Phreesia, Inc. (NYSE: PHR) has reported a significant turnaround in its financial performance for the fiscal third quarter, marking a return to profitability alongside increased cash generation. For the quarter ending on October 31, 2025, the healthcare technology firm announced total revenue of $120.3 million, reflecting a 13 percent rise compared to the previous year. Net income surged to $4.3 million, a substantial recovery from a loss of $14.4 million in the same period last year.
The improvement in profitability was accompanied by a notable rise in adjusted EBITDA, which reached $29.1 million, nearly tripling the figure from the previous year. This growth is attributed to a steady increase in client numbers and enhanced revenue per customer. Phreesia averaged 4,520 healthcare services clients during the quarter, representing a 7 percent year-over-year increase, while revenue per client also rose by 6 percent to $26,622.
Strategic Acquisitions and Future Outlook
Phreesia’s Chief Executive Officer and Co-Founder, Chaim Indig, highlighted the company’s strong execution across various business aspects, stating that the results reflect improvements in revenue, profitability, and product momentum. The company also saw a boost in cash flow, with net cash from operating activities amounting to $15.5 million, up from $5.8 million a year earlier. Free cash flow rose to $8.8 million, while the firm concluded the quarter with cash and cash equivalents totaling $106.4 million, an increase of $22.2 million since the start of the fiscal year.
Following the conclusion of the quarter, Phreesia completed its acquisition of AccessOne, a healthcare receivables financing platform, for $160 million. This acquisition, which aims to enhance the services offered to large health systems, was funded through a combination of cash and a new $110 million short-term secured loan, which Phreesia plans to refinance in the future. Additionally, the company amended its existing credit facility to facilitate this transaction.
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 updated forecast includes approximately $7.5 million in revenue from AccessOne through the end of the fiscal year, with client counts anticipated to reach around 4,515.
Long-Term Growth Projections
Looking further ahead, Phreesia has provided guidance for fiscal 2027, forecasting revenue between $545 million and $559 million, which would signify growth of 14 to 16 percent. Adjusted EBITDA is expected to range from $125 million to $135 million. The company anticipates continued operational efficiency gains, mid-single-digit growth in client numbers, and stronger increases in revenue per client.
Phreesia’s current cash position, robust operating cash flow, and available borrowing capacity indicate that the company is well-equipped to support its near-term objectives and obligations. This confidence underlines Phreesia’s strategy as it scales its platform and integrates its recent acquisition, positioning itself for sustained growth in the healthcare technology sector.
