Phreesia (PHR) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue grew 17% year-over-year to $106.8 million, with strong client network expansion and increased adoption of offerings.

• Adjusted EBITDA turned positive at $9.8 million, up from a loss of $6.6 million in Q3 FY24, reflecting improved operating leverage.

• Net loss narrowed to $14.4 million from $31.9 million year-over-year, with free cash flow of $1.6 million for the quarter.

• Cash and cash equivalents stood at $81.7 million at quarter-end, with no borrowings on $50 million credit facilities.

• The company demonstrated resilience and operational continuity despite destructive hurricanes and cybersecurity incidents impacting operations.

Financial highlights

• Q3 FY2025 total revenue: $106.8 million, up 17% year-over-year; Adjusted EBITDA: $9.8 million; net loss: $14.4 million; free cash flow: $1.6 million.

• Subscription and related services revenue was $49.4 million, payment processing fees $24.7 million, and network solutions $32.7 million for the quarter.

• Operating cash flow was $5.8 million, up $12.1 million year-over-year.

• Total revenue per AHSC was $25,207, up 1% year-over-year; average healthcare services clients (AHSCs) increased to 4,237.

• Patient payment volume reached $1.08 billion for the quarter, up from $965 million a year ago.

Outlook and guidance

• FY2025 revenue outlook narrowed to $418–$420 million; Adjusted EBITDA outlook raised to $34–$36 million.

• FY2026 initial outlook: revenue of $472–$482 million (13–15% growth), Adjusted EBITDA of $78–$88 million (129–144% growth).

• AHSCs expected to reach ~4,200 in FY2025 and ~4,500 in FY2026; total revenue per AHSC projected to increase year-over-year.

• Management expects continued net losses and negative cash flows for at least the next year but believes current liquidity is sufficient.