Phreesia Turns a Corner: From Loss to Profitability

Phreesia US71944F1066

The healthcare technology provider Phreesia has achieved a significant milestone, reporting a profitable quarter after a period of substantial losses. This shift into the black underscores the company's progress in improving its operational efficiency while maintaining steady growth. However, the sustainability of this positive trajectory is now under scrutiny as the firm issues ambitious forecasts for the upcoming fiscal period.

• Quarterly Revenue: $120.3 million (a 13% year-over-year increase)
• Net Income: $4.3 million (compared to a loss of $14.4 million in the prior-year period)
• Adjusted EBITDA: $29.1 million (up from $9.8 million a year ago)
• Cash Position: $106.4 million (as of October 2025)

A Path to Improved Operational Health

Phreesia's return to profitability is the headline story, with its net income swinging from a double-digit million-dollar loss into positive territory. This reversal suggests the company is gaining better control over its cost structures. The growth in revenue to approximately $120 million reflects continued demand for its digital patient intake and payment administration platforms.

Key operational metrics further support this narrative of strengthening fundamentals. The company expanded its active provider client base by 7% to 4,520 customers. Perhaps more importantly, it increased the average revenue per customer by 6% to $26,622, indicating that existing clients are adopting more of Phreesia's integrated software solutions.

Strategic Acquisition and Forward Guidance

A central element of Phreesia's future strategy is the recently completed acquisition of AccessOne. Management expects this deal to contribute roughly $7.5 million in revenue during the current fiscal year 2026 and to add approximately 80 new customers annually. Looking further ahead, the company projects that AccessOne will account for about 6.5% of total revenue in fiscal 2027.

For the full 2026 fiscal year, Phreesia has provided more detailed guidance. It anticipates revenue in the range of $479 million to $481 million. Adjusted EBITDA is forecast to land between $99 million and $101 million. An initial outlook for 2027 is even more bullish, promising revenue growth of 14% to 16%, which would translate to a target of up to $559 million.

Investor attention now turns to March 11, 2026. On this date, Phreesia will report its fourth-quarter results, offering a critical update on whether the AccessOne integration is proceeding as planned and if the full-year profitability targets remain on track.