Phreesia, Inc.

Second-quarter revenue was $129.5 million, up 10% year over year. Adjusted EBITDA was $32.9 million, up $10.8 million year over year, with adjusted EBITDA margin of 25%. Net income was $1.9 million versus $700,000 a year ago, marking the fifth consecutive quarter of positive net income. Average healthcare services clients were 4,744, up 36 sequentially and 277 year over year; total revenue per AHSC was $27,289, up 4% year over year. Total managed payments were $1.626 billion and Payment Solutions revenue rate was 2.4%. Operating cash flow was $18.3 million and free cash flow was $13.8 million, both up year over year, and cash, cash equivalents and restricted cash ended at $74.6 million. For fiscal 2027, Phreesia kept revenue guidance at $510 million to $520 million and adjusted EBITDA guidance at $125 million to $135 million; the revenue outlook assumes about $37 million from AccessOne and no additional revenue from future acquisitions completed before January 31, 2027.

Chaim Indig said the company delivered a solid quarter with revenue growth and profitability expansion in line with expectations, and highlighted positive operating and free cash flow plus debt reduction. Strategically, he emphasized Phreesia’s broad product set, AccessOne as an extension of its value proposition, and Provider Connect as a newer Network Solutions offering with building momentum. He was notably upbeat on AI, saying it has changed the playing field and made him more excited about Phreesia’s future than at any point in the company’s history.

Balaji Gandhi walked through the quarter’s financial performance, highlighting 10% revenue growth to $129.5 million, adjusted EBITDA of $32.9 million, and 25% margin. He noted operating cash flow of $18.3 million, free cash flow of $13.8 million, and cash of $74.6 million at quarter end, with debt principal reduced by over $23 million. On outlook, he reaffirmed fiscal 2027 revenue of $510 million to $520 million and adjusted EBITDA of $125 million to $135 million, while keeping AHSC growth expectations in the mid-single-digit range and total revenue per AHSC growth in the low-single-digit range.

Analysts focused on AccessOne adoption, Network Solutions visibility, subscription pricing, AI opportunities, and the sustainability of EBITDA guidance. Management said AccessOne is seeing early wins and positive client feedback, with the acquisition now feeling better than at close, while Network Solutions has made progress in the second half and products like Provider Connect are resonating. On pricing and revenue mix, management said they are focused on total revenue and total revenue per client rather than one line item, and they kept EBITDA guidance unchanged because of prudent expense management, revenue mix sensitivity, and the early stage of AI deployment.