Phreesia, Inc. has announced a significant financial turnaround, reporting a return to profitability for the third fiscal quarter ending October 31, 2025. The healthcare technology company, headquartered in Wilmington, Delaware, recorded total revenue of $120.3 million, marking a 13 percent increase compared to the same period last year. This positive shift is accompanied by a net income of $4.3 million, reversing a loss of $14.4 million in the previous year.
The company’s improved performance can be attributed to a combination of steady client growth and increased revenue per customer. During the quarter, Phreesia averaged 4,520 healthcare services clients, representing a 7 percent year-over-year increase. Additionally, revenue per client rose by 6 percent to $26,622. Chaim Indig, Chief Executive Officer and Co-Founder of Phreesia, highlighted the company’s operational execution as a key factor in these gains, emphasizing the improvements in revenue, profitability, and product momentum.
Strengthened Financial Position and Future Outlook
Cash flow also showed notable improvement, with net cash from operating activities reaching $15.5 million, up from $5.8 million in the same quarter last year. Free cash flow rose to $8.8 million, further solidifying the company’s financial standing. By the end of the quarter, Phreesia reported $106.4 million in cash and cash equivalents, an increase of $22.2 million since the beginning of the fiscal year.
In a strategic move, Phreesia completed its $160 million acquisition of AccessOne, a platform specializing in healthcare receivables financing. This acquisition, which was financed through a combination of cash and a $110 million short-term secured loan, is expected to enhance Phreesia’s service offerings and client reach. The company plans to refinance the loan with longer-term financing options and has amended its existing credit facility to accommodate this transaction.
Phreesia has updated its outlook for fiscal 2026, forecasting revenues between $479 million and $481 million and adjusted EBITDA of $99 million to $101 million. This revised forecast anticipates approximately $7.5 million in revenue from AccessOne by the end of the fiscal year, with client counts projected to reach around 4,515.
Projected Growth for Fiscal 2027
Looking ahead, Phreesia has introduced guidance for fiscal 2027, projecting revenue between $545 million and $559 million, which represents a growth rate of 14 to 16 percent. The company expects adjusted EBITDA to fall between $125 million and $135 million. Phreesia anticipates continued operational efficiency gains, coupled with mid-single-digit growth in client counts and stronger increases in revenue per client.
Phreesia’s robust cash position, operational cash flow, and available borrowing capacity provide the company with the necessary support to meet its near-term plans and obligations. This strategic focus positions Phreesia favorably as it continues to scale its platform and integrate its latest acquisition.
