Executive Summary
Phreesia delivered a solid QQ2 2026 performance with healthier top-line growth and a meaningful shift in profitability dynamics, underscored by a first-time positive net income and a robust cash-generating profile. Total revenue reached $117.3 million, up 15% year over year, while profitability improved via elevated operating leverage, with Adjusted EBITDA of $22.0 million and an operating income of $26.1 million (operating margin ~22.3%). The quarter also featured a landmark strategic development: the announcement to acquire AccessOne for $160 million, a move the company asserts will expand addressable markets by about $24 billion (roughly $6 billion for payments and $6 billion for network solutions TAMs, plus broader Life Sciences marketing opportunities). Management projected to update full-year guidance post-close, maintaining a revenue range of $472–$482 million and Adjusted EBITDA of $87–$92 million, while targeting approximately 4,500 AHSCs in fiscal 2026.
Separately, Phreesia is advancing monetization of AI-enabled features, notably Voice AI, which management characterizes as rapidly growing with client feedback to date. The company views AI as a multi-product set that has begun to contribute to revenue and client productivity, with further upside expected as deployments scale across the provider network. These dynamics collectively position Phreesia to sustain growth through a combination of core platform expansion, strategic acquisitions, and AI-enabled monetization, albeit with integration and execution risks associated with the AccessOne closing and the ongoing investments in product development and sales capability.
Key Performance Indicators
QoQ: 895.41% | YoY:251.81%
QoQ: 116.71% | YoY:103.63%
QoQ: 116.57% | YoY:103.55%
Key Insights
Revenue: $117.3M, YoY +14.8% (reported YoY growth) | QoQ +1.1%
Adjusted EBITDA: $22.0M, margin ~19%
Net income: $0.654M, YoY +103.6%, QoQ +116.7%
EPS: $0.011, Diluted $0.0106, YoY +103.6%, QoQ +116.6%
AHSCs (average healthcare services clients): 4,467, QoQ +56, YoY +298
Revenue per AHSC: $26,249, YoY +7%
Operating cash flow: $14.84M, YoY +$3.8M
Free cash flow: $13.07M, YoY +$6.0M
Cash and cash equivalents: $98.27M (end of quarter); Net debt: -$93.51M (net cash)
Capital expenditures: $1.77M; Free...
Financial Highlights
Revenue: $117.3M, YoY +14.8% (reported YoY growth) | QoQ +1.1%
Adjusted EBITDA: $22.0M, margin ~19%
Net income: $0.654M, YoY +103.6%, QoQ +116.7%
EPS: $0.011, Diluted $0.0106, YoY +103.6%, QoQ +116.6%
AHSCs (average healthcare services clients): 4,467, QoQ +56, YoY +298
Revenue per AHSC: $26,249, YoY +7%
Operating cash flow: $14.84M, YoY +$3.8M
Free cash flow: $13.07M, YoY +$6.0M
Cash and cash equivalents: $98.27M (end of quarter); Net debt: -$93.51M (net cash)
Capital expenditures: $1.77M; Free cash flow yield supported by positive operating leverage
Guidance (FY2026): Revenue $472–$482M; Adjusted EBITDA $87–$92M; AHSCs ~4,500; revenue per AHSC growth expected vs. FY2025
TAM update: AccessOne expansion adds ~$6B TAM in payments and ~$6B in network solutions; combined TAM expansion ~+$24B from ~$10B prior base
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
117.26M |
14.83% |
1.14% |
| Gross Profit |
121.29M |
96.23% |
55.75% |
| Operating Income |
26.15M |
251.81% |
895.41% |
| Net Income |
654.00K |
103.63% |
116.71% |
| EPS |
0.01 |
103.55% |
116.57% |
Management Commentary
Theme: Strategic growth and capital allocation
- 'AccessOne will expand our addressable market by roughly $6 billion and strengthen our ability to help providers improve collections while preserving patient trust.' (Chaim Indig)
- 'Phreesia achieved an important milestone in the second quarter: net income positive for the first time.' (Chaim Indig)
Theme: AI product monetization and network effects
- 'We have multiple sets of AI products that are actively being used by our clients across the board, and we are monetizing them today.' (Chaim Indig)
- 'Voice AI is growing rapidly... the feedback we're getting from this product from the provider network is like nothing I've seen ever before.' (Chaim Indig)
Theme: TAM expansion and market strategy
- 'AccessOne will expand our addressable market by roughly $6 billion... combined TAM expansion is about $24 billion from approximately $10 billion.' (Balaji Gandhi / Chaim Indig in remarks on TAM)
Theme: Integration and risk management
- 'The risk is actually shared between PNC Bank and the provider itself' (Chaim Indig, on AccessOne risk sharing)
AccessOne will expand our addressable market by roughly $6 billion and strengthen our ability to help providers improve collections while preserving patient trust.
— Chaim Indig
We have multiple sets of AI products that are actively being used by our clients across the board, and we are monetizing them today.
— Chaim Indig
Forward Guidance
Assessment of Outlook:
- Revenue guidance for FY2026 remains $472–$482 million, with Adj. EBITDA guidance raised modestly to $87–$92 million, reflecting stronger profitability cadence on improved operating leverage.
- AHSC target remains ~4,500 for FY2026, with anticipated improvements in revenue per AHSC versus FY2025.
- AccessOne close (targeting Q3 or early Q4 FY2026) is expected to contribute roughly $35 million in annualized revenue and about $11 million in annualized Adjusted EBITDA, which would meaningfully lift profitability and cash flow if realized in the back-half of the fiscal year.
- AI monetization and Voice AI momentum provide additional upside potential, particularly in the Network Solutions TAM (driven by payer/provider engagement and life sciences marketing dollars).
- Key factors for investors to monitor include the closing and integration trajectory of AccessOne, realization of cross-sell opportunities across AHSCs and the provider network, the pace of AI-enabled product adoption and monetization, and the sustainability of near-term S&M intensity as growth accelerates.
- Risks include integration risk of the AccessOne platform, regulatory considerations around patient financing, competitive pressure in AI-enabled patient engagement tools, and potential variability in invoicing timing that affects quarterly cash flow.