Phreesia (PHR) AI Stock Analysis

• Market Cap: $997.75M
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• 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: 3,011,287
• 30 Day Avg. Volume: 1,541,422
• 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: 1.25
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 47.08
• 1Y Price Target: $30.09
• Price Target Upside: 81.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $480.39M

• Rating: 60 Neutral
• Price Target: $16.00 ▼(-3.32% Downside)

Phreesia's overall stock score is driven by strong financial performance and positive earnings call highlights, including revenue growth and strategic acquisitions. However, technical analysis indicates bearish momentum, and valuation metrics reflect profitability challenges, impacting the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Strategic Acquisitions

Strategic acquisitions like AccessOne enhance market reach and diversify service offerings, positioning Phreesia for sustained growth.

Cash Flow Improvement

Improved cash flow strengthens financial stability, enabling reinvestment in growth initiatives and reducing reliance on external financing.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could limit reinvestment capabilities and affect long-term financial health if not addressed.

Debt from Acquisition

High debt from acquisitions can strain financial resources and increase risk, necessitating effective debt management strategies.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating earnings from shareholder investments, impacting investor confidence.

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

Phreesia demonstrates strong revenue growth and operational efficiency with a high gross profit margin. However, challenges remain in achieving profitability, with negative net income and EBIT margins. The balance sheet is robust with low leverage, but the negative return on equity indicates a need for improved earnings. Cash flow metrics show positive trends, with significant free cash flow growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
EBITDA	-25.58M	-102.94M	-145.48M	-92.30M	-7.62M
Net Income	-58.53M	-136.88M	-176.15M	-118.16M	-27.29M
Balance Sheet
Total Assets	388.42M	370.33M	370.06M	494.48M	326.67M
Cash, Cash Equivalents and Short-Term Investments	84.22M	87.52M	176.68M	313.81M	218.78M
Total Debt	17.80M	11.98M	9.18M	15.80M	14.32M
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: Negative
• Last Price: 16.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 16.55 is below the 20-day moving average (MA) of 18.46, below the 50-day MA of 20.80, and below the 200-day MA of 24.80, indicating a bearish trend. The MACD of -1.43 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 20.68 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
GDRX	65 Neutral	$940.23M	32.25	4.90%	―	1.30%	―
PHR	60 Neutral	$997.75M	―	-1.87%	―	14.33%	93.62%
TXG	60 Neutral	$2.03B	-25.68	-10.12%	―	1.92%	59.18%
PINC	59 Neutral	$2.34B	-103.21	0.42%	2.97%	-21.26%	-119.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TDOC	47 Neutral	$1.28B	-5.65	-15.42%	―	-2.37%	77.85%
SDGR	44 Neutral	$1.30B	-7.35	-45.67%	―	32.90%	1.85%

Phreesia Corporate Events

Phreesia Secures $110 Million Loan for Acquisition

Phreesia has entered into a Bridge Credit Agreement with Goldman Sachs Bank USA to secure a $110 million loan for the acquisition of AccessOne. The loan, which bears interest at a fluctuating rate, is expected to be refinanced with a long-term credit facility. The agreement includes various covenants and conditions, such as maintaining a leverage ratio and prepayment terms, to ensure compliance with existing credit facilities. The acquisition of AccessOne was funded through the bridge loan, cash reserves, and cash acquired from AccessOne, totaling approximately $163 million.