Phreesia, Inc. reported a significant increase in its financial performance for the second quarter of fiscal 2026, with total revenue reaching $117.3 million, a 15% rise from $102.1 million in the same period last year. For the six months ending July 31, 2025, revenue also increased by 15% to $233.2 million compared to $203.3 million in the prior year. The company achieved a net income of $0.7 million for the quarter, a notable turnaround from a net loss of $18.0 million in the same quarter of the previous year. The net loss for the six months was reduced to $3.3 million from $37.7 million year-over-year.
The company’s growth was driven by increases in subscription and related services, payment processing fees, and network solutions. Subscription revenue rose to $53.7 million, up 10% year-over-year, while payment processing fees increased by 12% to $28.4 million. Network solutions revenue saw a 25% increase, reaching $35.2 million, attributed to enhanced engagement and education programs. Phreesia's average number of healthcare services clients also grew, with 4,467 clients reported for the quarter, compared to 4,169 in the previous year.
In terms of operational metrics, Phreesia reported a cash and cash equivalents balance of $98.3 million as of July 31, 2025, an increase of $14.1 million from January 31, 2025. The company generated $14.8 million in net cash from operating activities for the quarter, compared to $11.1 million in the same period last year. Free cash flow improved significantly to $9.6 million from $3.7 million year-over-year. The company also noted a decrease in total expenses, which amounted to $118.8 million for the quarter, down from $119.3 million in the previous year.
Strategically, Phreesia announced its intention to acquire AccessOne Parent Holdings, Inc. for $160 million, a move expected to enhance its offerings in healthcare financing solutions. This acquisition is anticipated to close in the third or early fourth quarter of fiscal 2026, subject to regulatory approvals. The company plans to finance the acquisition through a combination of cash and a new senior secured bridge loan facility. Phreesia continues to focus on expanding its market presence primarily within the United States, leveraging its integrated software solutions to improve healthcare operational efficiencies and patient engagement.
Looking ahead, Phreesia remains optimistic about its growth trajectory, emphasizing its commitment to enhancing its product offerings and expanding its client base. The company acknowledges potential risks, including market competition and regulatory challenges, but believes its strategic initiatives will position it well for continued success in the evolving healthcare technology landscape.
About Phreesia, Inc.
Phreesia, Inc. provides healthcare organizations with SaaS solutions that streamline patient intake, registration, payments, and communication. Its integrated platform enhances operational efficiency, patient engagement, and health outcomes across various medical specialties. Serving healthcare providers, life sciences companies, and government entities, it offers tools for appointment management, clinical assessments, and targeted patient education, supporting improved care delivery and revenue cycle management.
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