Phreesia (PHR) investor relations material

Executive summary

• Achieved Q3 FY2026 revenue of $120.3 million, up 13% year-over-year, with net income of $4.3 million, reversing a prior year loss.

• Adjusted EBITDA reached $29.1 million, a significant increase from the prior year, with a record margin of 24%.

• Completed the $160 million AccessOne acquisition, funded by $53 million cash and a $110 million bridge loan, expanding into provider financing.

• Launched new HCP marketing initiatives and expanded platform integration to drive future growth.

• Facilitated over $4 billion in annual patient payments and supported approximately 170 million patient visits in fiscal 2025.

Financial highlights

• Free cash flow was $8.8 million for the quarter, up from $1.6 million in the prior year; operating cash flow was $15.5 million.

• Cash and cash equivalents totaled $106.4 million at quarter-end, up from $98.3 million in the prior quarter.

• Subscription and related services revenue was $55.5 million, payment processing fees $27.4 million, and network solutions $37.4 million for Q3 FY2026.

• Net income margin for the quarter was approximately 3.6%.

• Q3 included a one-time G&A tax benefit of $900,000, boosting adjusted EBITDA.

Outlook and guidance

• FY2026 revenue outlook updated to $479–$481 million, including $7.5 million from AccessOne; Adjusted EBITDA guidance raised to $99–$101 million.

• FY2027 revenue expected at $545–$559 million, with Adjusted EBITDA projected at $125–$135 million.

• Anticipates mid-single-digit growth in AHSCs and low-double-digit growth in revenue per AHSC for FY2027.

• Management expects cash, cash equivalents, and available borrowing capacity to be sufficient for at least the next 12 months.

• Plans to refinance or replace the Bridge Loan with a long-term credit facility.