GDRXGoodRx Holdings, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (3.4×) and margins widening.
Operating profit is fully backed by cash.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GDRX?
GoodRx Holdings, Inc. earns 7.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.9 points below what the capital costs: growth destroys value
- Operating margin
- 9.5%
Operating margin · Health Information Services median 2.8% · 12 months to Q2 2026
- Cash conversion
- 3.40×
Cash conversion · 3.46× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −50% |
| FY2021 | 1.8% |
| FY2022 | 0.23% |
| FY2023 | −3.6% |
| FY2024 | 8.3% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q2 2026
- 91%
- Operating margin12 months to Q2 2026
- 9.5%
- Net margin12 months to Q2 2026
- 2.1%
- Free cash flow margin
- 25%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $785M
- Free cash flow, trailing twelve months
- $197M
- Net income, trailing twelve months
- $16M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Health Information Services
Ranks #5 of 20 by RyuScore