Phreesia 2026 Q3 Earnings Profitability Turns Positive, Revenue Rises 12.7%

Phreesia (PHR) reported Q3 2026 earnings on Dec 9, 2025, with revenue rising 12.7% to $120.33 million, exceeding 2025 Q3’s $106.80 million. The company returned to profitability, posting a net income of $4.27 million (EPS $0.07) versus a $14.40 million loss (EPS -$0.25) in 2025 Q3. Fiscal 2026 revenue guidance was narrowed to $479–481 million, and the company introduced FY2027 revenue targets of $545–559 million.

Revenue

Phreesia’s total revenue grew 12.7% year-over-year to $120.33 million, driven by strong performance across all three segments. Subscription and related services contributed $55.48 million, while payment processing fees generated $27.42 million. Network solutions added $37.43 million, rounding out the total. The 6% increase in revenue per average healthcare services client (AHSC) to $26,622 underscored the company’s ability to monetize its expanding client base.

Earnings/Net Income

The company achieved a remarkable turnaround, reporting a net income of $4.27 million in Q3 2026, a 129.7% improvement from a $14.40 million loss in the prior-year period. Earnings per share rose to $0.07, reversing a $0.25 loss, marking a 128.0% positive swing. This profitability followed eight consecutive years of losses in the same quarter, highlighting strategic cost management and operational efficiency. The EPS performance reflects a significant recovery in financial health.

Post-Earnings Price Action Review

The stock price of Phreesia plummeted sharply following the earnings release, with a 19.55% drop on the day of the report, 23.42% over the subsequent week, and 30.71% month-to-date. A backtest of the strategy to buy PHR on a positive earnings beat and hold for 30 days revealed underperformance: a total return of -44.82% compared to the benchmark’s 57.89%. Despite a maximum drawdown of 0.00% indicating no losses during the period, the strategy failed to capture gains, resulting in a CAGR of -13.37% and a Sharpe ratio of -0.23. These metrics underscore the market’s skepticism despite improved earnings.

CEO Commentary

Chaim Indig, CEO, emphasized Phreesia’s “solid quarter of growth and profitability,” attributing success to strategic initiatives like the AccessOne acquisition. This move enables providers to convert patient receivables into predictable cash flow, improving days cash on hand. Indig also highlighted Phreesia’s unique HCP marketing capabilities, leveraging embedded clinical workflows and partnerships like MediFind and PhreesiaOnCall to deliver evidence-based information to clinicians.

Guidance

Phreesia updated FY2026 revenue guidance to $479–481 million, including $7.5 million from AccessOne, and adjusted EBITDA to $99–101 million. For FY2027, revenue is projected at $545–559 million, with adjusted EBITDA expected to reach $125–135 million. AHSCs are anticipated to grow to ~4,515 in 2026, with double-digit revenue per AHSC growth and mid-single-digit client growth in 2027. AccessOne is forecasted to contribute ~6.5% of 2027 revenue.

Additional News

Phreesia’s acquisition of AccessOne, valued at $160 million, expanded its provider financing and HCP marketing reach. The integration of AccessOne’s $450 million managed portfolio is expected to generate a blended take rate of 4%–12%, enhancing cash flow solutions for healthcare providers. CEO Chaim Indig highlighted the acquisition as a “new growth lever,” enabling Phreesia to address rising patient financial responsibility. Additionally, the company secured a $110 million secured bridge loan to fund the acquisition, with plans to refinance it in 2027. Balaji Gandhi, CFO, emphasized Phreesia’s adjusted EBITDA margin hitting 24% in Q3, a 15-percentage-point year-over-year improvement.