Summary
Phreesia Inc (PHR, Financial) has released its financial results for the fiscal first quarter ending April 30, 2025, showcasing a robust start to fiscal year 2026. The company reported a 15% year-over-year increase in total revenue, reaching $115.9 million. The average number of healthcare services clients grew by 9%, and the net loss significantly decreased from $19.7 million to $3.9 million. Adjusted EBITDA saw a substantial rise to $20.8 million from $4.1 million in the previous year. The company maintains its revenue outlook for fiscal 2026, expecting it to range between $472 million and $482 million.
Positive Highlights
- Total revenue increased by 15% year-over-year to $115.9 million.
- Average number of healthcare services clients rose by 9% to 4,411.
- Net loss reduced significantly from $19.7 million to $3.9 million.
- Adjusted EBITDA improved to $20.8 million from $4.1 million.
- Free cash flow turned positive at $7.5 million compared to a negative $6.2 million last year.
- Cash and cash equivalents increased to $90.9 million.
Negative Highlights
- Despite improvements, the company still reported a net loss of $3.9 million.
- Operating expenses remain high, impacting overall profitability.
Financial Analyst Perspective
From a financial analyst's viewpoint, Phreesia Inc (PHR, Financial) has demonstrated a strong start to fiscal 2026, with significant improvements in key financial metrics. The reduction in net loss and the substantial increase in Adjusted EBITDA indicate effective cost management and operational efficiency. The positive free cash flow and increased cash reserves provide the company with flexibility for future investments and growth opportunities. However, the company must continue to focus on reducing operating expenses to achieve profitability.
Market Research Analyst Perspective
As a market research analyst, Phreesia Inc (PHR, Financial)'s growth in healthcare services clients and revenue per client suggests a strong market position and demand for its solutions. The company's ability to maintain its revenue outlook despite economic uncertainties reflects confidence in its business model and market strategy. The focus on enhancing client engagement and expanding service offerings could further strengthen its competitive edge in the healthcare technology sector.
Frequently Asked Questions (FAQ)
Q: What was Phreesia's total revenue for Q1 Fiscal 2026?
A: Phreesia's total revenue for Q1 Fiscal 2026 was $115.9 million.
Q: How much did the average number of healthcare services clients increase?
A: The average number of healthcare services clients increased by 9% year-over-year.
Q: What is the company's revenue outlook for fiscal 2026?
A: Phreesia expects its revenue for fiscal 2026 to be in the range of $472 million to $482 million.
Q: How did Phreesia's Adjusted EBITDA change compared to the previous year?
A: Adjusted EBITDA increased to $20.8 million from $4.1 million in the previous year.
Q: What is the current cash and cash equivalents position of Phreesia?
A: As of April 30, 2025, Phreesia had $90.9 million in cash and cash equivalents.
Read the original press release here.
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