Phreesia 2026 Q3 Earnings Profitability Returns with 129.7% Net Income Surge

Phreesia (PHR) reported fiscal 2026 Q3 earnings on Dec 09, 2025, with results exceeding expectations. The company swung to profitability, delivering a net income of $4.27 million (EPS $0.07) compared to a $14.4 million loss in 2025. Revenue grew 12.7% to $120.33 million, and the firm updated 2026 guidance while introducing 2027 revenue targets.

Revenue

Phreesia’s total revenue rose to $120.33 million, driven by robust performance across all segments. Subscription and related services contributed $55.48 million, while payment processing fees added $27.42 million. Network solutions accounted for $37.43 million, reflecting the company’s diversified revenue streams.

Earnings/Net Income

The company achieved a remarkable turnaround, with net income of $4.27 million in 2026 Q3, reversing a $14.4 million loss in the prior-year period. This represents a 129.7% positive swing in profitability. The EPS of $0.07 marked a significant improvement from a $0.25 loss, signaling strong operational recovery.

Price Action

Post-earnings, PHR’s stock faced sharp declines, plummeting 19.55% in a single trading day and 30.71% month-to-date. The strategy of buying PHR when revenues beat and holding for 30 days resulted in a -69.75% return, underperforming the 54.94% benchmark. The strategy exhibited high volatility (59.28%) and a maximum drawdown of 0.00%, underscoring its risk profile.

Post-Earnings Price Action Review

The stock’s post-earnings performance was marked by significant volatility. Despite beating revenue and EPS estimates, Phreesia’s shares fell sharply, with a 69.75% loss for the 30-day holding strategy. The benchmark return of 54.94% and a CAGR of -25.15% highlighted the strategy’s underperformance. High volatility (59.28%) and a 0.00% maximum drawdown underscored the risks of relying on this approach.

CEO Commentary

CEO Chaim Indig emphasized Phreesia’s growth through provider financing and HCP marketing, citing the AccessOne acquisition as a solution to cash flow challenges. He highlighted HCP marketing as a multibillion-dollar opportunity and outlined strategic investments in go-to-market efforts for AccessOne and HCP offerings.

Guidance

Phreesia raised its 2026 revenue guidance to $479–481 million and adjusted EBITDA to $99–101 million. For 2027, the company projected $545–559 million in revenue, with double-digit growth in revenue per AHSC and mid-single-digit AHSC growth. AccessOne is expected to contribute ~6.5% of 2027 revenue.

Additional News

Phreesia finalized the $160 million acquisition of AccessOne, a leader in healthcare receivables financing, to expand its provider financing solutions. The acquisition, funded via cash and a $110 million bridge loan, is expected to enhance cash flow for healthcare providers. CEO Chaim Indig highlighted HCP marketing as a multibillion-dollar opportunity, leveraging Phreesia’s infrastructure to engage providers alongside patients. The company also announced plans to refine AccessOne’s go-to-market strategy and prioritize debt refinancing for the bridge loan.