Phreesia (PHR) Q3 2025 Financial Results Summary
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Phreesia, Inc. (PHR) Q3 2026 Financial Results Summary
On December 8, 2025, Phreesia, Inc. (NYSE: PHR) announced its financial results for the fiscal third quarter ended October 31, 2025.
Fiscal Third Quarter Ended October 31, 2025 Highlights
- Total Revenue: $120.3 million, a 13% increase compared to the same quarter last year.
- Average Number of Healthcare Services Clients (AHSCs): 4,520, up 7% year-over-year.
- Total Revenue per AHSC: $26,622, reflecting a 6% growth from the same quarter of the previous year.
- Net Income: $4.3 million, in contrast to a net loss of $14.4 million for the same period last year.
- Adjusted EBITDA: $29.1 million, which is significantly higher than $9.8 million from the same quarter last year.
- Net Cash Provided by Operating Activities: $15.5 million, increased from $5.8 million year-over-year.
- Free Cash Flow: $8.8 million, compared to $1.6 million a year ago.
- Cash and Cash Equivalents: As of October 31, 2025, $106.4 million, up $22.2 million from January 31, 2025, and up $8.1 million since July 31, 2025.
Acquisition of AccessOne
- Phreesia completed the acquisition of AccessOne Parent Holdings, Inc. for approximately $160 million on November 12, 2025, enhancing its offerings in financing solutions for healthcare receivables.
- The acquisition was financed through cash and a new secured term loan of $110 million (Bridge Loan).
- The acquisition allows future revenue generation anticipated to contribute approximately $7.5 million for the remaining part of fiscal 2026.
Fiscal 2026 Outlook Revise
- Updated Revenue Outlook: Phreesia now expects total revenue for fiscal 2026 to be between $479 million and $481 million, revised from the previous range of $472 million to $482 million.
- Updated Adjusted EBITDA Outlook: Expected to range between $99 million and $101 million, raised from a prior expectation of $87 million to $92 million.
- Expectation for AHSCs: Adjusted to approximately 4,515 from previously projected 4,500.
Fiscal 2027 Introduction of Outlook
- Revenue Expectations for Fiscal 2027: Estimated to be between $545 million and $559 million, indicating a 14-16% increase compared to the fiscal 2026 outlook.
- Adjusted EBITDA for Fiscal 2027: Anticipated range of $125 million to $135 million, predicated on improved operational efficiency.
- Expected continued growth in AHSCs and total revenue per AHSC in the mid-single-digit and low-double-digit percentage range, respectively.
Additional Financial Measures
- Quarterly Dividend: No quarterly dividend was declared during this period.
- Share Repurchase: There was no mention of any share repurchase program in the announcement.
Summary of Key Financial Metrics
- Patient Payment Volume: $1.181 billion, compared to $1.081 billion last year, reflecting an increase that showcases strong client performance.
- Payment Facilitator Volume Percentage: Increased to 85%, up from 81% year-over-year.
Conclusion
Phreesia has demonstrated significant operational and financial improvements in Q3 2026, such as notable increases in revenue, a profitable quarter, and a solid outlook into fiscal 2027, even as they navigate strategic acquisitions to enhance their service offerings.
For more detailed information, visit the Phreesia investor relations website or read their official Stakeholder Letter authored by the CEO.
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| October 31, 2025 | October 31, 2024 | October 31, 2025 | October 31, 2024 | |
| Revenue: | ||||
| Subscription and related services | $55,480 | $49,363 | $163,537 | $144,717 |
| Payment processing fees | $27,422 | $24,704 | $85,739 | $77,064 |
| Network solutions | $37,431 | $32,733 | $104,248 | $88,351 |
| Total revenues | $120,333 | $106,800 | $353,524 | $310,132 |
| Expenses: | ||||
| Cost of revenue (excluding depreciation and amortization) | $18,338 | $17,854 | $52,373 | $49,720 |
| Payment processing expense | $19,689 | $16,683 | $61,360 | $51,648 |
| Sales and marketing | $24,148 | $30,071 | $75,587 | $92,266 |
| Research and development | $29,453 | $29,315 | $90,556 | $87,738 |
| General and administrative | $17,488 | $19,633 | $52,938 | $58,182 |
| Depreciation | $3,199 | $3,566 | $9,464 | $11,011 |
| Amortization | $4,279 | $3,521 | $12,301 | $10,052 |
| Total expenses | $116,594 | $120,643 | $354,579 | $360,617 |
| Operating income (loss) | $3,739 | -$13,843 | -$1,055 | -$50,485 |
| Other income (expense), net | $1,006 | -$144 | $1,680 | -$261 |
| Interest income, net | $380 | $26 | $758 | $311 |
| Total other income (expense), net | $1,386 | -$118 | $2,438 | $50 |
| Income (loss) before income tax expense | $5,125 | -$13,961 | $1,383 | -$50,435 |
| Income tax expense | -$854 | -$442 | -$372 | -$1,702 |
| Net income (loss) | $4,271 | -$14,403 | $1,011 | -$52,137 |
| Net income (loss) per share attributable to common stockholders: | ||||
| Basic | $0.07 | -$0.25 | $0.02 | -$0.91 |
| Diluted | $0.07 | -$0.25 | $0.02 | -$0.91 |
| Weighted-average common shares outstanding: | ||||
| Basic | 60,008,780 | 57,891,591 | 59,513,478 | 57,358,637 |
| Diluted | 61,559,849 | 57,891,591 | 61,491,761 | 57,358,637 |
| October 31, 2025 | January 31, 2025 | |
|---|---|---|
| Assets | ||
| Current: | ||
| Cash and cash equivalents | $106,371 | $84,220 |
| Settlement assets | $25,391 | $29,176 |
| Accounts receivable, net of allowance for doubtful accounts of $2,175 and $1,468 as of October 31, 2025 and January 31, 2025, respectively | $88,257 | $73,617 |
| Deferred contract acquisition costs | $427 | $401 |
| Prepaid expenses and other current assets | $20,460 | $15,871 |
| Total current assets | $240,906 | $203,285 |
| Property and equipment, net of accumulated depreciation and amortization of $93,842 and $84,505 as of October 31, 2025 and January 31, 2025, respectively | $21,111 | $23,651 |
| Capitalized internal-use software, net of accumulated amortization of $65,681 and $55,991 as of October 31, 2025 and January 31, 2025, respectively | $54,093 | $52,763 |
| Operating lease right-of-use assets | $820 | $1,477 |
| Deferred contract acquisition costs | $444 | $583 |
| Intangible assets, net of accumulated amortization of $11,018 and $8,407 as of October 31, 2025 and January 31, 2025, respectively | $25,532 | $28,143 |
| Goodwill | $75,845 | $75,845 |
| Deferred tax asset | $1,640 | $- |
| Other assets | $3,081 | $2,668 |
| Total Assets | $423,472 | $388,415 |
| Liabilities and Stockholders’ Equity | ||
| Current: | ||
| Settlement obligations | $25,391 | $29,176 |
| Current portion of finance lease liabilities and other debt | $8,043 | $8,043 |
| Current portion of operating lease liabilities | $746 | $964 |
| Accounts payable | $6,218 | $5,622 |
| Accrued expenses | $30,517 | $37,460 |
| Deferred revenue | $29,712 | $32,758 |
| Total current liabilities | $98,783 | $114,023 |
| Long-term finance lease liabilities and other debt | $3,353 | $8,150 |
| Operating lease liabilities, non-current | $132 | $646 |
| Long-term deferred revenue | $151 | $119 |
| Long-term deferred tax liabilities | $683 | $484 |
| Other long-term liabilities | $41 | $185 |
| Total Liabilities | $103,143 | $123,607 |
| Commitments and contingencies | ||
| Stockholders’ Equity: | ||
| Preferred stock, undesignated, $0.01 par value—20,000,000 shares authorized as of both October 31, 2025 and January 31, 2025; no shares issued or outstanding as of both October 31, 2025 and January 31, 2025 | $- | $- |
| Common stock, $0.01 par value—500,000,000 shares authorized as of both October 31, 2025 and January 31, 2025; 61,589,913 and 60,083,444 shares issued as of October 31, 2025 and January 31, 2025, respectively | $616 | $601 |
| Additional paid-in capital | $1,166,078 | $1,111,274 |
| Accumulated deficit | -$800,485 | -$801,496 |
| Accumulated other comprehensive income(loss) | -$360 | -$51 |
| Treasury stock, at cost, 1,355,169 shares as of both October 31, 2025 and January 31, 2025 | -$45,520 | -$45,520 |
| Total Stockholders’ Equity | $320,329 | $264,808 |
| Total Liabilities and Stockholders’ Equity | $423,472 | $388,415 |