Phreesia’s Strong Financial Performance and Promising Outlook: A Buy Recommendation

William Blair analyst Ryan Daniels has maintained their bullish stance on PHR stock, giving a Buy rating on March 10.

Ryan Daniels has given his Buy rating due to a combination of factors that highlight Phreesia’s strong financial performance and promising outlook. The company reported impressive fourth-quarter results for fiscal 2025, with revenue slightly surpassing market expectations and adjusted EBITDA significantly exceeding consensus estimates. This performance was driven by a notable increase in margins, attributed to effective cost management, particularly in sales and marketing expenses.
Moreover, Phreesia demonstrated positive free cash flow for the third consecutive quarter, ending the fiscal year with a robust cash position. The company also saw a 10% year-over-year growth in its average health services clients, with revenue per client increasing modestly. Management’s reaffirmation of fiscal 2026 guidance across key metrics further supports the positive outlook, reinforcing Phreesia’s status as a core holding in the healthcare IT sector.

Daniels covers the Healthcare sector, focusing on stocks such as Addus Homecare, HealthStream, and OptimizeRx. According to TipRanks, Daniels has an average return of 6.3% and a 43.56% success rate on recommended stocks.