Executive Summary
Phreesia delivered solid top-line growth in Q2 2025, with revenue of USD 102.1 million, representing a year-over-year increase of 18.97%. Gross margin remained robust at approximately 60.5%, highlighting the inherent profitability of the core SaaS and payments platform. However, the company continues to incur meaningful operating losses, with operating income of -USD 17.22 million and net income of -USD 18.01 million, driven by elevated research and development and selling, general, and administrative expenses. Net cash generation was positive: operating cash flow USD 11.06 million and free cash flow USD 3.66 million, supporting a strong liquidity position as of quarter-end. Phreesia closed the period with USD 81.8 million in cash and equivalents and a net cash position of about USD 65.3 million, underscored by a favorable current ratio (~1.77) and a solid balance sheet structure (total assets USD 362.2 million; total stockholders’ equity USD 251.3 million). The business model shows continued momentum in revenue growth and platform adoption, but near-term profitability hinges on achieving operating leverage and margin expansion while maintaining disciplined expense management.
Key Performance Indicators
Key Insights
Revenue and margin dynamics: USD 102.12 million in Q2 2025 revenue, YoY +18.97%, QoQ +0.89%; Gross profit USD 61.81 million with a gross margin of 60.53% (YoY gross margin +11.31%, QoQ +2.45%). Profitability: Operating income -USD 17.22 million (operating margin -16.87%), EBITDA -USD 9.16 million (EBITDA margin -9.0%), net income -USD 18.01 million (net margin -17.64%), EPS -0.31. Cash flow: Operating cash flow USD 11.06 million; capex USD -7.40 million; free cash flow USD 3.66 million; net chan...
Financial Highlights
Revenue and margin dynamics: USD 102.12 million in Q2 2025 revenue, YoY +18.97%, QoQ +0.89%; Gross profit USD 61.81 million with a gross margin of 60.53% (YoY gross margin +11.31%, QoQ +2.45%). Profitability: Operating income -USD 17.22 million (operating margin -16.87%), EBITDA -USD 9.16 million (EBITDA margin -9.0%), net income -USD 18.01 million (net margin -17.64%), EPS -0.31. Cash flow: Operating cash flow USD 11.06 million; capex USD -7.40 million; free cash flow USD 3.66 million; net change in cash USD +2.27 million; ending cash USD 81.80 million. Balance sheet and liquidity: cash and cash equivalents USD 81.8 million; total assets USD 362.24 million; total liabilities USD 110.90 million; total stockholders’ equity USD 251.34 million; net debt USD -65.28 million (net cash). Working capital and efficiency: current ratio 1.77; DSO 54 days; DIO 2.31 days; DPO 19.14 days; CCC 37.18 days. Valuation snapshot: price-to-sales 14.16x; price-to-book 5.75x; price-to-earnings negative; enterprise value multiple -111.05x (reflecting net cash and negative earnings). Four-quarter context confirms yoy revenue growth and persistent losses, with improving but still negative margins.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
102.12M |
18.97% |
0.89% |
| Gross Profit |
61.81M |
11.31% |
2.45% |
| Operating Income |
-17.22M |
53.40% |
11.32% |
| Net Income |
-18.01M |
51.01% |
8.67% |
| EPS |
-0.31 |
54.41% |
11.43% |
Key Financial Ratios
operatingProfitMargin
-16.9%
operatingCashFlowPerShare
$0.19
freeCashFlowPerShare
$0.12
priceEarningsRatio
-20.06
Management Commentary
Transcript data not provided in the supplied dataset. As a result, management quotes and call-specific takeaways could not be extracted. Anticipated themes in a typical call would include commentary on customer adoption, pipeline momentum, unit economics, and plans for margin expansion, but no verbatim quotes are available here.
Forward Guidance
No explicit forward guidance is included in the QQ2 2025 data provided. Given the trajectory, investors should monitor: (1) revenue growth rate and mix (SaaS vs. payments), (2) gross margin stability and potential expansion through pricing, product mix, or utilization-based revenue, (3) operating leverage through R&D and SG&A scaling relative to revenue, (4) customer growth, retention, and average revenue per user (ARPU), and (5) cash flow evolution and capital allocation. In a scenario where Phreesia sustains mid-teens revenue growth and achieves modest margin expansion (operating margin moving toward the mid-to-high single digits), the company could approach break-even on operating income within the next 1-2 years, aided by continued stock-based compensation normalization and disciplinedarged expense control. Investors should monitor quarterly commentary on ARR growth, customer diversification, and the monetization of the platform’s broader modules (clinical data, marketing, life sciences offerings).