Phreesia, Inc. (NYSE: PHR) has reported a remarkable financial turnaround in its fiscal third quarter, highlighting a return to profitability and robust cash generation. For the quarter ending on October 31, 2025, the healthcare technology company achieved 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 loss of $14.4 million during the corresponding quarter in 2024.
These gains reflect a combination of steady client growth and increased revenue per customer. Phreesia averaged 4,520 healthcare services clients during the quarter, a 7 percent rise year over year. Revenue per client also saw an increase of 6 percent, reaching $26,622. Chaim Indig, Chief Executive Officer and Co-Founder of Phreesia, attributed this success to strong execution across the business, emphasizing improvements in revenue and product momentum.
Improved Financial Metrics and Strategic Acquisition
The company also reported strengthened cash flow, with net cash from operating activities totaling $15.5 million, up from $5.8 million in the previous year. Free cash flow rose to $8.8 million, and Phreesia ended the quarter with $106.4 million in cash and cash equivalents, an increase of $22.2 million since the start of the fiscal year.
Following the quarter’s closure, Phreesia successfully completed its acquisition of AccessOne for $160 million. This healthcare receivables financing platform collaborates with large health systems and the 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. The acquisition is expected to enhance Phreesia’s portfolio and expand its service offerings.
Management has revised its outlook for fiscal 2026, now projecting revenue between $479 million and $481 million, alongside adjusted EBITDA of $99 million to $101 million. This forecast includes approximately $7.5 million in revenue from AccessOne through the end of the fiscal year, and client counts are anticipated to reach around 4,515.
Future Projections and Confidence in Growth
Looking beyond fiscal 2026, Phreesia has introduced guidance for fiscal 2027, estimating revenue between $545 million and $559 million. This projection represents a growth rate of 14 to 16 percent, with adjusted EBITDA expected to range from $125 million to $135 million. The company anticipates continued operational efficiency gains, alongside moderate growth in client counts and a stronger increase in revenue per client.
Phreesia’s management expressed confidence in their financial position, noting that the current cash reserves, operational cash flow, and available borrowing capacity are adequate to support their short-term plans and obligations. This signals a positive outlook as the company scales its platform and integrates its latest acquisition.
With these developments, Phreesia is well-positioned to enhance its service offerings and expand its impact within the healthcare technology sector.
