Phreesia Reports 13% Revenue Growth to $130.9 Million, Achieves Net Income Turnaround

Phreesia, Inc. reported a total revenue of $130.9 million for the three months ended April 30, 2026, marking a 13% increase from $115.9 million in the same period last year. The company achieved a net income of $3.0 million, a significant turnaround from a net loss of $3.9 million in the prior year. Adjusted EBITDA also rose to $30.5 million, compared to $20.8 million in the previous year, reflecting improved operational efficiency. The increase in revenue was driven by strong performance in payment solutions, which saw a 40% increase to $41.9 million, largely attributed to the AccessOne acquisition and an uptick in patient visits processed through the platform.

In terms of operational metrics, Phreesia's average number of healthcare services clients (AHSCs) grew to 4,708, up from 4,411 a year earlier. This growth in client count contributed to an increase in total revenue per AHSC, which rose to $27,811 from $26,283. The company facilitated approximately 180 million patient visits in fiscal year 2026, representing about one in six ambulatory patient visits in the U.S. The company continues to focus its sales efforts primarily within the U.S. healthcare market, which remains a key driver of its revenue growth.

Phreesia's financial position improved, with cash, cash equivalents, and restricted cash totaling $76.4 million as of April 30, 2026, an increase of $2.6 million from January 31, 2026. The company generated $23.9 million in net cash from operating activities during the quarter, up from $14.9 million in the same period last year. The increase in cash flow was primarily due to higher revenues and improved collections from clients. However, the company also reported a net cash outflow of $26.1 million in financing activities, largely due to principal payments on debt and finance leases.

Strategically, Phreesia completed the acquisition of AccessOne Parent Holdings, Inc. in November 2025, which has expanded its addressable market for healthcare payments. The company also entered into a new $275 million senior secured revolving credit facility with Capital One, which provides additional liquidity for working capital and growth initiatives. Furthermore, on May 7, 2026, Phreesia announced a restructuring plan aimed at reducing operating expenses, which includes the elimination of approximately 220 positions, half of which are contractor roles. This restructuring is expected to yield significant annualized savings.

Looking ahead, Phreesia remains focused on leveraging its integrated software and payment solutions to enhance patient engagement and streamline healthcare delivery. The company anticipates continued growth in its client base and revenue streams, particularly in payment solutions, as it capitalizes on the synergies from the AccessOne acquisition. However, management acknowledges potential risks, including market competition and economic conditions, which could impact future performance.