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SEC filingOptimizeRx Corporation reported net revenue of $109.4 million for FY 2025, representing an 18.8% increase from $92.1 million in FY 2024. The company achieved profitability with net income of $5.1 million, a significant improvement from a net loss of $20.1 million in the prior year. Gross profit increased to $73.6 million (67.3% gross margin) from $59.4 million (64.5% margin) in 2024. Operating income was $11.7 million compared to an operating loss of $13.7 million in 2024. The company generated $18.7 million in operating cash flow and ended the year with $23.4 million in cash and cash equivalents. Revenue concentration remains high with the top five customers accounting for approximately 47% of total revenue. The company continues to focus on its 'Rule of 40' strategy targeting combined revenue growth and adjusted EBITDA margin of 40% or higher.
OptimizeRx Corporation reported strong financial results for FY 2025 with net revenue of $109.4 million, representing 18.8% growth from $92.1 million in FY 2024. The company achieved profitability with net income of $5.1 million, a significant turnaround from a net loss of $20.1 million in the prior year. Operating income improved to $11.7 million compared to an operating loss of $13.7 million in 2024. Gross profit increased to $73.6 million (67.3% gross margin) from $59.4 million (64.5% margin) in 2024. The company generated $18.7 million in operating cash flow, a substantial increase from $4.9 million in 2024. Basic earnings per share was $0.28 compared to a loss of $1.10 per share in the prior year.
The company operates in one reportable segment focused on connecting life sciences companies to patients and providers through digital healthcare technology solutions. Revenue is primarily generated from content delivery activities including financial, clinical, or brand messaging through a distribution network of e-prescribers and electronic health record technology providers. The company also generates revenue through data subscriptions and reselling complementary services. Revenue concentration remains significant with the top five customers accounting for approximately 47% of total revenue in 2025, and three customers individually representing over 10% of revenue. The company's revenue is recognized primarily over time (99.8% in 2025) as solutions are provided, with a small portion recognized at a point in time for program development and NPI data lists.
Gross margin improved to 67.3% in 2025 from 64.5% in 2024, driven by revenue growth outpacing cost increases. Cost of revenues was $35.8 million (32.7% of revenue) compared to $32.7 million (35.5% of revenue) in 2024. Operating expenses decreased to $61.9 million from $73.1 million in 2024, primarily due to lower stock-based compensation ($7.0 million vs. $11.5 million) and impairment charges ($0.4 million vs. $7.5 million). Operating margin was 10.7% in 2025 compared to negative 14.9% in 2024. Other expenses included interest expense of $5.3 million and interest income of $0.4 million. The effective tax rate was 26.2% resulting in income tax expense of $1.8 million.
The company generated $18.7 million in operating cash flow, a significant improvement from $4.9 million in 2024. Key adjustments included $4.3 million in depreciation and amortization, $7.0 million in stock-based compensation, and $1.1 million in amortization of debt issuance costs. Investing activities used $0.1 million primarily for capitalized software development and property purchases. Financing activities used $8.8 million including $8.0 million in debt repayment. Cash and cash equivalents increased to $23.4 million from $13.4 million. Total assets were $176.9 million including $70.9 million in goodwill and $40.8 million in intangible assets. Total liabilities were $48.6 million including $25.7 million in long-term debt. Stockholders' equity was $128.3 million with an accumulated deficit of $79.2 million.
The company's strategy focuses on achieving 'Rule of 40' status with combined annual revenue growth rate and adjusted EBITDA margin of 40% or higher. Management plans to grow recurring revenue components and convert DAAP and MNT customers to a subscription-based model for data offerings. The company faces risks including revenue concentration (top 5 customers represent ~47% of revenue), dependence on electronic prescribing platforms and electronic health record systems, seasonal trends in pharmaceutical marketing (higher Q4 activity), and competition from larger companies with greater resources. The Term Loan contains financial covenants including maximum leverage ratios and minimum liquidity of $5.0 million, with which the company was in compliance as of December 31, 2025.