Phreesia (PHR) AI Stock Analysis

• Market Cap: $702.95M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 14.33%
• EPS Growth: 93.62%
• Country: US
• Employees: 2,082
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.07
• Shares Outstanding: 60,287,003
• 10 Day Avg. Volume: 2,246,210
• 30 Day Avg. Volume: 1,677,520
• PEG Ratio: 0.47
• Price to Book (P/B): 6.19
• Price to Sales (P/S): 3.90
• P/FCF Ratio: 197.66
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 23.09
• 1Y Price Target: $27.60
• Price Target Upside: 136.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.52
• Revenue Forecast (FY): $552.52M

• Rating: 60 Neutral
• Price Target: $12.50 ▲(7.20% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score reflects improving business momentum and upbeat guidance from the latest earnings call, supported by a strong balance sheet and improving cash flow trends. These positives are tempered by clearly bearish technicals and limited valuation support given the negative P/E and lack of dividend yield.

Positive Factors

High margins and improving cash generation

Phreesia’s 72.5% gross margin and TTM free cash flow growth (~20%) reflect a software-driven, high-margin business and improving cash conversion. Low operating capital needs plus rising FCF support durable reinvestment, product development and optionality for M&A or debt reduction.

Revenue growth and rising adjusted EBITDA margin

Consistent revenue growth and a record 24% adjusted EBITDA margin indicate scalable unit economics and operating leverage in the subscription model. Sustained margin expansion improves free cash generation potential and supports reinvestment in sales, product and margin-accretive initiatives.

Expanding customer base and platform scale

Quarterly gains in AHSCs show continued adoption of Phreesia’s intake platform, strengthening recurring revenue and network effects. A growing client footprint improves cross-sell of payments, marketing and financing products, enhancing long-term revenue visibility and retention dynamics.

Negative Factors

Ongoing GAAP profitability weakness

Despite strong gross margins and adjusted EBITDA, GAAP profitability and ROE remain negative, reflecting operating and non-operating costs that depress shareholder returns. Persistent negative net income could limit capital allocation flexibility and investor confidence until converted into consistent GAAP profits.

Acquisition funding and refinancing risk

Reliance on a $110M secured bridge loan to finance AccessOne creates short-term refinancing risk and potential higher interest costs. If a long-term facility isn’t secured on favorable terms, leverage and servicing costs could constrain strategic flexibility and divert cash flow from growth initiatives.

Softness/uncertainty in network solutions demand

Management’s cautious stance on network solutions signals demand uncertainty in an important product area. Prolonged hesitancy by providers to adopt these offerings would slow diversification and limit upside from higher-value network products, challenging long-term revenue mix improvement.

Phreesia Business Overview & Revenue Model

Company Description

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. Its Phreesia Platform offers a suite of solutions to manage the patient intake process, as well as an integrated payments solution for processing of patient payments. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, which are self-service intake tablets; and Arrivals Kiosks that are on-site kiosks. Its Phreesia Platform also provides a registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, and cost estimation tools; access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking; and life sciences solution to deliver targeted and clinically relevant marketing content to patients. In addition, the company's Phreesia Platform offers clinical support solution, which collects clinical intake and patient reported outcome (PRO) data for approximately 25 specialties, as well as enables healthcare services clients to communicate with their patients through surveys, announcements, text and email messaging, and health campaigns; and COVID-19 support modules for managing COVID-19 vaccine delivery and identify vaccine-hesitant patients, screening for self-reported COVID-19 risk factors, enabling contactless check-in during in-person visits, and collecting intake information during telehealth visits. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is headquartered in Raleigh, North Carolina.

How the Company Makes Money

Phreesia generates revenue through a subscription-based model, offering healthcare organizations access to its software and services on a recurring basis. Key revenue streams include subscription fees for its patient intake platform, transaction fees from payment processing, and additional fees for premium features or services. The company has established significant partnerships with various healthcare providers and organizations to expand its market reach, and it also benefits from ongoing relationships with electronic health record (EHR) systems, enhancing its service offerings and driving revenue growth.

Phreesia Financial Statement Overview

Summary

Solid fundamentals supported by strong gross margin (72.52%), very low leverage (debt-to-equity 0.016), and improving cash generation (TTM free cash flow growth 20.14%). Offsetting this, profitability remains a key weakness in the financial statements (negative net margin -5.35%, EBIT margin -4.77%, and ROE -8.75%).

Income Statement

Phreesia has shown consistent revenue growth, with a TTM growth rate of 3.01%. The gross profit margin has improved to 72.52% in the TTM, indicating strong operational efficiency. However, the company is still facing challenges in profitability, with a negative net profit margin of -5.35% and an EBIT margin of -4.77%. Despite a positive EBITDA margin of 1.52%, the company needs to address its operating losses to enhance profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.016, indicating minimal leverage. The equity ratio stands at 75.64%, showcasing a strong equity base. However, the return on equity is negative at -8.75%, highlighting ongoing profitability issues. The company needs to improve its earnings to enhance shareholder returns.

Cash Flow

Phreesia's cash flow position has improved, with a free cash flow growth rate of 20.14% in the TTM. The operating cash flow to net income ratio is 0.49, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.67, suggesting that the company is generating positive free cash flow despite net losses. Continued focus on cash flow management will be crucial for future stability.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	463.20M	419.81M	356.30M	280.91M	213.23M	148.68M
Gross Profit	315.91M	284.88M	232.29M	171.64M	131.84M	96.29M
EBITDA	26.44M	-25.58M	-102.94M	-145.48M	-92.30M	-7.62M
Net Income	-5.38M	-58.53M	-136.88M	-176.15M	-118.16M	-27.29M
Balance Sheet
Total Assets	423.47M	388.42M	370.33M	370.06M	494.48M	326.67M
Cash, Cash Equivalents and Short-Term Investments	106.37M	84.22M	87.52M	176.68M	313.81M	218.78M
Total Debt	3.48M	17.80M	11.98M	9.18M	15.80M	14.32M
Total Liabilities	103.14M	123.61M	118.88M	82.24M	77.20M	63.36M
Stockholders Equity	320.33M	264.81M	251.45M	287.82M	417.28M	263.31M
Cash Flow
Free Cash Flow	41.92M	8.29M	-57.48M	-116.33M	-105.52M	-15.69M
Operating Cash Flow	61.41M	32.38M	-32.38M	-90.12M	-74.71M	2.89M
Investing Cash Flow	-26.32M	-24.09M	-39.67M	-26.20M	-65.23M	-25.09M
Financing Cash Flow	-10.28M	-11.49M	-17.11M	-20.41M	234.97M	150.66M

Phreesia Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHR, the sentiment is Negative. The current price of 11.66 is below the 20-day moving average (MA) of 12.72, below the 50-day MA of 15.01, and below the 200-day MA of 22.58, indicating a bearish trend. The MACD of -1.01 indicates Negative momentum. The RSI at 28.63 is Positive, neither overbought nor oversold. The STOCH value of 40.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHR.

Phreesia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHR	60 Neutral	$702.95M	―	-1.87%	―	14.33%	93.62%
GDRX	58 Neutral	$804.46M	27.59	4.90%	―	1.30%	―
TXG	55 Neutral	$2.44B	-54.63	-5.78%	―	1.92%	59.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TDOC	47 Neutral	$805.73M	-3.55	-15.42%	―	-2.37%	77.85%
SDGR	44 Neutral	$832.41M	-4.70	-45.67%	―	32.90%	1.85%

Phreesia Corporate Events

Phreesia Adds Jon Kessler to Board of Directors

On February 23, 2026, Phreesia announced the appointment of industry veteran Jon Kessler to its Board of Directors, effective April 6, 2026, bringing decades of experience leading technology-driven healthcare financial services companies such as WageWorks and HealthEquity. Kessler, regarded as an audit committee financial expert, is expected to support Phreesia’s strategy to strengthen its platform, launch new offerings and enhance shareholder value as it continues to expand its role in digital patient engagement.

The company also disclosed that long-serving directors Edward L. Cahill and Board Chair Michael Weintraub will retire at the 2026 Annual Meeting, after overseeing Phreesia from its founding through its 2019 IPO and subsequent growth to more than $460 million in trailing twelve-month revenue. Following their departure, the Board will shrink to seven members, six of them independent, reflecting a governance refresh that aims to balance continuity with new expertise as Phreesia consolidates its position as a leader in modernizing patient intake and activation across the U.S. healthcare system.

The most recent analyst rating on (PHR) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Phreesia stock, see the PHR Stock Forecast page.