Phreesia Reports 15% Revenue Growth to $115.9 Million, Narrows Net Loss

Phreesia, Inc. reported a total revenue of $115.9 million for the three months ended April 30, 2025, marking a 15% increase from $101.2 million in the same period last year. The company's net loss narrowed significantly to $3.9 million, compared to a loss of $19.7 million in the prior year. Adjusted EBITDA also improved, reaching $20.8 million, up from $4.1 million in the previous year. The company generated $14.9 million in net cash from operating activities, a notable turnaround from the $0.7 million used in the same quarter of 2024. As of April 30, 2025, Phreesia had cash and cash equivalents of $90.9 million, an increase of $6.7 million from January 31, 2025.

The increase in revenue was driven by growth across all segments, with subscription and related services revenue rising 16% to $54.4 million, payment processing fees increasing 11% to $29.9 million, and network solutions revenue growing 15% to $31.7 million. The company attributed this growth to the addition of new healthcare services clients and the expansion of services to existing clients. The average number of healthcare services clients also increased to 4,411 from 4,065 year-over-year, reflecting the company's successful client acquisition strategy.

Phreesia has made strategic investments in its product offerings, including enhancements to its SaaS-based solutions that manage patient access, registration, and payments. The company continues to focus on expanding its market presence primarily within the United States, where it has historically generated most of its revenue. The company’s operational metrics indicate a strong engagement with its healthcare services clients, as evidenced by a 6% increase in total revenue per average healthcare services client, which reached $26,283.

In terms of operational efficiency, Phreesia reported a decrease in sales and marketing expenses by 19% to $26.0 million, primarily due to reduced labor costs. Research and development expenses increased by 10% to $31.8 million, reflecting the company's commitment to innovation and product development. The company also reported a decrease in general and administrative expenses, which fell by 14% to $16.4 million, indicating improved cost management.

Looking ahead, Phreesia remains optimistic about its growth trajectory, supported by its strong cash position and ongoing investments in technology and client services. The company is focused on leveraging its existing client relationships to drive further revenue growth and enhance its market share in the healthcare technology sector. However, it acknowledges potential risks related to market competition, regulatory changes, and macroeconomic conditions that could impact its future performance.