Digital health firm OptimizeRx posts profit, margin gains, and strong revenue growth, clearing the Rule of 40 in Q2.
Sectors & Industries
August 8, 2025
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In the high-growth tech and healthcare space, not all revenue surges are created equal. Investors have learned to look past sheer top-line expansion and focus on whether a company can grow efficiently without sacrificing profitability. One of the clearest benchmarks for that balance is the Rule of 40, a metric that adds a company’s revenue growth rate to its profit margin to gauge operational efficiency.
In its latest quarter, OptimizeRx Corp. (OPRX) didn’t just grow; it hit that balance squarely. The digital health platform swung to profit, expanded margins, and posted year-over-year revenue growth above 50%, producing a quarterly Rule of 40 score well above the threshold that many investors use to separate scalable businesses from cash-burning growth stories.
This performance pushed OptimizeRx’s quarterly Rule of 40 score — calculated as revenue growth rate plus adjusted EBITDA margin — to roughly 75 (55% + 19.7%), far exceeding the 40-point benchmark.
The healthcare technology company lifted its full-year 2025 guidance to:
At the midpoint, this outlook implies full-year revenue growth of about 15% with EBITDA margins of 14–16%, producing a Rule of 40 score in the high 20s to low 30s — still below the benchmark on an annualized basis, but management says they are “well on our way to becoming a Rule of 40 company.”
CEO Stephen Silvestro credited the company’s DAAP platform and data-driven patient engagement tools for driving adoption and operating leverage. “Our second-quarter results clearly highlight that we’re scaling efficiently,” he said.
The Rule of 40 is a quick efficiency test for high-growth companies. Add a company’s revenue growth rate (%) to its profit margin (%) — if the sum is 40 or higher, the business is considered to be growing at a healthy, sustainable pace.
The Rule of 40 is a way for investors to check if a SaaS company is growing fast enough while staying financially stable. It combines revenue growth rate and profit margin into a single percentage-based score.
The formula is:
Revenue Growth Rate (%) + Earnings Before Taxes, Depreciations, & Interest Margin (%) = Rule of 40 Score
This free Rule of 40 Stock Screener by LevelFields makes this process much easier. It’s a free screener that you can use to enter a stock symbol and get an instant Rule of 40 score.
The screener quickly checks whether a company meets this standard. It helps investors in balancing growth. They can also focus on stocks that fit their strategy.
The Rule of 40 is a simple way to check if public SaaS companies are growing fast enough while keeping their finances stable. It combines two key numbers: revenue growth rate and profit margin.
If the sum of these two percentages is 40% or higher, the company is considered to have a balanced trade-off between growth and profitability.
This measures how much a company’s revenue has increased over a set period, usually year-over-year (YoY).
High-growth business models, especially in the SaaS industry, often focus on expanding their customer base and increasing sales. A strong revenue growth rate means the company attracts more users or sells more services.
The EBITDA margin shows how much money the company keeps after covering costs. SaaS companies often have low-profit margins early on since they spend heavily on customer acquisition, product development, and operations.
Profitability is typically measured using one of the following:
If a company has a profit margin of 10%, it means that for every $1 in revenue, it keeps $0.10 as profit.
Identifying companies that hit or approach the Rule of 40 can uncover investment opportunities before the market fully prices in their operational efficiency.
AI-powered platforms like LevelFields automatically calculate the Rule of 40 for thousands of companies in real time, flagging when earnings, margin expansion, or guidance updates push them above the threshold. Users get historical context, peer comparisons, and alerts for similar events — making it easier to spot the next OptimizeRx-style breakout quarter.
OptimizeRx’s Q2 2025 results show it’s capable of hitting the Rule of 40 when growth accelerates and margins expand. If the company can sustain these dynamics through the year, it could move from “on the way” to a full-fledged Rule of 40 name — a milestone that efficiency-focused investors and LevelFields users will be watching closely.
Absolutely. In fact, it may be more relevant than ever. As investors move past “growth at all costs” and look for signs of durable business models, the Rule of 40 offers a quick and reliable lens to sort real contenders from pretenders.
It’s not a magic number—but it’s a powerful filter in the hands of investors who understand how growth and margin interplay.
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