Phreesia Inc Q1 2026 Earnings Call Transcript: CFO Balaji Gandhi and CEO Chaim Indig Discuss Results.

Phreesia Inc reported Q1 2026 earnings, with a conference call led by CFO Balaji Gandhi. The company's financial results and quarterly stakeholder letter are available on their website. The call is being recorded and a replay will be available for those who cannot attend live.

Phreesia Inc (PHR) reported its Q1 2026 earnings on May 30, 2025, with a conference call led by CFO Balaji Gandhi. The company's financial results and quarterly stakeholder letter are available on their website. The call is being recorded and a replay will be available for those who cannot attend live.

Financial Highlights:
- Total revenue for Q1 2026 was $115.9 million, representing a 15% year-over-year increase [1].
- Average healthcare services clients (AHSCs) stood at 4,411, up 70 from the prior quarter and 346 from the prior year. Total revenue per AHSC was $26,283, up 6% year-over-year [1].
- Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year with an adjusted EBITDA margin of 18% [1].
- Operating cash flow was $14.9 million, up $15.6 million year-over-year, while free cash flow was $7.5 million, up $13.7 million year-over-year [1].
- The company maintained positive operating cash flow and positive free cash flow for the fourth consecutive quarter [1].
- Cash and cash equivalents as of April 30, 2025, stood at $90.9 million, up $6.7 million from January 31, 2025 [2].

Outlook for Fiscal 2026:
- Phreesia is maintaining its revenue outlook for fiscal 2026 at a range of $472 million to $482 million [1].
- The adjusted EBITDA outlook for fiscal 2026 has been updated to a range of $85 million to $90 million, an increase of $4.5 million from the previous midpoint [1].
- The company expects AHSCs to reach approximately 4,500 in fiscal 2026, with total revenue per AHSC expected to increase from fiscal 2025 [1].

Management Comments:
CEO Chaim Indig emphasized Phreesia's commitment to delivering valuable and scalable products, highlighting new offerings such as appointment readiness, post script engagement, and enhanced bill pay. He noted the integration of AI across all aspects of the organization and the company's strong balance sheet and free cash flow position as key to supporting long-term shareholder value [1].

CFO Balaji Gandhi reported that the company's product-led growth strategy and strong team are driving results. He highlighted the company's positive operating and free cash flow for the fourth consecutive quarter and a cash and cash equivalents position of $90.9 million [1].

Analyst Questions and Management Responses:
During the Q&A session, analysts inquired about customer conversations in network solutions, provider market dynamics, campaign flexibility, and proposed legislation related to pharma advertising. Management responded confidently, emphasizing the company's product value, strong team, and flexibility in capital allocation [1].

Conclusion:
Phreesia delivered strong Q1 2026 results with revenue and adjusted EBITDA growth, raised its adjusted EBITDA outlook for fiscal 2026, and sustained positive free cash flow. The company continues to expand its client base and per-client revenue while maintaining disciplined expense management and a robust cash position. Management reiterated confidence in product-led growth, AI integration, and flexible capital allocation, with no material changes in market conditions or risk factors reported during the call.

References:
[1] https://seekingalpha.com/news/4453003-phreesia-raises-adjusted-ebitda-outlook-to-85m-90m-for-fiscal-2026-while-sustaining-strong
[2] https://www.stocktitan.net/news/PHR/phreesia-announces-first-quarter-fiscal-2026-sdpv8np21t3q.html