Phreesia, Inc. (NYSE: PHR) has marked a significant financial turnaround in its fiscal third quarter, concluding on October 31, 2025. The healthcare technology company reported a return to profitability, with strong revenue growth and improved operating leverage. Total revenue for the quarter reached $120.3 million, reflecting a 13 percent increase from the same period last year.
Net income surged to $4.3 million, reversing a loss of $14.4 million recorded in the previous year’s quarter. Adjusted EBITDA rose to $29.1 million, nearly tripling the previous year’s figure. These gains stemmed from consistent client growth and an increase in revenue per customer. Phreesia served an average of 4,520 healthcare services clients during the quarter, a 7 percent rise year over year, while revenue per client climbed 6 percent to $26,622.
Strengthened Cash Flow and Acquisition of AccessOne
Chief Executive Officer and Co-Founder Chaim Indig attributed the company’s success to effective execution across its operations. He highlighted improvements in revenue, profitability, and product momentum. Cash flow also demonstrated robust growth, with net cash from operating activities reaching $15.5 million, up from $5.8 million a year earlier. Free cash flow increased to $8.8 million, while Phreesia concluded the quarter with $106.4 million in cash and cash equivalents, an increase of $22.2 million since the beginning of the fiscal year.
Following the quarter, Phreesia completed its acquisition of AccessOne, a healthcare receivables financing platform valued at $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. Additionally, Phreesia amended its existing credit facility to facilitate the transaction.
Management has revised its outlook for fiscal 2026, projecting revenue between $479 million and $481 million, alongside adjusted EBITDA of $99 million to $101 million. The updated forecast incorporates approximately $7.5 million in revenue from AccessOne through the end of the fiscal year, with client counts now expected to reach around 4,515.
Future Outlook and Client Growth
Looking ahead, Phreesia has introduced guidance for fiscal 2027, anticipating revenue between $545 million and $559 million, representing growth of 14 to 16 percent. Adjusted EBITDA is projected to be between $125 million and $135 million. The company expects to continue benefiting from operational efficiencies, along with mid-single-digit growth in client numbers and stronger revenue increases per client.
Phreesia expressed confidence in its current financial position, asserting that its cash reserves, operating cash flow, and available borrowing capacity are adequate to support its immediate plans and obligations. This positions the company favorably as it scales its platform and integrates its recent acquisition.
