"We are well positioned to continue generating positive free cash flow while investing in long-term profitable revenue growth."
— Balaji Gandhi
03Detailed Report
PHR
Company PHR
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 25, 2026
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Executive Summary
Phreesia reported a solid Q4 2025, delivering 15% year-over-year revenue growth to $109.7 million and notable gross-margin expansion to 69.4%. The quarter showcased improving operating leverage, with adjusted EBITDA of $16.4 million (15% of revenue) and positive operating cash flow of $16.3 million, reinforcing a pattern of cash generation even as the company continues to invest in growth initiatives. However, GAAP net income remained negative at $6.39 million, resulting in an EPS of -$0.11, underscoring the ongoing investment phase typical of a high-growth SaaS-enabled platform in the healthcare information services space.
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
Highlights and drivers for QQ4 2025, with YoY and QoQ comparisons where available:
- Revenue: $109.681 million; YoY growth +15.5%; QoQ growth +2.7% (Q4 vs Q3)
- Gross Profit: $76.115 million; Gross Margin 69.4%; YoY gross profit up 38.95%; QoQ up 5.33%
- Operating Income: -$7.612 million; Operating Margin -6.94%; YoY improvement in margin trend reflects leverage from higher volumes and ongoing cost discipline, though profitability remained negative on GAAP basis
- EBITDA: $2.142 million; EBITDA Margin ~1.95%
- Net Income: -$6.39 million; Net Margin -5.83%; EPS -$0.11 (diluted)
- AHSC (Average Health Care Services Clients): 4,341, up 104 QoQ and 379 YoY
- Revenue per AHSC: $25,266; up 5% YoY (no material QoQ noted)
- Cash flow: Operating cash flow +$16.26 million; Free cash flow +$9.20 million; Third consecutive quarter of positive FCF
- Cash position: $84.22 million at 1/31/2025, up $2.5 million from 10/31/2024
- Net cash/debt: Net debt of -$66.417 million (net cash position) with total debt of $17.803 million
- 2026 guidance: Revenue guidance of $400–$482 million; EBITDA guidance $78–$88 million; AHSC revenue per AHSC expected to increase vs. fiscal 2025; no acquisitions assumed through 1/31/2026
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
69.40%
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
-64.89x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
6.26x
Very high premium suggests asset-light business model or lofty expectations
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