GoodRx Holdings, Inc.GDRX
GoodRx Holdings, Inc. New Standards Disclosure
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncement
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")
2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU is intended to enhance the
transparency and decision usefulness of income tax disclosures. The amendments in this ASU address investor requests for
enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information.
This ASU applies to all public entities and is effective for fiscal years beginning after December 15, 2024, and for interim
periods for fiscal years beginning after December 15, 2025. Early adoption of this ASU is permitted. The disclosure
requirements can be applied either on a prospective or retrospective basis. We adopted this ASU effective for the year
ended December 31, 2025, on a retrospective basis which resulted in additional income tax disclosures that can be found
within "Note 11. Income Taxes."
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 July 2025, the FASB issued 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 will be effective for all
entities for annual reporting periods beginning after December 15, 2025, and for interim reporting periods within those
annual reporting periods. Early adoption of this ASU is permitted and should be applied prospectively. We plan to adopt the
standard from January 1, 2026, and we do not expect the adoption to have a material impact on our consolidated financial
statements.
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.
About New Standards Disclosures
New accounting standards disclosures describe recently adopted pronouncements and those not yet effective, along with management's assessment of their expected impact. This section provides an early warning system for upcoming changes to how a company reports its financial results, often years before the new rules take effect.
Key signals: when management describes a not-yet-adopted standard's impact as "material" or "still being evaluated," it signals potential significant changes to reported metrics upon adoption. Watch for standards that affect a company's core operations — for example, revenue recognition changes for software companies or lease accounting changes for retailers with large store footprints. The transition method chosen (full retrospective versus modified retrospective) affects comparability with prior periods. Companies that delay adoption to the latest permitted date may be struggling with implementation complexity. Compare the disclosed impact assessments against peers in the same industry to gauge whether management's expectations are reasonable.