PHR, has adjusted its projected financial performance for fiscal year 2026, raising its estimated adjusted EBITDA to between $85 million and $90 million, up from an earlier prediction of $78 million to $88 million. Despite this adjustment, PHR's revenue forecast remains unchanged, aiming for a range of $472 million to $482 million. This revenue expectation does not factor in any potential future acquisitions completed before January 31, 2026.
The company cites improvements in operating efficiency as the driver for the updated EBITDA outlook. Additionally, PHR expects its Average Health System Customers (AHSCs) count to reach approximately 4,500 by fiscal 2026, along with an anticipated increase in revenue per AHSC compared to fiscal 2025. As of April 30, 2025, PHR had $90.9 million in cash and cash equivalents, providing financial flexibility to achieve its fiscal 2026 targets. Furthermore, the company's credit facility with Capital One remains untapped, offering additional resources for potential growth initiatives beyond the current forecast.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Phreesia Inc (PHR, Financial) is $32.27 with a high estimate of $36.00 and a low estimate of $28.00. The average target implies an upside of 29.35% from the current price of $24.95. More detailed estimate data can be found on the Phreesia Inc (PHR) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Phreesia Inc's (PHR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Phreesia Inc (PHR, Financial) in one year is $35.63, suggesting a upside of 42.81% from the current price of $24.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Phreesia Inc (PHR) Summary page.
PHR Key Business Developments
Release Date: March 12, 2025
- Revenue: $109.7 million in Q4, up 15% year-over-year.
- Adjusted EBITDA: $16.4 million in Q4, up $19.9 million year-over-year.
- Adjusted EBITDA Margin: 15% in Q4.
- Average Healthcare Services Clients (AHSC): 4,341 in Q4, an increase of 104 from the prior quarter and 379 from the prior year.
- Total Revenue per AHSC: $25,266 in Q4, up 5% year-over-year.
- Operating Cash Flow: Positive $16.3 million in Q4, up $19.3 million year-over-year.
- Free Cash Flow: Positive $9.2 million in Q4, up $20.1 million year-over-year.
- Cash Position: $84.2 million as of January 31, up $2.5 million from October 31, 2024.
- Fiscal 2026 Revenue Outlook: $400 million to $482 million.
- Fiscal 2026 EBITDA Outlook: $78 million to $88 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Phreesia Inc (PHR, Financial) reported Q4 revenue of $109.7 million, marking a 15% year-over-year increase.
- The company achieved a positive operating cash flow of $16.3 million in Q4, up $19.3 million year-over-year.
- Phreesia Inc (PHR) maintained positive free cash flow for the third consecutive quarter, with Q4 free cash flow at $9.2 million.
- The Phreesia platform was used in approximately 14% of patient visits across the United States, reaching around 170 million people.
- The company is well-positioned to continue generating positive free cash flow while investing in long-term profitable revenue growth.
Negative Points
- The total revenue per AHSC was flat sequentially, despite a 5% year-over-year growth.
- The impact of calendar and weather-related factors posed challenges in Q4, affecting business operations.
- There is uncertainty regarding the macroeconomic environment, including consumer confidence and healthcare policy changes, which could impact future performance.
- Phreesia Inc (PHR) faces competition from larger entrants in the market, which could affect its market share.
- The company did not provide specific attachment rates for new products like patient bill pay, indicating potential challenges in adoption.
