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Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with
accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the
Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures
normally included in our annual consolidated financial statements prepared in accordance with GAAP have been condensed
or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with our audited
consolidated financial statements for the year ended December 31, 2025 and the related notes, which are included in our
Annual Report on Form 10-K filed with the SEC on February 26, 2026 ("2025 10-K"). The December 31, 2025 condensed
consolidated balance sheet was derived from our audited consolidated financial statements as of that date. The condensed
consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring
items, necessary for the fair statement of our condensed consolidated financial statements. The operating results for the
three and six months ended June 30, 2026 are not necessarily indicative of the results expected for the full year ending
December 31, 2026.
There have been no material changes in significant accounting policies during the three and six months ended June 30,
2026 from those disclosed in “Note 2. Summary of Significant Accounting Policies” in the notes to our consolidated financial
statements included in our 2025 10-K.
Principles of Consolidation
The condensed consolidated financial statements include the accounts of GoodRx Holdings, Inc., its wholly owned
subsidiaries and variable interest entities for which we are the primary beneficiary. Intercompany balances and transactions
have been eliminated in consolidation. Results of businesses acquired are included in our condensed consolidated financial
statements from their respective dates of acquisition.
Segment Reporting
Operating segments are defined as components of an enterprise for which separate financial information is available
that is regularly provided to the chief operating decision maker ("CODM") in deciding how to allocate resources and in
assessing performance. Our CODM manages our business on the basis of one operating segment.
Our operating segment derives revenue in a manner as described in "Note 2. Summary of Significant Accounting
Policies" in the notes to our consolidated financial statements included in our 2025 10-K. Our CODM is our principal
executive officer, who is our Chief Executive Officer and President. Consolidated net income or loss is the measure of
segment profit or loss reviewed by our CODM in assessing segment performance and deciding how to allocate resources.
Our CODM uses consolidated net income or loss to monitor budget versus actual results, review historical company
performance trends, conduct benchmark analysis of our peers and competitors, and evaluate management’s compensation.
Significant expenses included in the reported measure of segment profit or loss regularly provided to our CODM are on a
consolidated basis as presented in the accompanying condensed consolidated statements of operations.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements,
including the accompanying notes. We base our estimates on historical factors; current circumstances; macroeconomic
events and conditions; and the experience and judgment of our management. We evaluate our estimates and assumptions
on an ongoing basis. Actual results can differ materially from these estimates, and such differences can affect the results of
operations reported in future periods.
Certain Risks and Concentrations
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash,
cash equivalents and accounts receivable.
We maintain cash deposits with multiple financial institutions in the United States which, at times, may exceed federally
insured limits. Cash may be withdrawn or redeemed on demand. We believe that the financial institutions that hold our cash
are financially sound and, accordingly, minimal credit risk exists with respect to these balances. However, market conditions
can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our
cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or
at all. We have not experienced any losses in such accounts.
We consider all short-term, highly liquid investments purchased with an original maturity of three months or less at the
date of purchase to be cash equivalents. Cash equivalents, consisting of U.S. treasury securities money market funds, of
$114.0 million and $164.0 million at June 30, 2026 and December 31, 2025, respectively, were classified as Level 1 of the
fair value hierarchy and valued using quoted market prices in active markets.
We extend credit to our customers based on an evaluation of their ability to pay amounts due under contractual
arrangements and generally do not obtain or require collateral. For each of the three and six months ended June 30, 2026,
no customer accounted for more than 10% of our revenue. For each of the three and six months ended June 30, 2025, one
customer accounted for 12% of our revenue. At June 30, 2026, one customer accounted for 11% of our accounts receivable
balance. At December 31, 2025, no customer accounted for more than 10% of our accounts receivable balance.
Prescription Reimbursement Assets and Prescription Reimbursement Liabilities
Consumer direct pricing is an affordability solution under our pharma direct offering that allows pharma manufacturers to
use our platform to set and fund a portion of the consumer cash price for their prescription drugs at the point of sale. We
generally require deposits from pharma manufacturers which are included as a component of prescription reimbursement
liabilities on our condensed consolidated balance sheets and shall not be offset against other amounts owed to us. We
generally invoice pharma manufacturers for the funded amounts a month in arrears and payment is generally due within
thirty days of invoicing. Funded amounts owed to us are presented as a component of prescription reimbursement assets on
our condensed consolidated balance sheets.
We remit reimbursements of the funded amounts to pharmacies, or intermediaries. Funded amounts owed to
pharmacies, or intermediaries, are presented as a component of prescription reimbursement liabilities on our condensed
consolidated balance sheets. Pharmacies, or intermediaries, may also require deposits from us. These deposits are
included as a component of prescription reimbursement assets on our condensed consolidated balance sheets and shall not
be offset against other amounts owed to them. At June 30, 2026 and December 31, 2025, a majority of our prescription
reimbursement assets were with two counterparties.
Equity Investments
We retain minority equity interests in privately-held companies without readily determinable fair values. Our ownership
interests are less than 20% of the voting stock of the investees and we do not have the ability to exercise significant
influence over the operating and financial policies of the investees. The equity investments are accounted for under the
measurement alternative in accordance with Accounting Standards Codification ("ASC") 321, Investments – Equity
Securities, which is cost minus impairment, if any, plus or minus changes resulting from observable price changes. We did
not recognize any changes resulting from observable price changes or impairment losses on our minority equity interest
investments during the three and six months ended June 30, 2026 and 2025. Equity investments included in other assets on
our condensed consolidated balance sheets were $15.0 million as of June 30, 2026 and December 31, 2025.
Impairment of Long-Lived Assets
We account for the impairment of long-lived assets in accordance with ASC 360, Property, Plant, and Equipment. In
accordance with ASC 360, long-lived assets to be held and used are reviewed for impairment when events or changes in
circumstances indicate that their carrying values may not be recoverable. We perform impairment testing at the asset group
level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other
assets and liabilities. An impairment loss is recognized when estimated undiscounted future cash flows expected to result
from the use of the asset and its eventual disposition are less than its carrying value. If an asset is determined to be
impaired, the impairment is measured by the amount that the carrying value of the asset exceeds its fair value.
During the three months ended March 31, 2025, we recognized an impairment loss of $4.4 million within general and
administrative expenses to reduce the carrying value of an asset group to its estimated fair value of $3.4 million. The
impairment charge was due to a significant deterioration in the sublease market and rental rates whereby the carrying value
of the asset group was not recoverable. We otherwise have not recognized any impairment losses of our long-lived assets
during the three and six months ended June 30, 2026 and 2025.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncement
In July 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")
2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and
Contract Assets for Private Companies and Certain Not-For-Profit Entities. This ASU amends ASC 326-20 in part to provide
a practical expedient election to assume that current conditions as of the balance sheet date do not change for the
remaining life of current accounts receivable and/or current contract assets arising from transactions accounted for under
Topic 606, Revenue from Contracts with Customers. This ASU is effective for all entities for annual reporting periods
beginning after December 15, 2025, and for interim reporting periods within those annual reporting periods. We adopted this
standard effective January 1, 2026, and the adoption did not have a material impact on our condensed consolidated
financial statements.
Recently Issued Accounting Pronouncements - Not Yet Adopted
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic
350-40), which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. The
amendments in this ASU, amongst other things, eliminate accounting considerations of software development stages and
instead require entities to capitalize internal-use software costs when management commits to funding the software project
and it is probable the project will be completed and will be used to perform the function intended. This ASU will be effective
for all entities for annual reporting periods beginning after December 15, 2027, and for interim reporting periods within those
annual reporting periods. Early adoption of this ASU is permitted and can be applied retrospectively, prospectively or on a
modified prospective basis. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial
statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which is intended to improve
the disclosures of expenses by providing more detailed information about the types of expenses in commonly presented
expense captions. This ASU requires entities to disclose the amounts of purchases of inventory, employee compensation,
depreciation and intangible asset amortization included in each relevant expense caption; as well as a qualitative description
of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. This ASU also
requires disclosure of the total amount of selling expense and, in annual reporting periods, an entity’s definition of selling
expenses. In January 2025, the FASB issued ASU 2025-01 which clarified the effective date of this ASU. This ASU applies
to all public entities and will be effective for fiscal years beginning after December 15, 2026, and for interim periods within
fiscal years beginning after December 15, 2027. Early adoption of this ASU is permitted. This ASU should be applied either
prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any
or all prior periods presented in the financial statements. We are currently evaluating the impact of the adoption of this ASU
on our consolidated financial statements disclosures.