Phreesia Inc delivered a Q4 2025 result set that shows robust gross margins and improving cash generation, underscoring the strength of its SaaS-based patient intake and payments platform in the healthcare sector. Revenue for QQ4 2025 reached $109.7 million, up 15.5% year-over-year and 2.7% quarter-over-quarter, while gross profit rose to $76.1 million, yielding a gross margin of approximately 69.4%. Despite the top-line momentum, the company reported a net loss of $6.39 million and negative operating income of $7.61 million, reflecting sustained investment in R&D and go-to-market initiatives. EBITDA was positive at $2.14 million with an EBITDA margin around 1.95%, suggesting early profitability momentum at the operating level but ongoing SG&A and development investments weigh on the bottom line.
Key Performance Indicators
Revenue
Increasing
109.68M
QoQ: 2.70% | YoY: 15.45%
Gross Profit
Increasing
76.12M
69.40% margin
QoQ: 5.33% | YoY: 38.95%
Operating Income
Increasing
-7.61M
QoQ: 45.01% | YoY: 74.27%
Net Income
Increasing
-6.39M
QoQ: 55.63% | YoY: 79.15%
EPS
Increasing
-0.11
QoQ: -116.92% | YoY: 80.36%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $109.681 million in Q4 2025, up 15.5% YoY and 2.7% QoQ. Gross profit: $76.115 million; gross margin: ~69.4%. Operating income: -$7.612 million; operating margin: -6.94%. EBITDA: $2.142 million; EBITDA margin: ~1.95%. Net income: -$6.39 million; net margin: -5.83%. EPS (diluted): -$0.11. Weighted average shares: 58.278 million. Cash from operating activities: $16.256 million; capital expenditures: -$7.058 million; free cash flow: $9.198 million. Cash and cash equivalents: $84.22 million; total assets: $388.42 million; total liabilities: $123.61 million; stockholders’ equity: $264.81 million. Net debt: -$66.42 million (net cash position). Current ratio: 1.78; quick ratio: 1.78. Days sales outstanding (DSO): 60.41 days; days payables outstanding: 12.49 days; cash conversion cycle: 47.91 days. Valuation snapshots include price-to-sales ~15.14x and enterprise value multiple ~744.40x (as of 2025).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
109.68M
15.45%
2.70%
Gross Profit
76.12M
38.95%
5.33%
Operating Income
-7.61M
74.27%
45.01%
Net Income
-6.39M
79.15%
55.63%
EPS
-0.11
80.36%
-116.92%
Key Financial Ratios
Gross Profit Margin
Excellent
63.10%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.07%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.06%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.78
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.07
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-64.98x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
6.27x
Very high premium suggests asset-light business model or lofty expectations
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