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

Phreesia (PHR) reported its fiscal 2026 Q3 earnings on Dec 10th, 2025, delivering a significant turnaround with profitability and revenue growth. The company exceeded expectations with a net income of $4.27 million (EPS $0.07) compared to a $14.40 million loss in 2025 Q3, while revenue rose 12.7% to $120.33 million. Guidance for fiscal 2026 was raised, and the company introduced new fiscal 2027 targets, reflecting confidence in its strategic initiatives.

Revenue

Phreesia’s total revenue surged 12.7% year-over-year to $120.33 million in Q3 2026, driven by robust performance across all segments. Subscription and related services accounted for $55.48 million, forming the core of recurring revenue, while payment processing fees contributed $27.42 million, reflecting the company’s expanding payment solutions. Network solutions, a key growth driver, added $37.43 million, underscoring the strength of its healthcare provider network. The 6% year-over-year increase in revenue per average healthcare services client (AHSC) to $26,622 further highlighted operational efficiency and client retention.

Earnings/Net Income

Phreesia returned to profitability with a net income of $4.27 million (EPS $0.07) in Q3 2026, reversing a $14.40 million loss (EPS -$0.25) in the prior year period. This marked a 129.7% positive swing in net income and a 128.0% improvement in EPS, representing a dramatic turnaround after eight consecutive years of losses. The EPS result exceeded expectations, signaling strong cost discipline and operational execution.

Post-Earnings Price Action Review

The strategy of buying PHR when earnings beat and holding for 30 days underperformed dramatically, with a total return of -44.82% compared to the benchmark’s 57.89%. While the backtest showed a maximum drawdown of 0.00%—indicating no losses during the period—it also failed to capture gains, resulting in a CAGR of -13.37% and a Sharpe ratio of -0.23. This highlights the stock’s poor post-earnings momentum despite strong financial results.

CEO Commentary

Chaim Indig, CEO, emphasized Phreesia’s third-quarter growth and profitability, citing its large healthcare provider network and new product lines. Strategic priorities include leveraging the AccessOne acquisition to improve provider financing and expanding HCP marketing through evidence-based content. Indig expressed confidence in these initiatives as “differentiated revenue streams” that align with the company’s mission to streamline healthcare operations.

Guidance

Phreesia raised its fiscal 2026 revenue guidance to $479–481 million (prior: $472–482 million), with adjusted EBITDA of $99–101 million (prior: $87–92 million). For fiscal 2027, the company projected revenue of $545–559 million and adjusted EBITDA of $125–135 million, with AccessOne contributing ~6.5% of 2027 revenue. Management emphasized disciplined go-to-market investments and margin expansion as key priorities.

Additional News

Phreesia’s acquisition of AccessOne, finalized in November, added $7.5 million in Q4 revenue and expanded its provider financing capabilities. CEO Chaim Indig highlighted the strategic value of AccessOne in addressing rising patient financial responsibility. Additionally, the company announced plans to integrate AI-driven voice workflows to enhance clinical engagement. Insider selling activity, including shares sold by co-founders and executives, was noted, though management maintained confidence in long-term growth.

The stock’s recent volatility, with a 30.71% month-to-date decline, contrasts with its strong earnings performance, underscoring market skepticism about sustainability. Analysts remain cautious, with a focus on cross-selling AccessOne’s capabilities and navigating fluidity in the direct-to-consumer advertising landscape. Phreesia’s ability to maintain profitability while scaling its new initiatives will be critical for investor confidence.