Loading...
01/10 19:55
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents strong financial metrics, including consecutive positive net income and increased cash flow, which are positive indicators. The Q&A session highlights a cautious but optimistic outlook, with plans for strategic investments and growth. While some management responses lack clarity, the overall sentiment is positive due to strong cash flow, margin expansion, and growth potential from acquisitions. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
Total Revenue $120.3 million, a 13% increase year-over-year. The increase is attributed to the company's growth strategy and improved returns on investment and attach rates of their offerings.
Adjusted EBITDA $29.1 million, an increase of $19 million year-over-year and $7 million quarter-over-quarter. This improvement reflects disciplined execution and focus on operational efficiency.
Adjusted EBITDA Margin 24%, an all-time high, representing an improvement of 5 percentage points quarter-over-quarter and 15 percentage points year-over-year. This reflects operational leverage and efficiency.
Average Healthcare Services Clients (AHSCs) 4,520, an increase of 53 from the prior quarter. This growth aligns with the company's expectations and reflects successful client acquisition efforts.
Total Revenue per AHSC $26,622, up 6% year-over-year. This steady increase is consistent with the company's growth strategy and focus on improving returns on investment.
Net Income $4.3 million, representing the second consecutive quarter of positive net income. This reflects the company's continued momentum in revenue growth and operating leverage.
Cash and Cash Equivalents $106.4 million, compared to $98.3 million in the prior quarter. This increase is due to improved operating cash flow and disciplined financial management.
Operating Cash Flow $15.5 million, up $9.7 million year-over-year. This improvement reflects better working capital management and operational efficiency.
Free Cash Flow $8.8 million, up $7.2 million year-over-year. This reflects the company's focus on generating sustainable cash flow.
Provider Financing: Phreesia has expanded into the provider financing market through the acquisition of AccessOne. This solution addresses the issue of rising patient financial responsibility and helps healthcare providers convert patient receivables into predictable cash flow. The financing solutions improve days cash on hand, decrease days outstanding, and enhance patient affordability.
HCP Marketing: Phreesia is extending its offerings to healthcare provider (HCP) marketing, leveraging its existing patient engagement platform. This initiative aims to engage healthcare providers with relevant evidence-based information before patient appointments, creating a new revenue stream and deepening relationships with providers and life sciences clients.
AccessOne Acquisition: Phreesia acquired AccessOne, which manages a portfolio of approximately $450 million. This acquisition is expected to add 80 Average Healthcare Services Clients (AHSCs) annually and contribute to revenue growth.
HCP Digital Marketing Opportunity: Phreesia is positioning itself to participate in a multibillion-dollar HCP digital marketing market by leveraging its existing infrastructure and relationships.
Revenue Growth: Total revenue for Q3 fiscal 2026 was $120.3 million, a 13% year-over-year increase. Revenue per AHSC grew by 6% year-over-year.
Profitability: Adjusted EBITDA reached $29.1 million, a $19 million year-over-year increase, with a record-high adjusted EBITDA margin of 24%.
Cash Flow: Operating cash flow was $15.5 million, up $9.7 million year-over-year. Free cash flow was $8.8 million, up $7.2 million year-over-year.
Long-term Credit Facility: Phreesia plans to refinance or replace the $110 million secured bridge loan used for the AccessOne acquisition with a long-term credit facility.
Fiscal 2027 Outlook: Phreesia expects fiscal 2027 revenue to range between $545 million and $559 million, with adjusted EBITDA between $125 million and $135 million. AHSCs are expected to grow mid-single-digit percentage, and revenue per AHSC is expected to grow double-digit percentage.
Provider Financing Risks: The rising patient financial responsibility in the U.S. is leading to more unpaid patient balances and longer payment cycles, creating financial risks for healthcare providers. This increases working capital pressure and financial instability for providers.
AccessOne Acquisition Risks: The acquisition of AccessOne involves financial risks, including the need to refinance or replace a $110 million secured bridge loan with a long-term credit facility. Additionally, the funded model of AccessOne relies on a relationship with PNC Bank, which could pose operational risks if the partnership faces challenges.
Economic and Market Uncertainty: The company’s forward-looking statements highlight risks related to economic uncertainties and market conditions that could impact financial performance and strategic execution.
HCP Marketing Expansion Risks: The expansion into the Health Care Provider (HCP) marketing space involves risks related to execution and competition in a multibillion-dollar market. The success of this initiative depends on leveraging existing relationships and infrastructure effectively.
Revenue Growth and Client Acquisition Risks: The company’s growth strategy relies on increasing revenue per Average Healthcare Services Client (AHSC) and acquiring new clients. Failure to meet these targets could impact financial performance.
Operational and Integration Risks: The integration of AccessOne and other acquisitions into Phreesia’s operations poses risks, including potential challenges in aligning systems, processes, and cultures.
Revenue Outlook for Fiscal 2026: Updated to a range of $479 million to $481 million, including approximately $7.5 million of revenue contribution from AccessOne.
Adjusted EBITDA Outlook for Fiscal 2026: Updated to a range of $99 million to $101 million, reflecting expected contributions from AccessOne and other factors.
Average Healthcare Services Clients (AHSCs) for Fiscal 2026: Updated to approximately 4,515, reflecting the addition of 15 AHSCs from AccessOne.
Revenue per AHSC for Fiscal 2026: Expected to increase compared to fiscal 2025.
Revenue Outlook for Fiscal 2027: Projected to be in the range of $545 million to $559 million, with AccessOne contributing approximately 6.5% of total revenue.
Adjusted EBITDA Outlook for Fiscal 2027: Projected to be in the range of $125 million to $135 million.
AHSC Growth for Fiscal 2027: Expected to grow in the mid-single-digit percentage range.
Revenue per AHSC for Fiscal 2027: Expected to grow at a double-digit percentage rate.
The selected topic was not discussed during the call.
The earnings call presents strong financial metrics, including consecutive positive net income and increased cash flow, which are positive indicators. The Q&A session highlights a cautious but optimistic outlook, with plans for strategic investments and growth. While some management responses lack clarity, the overall sentiment is positive due to strong cash flow, margin expansion, and growth potential from acquisitions. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
The earnings call summary highlights strong financial metrics, optimistic guidance, and strategic acquisitions like AccessOne, which align with market expansion and product development goals. The Q&A session revealed analyst confidence in AI integration and new product offerings, despite some uncertainty regarding specific revenue details. The company's market cap suggests a moderate reaction, leading to a positive stock price movement prediction of 2% to 8% over the next two weeks.
The earnings call indicates strong financial performance with a 15% revenue increase and improved cash flow. Positive free cash flow and a strong cash position, along with a focus on product development, contribute to a positive outlook. Despite concerns about economic factors, management's resilience and strategic focus on growth and shareholder value are reassuring. The Q&A reveals no significant risks or uncertainties, and management's opportunistic share repurchase plan suggests confidence in future performance. Given the company's small-cap status, a positive stock price movement is expected.
The earnings call revealed strong financial performance, including a 15% revenue increase and solid EBITDA growth. The share repurchase plan indicates confidence in stock value, likely boosting investor sentiment. While regulatory risks exist, management's focus on product value and resilience in client engagement are reassuring. The positive financial metrics and strategic initiatives outweigh the hesitancy in client decision-making, suggesting a positive stock price movement. Given the market cap of $1.2 billion, the reaction is expected to be in the positive range of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
