planned and consistent with the operating assumptions underlying our guidance. Pharma Direct revenue was $61.6 million, up 76% year-over-year as we continue to deepen manufacturer partnerships and expand our consumer direct pricing platform. Our growth reflected continued momentum in our GLP-1 access programs, complemented by strong execution across our non-GLP-1 business. Subscription revenue increased to $28.5 million, up 39% year-over-year, driven by the ongoing demand for our condition-specific offerings, particularly weight loss. The number of our subscription plans increased 14% year-over-year, also benefiting from the launch of GoodRx Companion in May. Turning now to our outlook for the rest of the year. Based on our strong first half performance and continued execution, we're raising our full year revenue guidance to a range of $790 million to $805 million. At the midpoint, we would return to year-over-year growth earlier than we had previously anticipated, demonstrating that our strategy to diversify our revenue base is delivering results ahead of plan. This improved outlook reflects the continued strength of the business, particularly within Pharma Direct, where we now expect revenue to grow more than 70% year-over-year. As we progress through the second half of the year, we expect the growth generated by Pharma Direct and our subscriptions offerings to more than offset declines in prescription transactions revenue. Based on the strength of our operating performance, coupled with our continued focus on disciplined execution, we are also raising our adjusted EBITDA guidance to a range of $240 million to $250 million, underscoring our ability to drive profitable growth while continuing to invest in our strategic priorities. And with that, I will turn the call back over to Wendy.
Thanks, Justin. The second quarter showed that our strategy is working. We delivered results ahead of expectations, raised our full year outlook and saw continued growth in Pharma Direct and subscriptions, the two growth engines we said would drive the business this year. From here, our focus is consistent execution, driving the programs already in market and in our pipeline towards sustained utilization while continuing to strengthen the experience that keeps consumers coming back. As we deliver against that plan, we are confident it will translate into a more durable growth profile and long-term value for consumers, partners and shareholders. With that, I'll turn the call over to the operator for questions.
分析師問答
Operator provided instructions to participants. Our first question comes from the line of Charles Rhyee with TD Cowen.
I wanted to talk about the overall performance of the business because we now have different subgroups, prescription transactions, Pharma Direct, and subscriptions, and each of these has different metrics. Ultimately, is it right to think that people are using GoodRx to get prescriptions filled? If that's the case, can you give us a sense of how many prescriptions you are filling across the different buckets? As you discuss a return to growth, maybe talk conceptually about the kinds of metrics you plan to provide to investors, because the current setup makes it difficult for people to understand where growth is coming from. We see revenue growth, but people are focused on metrics like MACs, which continue to decline year over year, and it is hard to gain confidence if that number does not start to flatten. Any prescription-type metric you could provide would be helpful.
Yes. It's a great comment, Charles, and thanks for the question. I know we've alluded in periods past to evaluating KPIs that we provide to the Street and things like that. I think you're exactly right in terms of the MAC number because that just pertains to prescription transaction revenue and isn't necessarily perfect, and it's also not necessarily an indicator of success in the business. As we kind of talked about on the call, we're actively transitioning more people into subscription offerings, which allow us to have a closer relationship with the customer, drive more value for the customer and have a higher lifetime value with those people. So if anybody goes to our website now, they'll see us certainly pushing that on the homepage, the price page, things of that nature. So to the point of what are the KPIs that we're pushing, we're still evaluating that. We're not going to come out this quarter and say, "Hey, we're going to move to this back or the other." Number of prescriptions, things of that nature are certainly things that we're looking at. And I think that at some point in the future, you would expect us to have something a bit different. It's probably too early today for us to talk about that. But as we think about what the goals are, it's long-term durable revenue and how we actually leverage the power of our brand to deliver value to consumers and ultimately have a durable revenue base that's growing. And as we're transitioning the business from a prescription transaction base more into pharma and subscriptions, we think that that's a good evolution of the business.
Yes. I would add...
If I could follow...
No, please go ahead. What's your follow-up question? No, no, please...
Yes. I was going to ask, so I understand that, right? I'm just curious: when you're working with pharma companies through Pharma Direct, they're clearly looking at the GoodRx platform and seeing a significant number of consumers who constantly come to the site to engage and check drug prices, since the platform was built around the prescription transaction model. What level of prescription transactions do you need to reach to achieve the critical mass that makes it relevant for pharma to want to work with you?
Charles, yes, when you think about prescription transaction revenue, it's actually only a subcomponent of the monetization because when you think about people coming to brand drug price pages, they're not actually a monthly active consumer necessarily, right? There are people that are looking for co-pay affordability or things like that, that would never actually make their way into that MAC number. What we look at here and what everything starts with at GoodRx is the power of the brand. How many people know about us? Is it a good story? Do we have a high NPS or people resonating? We have over 280 million site visits every year. I think that's certainly a leading indicator of strength in terms of the number of site visits that make their way into price pages and into subscriptions.
Yes. And Charles, I would just add to your pointed question regarding the types of things that pharma is looking for and partnering with us. Clearly, they're looking for a high-intent audience that is going to help drive volume to their specific brand programs. And we have delivered time and time again for them on those specific programs. So much so that when we benchmark utilizing third-party sources to do so as to how those programs would have performed either in their own brand.com or with other channels that they could choose to push cash pricing in, we perpetually outperform. These ROI comparisons sometimes can be 8x, 10x, 12x, 16x, 18x, given the high-intent audience we have. By high-intent more descriptively, we mean consumers that are showing up very frequently with the prescription already in hand, and they're simply looking for the right channel for affordability. And as we've pointed out in a couple of previous calls, a significant percentage of that audience also has insurance. So again, they've compared it to ostensibly what their out-of-pocket would have been having been covered and in many instances choosing the cash option. That is one of the reasons that the number of pharma programs now exceeds 135 direct-to-consumer programs. That's why this continues to proliferate and why we are going deeper in our pharma partnerships. So that's how we're thinking about certainly how we measure KPIs with that direct relationship. I don't know that those are things we necessarily contemplate as a metric in the broader sense for the company, but those certainly are metrics that are trending incredibly strong within the different components of the business. We hear you, we understand the ask for a broader business metric, and it's something we continue to kick around with our Board. It's certainly a bit of a challenge when you're in transition of your business model and certainly changing a metric in the middle of your fiscal year is never a good idea, but we're contemplating what that potentially could be going into 2027.
Our next question comes from the line of Daniel Grosslight with Citi.
Some really nice results in Pharma Direct. That's great to see. I'm wondering if you could kind of double-click a little bit on Pharma Direct and maybe quantify or provide some commentary around how important the GLP-1 drug class is to Pharma Direct, particularly the launch of orals. And as we think about the bridge program and perhaps some leveling off of the new launches, how we should be thinking about a sustainable growth rate in the Pharma Direct segment?
Thank you for the question. There's no doubt GLP-1s have been an important part of our Pharma Direct growth story, and they will continue to be. As we look forward through even 2030, 2031, the ongoing growth opportunity, both in Medicare eligible and non-Medicare eligible consumers is considerable. But it's important to point out that we have grown considerably in our non-GLP-1 drug partnerships as well. All of those deals in both of those categories are up substantially year-over-year. We think the ongoing partnership, pointing more back to the GLP-1 component, our ability to support telehealth, our subscription offering around weight loss will continue to be important to support that category, including the launch of additional molecules in the coming years. As it pertains to the orals, we've seen considerable growth in those particular formulations, and we're continuing to see that without specific commentary on some of the public comments from manufacturers as to what they're seeing in their broader books. I can simply tell you that within our consumer set, it continues to be healthy and growing.
No. Look, I think Wendy commented on the GLP-1s. I would say what we see on our side is not just strength in that segment. That component of Pharma Direct is very strong, but also on the non-GLP side as well, we see good growth there. So I think that we're excited for the segment. We increased the Pharma Direct guidance range this quarter. This year, it's going to be a really strong year. And certainly, on the GLP side, there's many more years of strength as this category continues to have new launches and grows. We're not getting into long-term guidance here, and we'll discuss next year when it arrives, but it's certainly an area of the business that is performing very strong.
Our next question comes from the line of Michael Cherny with Leerink Partners.
Maybe if I can just dive in on Pharma Direct and the growth and positioning of the business. Obviously, it's been a standout in the quarter and the year and the acceleration of guidance. As you think about the continued ramp with new manufacturer partners, anything about capacity that you have to worry about or manage for? And is there any balance or incremental investments needed to support this level of growth above and beyond what you would typically expect for a ramp on a new project?
Michael, thank you for the question. No, the short answer is that I don't anticipate a ton of incremental costs to continue to scale Pharma Direct. We've largely already invested in the appropriate sales force and supporting infrastructure. That said, Laura, our Chief Commercial Officer, has full permission to come to us as she sees fit managing that P&L as she thinks there are different supportive resources she needs. But there's nothing I'm anticipating even in the short or midterm that would require significant cost to support growth there. We're largely set up to continue to add additional consumer direct partnerships with pharma.
Yes. From the pharma business perspective, that's 31% of our revenue this quarter, so it's already becoming a scaled part of the offering. We have an established team here that's been with the business for many years. In terms of incremental investment, I think we'll assess that in the future, but I don't expect anything dramatic as we continue to expand the business. A lot of this comes back to the power of the brand and the platform — 280 million site visits — a lot of this is built in in terms of how we're monetizing and reaching consumers, which is an important part of the GoodRx brand.
Our next question comes from the line of Stan Berenshteyn with Wells Fargo Securities.
Maybe a follow-up on Pharma Direct. As we think about the balance of the year, how active is your pipeline there? And can you compare that to the same time last year? And maybe just a quick follow-up on gross margin. If we just think about the revenue mix persisting here, where do you expect gross margin will shake out going forward here?
Thanks for the question, Stan. Much of the bookings happen at the beginning of the year, even before the year began. So we have really good line of sight for the full year revenue picture for Pharma Direct. It's not something where we're chasing a whole bunch of stuff in the back half of the year. In terms of gross margin, we're not going to guide to a particular number there. You've seen cost of revenue come up on a year-over-year basis. Some of that's due to the cost to serve some of the subscription offerings as those become a bigger part of the revenue mix, but not something that we're guiding to and not something that we're going to see material changes throughout the rest of the year.
Our next question comes from the line of Jailendra Singh with Truist Securities.
With all the coverage changes we've been seeing year-to-date around Medicaid and ACA exchanges, have you seen any of that impact your business positively or negatively thus far? Or are you capturing any of these developments in your updated outlook for the second half? And any general thoughts you can share around these developments would be helpful.
Jailendra, thank you for the question. To be transparent on a macro level, we do believe that the continued drop in coverage, coupled with changes in ACA enrollment, whether it's Medicaid rosters or employers reducing coverage—either the number of drugs they're covering and/or increasing the out-of-pocket burden on their employees—are tailwinds pointing towards both our Companion product being a complement to insurance in addition to traditional coupon usage. As of this first week of August, I can't definitively say we've tracked some of those trends specifically tied to volume in our business. But on a macro level, those developments point to a large opportunity for cash. Coupled with our pipeline of employers interested in Employer Direct and Companion and the strong uptake since launching Companion, these things appear to be related, but I can't tell you that definitively with data yet.
Great. And one quick follow-up. With all the recent developments and interest around the peptides market, I was curious to get your thoughts on the opportunity there. Is that on your radar? Or will this market ever be of your interest? And what would you need to see before leaning more meaningfully into this market? Any thoughts would be helpful.
It's generated a fair bit of conversation among our leadership team and Board. Yes, we think it could be an opportunity. The FDA recently met on the topic; if those regulatory pathways receive the necessary approvals and checks, our ability to play would be strong. We would approach it from a position of strong clinical integrity and a well-vetted, credentialed compounding pharmacy partnership or partnerships. In keeping with how we've approached giving consumers access to affordable prescriptions, we would approach it similarly. So yes, it's of interest, and we're watching it closely as regulatory clarity emerges.
Our next question comes from the line of Craig Hettenbach with Morgan Stanley.
This is Jay on for Craig. On condition-specific offerings like ED, hair loss and weight loss, now that some cohorts are reaching the eight to twelve month mark, can you share how retention and churn are trending? And specifically within weight loss, any early read on GLP-1 persistence or churn relative to your other offerings, even though the data is still early?
Thanks, Jay. In terms of churn and retention amongst the offerings, it's not a KPI that we're publishing right now. The condition-specific offerings for weight loss, ED and hair loss have been in the market for a while. We're continuing to invest in product, marketing and reactivation. Companion launched in May, and early progress there has been strong and encouraging. From a revenue perspective, subscription revenue is up 39% year-over-year and 17% quarter-over-quarter, and the number of plans is up 14% year-over-year. The value of subscriptions is going up because revenue is outpacing the number of plans, which supports higher ARPU. We feel good about where the business is headed and are investing in these areas given their importance to our strategy.
Our next question comes from Brian Tanquilut with Jefferies.
Congrats on the quarter. Justin, as I think about the strong free cash flow performance during the quarter, and given the buyback activity in the past, I'm curious how you're thinking about capital allocation, especially given where the stock's valuation is today.
Good to talk to you. From a capital allocation standpoint, nothing has materially changed. We didn't do any buybacks this last quarter. Free cash flow was very good. The first focus for allocation is investing in the business—particularly subscriptions and pharma where we have momentum. Opportunistically, we'll consider M&A and other capital items, but we don't have active plans to discuss today. First and foremost is investing in long-term durable growth.
Our next question comes from the line of Allen Lutz with Bank of America.
For Wendy or Justin, I want to follow up on Charles' question. There's a lot of moving pieces with the different parts of the business. Would love to get expectations around prescription transaction revenue over the next couple of quarters, expectations for MACs into the end of the year, and expectations for subscription revenue and subscriber growth. Can the two offset each other? How are you thinking about this transition into the end of the year and into 2027?
Thanks, Allen. We are making active decisions to push more people into our subscription offerings, which we believe is good for long-term durable revenue and delivering value to consumers. As we do that, we expect continued moderation in MACs as more people move into subscriptions. Companion is a new offering launched in May, so as we develop acquisition funnels and retention tactics, we expect sequential improvement in the third and fourth quarters and into next year. For 2026, we're focused on investing to build a product that performs well in '27 and beyond rather than optimizing subscription revenue this year alone.
Our next question comes from the line of George Hill with Deutsche Bank.
I wanted to focus on the positioning of Companion and Employer Direct. Companion seems like it could fit in alternative health plan space and grow nicely. But Employer Direct could put you somewhat at odds with PBM partners. How are you thinking about positioning these products and navigating partnership relationships as you go to market?
George, interestingly, the two concepts overlap nicely. Employer Direct is viewed as a complement to employers' existing benefit offerings; most employers already have benefits. Our initial employer focus is GLP-1s, a category many employers have dropped coverage for. In many cases, PBMs view us as a partner because Employer Direct gives employers access to our direct-to-consumer pricing paired with potential employer buydowns via wellness accounts, which can be beneficial for employers and employees. Companion is not an insured product, but with over 200 free generics and hundreds more at $10 or less, plus telehealth, vision and dental savings, it complements broader benefit offerings and is an attractive option for employers to fold in for employees who might not otherwise qualify for benefits. So far, we haven't seen explicit pushback from PBMs. More broadly, our regulatory advocacy in Washington around having cash pricing count toward out-of-pocket maximums and the ability to use HSA/FSA dollars for membership expenses has gained interest. When you triangulate that with PBM settlements supporting cash out-of-pocket expenses counting toward deductibles, I think many parties are converging on similar solutions, and GoodRx is well positioned to benefit.
I think we're generally thinking about it the same.
Our next question comes from the line of Steven Valiquette with Mizuho Securities.
Although more of the company's overall growth is tied to brand drugs these days, calendar second quarter 2026 represented one of the strongest quarters ever for new first-time generic drug launches. Other companies in the pharma supply channel have captured immediate financial benefit from that. Directionally, this should be positive for certain segments of your overall business. Can you provide more color on this dynamic and whether the company could see some greater leverage to this in the back half of 2026, or is this more of an elongated benefit?
I appreciate the question. Most fills in the U.S.—85% to 90%—are generics, which supports our Companion strategy focusing on $0 generics. Generics are typically first-line therapies and are important for cost-conscious consumers. However, brand drugs often have a larger impact on consumers' out-of-pocket costs, and pharma partnerships remain important because those are the drugs that consumers have more difficulty accessing due to cost. By our estimates, over $1 billion of brand scripts are abandoned in any given year, which hurts care. So generics support Companion and remain core to our strategy, but we will continue to prioritize competitive generic pricing as well as pharma partnerships for branded drugs.
I agree with Wendy.
There are no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.