Phreesia Q1 FY2026 presentation slides: revenue up 15%, EBITDA soars 409%

Introduction & Market Context

Healthcare technology provider Phreesia Inc (NYSE:PHR) released its Q1 FY2026 investor presentation on May 28, 2025, highlighting strong revenue growth and a dramatic improvement in profitability metrics. The company, which specializes in patient intake and engagement solutions, continues to benefit from healthcare industry tailwinds including staffing challenges, increasing patient financial responsibility, and a growing focus on patient-centered care.

Phreesia’s stock has shown positive momentum following the release, with premarket trading showing a 6.13% increase to $26.48. This follows a 3.7% gain in the previous session, suggesting investor confidence in the company’s growth trajectory and improving financial performance.

Quarterly Performance Highlights

Phreesia reported impressive financial results for Q1 FY2026, with total revenue reaching $116 million, representing a 15% year-over-year increase and a 6% sequential improvement from Q4 FY2025. The company’s profitability metrics showed even more dramatic improvements, with Adjusted EBITDA soaring 409% year-over-year to $21 million.

As shown in the following chart of quarterly financial performance:

Net loss improved significantly to -$4 million, an 80% year-over-year improvement and a 39% sequential improvement from the previous quarter’s -$6 million. This continues the positive trend seen in the company’s Q4 FY2025 results, where Phreesia beat analyst expectations with an EPS of -$0.11 against a forecasted -$0.15.

The company’s average healthcare services clients (AHSCs) increased to 4,411 in Q1 FY2026, while total revenue per AHSC grew to $26.3 thousand, a 6% year-over-year increase and a 4% sequential improvement.

Business Model and Growth Strategy

Phreesia operates a multi-sided network business model that connects healthcare service organizations, patients, and life sciences companies. The company generates revenue through three main channels: subscription and related services (47% of revenue), payment processing fees (26%), and network solutions (27%).

As illustrated in this breakdown of the company’s addressable market:

Phreesia estimates its total addressable market at $10 billion, with $6.3 billion in subscription-based revenue opportunities, $2.3 billion in consumer-related transactions, and $1.9 billion in network solutions. The company’s current annual revenue run rate of $435 million suggests significant room for continued expansion.

The company’s comprehensive suite of solutions spans the entire patient journey:

With approximately 170 million facilitated patient visits in fiscal 2025 and over $4 billion in patient payments processed in the latest twelve months, Phreesia has established itself as a significant player in the healthcare technology space. The company now employs approximately 2,000 people across North America and India.

Detailed Financial Analysis

Phreesia’s financial performance shows a strong trajectory of revenue growth combined with improving profitability. The company has achieved a 27% CAGR in total revenue from FY2019 to FY2025, growing from $100 million to $420 million.

The following chart illustrates this growth trajectory along with the dramatic improvement in Adjusted EBITDA:

Breaking down revenue by segment, subscription and related services has grown at a 28% CAGR from FY2019 to FY2025, payment processing fees at 18%, and network solutions at an impressive 36%. This diversified revenue stream provides multiple growth vectors for the company.

The company’s payment processing business shows consistent volume growth:

Phreesia has also demonstrated significant improvement in operating leverage and cash flow generation. The company has generated positive free cash flow since Q2 FY2025, with Q1 FY2026 showing $7 million in free cash flow and $15 million in operating cash flow.

As shown in the following operating leverage chart:

The company’s investment in growth has become more efficient over time, with research and development, sales and marketing, and general and administrative expenses all declining as a percentage of revenue. This improved operational efficiency has contributed significantly to the company’s profitability improvements.

Forward-Looking Statements

Phreesia provided an optimistic outlook for FY2026, projecting total revenue between $472 million and $482 million and Adjusted EBITDA between $85 million and $90 million. The company also expects to grow its average healthcare services clients to approximately 4,500 by the end of the fiscal year.

The company’s fiscal year 2026 guidance is summarized in the following slide:

This guidance represents continued revenue growth and a significant expansion in Adjusted EBITDA compared to FY2025’s $37 million. The company’s improving profitability metrics and consistent free cash flow generation suggest Phreesia is successfully transitioning from a growth-at-all-costs model to a more balanced approach that emphasizes both growth and profitability.

Phreesia’s growth strategy includes landing new clients, expanding its footprint within existing clients, cross-selling new applications, and pursuing strategic partnerships and acquisitions. The company has completed several acquisitions in recent years, including MediFind in Q2 FY2024 and both Access eForms and ConnectOnCall in Q3 FY2024.

As healthcare organizations continue to face staffing challenges and patients take on greater financial responsibility for their care, Phreesia’s solutions that streamline operations, enhance staff efficiency, improve cash flow, and enhance the patient experience are well-positioned to benefit from these industry tailwinds.

Full presentation:

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