Negative Points

• OptimizeRx Corp ( NASDAQ:OPRX ) experienced a significant 30% year-over-year decline in Q2 revenue, falling to $20.5 million from $29.2 million in the same period of 2025.

• The company's net revenue retention rate dipped to 90%, driven by a small number of large accounts optimizing their spend, and the average revenue per top 20 pharmaceutical manufacturer has declined.

• A major client that was previously discussed did not generate any revenue in Q2, and the company has no expectations for this client to return in the second half of the year.

• The company's financial performance was impacted by $1.7 million in severance expenses related to a previously announced reduction in force, and it reported a net loss of $0.7 million for the quarter.

• The broader health care marketing environment remains dynamic, with continued budget timing variability and cautious spending behavior from pharmaceutical manufacturers due to macroeconomic factors and Most Favored Nation (MFN) pricing dynamics.

• The company's Q2 adjusted EBITDA declined to $4.1 million from $5.8 million in the year-ago period, and its non-GAAP net income also decreased year-over-year.

Q & A Highlights

Q: What is the update on the larger client that previously disrupted revenue, and what expectations are baked into the second half of 2026? A: CEO Stephen Silvestro stated that no revenue from this client is currently baked into the back-half guidance. However, discussions are open and active, and the company is seeing progress that could positively impact the second half. He noted that the newly announced Chief Marketing Officer, who is coming from that client, will help bridge the gap and address the commercial missteps previously discussed.

Q: Can you provide more detail on the progress with the DeepIntent DSP partnership and the growth curve for this opportunity over the next 24 months? A: CEO Stephen Silvestro confirmed that the DeepIntent integration is now live, with bid flow beginning. While it is too early to quantify the uptick, the company views this as very meaningful. He highlighted that 60% of buys in this space now occur through programmatic channels, representing funds previously inaccessible to the company. This expands their near-term addressable market, and they are in talks with other DSPs, though nothing is ready to announce.

Q: How might the potential FDA/HHS changes to the "adequate provision" framework for pharma advertising impact marketing budgets and channel allocation? A: CEO Stephen Silvestro views these potential regulatory moves as favorable. Any limitations on DTC channels would likely push funds into HCP-focused marketing channels, which are the company's core strength. While they are not forecasting this outcome, they believe they are well-positioned to benefit disproportionately if the decision is made.

Q: Given the implied second-half adjusted EBITDA of $13 million to $17 million, what is the capital allocation strategy? Will it remain focused on debt reduction or shift to share buybacks? A: CFO Edward Stelmakh confirmed the primary strategy is to pay down debt, with outstanding principal now at $16.7 million. As a secondary measure, the company has a 10b5-1 plan in place to trigger buybacks under its $10 million approved stock repurchase program if the share price continues to decline.

Q: How much of the second-half revenue rebound implied in guidance is visible or contracted versus based on assumed seasonal patterns? A: CEO Stephen Silvestro stated that contracted revenue is trending more towards 2024 seasonality than 2025, which is why they are reiterating rather than raising guidance. They anticipate the back half will follow historical seasonal patterns, with Q4 expected to be significantly higher than Q3. The company will provide updates as they gain more visibility into contracted revenue.

Q: How are non-top 20 customers performing in contrast to the top 20, who have faced issues like MFN pricing? A: CEO Stephen Silvestro reported that the mid-tier and long-tail segment is growing at an accelerated rate and represents some of the company's fastest growers. A mid-tier account recently entered the top 10 list. This strategy is proving out, and while there is a gap to fill from the disrupted top account, the combination of a potential comeback and mid-tier growth positions the company well for 2027.

Q: Excluding the one challenging customer, what is the activity level within the top 20 accounts compared to the depth of the MFN disruption? A: CEO Stephen Silvestro noted that activity and strategic discussions have definitely increased. While there was significant consternation around MFN earlier in the year, manufacturers now understand the new normal and are re-engaging. The company is seeing positive buying signals for the back half, though it is not yet ready to predict a significant surge in Q4 buying.

Q: Is the macroeconomic overhang on top 20 spending, such as inflation and geopolitical uncertainty, still a factor? A: CEO Stephen Silvestro acknowledged that macro concerns remain a slight overhang, as pharma has been a major target of the administration. However, he noted that spending is starting to normalize as manufacturers increase efforts to drive patient capture for the back half of the year. He also mentioned navigating potential strategic events like mergers and LOE (loss of exclusivity) in the marketplace.

Q: Is the current operating expense run rate normalized for the third quarter, following the recent cost reduction actions? A: CFO Edward Stelmakh confirmed that the current cash OpEx run rate is a good baseline for Q3. The only potential variable would be items like bonus accruals, depending on performance versus budget, but generally, the company expects to remain in the current range.

Q: Is the improved margin profile sustainable, what drove the upside in Q2, and how will profitability change as the DSP market is tapped? A: CEO Stephen Silvestro stated the new profitability level is the new normal, not episodic, and is driven by a favorable channel mix. He does not expect profitability to drop as they enter the DSP ecosystem. Chief Business Officer Andy D'Silva added that the company internally manages to a high 60% gross margin, with recent quarters being favorable, and this is how they will manage the business going forward.

Q: Is the goal of becoming a sustainable Rule of 40 company still an objective, or will growth be prioritized over profitability? A: CFO Edward Stelmakh affirmed that Rule of 40 remains the objective. He noted that 2026 is an anomaly, and the company has proven it can be highly profitable even in a soft year. Once growth returns, which they are confident will happen in 2027, it will not take much to get back to Rule of 40.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .