Core Insights - Phreesia (PHR) reported revenue of $115.94 million for the quarter ended April 2025, marking a year-over-year increase of 14.5% and exceeding the Zacks Consensus Estimate by 1.09% [1] - The company posted an EPS of -$0.07, a significant improvement from -$0.35 a year ago, resulting in an EPS surprise of 46.15% compared to the consensus estimate of -$0.13 [1] Financial Performance Metrics - Average healthcare services clients reached 4,411, surpassing the average estimate of 4,373 [4] - Patient payment volume was reported at $1.31 billion, exceeding the average estimate of $1.25 billion [4] - Payment facilitator volume percentage was 82%, slightly above the estimated 81.3% [4] - Revenue from subscription and related services was $54.36 million, exceeding the estimate of $52.43 million, reflecting a year-over-year increase of 16.3% [4] - Revenue from network solutions was $31.66 million, below the average estimate of $33.40 million, but still showing a year-over-year increase of 15.5% [4] - Revenue from payment processing fees was $29.93 million, surpassing the estimate of $28.87 million, with a year-over-year change of 10.6% [4] Stock Performance - Phreesia's shares have returned +0.4% over the past month, while the Zacks S&P 500 composite has increased by +7.4% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Revenue for the first quarter of fiscal 2026 was $115.9 million, representing a 15% year-over-year increase [10] - Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year, with an adjusted EBITDA margin of 18% [11] - Cash and cash equivalents at the end of the quarter were $90.9 million, up from $84.2 million in the prior quarter [11] - Positive operating cash flow of $14.9 million, up $15.6 million year-over-year, and positive free cash flow of $7.5 million, up $13.7 million year-over-year [12] Business Lines Performance - Average healthcare services clients increased to 4,411, up 70 from the prior quarter and 346 from the prior year [10] - Total revenue per average healthcare services client was $26,283, up 6% year-over-year and 4% quarter-over-quarter [10] Market Data - The company is maintaining its revenue outlook for fiscal 2026 at a range of $472 million to $482 million [13] - The adjusted EBITDA outlook for fiscal 2026 has been updated to a range of $85 million to $90 million, an increase of $4.5 million from the previous guidance midpoint [13] Company Strategy and Industry Competition - The company focuses on delivering valuable and scalable products that drive meaningful outcomes for patients and providers, with an emphasis on AI integration across all aspects of the organization [8] - The company aims to grow its network through product-led growth and is well-positioned to allocate capital for long-term shareholder value [8] Management Commentary on Operating Environment and Future Outlook - Management noted that conversations with customers remain strong, with no significant hesitancy in decision-making despite macroeconomic conditions [19][25] - The company continues to see strong demand for its network solutions and is focused on building and delivering products that provide value [25] - Management expressed confidence in the company's ability to adapt to changing market conditions and maintain growth [8][25] Other Important Information - The company has approved a share repurchase plan for up to 2.5 million shares of common stock, aimed at being opportunistic in response to market conditions [81] - The company is optimistic about the potential of its Medifine platform, viewing it as a long-term contributor to revenue [93][95] Q&A Session Summary Question: Insights on network solutions growth and customer conversations - Management highlighted strong growth in network solutions and emphasized the importance of product development and delivery in driving results [19][20] Question: Provider market conversations and outlook - Management indicated that conversations with providers remain focused on delivering value through products, with no significant changes in the competitive landscape [25] Question: ROI visibility for network solutions customers - Management explained that clients can adjust campaigns based on performance, with a strong emphasis on delivering results [31] Question: Sales and marketing performance - Management noted that previous investments in sales and marketing are yielding returns, with expectations for continued growth [36] Question: Capital deployment opportunities - Management stated that while the cash position is improving, the approach to evaluating opportunities remains consistent, focusing on buy, build, or rent strategies [40][42] Question: Impact of proposed legislation on pharma advertising - Management acknowledged ongoing legislative discussions but emphasized the differentiated value of their platform [58] Question: Seasonality in network solutions revenue - Management clarified that fluctuations in revenue are more related to program pacing rather than strict seasonality [62] Question: Labor strategy and expense trajectory - Management explained that recent headcount changes were due to consolidation rather than new hiring strategies [54] Question: Cash conversion rates and payment processing revenue - Management indicated that cash conversion rates are expected to resemble first-quarter performance for the rest of the year [86] Question: Monetization of Medifine offering - Management described Medifine as still in early stages but showing positive revenue contributions [93][95]

Financial Performance and Key Metrics - Revenue for Q1 2026 was $115.9 million, representing a 15% year-over-year increase [9] - Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year, with an adjusted EBITDA margin of 18% [10] - Average healthcare services clients increased to 4,411, up 70 from the prior quarter and 346 from the prior year [9] - Total revenue per average healthcare services client was $26,283, up 6% year-over-year and 4% quarter-over-quarter [9] - Cash and cash equivalents at the end of the quarter were $90.9 million, compared to $84.2 million in the prior quarter [10] - Positive operating cash flow of $14.9 million, up $15.6 million year-over-year, and positive free cash flow of $7.5 million, up $13.7 million year-over-year [11] Business Line Performance - The company is focused on delivering scalable products that drive meaningful outcomes for patients and providers, with AI integration across all aspects of the organization [6] - The company is maintaining its revenue outlook for fiscal year 2026 at a range of $472 million to $482 million, with an updated adjusted EBITDA outlook of $85 million to $90 million [12] Market Data and Key Metrics - The company is reiterating its outlook on average healthcare services clients (AHSCs) to reach approximately 4,500 in fiscal year 2026 [12] Company Strategy and Industry Competition - The company emphasizes product-led growth and aims to allocate capital to drive long-term shareholder value [6] - Management highlighted the importance of delivering products that provide value, which is crucial in a competitive market [23] Management Commentary on Operating Environment and Future Outlook - Management noted that conversations with customers remain strong, and the company has been resilient amid macroeconomic volatility [15] - The company is optimistic about its ability to grow its network and expand offerings, driven by a strong balance sheet and growing free cash flow [6][11] Other Important Information - The company has a share repurchase plan for up to 2.5 million shares, aimed at being opportunistic in response to market conditions [80][82] - The Medifine acquisition is still in its early stages, but it is expected to contribute to revenue growth in the future [94][96] Q&A Session Summary Question: Insights on network solutions growth and customer conversations - Management indicated that strong product development and a capable network solutions team are driving growth, with no significant hesitancy reported from customers [15][18] Question: Provider market conversations and outlook - Management noted that conversations with providers remain focused on delivering value through products, with no significant changes in the competitive landscape [22][23] Question: ROI visibility for network solutions customers - Management explained that campaigns can be adjusted based on client needs, and the company has a strong ROI, which drives continued investment from clients [27][29] Question: Sales and marketing performance - Management highlighted that previous investments in sales and marketing are yielding returns, with expectations for consistent expense trends moving forward [34][35] Question: Capital deployment opportunities - Management stated that while the cash position is improving, the evaluation of inorganic opportunities remains consistent, focusing on the best approach to growth [39][41] Question: Impact of flu season on performance - Management clarified that while there are seasonal factors, the introduction of new products like the patient bill pay product is contributing to volume growth [50][51] Question: Labor strategy and expense trajectory - Management explained that recent headcount changes were due to consolidation rather than new hiring, and the expense trajectory is expected to remain stable [53][54] Question: Proposed legislation on drug advertisements - Management indicated that while legislation is always a topic, the focus remains on the value proposition of their platform, which is differentiated [56][58] Question: Network solutions seasonality - Management noted that fluctuations in revenue are more related to program pacing rather than strict seasonality [60][61] Question: Subscription revenue growth - Management confirmed that the growth in revenue per provider client reflects successful product introductions and expansion within existing clients [65][67] Question: AI's impact on competitive landscape - Management observed that AI is enhancing their product offerings and driving value for clients, with a shift towards being a trusted partner in the market [74][76] Question: Share repurchase plan motivation - Management described the share repurchase plan as a means to be opportunistic in response to market volatility, without indicating a change in capital allocation strategy [80][82] Question: Cash conversion rates and payment processing revenue - Management indicated that cash conversion rates are expected to resemble Q1 performance for the rest of the year, with payment processing revenue following historical trends [86][88] Question: Monetization of Medifine offering - Management stated that Medifine is in the early stages of monetization but is expected to grow as the network expands [94][96]

Q1 FY2026 Performance Highlights - Total revenue reached $115.9 million, a 15% year-over-year increase and a 6% sequential increase[11, 71] - Adjusted EBITDA was $20.8 million, showing a 409% year-over-year increase and a 27% sequential increase[11, 75] - Net loss improved significantly to $3.9 million, an 80% year-over-year decrease and a 39% sequential decrease[11, 71, 75] - The company had 4,411 Average Healthcare Services Clients (AHSCs)[11, 15, 27] Financial Outlook for Fiscal Year 2026 - Total revenue is projected to be between $472 million and $482 million[42, 44] - Adjusted EBITDA is expected to be between $85 million and $90 million[42, 45] - The company anticipates having approximately 4,500 AHSCs[42, 53] Revenue Streams and Growth - Subscription and related services accounted for 47% of Q1 FY26 revenue[39, 71] - Payment processing fees contributed 26% to Q1 FY26 revenue[39, 71] - Network solutions made up 27% of Q1 FY26 revenue[39, 71] - Patient payments processed in the latest twelve months exceeded $4 billion[15]

Financial Performance - Total revenue for the first quarter was $115.9 million, representing a 15% year-over-year increase[8] - Adjusted EBITDA for the quarter was $20.8 million, compared to $4.1 million in the same period last year[8] - Net loss for the quarter was $3.9 million, significantly improved from a net loss of $19.7 million in the prior year[8] - Total revenues for the three months ended April 30, 2025, were $115,936,000, a 14.5% increase from $101,217,000 in the same period of 2024[20] - Adjusted EBITDA for the three months ended April 30, 2025, was $20,816,000, compared to $4,093,000 in the same period of 2024, indicating a substantial increase[32] - Net loss for the three months ended April 30, 2025, was $3,914,000, significantly improved from a net loss of $19,722,000 in the same period of 2024[22] - The company reported a comprehensive loss of $3,479,000 for the three months ended April 30, 2025, compared to a comprehensive loss of $19,721,000 in the same period of 2024[22] Client Metrics - Average number of healthcare services clients (AHSCs) was 4,411, up 9% year-over-year[8] - Average number of healthcare services clients (AHSCs) rose to 4,411 in Q1 2025 from 4,065 in Q1 2024, reflecting a growth of 8.5%[39] - The company expects to reach approximately 4,500 AHSCs in fiscal 2026, with total revenue per AHSC projected to increase from fiscal 2025[5] Revenue per Client - Total revenue per AHSC was $26,283, an increase of 6% year-over-year[8] - Total revenue per AHSC increased to $26,283 in Q1 2025 from $24,900 in Q1 2024, marking a growth of 5.5%[39] Cash Position - Cash and cash equivalents as of April 30, 2025, were $90.9 million, up $6.7 million from January 31, 2025[8] - Cash and cash equivalents at the end of the period were $90,871,000, up from $79,527,000 at the end of the same period in 2024[24] - Net cash provided by operating activities was $14,850,000 for the three months ended April 30, 2025, compared to a cash outflow of $721,000 in the same period of 2024[24] - The company had no borrowings outstanding under its credit facility as of April 30, 2025, providing additional capital flexibility for growth opportunities[6] Revenue Outlook - The company maintains its revenue outlook for fiscal 2026, expecting revenue between $472 million and $482 million[4] - Adjusted EBITDA outlook for fiscal 2026 has been updated to a range of $85 million to $90 million, up from a previous range of $78 million to $88 million[5] Payment Metrics - Patient payment volume for Q1 2025 reached $1,314 million, up from $1,166 million in Q1 2024, representing an increase of approximately 12.7%[42] - Payment facilitator volume percentage increased to 82% in Q1 2025 from 81% in Q1 2024, indicating a slight growth in the proportion of transactions processed as a payment facilitator[42] - The company views patient payment volume as a key indicator of the health of its healthcare services clients' businesses and the shift of healthcare costs to patients[42] - Payment facilitator volume is a major driver of the company's payment processing revenue, with potential for slight decline in percentage as enterprise customer penetration increases[42] Expense Management - Total expenses decreased to $119,223,000 in Q1 2025 from $120,637,000 in Q1 2024, a reduction of 1.2%[20]

Core Insights - Phreesia (PHR) is expected to report a quarterly loss of $0.13 per share, marking a 62.9% increase in losses compared to the same period last year [1] - Revenue forecasts for Phreesia stand at $114.69 million, reflecting a year-over-year increase of 13.3% [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating stability in analysts' projections [1] Revenue Estimates - Analysts predict 'Revenue - Subscription and related services' will reach $52.43 million, a 12.2% increase from the previous year [4] - 'Revenue - Network solutions' is estimated at $33.40 million, showing a year-over-year change of 21.8% [4] - 'Revenue - Payment processing fees' is forecasted to be $28.87 million, indicating a 6.7% increase from the year-ago quarter [4] Client Metrics - The estimated 'Average healthcare services Clients' is projected at 4,373, up from 4,065 in the same quarter last year [5] - 'Average revenue per healthcare services client' is expected to reach $18.65 million, compared to $18.24 million a year ago [5] Payment Volume - 'Patient payment volume' is anticipated to be $1.25 billion, an increase from $1.17 billion in the previous year [6] Stock Performance - Phreesia shares have decreased by 2.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 8.2% [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Group 1 - The stock of Phreesia (PHR) closed at $24.84, showing a 2.6% increase over the past four weeks, with a mean price target of $31.80 indicating a potential upside of 28% [1] - Analysts have set 15 short-term price targets for PHR, ranging from a low of $29 to a high of $36, with a standard deviation of $2.34, suggesting a consensus among analysts [2] - The Zacks Consensus Estimate for the current year has increased by 14.4% over the last 30 days, with three estimates moving higher and no negative revisions [11] Group 2 - There is strong agreement among analysts regarding PHR's ability to report better earnings than previously predicted, which supports the expectation of an upside [4][10] - PHR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential for near-term upside [12] - While price targets can be misleading, the direction implied by the consensus price target for PHR appears to be a useful guide for potential price movement [9][12]

Group 1 - Phreesia (NYSE: PHR) continues to perform as expected despite recent market volatility and sell-off [1] - The company has been affected by market conditions but remains resilient [1] - Dr. Duru, a veteran in financial markets, provides unique perspectives on trading and investing through his blog [1] Group 2 - The blog covers various financial instruments including stocks, options, currencies, and Bitcoin [1] - It utilizes both technical and fundamental analysis for short-term and long-term strategies [1] - Dr. Duru has extensive academic and professional experience in engineering, operations research, and data analytics [1]

Market Overview - The current addressable market is approximately $10.0 billion, derived from $6.3 billion in subscription services, $2.3 billion in consumer-related transaction fees, and $1.9 billion in network solutions revenue[31]. - The company serves approximately 50,000 unique healthcare services clients in the ambulatory and hospital markets[31]. - The company facilitated patient visits for over 4,300 healthcare services clients across all 50 states in fiscal 2025[24]. Technology Solutions - The company offers a comprehensive range of technology solutions, including patient registration, appointment scheduling, and payment processing, aimed at improving operational efficiency[26]. - The company’s technology solutions are customizable and scalable to any size healthcare service organization[26]. - The company integrates its technology into over 4,300 healthcare services clients' PM and EHR systems, enhancing operational workflows[12]. - The company’s payment processing features are designed to operate seamlessly within client workflows, enhancing revenue cycle solutions[12]. - The company’s technology innovations include enhancements to user interface, improving user experience and satisfaction[12]. Patient Engagement and Outcomes - The company aims to activate and engage patients in their healthcare journey, resulting in improved health outcomes[35]. - The company’s solutions have demonstrated increased rates of preventive care and vaccinations through effective patient communication[24]. - The Patient Activation Measure (PAM) will be included in the Centers for Medicare and Medicaid Services' Merit-based Incentive Payments System starting in 2024, potentially impacting client performance metrics[38]. Revenue Cycle Solutions - The company offers a comprehensive suite of revenue cycle solutions that improve key metrics, including time-of-service collections and patient convenience with online payments[49]. - The company’s revenue cycle solutions help maximize timely collection of patient payments through insurance verification and point-of-sale applications[34]. - Flexible patient payment options have led to an increase in time-of-service collections for the majority of healthcare services clients, enhancing cash flow and profitability[38]. - The company’s solutions help healthcare services clients capture the right clinical information, aligning with quality reporting initiatives and reducing errors in patient data collection[38]. Client Relationships and Growth - The company plans to expand its client base in the U.S. healthcare industry, which is large and underserved, by utilizing its direct sales force to win new clients[40]. - There is a significant opportunity to deepen relationships with existing healthcare services clients by increasing the number of subscriptions and add-on applications purchased[41]. - The company intends to continue innovating and enhancing its solutions to address key challenges in healthcare, driving incremental revenue from existing clients[42]. Compliance and Security - The company is subject to extensive federal and state laws regarding privacy and security, including HIPAA and the California Consumer Privacy Act[61]. - The company has industry certifications including HITRUST and PCI-DSS Level 1 Service Provider, demonstrating commitment to data security standards[53]. - The company is subject to various federal and state laws regarding privacy, data protection, and information security, which may increase compliance costs and legal risks[73]. - The company’s subsidiary, Insignia, is a federal government contractor and must comply with the Federal Acquisition Regulation (FAR) and related requirements[76]. Financial Overview - The company’s cash and cash equivalents primarily consist of money market funds and cash on deposit, with a focus on preserving principal while maximizing income[382]. - As of January 31, 2025, the company had no debt outstanding under the Capital One Credit Facility[383]. - For the fiscal year ended January 31, 2025, approximately 85% of the company's expenses were denominated in U.S. Dollars[384]. - Foreign currency losses from the re-measurement of monetary account balances amounted to $0.4 million for the year ended January 31, 2025[385]. - A 1% increase or decrease in foreign exchange rates between the Canadian Dollar, Indian Rupee, and U.S. Dollar is not expected to have a material effect on the company's results of operations or financial condition[386]. Employee and Workplace Culture - As of January 31, 2025, the company had 2,082 full-time employees, with 817 in the United States and 1,265 internationally[83]. - The company was recognized as one of the "Best Places to Work in Healthcare" for the eighth time and named to the list of "The Top 100 Software Companies of 2024" by the Software Report[84]. - The company has operated as a fully remote organization since 2020, allowing access to a broader talent pool[87]. - The company has a commitment to gender equality and inclusive workplace practices, including pathways to leadership for women and pay equity[86]. - The company has not experienced any work stoppages and maintains a good relationship with its employees[83]. Strategic Initiatives - Strategic investments, partnerships, and acquisitions are being pursued to enhance the company's ability to activate patients in their care and expand its suite of solutions[43]. - The business model focuses on developing new, value-added applications that increase revenue and enhance client unit economics, with expectations of improving net income and margins over time[45]. - The company’s sales cycles typically range from three to six months, with most contracts structured as annual, auto-renewing agreements[56]. - The company’s marketing team focuses on educating potential clients about the value of its solutions, which positively impact health outcomes[57]. - The company’s client services team is organized by market specialization, ensuring deep expertise and efficient onboarding for healthcare services clients[64]. Risk Management - The company is exposed to market risks, including interest rate and foreign exchange risks, but does not expect significant impact from a 100 basis point change in interest rates[382]. - In February 2025, the company entered into foreign currency forward contracts to hedge against foreign currency exchange risk related to Canadian Dollar payroll payments[386]. - The foreign currency forward contracts are expected to limit the company's exposure to foreign currency exchange risk associated with forecasted Canadian Dollar payroll payments[387]. - The company emphasizes the importance of protecting its intellectual property through trademarks, trade secrets, and contractual rights[81].

Financial Data and Key Metrics Changes - Q4 revenue was $109.7 million, up 15% year over year [5] - Q4 adjusted EBITDA was $16.4 million, up from $19.9 million year over year, with an adjusted EBITDA margin of 15% [5] - Average healthcare services clients reached $4,341, an increase of $104 from the prior quarter and $379 from the prior year [5] Business Line Data and Key Metrics Changes - Strong growth was noted in network solutions, with management indicating that underlying market conditions for 2026 are expected to be similar to 2025 [10] - Total revenue per AhSE metric grew by 5% year over year, and 7% when excluding the clearinghouse impact, but was flat sequentially [16] Market Data and Key Metrics Changes - Management acknowledged that calendar factors, such as business days and holidays, significantly impacted Q4 performance [17] - The company is closely monitoring macroeconomic factors, including consumer confidence and Medicaid changes, but has not seen significant impacts on business yet [46] Company Strategy and Development Direction - The company aims to leverage AI and automation to improve internal productivity and enhance network solutions [19] - Management emphasized the importance of capital allocation for durable growth, balancing organic and inorganic opportunities [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining financial outlook and visibility in network solutions, indicating no changes since previous assessments [42] - The company is positioned to benefit from larger entrants in the market, with improved close rates noted [26] Other Important Information - The company celebrated its 20th anniversary, reflecting on its mission to make care easier every day [4] - Management highlighted the value of new products like appointment readiness and patient bill pay, which are expected to enhance client engagement and revenue [32][33] Q&A Session Summary Question: Comments on gross margin expansion and expense leverage - Management noted that mix is a significant driver of gross margin improvements, with payment processing associated with lower margins [9] Question: Market conditions for network solutions in 2026 - Management indicated that conditions are expected to be similar to 2025 [10] Question: Insights on postscript engagement product - Management described the product as impression-based, similar to other offerings [13] Question: Impact of calendar on revenue per AhSE metric - Management acknowledged that calendar factors and external events like the LA fires affected Q4 performance [17] Question: Progress on leveraging AI and automation - Management shared positive feedback on AI applications used internally, indicating valuable results [19] Question: Critical mass for new products in pharma customer base - Management stated that products are designed with scale in mind and are often ready for market upon announcement [24] Question: Competitive dynamics in the market - Management noted improved close rates and a beneficial impact from larger market entrants [26] Question: Update on patient bill pay rollout - Management expressed excitement about the product's value and its potential to generate additional revenue [33] Question: Capital deployment priorities for fiscal 2026 - Management reiterated a consistent approach to capital allocation focused on durable growth [48]