OptimizeRx Cuts 2026 Revenue Outlook to $87–93 Million as Quarterly Sales Decline
Key Facts
OptimizeRx on November 11 cut its fiscal 2026 revenue outlook to a range of $87 million to $93 million, while keeping its adjusted earnings before interest, taxes, depreciation and amortization forecast at $21 million to $25 million. The company said contracted revenue for the year remained below year-earlier levels, prompting it to revise its annual outlook. The announcement coincided with third-quarter results that showed lower revenue, despite an increase in adjusted net income per share and an improvement in adjusted earnings margins. In after-hours trading on the day of the announcement, the stock fell 20.6% to $7.11 by 5:16 p.m. Eastern Time. The annual outlook cut thus coincided with a decline in quarterly sales, while adjusted earnings guidance remained stable.
The new revenue outlook was below the range the company announced in May, when it cut its estimates for the year to $95 million–$100 million and kept expected adjusted earnings at $21 million–$25 million. When it first issued its 2026 outlook in November 2025, the company targeted revenue of $118 million to $124 million and adjusted earnings of $19 million to $22 million. The revisions show that the revenue range was lowered in two stages during the year, while current adjusted earnings guidance remained at the same range set in May. In May, the company linked spending disruption to the effects of most-favored-nation pricing and other macroeconomic factors, and said customers were taking a more conservative approach to spending. In its November announcement, it attributed the cut directly to contracted revenue for the year continuing to run below year-earlier levels.
Third-quarter revenue was $21.6 million, down 17% from $26.1 million in the year-earlier period. In contrast, the company reported non-GAAP net income of $3.8 million, or $0.20 a diluted share, compared with $3.1 million and $0.16 a share a year earlier. The CEO said quarterly revenue and adjusted earnings before interest, taxes, depreciation and amortization exceeded consensus expectations. Adjusted earnings before interest, taxes, depreciation and amortization also rose about 23% year over year, and its margin expanded by more than 900 basis points. Management attributed the improvement in profitability to product mix and cost-management initiatives, separating the downward trend in sales from stronger margins and adjusted earnings.
Customer retention metrics showed additional pressure on contracted revenue: net revenue retention was 83% for the twelve months ended September 2026, compared with 121% for the comparable period ended September 2025. In the first nine months of 2026, the company generated $12.9 million in operating cash flow. Cash and cash equivalents totaled $22.3 million on September 30, compared with $23.4 million on December 31, 2025. The company said it repaid $9.3 million of principal since June 30, bringing outstanding principal to $10.4 million. These figures provide financial context for the revenue decline, alongside the company’s efforts to reduce debt and maintain higher adjusted profitability.
Management discussed demand indicators for coming periods, and the CEO said the company was encouraged by growth in contracted revenue for 2027. He pointed to expanding opportunities among key accounts and renewed fourth-quarter spending from a formerly significant customer. He also linked signs of pent-up demand to customers’ readiness to execute marketing budgets for the 2027 request-for-proposals season. The company had scheduled its third-quarter results call for November 11, 2026, at 4:30 p.m. Eastern Time. Contract growth and renewed spending remain among the factors management highlighted after cutting its current-year revenue outlook.