Phreesia, Inc. (NYSE: PHR) has reported a significant financial turnaround in its fiscal third quarter, achieving profitability and improved cash flow. For the quarter ending October 31, 2025, the Wilmington, DE-based healthcare technology company posted total revenue of $120.3 million, marking a 13 percent increase compared to the same period last year. Net income reached $4.3 million, a notable recovery from a loss of $14.4 million in the previous year.
The company’s performance was bolstered by a combination of client growth and increased revenue per customer. Phreesia averaged 4,520 healthcare services clients during the quarter, reflecting a 7 percent year-over-year rise. Additionally, revenue per client climbed by 6 percent to $26,622. Chief Executive Officer and Co-Founder Chaim Indig attributed this success to effective execution across the business, highlighting improvements in revenue, profitability, and product momentum.
Strengthened Cash Flow and Strategic Acquisition
Phreesia’s cash flow also showed marked improvement. The company reported net cash from operating activities of $15.5 million, up from $5.8 million a year earlier. Free cash flow rose to $8.8 million, while total cash and cash equivalents reached $106.4 million, an increase of $22.2 million since the beginning of the fiscal year.
Following the quarter’s close, Phreesia completed its acquisition of AccessOne, a healthcare receivables financing platform, for $160 million. This deal was financed through a combination of cash and a new $110 million short-term secured loan, which the company intends to refinance with long-term financing. Furthermore, Phreesia amended its existing credit facility to accommodate this transaction.
Updated Financial Outlook and Future Projections
Management also raised its outlook for fiscal 2026, projecting revenue between $479 million and $481 million, alongside an adjusted EBITDA of $99 million to $101 million. This revised forecast includes approximately $7.5 million in revenue from AccessOne through the end of the fiscal year. Client counts are expected to stabilize at around 4,515.
Looking further ahead, Phreesia has introduced guidance for fiscal 2027, anticipating revenue between $545 million and $559 million, which represents growth of 14 to 16 percent. The company projects adjusted EBITDA of $125 million to $135 million, driven by ongoing operational efficiencies and continued growth in client counts and revenue per client.
Phreesia’s current cash position, combined with its operating cash flow and available borrowing capacity, supports its near-term plans and obligations, indicating confidence as the company scales its platform and integrates its recent acquisition.
