Earnings Call Transcript - GDRX Q2 2025

Operator, Operator

Hello, and welcome to the GoodRx Second Quarter 2025 Conference Call and Webcast. I will now hand it over to Aubrey Reynolds. You may begin.

Aubrey Reynolds, Moderator

Welcome to GoodRx's earnings conference call for the second quarter 2025. Joining me today are Wendy Barnes, our Chief Executive Officer; and Chris McGinnis, our Chief Financial Officer. Before we begin, I'd like to remind everyone that this call will contain forward-looking statements. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding management's plans, strategies, goals and objectives, our market opportunity, our anticipated financial performance, underlying trends in our business and industry, including ongoing changes in the pharmacy ecosystem, our value proposition, our long-term growth prospects, our direct and hybrid contracting approach, collaborations and partnerships with third parties, including our consumer direct price points and our integrated savings program, our e-commerce strategy and our capital allocation priorities. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors. These factors, including those discussed in the Risk Factors section of our annual report on the Form 10-K for the year ended December 31, 2024, and our other filings with the Securities and Exchange Commission, could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements made on this call. Any such forward-looking statements represent management's estimates as of the date of this call, and we disclaim any obligation to update these statements even if subsequent events cause our views to change. In addition, we will be referencing certain non-GAAP metrics in today's remarks. We have reconciled each non-GAAP metric to the nearest GAAP metric in the company's earnings press release, which can be found on the overview page of our Investor Relations website at investors.goodrx.com. I'd also like to remind everyone that a replay of this call will become available there shortly as well. With that, I'll turn it over to Wendy.

Wendy Barnes, CEO

Thank you, Aubrey, and thanks to everyone joining us. Our business continues to deliver strong adjusted EBITDA margins, and our team is executing on a number of fronts that we believe will help deliver long-term growth opportunities. During the second quarter, we remained focused on the key initiatives designed to better position the company for sustainable long-term growth. To highlight a few. In pharma manufacturer solutions, we continue to strengthen key relationships with pharma manufacturers while also expanding our share of wallet across their market access, consumer marketing, and HCP budgets. Our monetization per brand has increased significantly year-over-year as we demonstrated our return on investment for brands and helped grow Pharma's direct patient engagement strategies for access and affordability. These efforts drove 32% year-over-year revenue growth during the quarter. We believe this offering will continue to perform at similar levels throughout the rest of 2025, especially bolstered by the recent trends of top pharma companies adopting direct-to-patient and consumer direct pricing models. In the prescription marketplace, we made strong progress to align with our retail partners. Since we last spoke, we have signed several retailer partnerships where our discounted pricing is presented to consumers on the pharmacy counter. Also, we launched e-commerce solutions with an additional retailer and are in contract discussions for several more. We look forward to announcing more details behind these partnerships in the coming weeks. We are pleased to have new partners for our integrated savings program, and we have expanded the program to service brand medications in addition to generics across multiple PBM partners. And finally, we announced during the quarter that we launched our condition subscription product for erectile dysfunction, which allows us to deepen our engagement with consumers directly while maximizing our return on existing capabilities. I will discuss these in greater detail in a few minutes. But I want to formally welcome Laura Jensen as our new Chief Commercial Officer and President of Pharma Solutions. In this role, she will lead the company's pharma manufacturer solutions offering as well as oversee strategic initiatives aimed at growing and enhancing partnerships across the pharmaceutical industry. Our former Chief Commercial Officer, Dorothy Gemmell, is retiring after 35 years in healthcare leadership positions but will continue for a transitional period of time to ensure a seamless shift of responsibilities, key relationships, and pipeline opportunities. Prior to joining GoodRx, Laura led growth strategy for both Amazon Pharmacy and PillPack, spearheading innovative partnerships with pharma manufacturers and prescribers to improve how patients access and manage their medications. She has established relationships with executive level leaders in pharma and brings a track record of creating integrated experiences that drive efficiency and improved patient outcomes. We believe that Laura is well-positioned to deepen our impact, accelerate growth in this critical area of the business, and expand solutions in an ever-changing landscape. With respect to the healthcare landscape, change has become a constant with positive and negative impacts on our business. We continue to believe that we are well-positioned to respond to such changes, deliver value across the pharmacy ecosystem, and grow our business over the long term. Negative developments impacting our business in the short term include the Rite Aid bankruptcy and the decline in volume of one of our integrated savings programs with a PBM partner. With respect to Rite Aid, during our last earnings call, we did not have line of sight into the bankruptcy process, the plan for store closures or other pertinent details regarding the transition of patient files. Therefore, we explicitly excluded any impact from our earnings guidance. Beginning in May, the process unfolded rapidly with several PBMs removing Rite Aid from their networks, causing immediate cessation in the associated claims volume. This was followed by closures of over 800 stores between June and July. Given the speed with which this process occurred, we are working to recapture displaced consumers, both through direct communications where available and in partnership with acquiring pharmacy retailers. Recapture does take time, however. With respect to our integrated savings program, we saw a material decline in volume at one of our PBM partners. As we have previously discussed, the first generation of our ISP offering is focused on covered generics and is operated through PBMs who decide how to implement and manage the program. While this PBM partner's restructure of their ISP program has created volume headwinds for us, we believe that ISP remains important and valuable. ISP on generics has represented a tremendous entry point for GoodRx solutions and pricing. But as time progresses, we believe significant opportunity will come by way of brand drugs, understanding the share of spend these drugs represent for plan sponsors. In this way, ISP will continue to be a growth engine and complement to our pharma manufacturer solutions strategy. The core of our prescription marketplace remains strong, and we're proactively broadening our revenue mix and deepening pharmacy partnerships to reduce the risk of similar disruptions in the future. The foundations we are building with retailers continue to position us for long-term growth at a time when prescription savings are top of mind. At the same time, we've seen significant developments in the broader healthcare landscape. In July, Congress passed a budget bill that amongst many other provisions, cuts funding for Medicaid and individual exchange products. This legislation also tightens eligibility requirements and increases the frequency of Medicaid coverage determinations. According to the Congressional Budget Office, these changes could leave nearly 10 million people uninsured, a rise of nearly 40%. We understand the challenges facing those who will lose coverage and emphasize that the need for GoodRx is more critical than ever to ensure such individuals have access to affordable medication. Additionally, several health plans have reported higher-than-anticipated medical utilization during 2025. This suggests that the trend of rising costs, increasing premiums, and reduced coverage is likely to continue in 2026 and beyond. In fact, CMS recently announced that the 2026 Part D national average monthly bid amount is up 33% year-over-year. And finally, we remain engaged with government entities as they explore models to reduce brand drug pricing directly to consumers. Our existing large portfolio of discounted consumer direct pricing for brand drugs places us in a very strong position to be a solution of choice. As millions of Americans seek affordable alternatives, we believe GoodRx remains and will continue to become an increasingly valuable complement to insurance by helping them access the medications they need. Consistent with our commitment to increase our government affairs engagement, we are actively advocating for policies that expand access to affordable medication. Now let's dive into more detail on our business update. Our prescription marketplace continues to make progress in deepening our pharmacy relationships and delivering more economic and strategic value to pharmacies. We do this by focusing on two core strategies: pharmacy counter integrations and e-commerce. Pharmacy counter integrations expand GoodRx's presence to the physical pharmacy counter as an ally to pharmacists and technicians by helping patients with prescription access and affordability in real time. We expanded to multiple new pharmacy partners this quarter and expect more announcements on additional partners soon. Our e-commerce solution integrates into the pharmacy management system to enable consumers to pay online and pick up in-store, thereby making the front-end adjudication more efficient and saving time at the counter while focusing on reducing the number of abandoned scripts. We launched e-commerce solutions with an additional retailer during the quarter and are in contract discussions for several more. We are highly focused on digitally integrating into all aspects of the prescription workflow as a longer-term strategy to remove friction in the process. We are also excited about the launch of GoodRx Community Link, a new offering designed specifically for independent pharmacies that provides predictable pricing and favorable economics. We recognize independent pharmacies are a cornerstone of healthcare in many communities, and they need bespoke solutions to address complex reimbursement models and competitive pressures in the industry. Community Link offers independent pharmacies the ability to directly contract with GoodRx, which leverages a cost-plus model based on the National Average Drug Acquisition Cost, or NADAC, to provide direct control over pricing and favorable margins. It also offers the ability to opt into our integrated savings program, which may offer more favorable rates than traditional commercial insurance reimbursement and provides access to our point-of-sale discounts, which we will now refer to as consumer direct price points with pharma brands, making the medications more affordable for the consumer and economically beneficial for the pharmacy. The intent of this cost-plus program is to support favorable margins, and our internal data is demonstrating successful results for participating pharmacies. This type of direct pharmacy engagement represents how GoodRx goes to market with pharmacy durability front of mind. In the second quarter, we also launched our first subscription service for erectile dysfunction. We observed that consumers regularly turn to GoodRx for ways to save on ED medications, and now they have access to a single solution that provides comprehensive care. By bundling the clinician visit, prescription, and delivery into one low-cost offering, we're redefining what accessible care can look like and streamlining the prescription journey from beginning to end, making it easier for consumers to access ED treatments within a platform they already trust. We are pleased with the early results and intend to expand into additional conditions before the end of the year with weight loss management and hair loss upcoming. Furthermore, we also launched a new prescription savings subscription offering that is being sold at the pharmacy counter. Our first retail partner went live in the second quarter, and we expect other retailers to follow suit in tandem with other pharmacy counter initiatives discussed earlier. Our pharma manufacturer solutions delivered strong results during the second quarter with 32% year-over-year revenue growth. We are focused on expanding our integrated access and affordability solutions with pharma, partnering with even more brands and delivering meaningful return on investment for pharma partners. Our monetization per brand has increased significantly, which is driven by our independently validated ROI and by the scale of our platform and quality of our audience. This is particularly true as we support pharma brands in their direct-to-patient strategies, a key focus for many top manufacturers. One area we are specifically focused on is our consumer direct pricing model. As many pharma brands build consumer direct strategies, we are a natural partner of choice, given the size and quality of our audience and demonstrated consumer and HCP engagement. I'm particularly enthusiastic about the intersection of our pharma manufacturing solutions offering and our HCP efforts. Our HCP audience and engagement are significant. In the second quarter alone, we had over 750,000 HCPs active on our platform. We believe this scale gives us a unique opportunity to help facilitate pharma's access to prescribers. We now have the capabilities to deliver a customized engagement with our expansive HCP audience for targeted pharmaceutical offers, which are now incorporated into our 2026 selling plan. We see significant upside for our pharma offerings to grow and deliver meaningful value to both HCPs and pharma manufacturers due to the quality of our audience and targeting precision. I want to reiterate our focus on controllable and durable strategic initiatives that position GoodRx for long-term sustainable growth. We are executing against these including signing direct retail pharmacy counter partnerships, growing our brand pharma portfolio, evolving our ISP program and go-to-market strategy and looking into 2026, creating an expanded HCP product in addition to exploring and expanding the integration of GoodRx pricing into EHR and digital workflows. I am also convicted and confident in our executive leadership team's ability to execute on our strategic plan amidst a challenging healthcare environment. I will now turn the call over to Chris to discuss our second quarter results.

Christopher A. McGinnis, CFO

Thank you, Wendy, and good morning, everyone. For the second quarter, total revenue was $203.1 million, up 1% versus the prior year. This is in line with our expectations when excluding the impact of Rite Aid, which, as a reminder, the guidance provided in May excluded the impact from Rite Aid. The erosion of the ISP program that Wendy noted earlier and the impact from Rite Aid were the primary reasons prescription transaction revenue declined 3% versus the prior year and for the decline in monthly active consumers. We expect monthly active consumers to decline in the short-term. However, we are reassessing this metric as a measure of the health of our business. For example, when we convert a consumer from a traditional retail counter transaction to a consumer direct price point, we no longer include the transaction in our MAC count nor do we report any corresponding metric under the Pharma Manufacturing Solutions offering. In this example, the result is a reported decline in our monthly active consumer when the business is actually performing as intended. With respect to pharma manufacturer solutions, revenue for the quarter was $35 million, up 32% versus the prior year. This was strong performance resulting in revenue growth in the first half of the year of 25% compared to the first half of 2024. We are now projecting our pharma manufacturing solutions offering will grow 30% or higher in 2025. During the quarter, we took certain actions to reduce costs while aligning our resources to a more focused set of key strategic priorities. This realignment is intended to increase go-forward operating efficiencies, which will continue to contribute positively to our overall adjusted EBITDA and adjusted EBITDA margin. For the second quarter, adjusted EBITDA of $69.4 million rose 6% versus the prior year, which constitutes an adjusted EBITDA margin of 34.2%, which is an improvement of 160 basis points over the same period last year. Our balance sheet remains strong. We closed the quarter with $281.3 million of cash on hand. And during the quarter, we deployed approximately $46.4 million to repurchase 10.2 million shares of our stock at an average price of $4.53 per share. Given our stock price, we continue to believe that stock repurchases are accretive and a good method to return excess cash to shareholders. At the end of the second quarter, approximately $143 million of capacity remained under our $450 million share repurchase program. Turning now to our outlook for the remainder of the year. As Wendy noted, last quarter, we were unable to estimate the impact of Rite Aid and therefore, specifically excluded any impact from the previous guidance ranges. While uncertainty remains, we are now including the impact from Rite Aid as well as the erosion of one of our ISP programs into our updated guidance. In spite of the headwinds from these two exogenous events, which is expected to be approximately $35 million to $40 million of projected revenue loss in 2025, we expect that our full year revenue will increase from 2024 with Q3 revenue expected to be lower than Q4. Despite lowering our revenue projections, we expect that full year adjusted EBITDA will be in the range of $265 million and $275 million, which represents approximately 2% to 6% growth compared to 2024. Overall, we had a solid financial quarter. I'm highly encouraged by the results of pharma manufacturer solutions offering driving towards 30% or higher revenue growth in 2025. And while lowering revenue expectations due to external factors is disappointing, our core business remains strong and the fact that our adjusted EBITDA range continues to encompass a portion of our previous range is a testament to our leadership team and the focus on the right strategic initiatives and operating efficiencies. We are also optimistic that investment into these strategic initiatives will drive durable, profitable future growth while solving real pain points for the consumers and the pharmacy ecosystem. With that, I will turn the call back over to Wendy.

Wendy Barnes, CEO

Thank you, Chris. Over the course of my first six months, I want to reiterate my commitment to strengthening our leadership team, continuing to evaluate our core capabilities and engaging with key partners to solve real business problems and to develop new strategic initiatives to drive sustainable future growth. I'm confident that we are making meaningful progress on these commitments. We have the right leadership team in place to navigate the evolving prescription medication landscape while focusing on delivering operational efficiencies that will improve our long-term trajectory. We've also made meaningful progress on initiatives that create value for each of our core stakeholders by delivering aligned economic value with our pharmacies, building strong momentum with pharma manufacturers to enable medication access and affordability, investing in tools that improve HCP workflows and engagement, and delivering a better consumer experience while providing access to affordable medications. When I look at the progress we have made, along with the broader macroeconomic and healthcare environment, I can say with confidence that GoodRx is in a strong position to reduce friction and deliver meaningful value to consumers in the pharmacy ecosystem. I will now turn the call over to the operator for questions.

Operator, Operator

Our first question comes from the line of Lisa Gill with JPMorgan.

Lisa Christine Gill, Analyst

Can you maybe just spend an incremental minute around ISP? One, maybe talk about some of the new partnerships that you're talking about? And then secondly, you talked about potentially going to employers directly. How should we think about the timeline of the turnaround of ISP where it could become a positive contributor again to GoodRx?

Wendy Barnes, CEO

Lisa, thank you for the question. Look, you've heard us talk a little bit about ISP before. I think I've been, as has Chris, a little more tempered about the expectation around ISP while it's a critical product to how we reach commercial lives. There's no question that in partnering with PBMs, that is the fastest and most expeditious access to commercial lives. We also know that the ability for our GoodRx competitive cash price to always surface as a complement to the funded price point at the point of sale doesn't always come through. For that reason, we're a little more measured about the expectation that we should get out of that program. Having said that, you're spot on with your lead-in pointing to brands. That value add to the program in that this auto wrap, as we refer to it internally, of brand drugs, many of which, of course, we point to through our pharma manufacturer solutions growth, they do provide coverage at the point of sale for these same commercial lives for brands that are otherwise not covered on their plan. For that reason, the engagement from PBM partners around adding this as a complement to their already integrated offering has been quite high. You've heard us talk about it a couple of times, but we've now executed contractual wording to do that with several partners. As to the second part of your question on additional partners we have added de novo, that is true. We're pleased with that progress. I hope to have more definitive and combined public announcements as to who those are upcoming. But at present, we're just simply comfortable suggesting we've added more to our portfolio of partners for the time being. Chris, is there anything else you'd add?

Christopher A. McGinnis, CFO

No, I would like to emphasize that this program is very important. It still holds significant value in terms of its purpose. Financially, we see positive contributions not only from bringing in new partners and increasing our reach but also from our ongoing work with our PBM partners regarding current implementations. As Wendy mentioned, expanding into brands and direct-to-employer opportunities adds potential to this program, which remains crucial.

Lisa Christine Gill, Analyst

Chris, can you just remind us like what's in the numbers for '25? And how much of this would actually be more of a '26 type of opportunity?

Christopher A. McGinnis, CFO

I think we think about it more as a '26 opportunity. I think where we are now is we've taken the guidance down, as obviously in terms of the $35 million to $40 million, that reflects all of everything we know as it's currently running today, right? So roughly half of that is associated with ISP, give or take. I think adding additional partners and expanding the program would represent upside, but I think likely that's '26.

Michael Aaron Cherny, Analyst

Maybe if we can dive in a little bit on manufacturer solutions. I appreciate the color on the other challenges of the business. Manufacturer solutions obviously had a really strong quarter. Can you talk a little bit more about how you think of the combination of the offensive growth and targeted pushes you've made versus the health of the end market and how we should think about the bridge getting to that increased, I think you said, Chris, 30% plus revenue growth for the year?

Wendy Barnes, CEO

Thank you for the question. You're right. We're pretty pleased with how manufacturer solutions has performed. The numbers, of course, speak for themselves, but we feel highly convicted as to the 30-plus for the full year, which we've, of course, included in our explicit guidance in this call. I think what we've seen happen ties nicely to some of the commentary you've heard us mention previously, which is when we first engage with a manufacturer who perhaps hadn't worked with us before on a brand point-of-sale buydown. Typically, we will have one or a portfolio of drugs inside one particular disease state with a pharma partner. We're then turning around these ROI studies that, candidly, are just producing an outsized comparative result to what they can achieve through their own brand.com activity. This is a combination of either the brand point-of-sale buydown and/or a combination of embedding their affordability programs. So I think copay manufacturer assistance and the like. So it's across the board. Some involve all of those things, some involve only aspects. And when we return these ROI studies that, that support not only positive ROI, but candidly outsized new brand to Rx therapy growth, we're finding that we're expanding into other portfolios within those same manufacturers. When you zoom out a little bit and think about the regulatory environment that we're now sitting in, where this administration is pointing heavily towards direct-to-patient channels, we're well positioned to take advantage of that with these same manufacturers and potentially with others who may have been on the fence about doing a point-of-sale program to begin with. We've been actively engaged not just with the pharma partners, but also in D.C., which was part of our commitment to this group to be able to engage more heavily to influence what we think is the right answer ultimately for the consumer market. Chris, is there anything from a number standpoint you would add?

Christopher A. McGinnis, CFO

Yes, thank you for the question, Mike. I want to emphasize how excited we are about this segment of the business. It is undervalued and growing at over 30%. We have a clear view of reaching 30%, which is why I mentioned 30% or higher as a target. We have strong confidence in this. As we discussed last quarter, the revenue cycle can be a bit uneven as we onboard new sales, but our discussions with pharmaceutical companies are ongoing and increasingly focused on direct-to-patient engagement. We have an excellent platform to launch this. Therefore, we are very confident in achieving 30% growth and even more beyond that. In terms of capital deployment for the remainder of the year, we'll always reinvest in our business. As I mentioned, we took some actions in the second quarter to sort of right-size the business, but really, it was about realigning resources around a more focused set of strategic initiatives, some of which we can't actually talk about yet. So we'll continue to invest in those areas to enable future growth. Nothing outsized versus what you're already seeing. It's already fit into the run rate. But we'll continue to do that first and foremost. So really no change other than we'll have some on reserve. There is some potential for us to electively spend a little bit more in the back half on some marketing initiatives to complement some strategic initiatives that are ongoing as well. But not a lot has changed there. And then absent some other strategic use for the cash, we believe the shares are undervalued today. We'll continue to push cash back into the share repurchase program sort of some other better and higher use.

John Wilson Ransom, Analyst

Wendy, just kind of more of a structural question. As you guys have pivoted to cost-plus and certainly, I understand that's good for the retailers. Do you find that the comparative pricing versus what the PBM has already negotiated is less competitive than it was? And so maybe just the market for cash pay scripts has been compressed a little bit by that dynamic?

Wendy Barnes, CEO

Yes. No, it's an interesting question, and you're picking up on something that is objectively true. With cost-plus, costs at point of sale have, in fact, gone up. That's true. As a result, there have been a bolus of scripts that have pushed back on to the funded benefit as compared to cash. Also, candidly, we've contributed a bit to that in that we really needed to rebalance the pharmacy economic. By doing so, we paid the pharmacies a bit more such that they are motivated and actually want to receive these scripts and service these scripts, but still candidly at a competitive price for the consumer. But in some instances, the price has gone up. That's true. I think that's a fair observation. Again, it has been a purposeful campaign and build. I'm excited for the broader market to see and receive it. I would leave you with that give it a couple of weeks, and you'll see it in and around many places, and we would certainly welcome your feedback once you see it in market. Yes. No, no Bitcoin, no cryptocurrency to get drugs. No, not quite that catchy. But Chris, I think you were going to say that.

Christopher A. McGinnis, CFO

Yes, that's a good idea. I believe our spending will be somewhat higher in the second half compared to the first half. As Wendy mentioned, this will occur as a non-listening effort. I’ll let the marketing experts like Ryan Sullivan and our team handle the specifics. We will invest in our brand and in growth initiatives, so we have two distinct types of marketing expenditures planned for the latter half of the year. Some of the brand initiatives will still be in play. Additionally, as we approach an announcement regarding some strategic initiatives, we’ll allocate funds to support those growth efforts. This includes our subscription offerings and upcoming products related to weight loss, which we haven't actively promoted yet from a marketing standpoint. Once those are launched, you can expect some spending to back them up as well.

Wendy Barnes, CEO

Before we get off to the question, I would be remiss not to point out you heard me mention additional pharmacy counter programs and deepening those relationships. There is an aspect of that that involves purposeful marketing spend, again, where we believe the consumer is most engaged and often is already motivated, has a script and is ready to transact. For that reason, we had purposeful spend in the previous months, and we'll continue through the back half of the year to firm up those counter programs as well.

Charles Rhyee, Analyst

I'd like to go back to the guidance change here. You're talking about $35 million to $40 million of revenue. Is that about 4.5%, I think for the midpoint, Chris, you talked about last quarter? Rite Aid was under 5%, but here, you're talking about 4.5%, which includes both ISP and Rite Aid. If I recall, the estimate for ISP was only about $30 million of revenue contribution, for this year. What I'm trying to understand is the guidance adjustment, is this more Rite Aid? Or is this more ISP?

Christopher A. McGinnis, CFO

Yes. I would estimate that it's about evenly split in terms of the $35 million to $40 million we're discussing. There are some exceptions, as Rite Aid isn't an exact science. We lack primary data, but we believe the immediate impact will be more significant in the short term, and we expect to recover those prescriptions later in the year. There are assumptions regarding our recovery rates, and we haven't fully experienced the effects from Rite Aid yet. Additionally, there were around 400 store closures in June, along with other immediate halts to some programs. This rapid decline in store presence has created some challenges.

Wendy Barnes, CEO

Your question also was then have you fully accounted for both of these things in this year? The answer is yes. That's baked into the revised revenue and adjusted EBITDA guidance.

Daniel R. Grosslight, Analyst

There's obviously been a lot of disruption in national retail chains with store closings and the Rite Aid bankruptcy, which has been well covered on this call. But I'm curious where you're seeing volume flow through to with those store closings? Are you seeing more volume going towards independents? And in conjunction with that, you launched Community Link last quarter. I'm curious if you can provide an update on the uptake you're seeing within independents and Community Link?

Wendy Barnes, CEO

Yes. I appreciate it. Thank you for the acknowledgment of Community Link. For Rite Aid specifically, I think it's too early to know whether or not independents have been an outsized recipient of that volume. From our partnerships with larger chains, I will say thus far, some of the grocer retailers have done well with some of this movement. CVS bought a number of those files too. The timing is such that, again, June, July was really the bolus of those store closures, particularly if someone is on a 90-day fill, the short answer is it's a little too soon to know where we think those will go. On the other point of your question, however, regarding Community Link, we think it's the right answer. I'm pleased to support this program, knowing those pharmacies often are an island in the rural environments in which they exist, sometimes the only entry and access point to care. What we do know with those that have contracted directly with us thus far is that their profitability is up meaningfully. We're incredibly proud of that.

Operator, Operator

Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.