Phreesia(PHR) - 2026 Q4 - Annual Results

Financial Performance - Total revenue for Q4 fiscal 2026 was $127.1 million, representing a 16% year-over-year increase[7] - Fiscal year 2026 total revenue reached $480.6 million, a 14% increase year-over-year[7] - Adjusted EBITDA for Q4 was $29.4 million, compared to $16.4 million in the same period last year[7] - Net income for the three months ended January 31, 2026, was $1,295,000, compared to a net loss of $6,390,000 in the same period of 2025[31] - The company achieved a net income of $2.3 million for fiscal 2026, compared to a net loss of $58.5 million in fiscal 2025[7] - Adjusted EBITDA for the three months ended January 31, 2026, was $29,419 thousand, compared to $16,373 thousand for the same period in 2025, reflecting a year-over-year increase of 80.0%[42] - Free cash flow for the fiscal year ended January 31, 2026, was $54,417,000, significantly up from $8,292,000 in 2025, indicating a substantial improvement in cash generation[46] Client Metrics - Average number of healthcare services clients (AHSCs) was 4,658 in Q4, up 7% year-over-year[7] - Average number of healthcare services clients (AHSCs) increased to 4,658 in the three months ended January 31, 2026, from 4,341 in the same period of 2025, reflecting a growth of 7.3%[50] - Total revenue per AHSC rose to $27,279 in the three months ended January 31, 2026, compared to $25,266 in the same period of 2025, marking an increase of 8.0%[50] Revenue Breakdown - Subscription and related services revenue rose to $55,924,000, a 7.3% increase from $51,793,000 year-over-year[29] - Payment solutions revenue grew significantly to $35,720,000, up 44.7% from $24,676,000 in the prior year[29] - Patient payment volume for the fiscal year ended January 31, 2026, reached $4,873 million, up from $4,420 million in 2025, representing an increase of 10.2%[52] - Payment facilitator volume percentage improved to 84% for the three months ended January 31, 2026, compared to 82% in the same period of 2025, indicating a positive trend in payment processing operations[52] Expenses and Losses - Total expenses for the three months ended January 31, 2026, were $132,624,000, an increase of 13.0% compared to $117,293,000 in the same period of 2025[29] - The operating loss for the three months ended January 31, 2026, was $5,557,000, an improvement from a loss of $7,612,000 in the same period of 2025[29] - GAAP operating expenses for the three months ended January 31, 2026, totaled $101,538,000, an increase from $93,411,000 in the same period of 2025, reflecting a rise of 8.5%[48] - General and administrative expenses for the three months ended January 31, 2026, increased to $26,965,000 from $18,415,000 in the same period of 2025, a significant rise of 46.4%[48] - Research and development expenses for the fiscal year ended January 31, 2026, were $121,481,000, compared to $117,364,000 in 2025, showing a growth of 3.6%[48] Cash Flow and Investments - Cash, cash equivalents, and restricted cash as of January 31, 2026, was $73.8 million, down from $84.2 million a year earlier[7] - Net cash provided by operating activities for the three months ended January 31, 2026, was $33,662 thousand, up from $16,256 thousand in the prior year, representing a growth of 107.0%[33] - The company reported a net cash used in investing activities of $(142,619) thousand for the three months ended January 31, 2026, compared to $(7,058) thousand in the same period of 2025[33] - The company incurred stock-based compensation expense of $18,038 thousand for the three months ended January 31, 2026, slightly up from $17,162 thousand in the same period of 2025[42] - The company’s deferred revenue increased to $11,343 thousand for the three months ended January 31, 2026, compared to $10,490 thousand in the same period of 2025, reflecting a growth of 8.2%[33] Acquisition and Market Expansion - The AccessOne acquisition was completed for approximately $164 million, expanding the addressable market for healthcare payments[8] - The company completed the AccessOne Acquisition on November 12, 2025, expanding its payment solutions offerings[29] - The company expects approximately $37 million contribution from AccessOne in fiscal 2027[14] - Fiscal 2027 revenue outlook is lowered to a range of $510 million to $520 million, down from a previous range of $545 million to $559 million[14] - Adjusted EBITDA outlook for fiscal 2027 is maintained at a range of $125 million to $135 million[15]