Phreesia (PHR) Q2 2025 earnings summary

Executive summary

• Achieved positive free cash flow for the first time as a public company, marking a significant milestone in financial evolution and internally funded growth.

• Q2 FY25 revenue grew 19% year-over-year to $102.1 million, with net loss narrowing to $18.0 million from $36.8 million and Adjusted EBITDA turning positive at $6.5 million from negative $11.5 million.

• Operating cash flow was $11.1 million, up from negative $9.3 million in the prior year.

• Free cash flow improved to $3.7 million, up from negative $15.2 million year-over-year.

• Cash and cash equivalents stood at $81.8 million as of July 31, 2024.

Financial highlights

• Q2 FY25 total revenue was $102.1 million, up 19% year-over-year, with subscription and related services at $48.6 million, payment processing at $25.3 million, and network solutions at $28.2 million.

• Adjusted EBITDA was $6.5 million, up from negative $11.5 million year-over-year.

• Net loss per share improved to $0.31 from $0.68 year-over-year.

• Patient payment volume reached $1.09 billion for the quarter, with a take rate of 2.86% and payment facilitator volume at 81%.

• Sales and marketing expenses decreased 19% to $30.2 million, while R&D expenses rose 8% to $29.5 million.

Outlook and guidance

• Fiscal 2025 revenue guidance maintained at $416–$426 million, representing 17–20% year-over-year growth.

• Adjusted EBITDA guidance for FY25 raised to $26–$31 million, up $5 million at both ends of the range.

• AHSCs expected to reach ~4,200 in FY25 and ~4,500 in FY26, with total revenue per AHSC projected to increase in both years.

• Management believes cash and equivalents, normal business cash flow, and available credit are sufficient to fund operations for at least the next 12 months.

• Sufficient liquidity and no outstanding borrowings under the credit facility.