Phreesia, Inc. reported a net income of $4.3 million for its fiscal third quarter ended October 31, 2025, the first time the company has posted a positive net income in its history. Total revenue reached $120.3 million, up 13 % year‑over‑year, while operating cash flow climbed to $15.5 million and free cash flow to $8.8 million after $3.3 million in capital expenditures. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) surged to $29.1 million, a jump of $19 million from the same quarter a year earlier.
The company’s GAAP earnings per share were $0.07 and adjusted EPS was $0.10, both beating the consensus estimate of $0.00. The beat is largely attributable to disciplined cost management that preserved margins even as the company expanded its product mix. Higher pricing power in the payment‑processing segment and a favorable shift toward higher‑margin subscription contracts helped offset modest increases in operating expenses.
Revenue growth was driven by a 13 % increase in subscription revenue and a 7 % rise in payment‑processing revenue, reflecting stronger demand for Phreesia’s patient‑intake platform. The platform now powers roughly 14 % of all U.S. patient visits, and the recent acquisition of AccessOne for $160 million has broadened the company’s payment‑solutions offering, contributing to the quarter’s top‑line momentum. The integration of AccessOne also positioned Phreesia to capture additional revenue from health‑system customers.
Management updated its outlook, raising fiscal 2026 revenue guidance to $479 million–$481 million and adjusted EBITDA guidance to $99 million–$101 million, up from the prior range of $4.14 billion–$4.15 billion and $9.8 million, respectively. For fiscal 2027, the company projected revenue of $545 million–$559 million and adjusted EBITDA of $125 million–$135 million, signaling confidence in sustained growth and the successful integration of AccessOne and AI‑driven product enhancements.
CEO Chaim Indig said the quarter “marks the first net income positive period in Phreesia’s history” and praised the team’s execution. CFO Balaji Gandhi highlighted the company’s disciplined cost controls and noted that the adjusted EBITDA growth reflects both organic expansion and the impact of the AccessOne acquisition. Both executives emphasized a continued focus on scaling high‑margin solutions and deepening market penetration.
Analysts noted the strong earnings beat and the company’s upward revision of guidance, citing the firm’s improved profitability and the strategic value of the AccessOne acquisition as key drivers of confidence in Phreesia’s near‑term outlook.
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