Phreesia (PHR) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 504.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: 16.29%
• EPS Growth: 66.01%
• Country: US
• Employees: 2,082
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.07
• Shares Outstanding: 59,504,270
• 10 Day Avg. Volume: 667,713
• 30 Day Avg. Volume: 504,646
• PEG Ratio: -0.34
• Price to Book (P/B): 5.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 136.28
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: -6.81
• 1Y Price Target: $31.20
• Price Target Upside: 16.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 58 Neutral
• Price Target: $26.00 ▼(-3.02%Downside)

Phreesia's stock score is primarily supported by strong revenue growth and improving cash flows, as highlighted in the earnings call. However, ongoing profitability challenges and valuation concerns, including a negative P/E ratio, weigh down the overall score. Technical indicators present a mixed outlook, further contributing to the moderate score.

Positive Factors

Earnings

The company reported a strong start to fiscal 2026, with largely in-line sales and continued strong operating leverage, which drove a 5% raise to full-year adjusted EBITDA guidance.

Financial Performance

Adj-EBITDA rose 408%, significantly exceeding analyst estimates, and the company revised its adj-EBITDA range upward.

Revenue Growth

Revenue grew 14.5% as AHSCs grew 8.5% y/y and provider revenue/AHSC grew 5.2%.

Negative Factors

Market Risks

Concerns around pharma marketing budgets in the current policy environment as well as fears of potential delayed purchasing decisions from providers amid funding and reimbursement uncertainty have weighed a bit on the stock following the initial surge.

Network Solutions

There is a slowdown in network solutions revenue growth, with a decrease to 16% in the quarter compared to 26% in fiscal 2025.

Regulatory Risks

There is potential risk to Phreesia’s life sciences product offerings in the event of regulatory changes to direct-to-consumer pharma marketing.

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 primarily through a subscription-based model, where healthcare providers pay for access to its platform and services. The company offers various pricing tiers and modules, allowing clients to customize their usage according to their needs. In addition to subscription fees, Phreesia earns money through transaction fees from payment processing services integrated within its platform. The company may also benefit from partnerships with healthcare institutions and technology providers, which can enhance its platform offerings and expand its customer base.

Phreesia Financial Statement Overview

Summary

Phreesia's financial performance shows strong revenue growth and a solid equity base. However, the company faces profitability challenges with negative net profit and EBIT margins. Cash flow management is improving but still constrained by negative net income. Focus on operational efficiencies could enhance financial health.

Income Statement

Phreesia's revenue has consistently grown, evident from a TTM revenue increase of 17.8% compared to the previous year. However, the company is still facing profitability challenges with a negative net profit margin and EBIT margin. Gross profit margin is healthy at 68.5% TTM, indicating strong core business fundamentals. The negative EBITDA margin highlights ongoing operational inefficiencies.

Balance Sheet

The balance sheet reveals a solid equity base with an equity ratio of 68.2% TTM, indicating a stable financial structure. However, the debt-to-equity ratio remains low at 0.03, suggesting minimal leverage. Return on Equity is negative due to persistent net losses, reflecting a need for improved profitability to enhance shareholder value.

Cash Flow

Phreesia shows progress in cash flow management, with a positive operating cash flow and a remarkable improvement in free cash flow from the previous year. The operating cash flow to net income ratio is positive, suggesting effective cash conversion despite net losses. However, the free cash flow to net income ratio is constrained by ongoing negative net income.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
419.81M	356.30M	280.91M	213.23M	148.68M
	Gross Profit
284.88M	232.29M	171.64M	131.84M	96.29M
	EBIT
-54.99M	-131.77M	-176.55M	-116.82M	-25.67M
	EBITDA
-25.58M	-104.00M	-145.48M	-92.30M	-7.62M
	Net Income Common Stockholders
-58.53M	-136.88M	-176.15M	-118.16M	-27.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.22M	87.52M	176.68M	313.81M	218.78M
	Total Assets
388.42M	370.33M	370.06M	494.48M	326.67M
	Total Debt
17.80M	11.98M	9.18M	15.80M	14.32M
	Net Debt
-66.42M	-75.54M	-167.50M	-298.01M	-204.46M
	Total Liabilities
123.61M	118.88M	82.24M	77.20M	63.36M
	Stockholders Equity
264.81M	251.45M	287.82M	417.28M	263.31M
Cash Flow		Free Cash Flow
8.29M	-57.48M	-116.33M	-105.52M	-15.69M
	Operating Cash Flow
32.38M	-32.38M	-90.12M	-74.71M	2.89M
	Investing Cash Flow
-24.09M	-39.67M	-26.20M	-65.23M	-25.09M
	Financing Cash Flow
-11.49M	-17.11M	-20.41M	234.97M	150.66M

Phreesia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHR, the sentiment is Positive. The current price of 26.81 is above the 20-day moving average (MA) of 25.32, above the 50-day MA of 24.91, and above the 200-day MA of 24.34, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 92.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHR.

Phreesia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHR	58 Neutral	$1.60B	―	-15.97%	―	16.29%	66.01%
SDGR	56 Neutral	$1.81B	―	-43.33%	―	22.29%	-32.89%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
NEOG	46 Neutral	$1.13B	―	-16.71%	―	-2.50%	-30760.27%
ETNB	42 Neutral	$1.50B	―	-69.30%	―	―	-68.13%
BGM		$2.41B	―	-3.37%	―	―	―
ARQT	53 Neutral	$1.71B	―	-70.58%	―	100.03%	64.22%