Phreesia Reports Profit Growth Amid Strong Client Demand

Phreesia, Inc. (NYSE: PHR) achieved a notable financial turnaround in its fiscal third quarter, returning to profitability as revenue surged and operating efficiency improved. For the quarter ending on October 31, 2025, the healthcare technology company reported total revenue of $120.3 million, marking a 13 percent increase compared to the same period last year. The company’s net income reached $4.3 million, a significant recovery from a net loss of $14.4 million during the previous year’s quarter.

The improved financial performance was driven by steady growth in client numbers and an increase in revenue per customer. Phreesia reported an average of 4,520 healthcare services clients during the quarter, reflecting a 7 percent increase year over year. Revenue per client also saw a rise, climbing 6 percent to $26,622. Chief Executive Officer and Co-Founder Chaim Indig attributed this success to strong execution across various business areas, highlighting enhancements in revenue generation, profitability, and product momentum.

Strengthened Cash Flow and Strategic Acquisition

Cash flow figures also demonstrated robust growth. The company generated $15.5 million in net cash from operating activities, up from $5.8 million a year earlier. Free cash flow increased to $8.8 million. As of the end of the quarter, Phreesia reported $106.4 million in cash and cash equivalents, a rise of $22.2 million since the fiscal year began.

Following the quarter’s closure, Phreesia completed its acquisition of AccessOne, a healthcare receivables financing platform, for $160 million. This deal was financed through a combination of cash and a new $110 million short-term secured loan, which the company plans to refinance with longer-term financing. Phreesia also amended its existing credit facility to support this transaction.

Updated Financial Outlook

Management has raised its financial outlook for fiscal 2026, now projecting revenue between $479 million and $481 million and adjusted EBITDA of $99 million to $101 million. This updated forecast includes approximately $7.5 million in revenue from AccessOne through the end of the fiscal year. Client counts are expected to reach around 4,515.

Looking further ahead, Phreesia has introduced guidance for fiscal 2027, anticipating revenue between $545 million and $559 million, reflecting growth of 14 to 16 percent. The company forecasts adjusted EBITDA in the range of $125 million to $135 million. Phreesia expressed confidence in its ability to achieve continued operational efficiency, alongside moderate growth in client numbers and stronger revenue per client.

The company reiterated that its current cash position, along with operating cash flow and available borrowing capacity, will adequately support its near-term plans and obligations. This signals a strong foundation as Phreesia scales its platform and integrates its latest acquisition.