WILMINGTON, DE — Phreesia, Inc. (NYSE: PHR) reported a sharp financial turnaround in its fiscal third quarter, posting a return to profitability and stronger cash generation as revenue climbed and operating leverage improved.
For the quarter ended October 31, 2025, the healthcare technology company reported total revenue of $120.3 million, a 13 percent increase from a year earlier. Net income reached $4.3 million, reversing a $14.4 million loss in the same quarter last year. Adjusted EBITDA rose to $29.1 million, nearly triple the prior-year level.
The gains were driven by steady client growth and higher revenue per customer. Phreesia averaged 4,520 healthcare services clients during the quarter, up 7 percent year over year, while revenue per client increased 6 percent to $26,622.
Chief Executive Officer and Co-Founder Chaim Indig credited strong execution across the business, pointing to improvements in revenue, profitability, and product momentum.
Cash flow also strengthened. Net cash from operating activities totaled $15.5 million, compared with $5.8 million a year earlier, while free cash flow rose to $8.8 million. Phreesia ended the quarter with $106.4 million in cash and cash equivalents, up $22.2 million from the start of the fiscal year.
After the quarter closed, Phreesia completed its $160 million acquisition of AccessOne, a healthcare receivables financing platform that works with large health systems. The deal was funded through a mix of cash and a new $110 million short-term secured loan, which the company expects to refinance with longer-term financing. Phreesia also amended its existing credit facility to accommodate the transaction.
Management raised its outlook for fiscal 2026, projecting revenue of $479 million to $481 million and adjusted EBITDA of $99 million to $101 million. The updated forecast includes about $7.5 million in revenue from AccessOne through the end of the fiscal year. Client counts are now expected to reach roughly 4,515.
Looking ahead, Phreesia introduced guidance for fiscal 2027, calling for revenue between $545 million and $559 million, representing growth of 14 to 16 percent, and adjusted EBITDA of $125 million to $135 million. The company said it expects continued gains from operating efficiency, along with mid-single-digit growth in client counts and stronger increases in revenue per client.
Phreesia said its current cash position, operating cash flow, and available borrowing capacity are sufficient to support its near-term plans and obligations, signaling confidence as it scales its platform and integrates its latest acquisition.
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