GoodRx (GDRX) faces a material reset after issuing 2026 guidance that came in meaningfully below street expectations, reflecting continued weakness in its core prescriptions marketplace that more than offsets strength in Pharma Direct, Morgan Stanley said in a Friday note.

Management guided 2026 revenue to $750 million to $780 million and adjusted EBITDA above $230 million, both below street estimates. The outlook reflects a shift toward Pharma Direct as a key growth driver. It also incorporates heavier investment in Pharma Direct and subscription offerings, alongside ongoing headwinds in prescription transactions.

Morgan Stanley lowered its 2026 EBITDA estimate by nearly 20%. The investment firm said roughly half of the expected 2026 EBITDA step-down reflects the rollover of 2025 contributions, including impacts tied to Rite Aid and other partner programs that ended mid-year.

The remaining half stems from weaker core prescription economics and incremental investments in Pharma Direct and condition-specific subscriptions. Low visibility and disappointing growth keep the firm on the sidelines, according to the note.

Morgan Stanley lowered its price target to $3 from $4, with an equal-weight rating.

Shares of GoodRx were down more than 3% in recent trading.

Price: 1.93, Change: -0.07, Percent Change: -3.27