OptimizeRx Cuts Sales Forecast To $87 Million–$93 Million Despite A Major Customer's Return
Early contracting for 2027 is about 20% ahead, but management declined to set a growth floor for next year.
OptimizeRx, which helps pharmaceutical companies advertise to healthcare providers and patients, cut its annual sales forecast to $87 million–$93 million on Wednesday's earnings call. Chief Executive Officer Stephen Silvestro said additional customer purchases had fallen short of expectations, even with a major customer spending again.
A Returning Customer Can't Close The Gap
OptimizeRx's contracted revenue for 2026 remains approximately 20% below comparable prior-year levels. Management had counted on additional fourth-quarter purchases to help reach its earlier sales expectations.
Silvestro said the company would not "roll the dice" on spending it could not yet see. The contracting shortfall is largely unchanged; the anticipated pickup in additional purchases has failed to arrive.
A previously displaced top-five customer resumed spending in the fourth quarter after generating no revenue during the first three quarters of 2026. Silvestro put its 2025 contribution at more than $10 million, explaining much of the contracting decline.
The returning customer's purchases remain below historical levels and draw on money outside its budget. Its return therefore offers less help for this year's revenue than its earlier contribution might imply.
Chief Business Officer Andy D'Silva told an analyst at B. Riley that contracts cover a little over 90% of the revised annual forecast's midpoint. In recent years, coverage was closer to about 95%.
OptimizeRx sells audience targeting, campaign planning and advertising delivery to life sciences brands and agencies. Messages reach doctors and patients through electronic health records, prescribing software and consumer media. Its five biggest customers supplied approximately 47% of 2025 revenue.
Lower Sales, Higher Earnings
Third-quarter revenue fell 17% to $21.6 million from $26.1 million a year earlier. Chief Financial and Strategy Officer Edward Stelmakh attributed the decline primarily to reduced spending by a limited number of large customers, including users of lower-margin managed services, and pharmaceutical budget pressures and delays.
Adjusted earnings before interest, taxes, depreciation and amortization rose to $6.3 million from $5.1 million. The corresponding margin reached approximately 29%, compared with approximately 20% a year earlier.
OptimizeRx retained its $21 million–$25 million annual adjusted EBITDA forecast. Management said stronger gross margins and cost reductions completed in the first half support that outlook despite the sales cut.
Quarterly expenses fell $5.1 million to $18.9 million, including $0.7 million of severance costs. Net income rose to $1.2 million, or $0.06 per share, from $0.8 million, or $0.04 per share.
Operating cash flow totaled $12.9 million for the first nine months. After paying $6.3 million of loan principal during the third quarter and another $3 million afterward, OptimizeRx's debt balance stood at $10.4 million. Stelmakh said the company intends to increase share-buyback activity in the fourth quarter.
2027 Starts Ahead, Without A Growth Floor
Early contracting for 2027 is running about 20% ahead of the comparable period. An analyst at Lake Street pressed management on why next year's trend looked so different from this year's shortfall.
Silvestro called the explanation "very linear mathematically," pointing to the disrupted customer's contribution. Stelmakh cautioned that a few weeks of next year's contracting season and three quarters of this year's business represent different stages of visibility.
Asked by an analyst at Roth Capital to set a minimum growth expectation for 2027, Silvestro said, "We're not ready to put a floor out there."
Management is expanding automated advertising distribution through DeepIntent, The Trade Desk and PulsePoint, platforms pharmaceutical advertisers use to buy campaigns. Silvestro said those integrations remain early in commercialization, while dedicated sales resources are pursuing midsize and smaller customers.
Silvestro expects some additional purchases over the next six weeks. To count that money as revenue, OptimizeRx must sign agreements, deliver the campaigns and measure their results within that window.
Sources
- Document — sec.gov
- OptimizeRx Reports Third Quarter 2026 Financial Results and — globenewswire.com
