Phreesia reported Q2 2025 revenue of $102.1 million, up 19% year over year, with operating cash flow of $11.1 million and free cash flow of $3.7 million, marking the first positive cash flow milestones as a public company. GAAP results show a net loss of $18.0 million and negative EBITDA of $9.2 million, but management highlighted upside from non-GAAP adjustments, including Adjusted EBITDA of $6.5 million. Importantly, the company achieved a positive operating cash flow and demonstrated the ability to convert revenue growth into free cash flow while investing for long‑term expansion.
Strategically, Phreesia continues to expand the value delivered per AHSC (Average Health Care Services Client) through a broader product suite (Network Solutions and Life Sciences), with AHSCs increasing by 104 sequentially to about 4,200 in fiscal 2025 and total revenue per AHSC expected to rise versus fiscal 2024. Management reaffirmed fiscal 2025 guidance of $416–$426 million in revenue and $26–$31 million in Adjusted EBITDA, while providing visibility for 2026: AHSCs around 4,500 and higher total revenue per AHSC, underscoring an expected trajectory of higher value per provider. The company also signaled ongoing investment in product development and go-to-market expansion and highlighted strategic partnerships (MEDITECH alliance, Oracle marketplace) and Life Sciences initiatives (MediFind, PAM renewal) as levers for long-term growth.
Overall, the near-term cadence reflects continued revenue growth and improving profitability on an adjusted basis, supported by a strong balance sheet and cash generation, with a multi-year growth framework centered on expanding AHSC value, higher-network transaction value, and cross-sell across the Phreesia platform.