Gold prices hover near record peaks as Fed rate cut bets mount
Introduction & Market Context
Phreesia Inc (NYSE:PHR), a healthcare technology company specializing in patient intake and payment solutions, presented its second quarter fiscal year 2026 results on September 4, 2025, highlighting continued revenue growth and a significant acquisition to expand its payment solutions portfolio. The company’s stock rose 2.53% to close at $30.44, with additional gains of 2.2% in after-hours trading, reflecting positive market reception to the results and strategic announcements.
In a major development, Phreesia announced plans to acquire AccessOne, a platform specializing in receivables financing solutions for healthcare providers, for $160 million in cash. The acquisition is expected to close in the second half of fiscal 2026 and will be funded through a combination of cash on hand and debt.
Quarterly Performance Highlights
Phreesia reported total revenue of $117 million for Q2 FY2026, representing a 15% year-over-year increase and a 1% sequential improvement from the previous quarter. The company achieved a significant milestone by reporting net income of $1 million, a 104% improvement year-over-year, marking its first profitable quarter. This profitability was partly attributed to a deferred tax benefit during the quarter.
Adjusted EBITDA showed remarkable growth, reaching $22 million, a 239% increase compared to the same quarter last year. The company maintained its client base with 4,467 Average Healthcare Services Clients (AHSCs) and generated $26,200 in revenue per client, a 7% year-over-year improvement.
The company’s revenue streams remain diversified, with subscription and related services accounting for 46% of Q2 FY2026 revenue, payment processing fees contributing 24%, and network solutions representing 30%. This balanced approach has helped Phreesia maintain consistent growth across multiple business segments.
Strategic Expansion
The AccessOne acquisition represents a strategic expansion of Phreesia’s payment solutions capabilities. As the "Trusted Leader in Patient Activation Solutions" facilitating over $4 billion in annual patient payments, Phreesia is positioning itself to address the growing challenges in healthcare financial management.
AccessOne brings a complementary platform for receivables financing solutions with an approximately $450 million portfolio. The company emphasized that AccessOne takes minimal credit risk across its portfolio, suggesting a conservative approach to financial services expansion.
This acquisition aligns with Phreesia’s broader strategy of growth through both organic expansion and strategic acquisitions. Previous acquisitions include Vital Score in FY2019 and ConnectOnCall in Q3 FY2024, demonstrating the company’s consistent approach to expanding its capabilities through targeted M&A activity.
Business Model & Growth Drivers
Phreesia’s business model targets a total addressable market of approximately $24 billion across three main segments: subscription-based revenue ($6.3 billion TAM), payment solutions ($9.1 billion TAM), and network solutions ($8.2 billion TAM). The payment solutions TAM figure now includes the implied provider financing market attributable to the AccessOne acquisition.
The company serves a diverse healthcare client base including health systems, specialty practices, hospitals, federally qualified health centers, ambulatory surgery centers, and primary care groups. On the life sciences side, Phreesia works with approximately 100 pharmaceutical brands, including all of the top 10 global pharmaceutical companies.
Phreesia’s growth strategy involves multiple components: landing new clients through direct sales, expanding within existing clients, cross-selling new applications, improving unit economics, and pursuing strategic partnerships and acquisitions. This multi-faceted approach has contributed to the company’s consistent revenue growth over time.
Financial Trajectory
The presentation highlighted Phreesia’s impressive financial trajectory, with total revenue growing from $100 million in FY2019 to a projected $472-$482 million in FY2026, representing a 27% CAGR from FY2019 to FY2025. Even more dramatic has been the improvement in profitability, with Adjusted EBITDA rising from $4 million in FY2019 to a projected $87-$92 million in FY2026.
This financial improvement reflects Phreesia’s successful execution of its long-term strategy to scale revenue while significantly enhancing profitability. The company has achieved operating leverage by maintaining research and development expenses at approximately 25% of revenue while reducing sales and marketing expenses from 50% of revenue in FY2022 to 22% in Q2 FY2026, and general and administrative expenses from 32% to 16% over the same period.
The company has been free cash flow positive since Q2 FY2025, with free cash flow reaching $10 million in Q2 FY2026, demonstrating improved financial health and operational efficiency.
Forward Outlook
For fiscal year 2026, Phreesia maintained its revenue guidance of $472-$482 million and slightly raised its Adjusted EBITDA outlook to $87-$92 million. The company expects to maintain approximately 4,500 AHSCs with total revenue per AHSC exceeding FY2025 levels.
Management indicated they would update their fiscal 2026 financial outlook following the close of the AccessOne acquisition, suggesting potential upside to current projections once the transaction is completed.
The company continues to benefit from industry tailwinds, including healthcare staffing challenges (with 1.3 million healthcare staff representing $37 billion in annual spending), increasing patient financial responsibility (projected to reach $749 billion in out-of-pocket spend by 2032), and the growing emphasis on patient-centered care.
With its consistent revenue growth, improving profitability metrics, and strategic expansion through the AccessOne acquisition, Phreesia appears well-positioned to continue its growth trajectory in the healthcare technology sector. The achievement of profitability in Q2 FY2026 marks an important milestone in the company’s financial evolution as it continues to expand its suite of patient activation and payment solutions.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.