Phreesia, Inc.

What they do

Phreesia sells an integrated platform embedded in provider workflows covering patient scheduling, intake, payment and post-visit follow-up. The company serves ambulatory practices, health systems, hospitals, life sciences companies and other organizations from care discovery through payment and follow-up. Its platform is organized around three areas: Access, Affordability and Outcomes, with products including MediFind, self-scheduling and an AI-based smart answering solution.

Revenue drivers

• Subscription and related services — Recurring subscription fees, roughly consistent through the fiscal year due to the recurring nature of contracts; the company cites a potential $6.3 billion U.S. ambulatory subscription market.
• Payment solutions — Payment processing fees plus financing fees, re-occurring in nature and typically higher in the first two to three months of the calendar year when patient deductibles reset.
• Network Solutions — Per-engagement contracts with life sciences companies and other organizations, typically weighted to the second half of the fiscal year with life sciences marketing budget cycles.
• AccessOne (acquired fiscal 2026) — Expands the payments addressable market with a healthcare payment card; the fiscal 2027 outlook assumes about $37 million of AccessOne contribution.

Recent performance

Second quarter fiscal 2027 revenue was $129.5 million, up 10% year over year, with net income of $1.9 million versus $0.7 million a year earlier. Adjusted EBITDA was $32.9 million versus $22.1 million, operating cash flow was $18.3 million versus $14.8 million, and free cash flow was $13.8 million versus $9.6 million. Average healthcare services clients were 4,744, up 6%, and revenue per client was $27,289, up 4%. Six-month revenue rose 12% to $260.4 million with net income of $4.9 million, compared with a $3.3 million net loss a year earlier. Cash, cash equivalents and restricted cash was $74.6 million at July 31, 2026, and the company said it reduced debt principal by over $23 million in the quarter.

Strategy

Management is prioritizing two products it expects to drive future growth, AccessOne and ProviderConnect, and points to AI investments affecting both its products and internal operations. The company completed the AccessOne acquisition in fiscal 2026 to expand its healthcare payments addressable market. On May 7, 2026 it implemented a restructuring plan eliminating approximately 220 positions, about half contractor roles, with expected charges of about $10 million to cut operating expenses and align cost structure with business priorities. Fiscal 2027 guidance assumes AccessOne contribution and no revenue from potential future acquisitions.

Risks

• Competition — Phreesia describes a fragmented, competitive market and names the EHR and practice management systems it integrates with as competitors that could harm its business.
• Network Solutions variability — Management said network solutions revenue forecasting has become more variable, particularly in the second half of each fiscal year.
• Privacy and cybersecurity — The company cites cyber-attacks, data breaches and privacy concerns involving protected health information and payment card data as risks carrying legal penalties, liability and reputational harm.
• Upfront client costs — Phreesia typically incurs significant upfront costs in client relationships and may not recover them if it fails to grow those relationships over time.

Outlook

Management maintained fiscal 2027 revenue guidance of $510 million to $520 million, assuming approximately $37 million of AccessOne contribution and no revenue from potential future acquisitions before January 31, 2027. It also maintained Adjusted EBITDA guidance of $125 million to $135 million. The company noted more variability in network solutions revenue forecasting, especially in the second half of the fiscal year.