Executive Summary
Phreesia reported QQ3 2025 revenue of $106.8 million, up 16.57% year over year and 4.59% quarter over quarter, driven by continued demand for its integrated SaaS and payments platform in the U.S. and Canada healthcare market. The quarter delivered a robust gross margin of 67.66% (gross profit of $72.263 million), underscoring the high-margin nature of Phreesia’s software-enabled revenue model. However, operating profitability remained negative, with operating income of -$13.843 million and EBITDA of -$6.274 million, reflecting ongoing investments in R&D and go-to-market initiatives. Net income declined to -$14.403 million, yielding a net margin of -13.49%, while earnings per share (EPS) stood at 0.65 with 57.892 million weighted-average shares, indicating a disconnect between the reported EPS figure and net loss likely influenced by non-cash or one-time adjustments embedded in the period.
Cash flow remained healthy on an operating basis, with net cash provided by operating activities of $5.785 million and free cash flow of $5.169 million, supported by a cash balance of $81.74 million at period end. The company maintains a net cash position (net debt of -$70.608 million) and a solid equity base of $254.592 million, highlighting balance-sheet resilience even as profitability normalizes post-investment phase. Liquidity metrics remain favorable (current ratio 1.73; cash ratio 0.75), though working capital and receivables dynamics (DSO ~60 days) suggest continued exposure to collection cycles typical of the healthcare services ecosystem.
Looking ahead, Phreesia’s growth trajectory hinges on expanding its penetration within existing healthcare provider networks, monetizing new modules (e.g., enhanced revenue cycle features, life sciences solutions), and achieving operating leverage as scale increases. Given the current mix of revenue growth and profitability headwinds, the investment thesis centers on durable revenue visibility from the SaaS/Payments platform, potential for higher contribution margins with scale, and disciplined capital deployment to drive profitability over the medium term.
Key Performance Indicators
QoQ: 309.68% | YoY:212.07%
Key Insights
Revenue: $106.8 million; YoY growth 16.57%; QoQ growth 4.59%
Gross Profit: $72.263 million; Gross Margin 67.66%; YoY Gross Profit growth 19.09%; QoQ 16.91%
Operating Income: -$13.843 million; Operating Margin -12.96%; YoY Operating Income growth +56.80% (negative base effect); QoQ +19.62%
EBITDA: -$6.274 million; EBITDA Margin -5.87%
Net Income: -$14.403 million; Net Margin -13.49%; YoY Net Income growth +54.91%; QoQ +20.04%
EPS (Reported): $0.65; EPS Diluted: $0.65; YoY EPS growth +212.07%; QoQ...
Financial Highlights
Revenue: $106.8 million; YoY growth 16.57%; QoQ growth 4.59%
Gross Profit: $72.263 million; Gross Margin 67.66%; YoY Gross Profit growth 19.09%; QoQ 16.91%
Operating Income: -$13.843 million; Operating Margin -12.96%; YoY Operating Income growth +56.80% (negative base effect); QoQ +19.62%
EBITDA: -$6.274 million; EBITDA Margin -5.87%
Net Income: -$14.403 million; Net Margin -13.49%; YoY Net Income growth +54.91%; QoQ +20.04%
EPS (Reported): $0.65; EPS Diluted: $0.65; YoY EPS growth +212.07%; QoQ +309.68%
Weighted Average Shares: 57.892 million
Operating Cash Flow: $5.785 million; Free Cash Flow: $5.169 million; CapEx: $0.616 million (net)
Cash at End of Period: $81.74 million; Cash at Beginning: $81.798 million; Net Change in Cash: -$0.058 million
Total Assets: $375.703 million; Total Liabilities: $121.111 million; Total Stockholders’ Equity: $254.592 million
Cash & Equivalents: $81.74 million; Goodwill: $75.845 million; Intangible Assets: $29.014 million; Goodwill & Intangibles: $104.859 million
Total Current Assets: $189.573 million; Total Non-Current Assets: $186.130 million; Total Current Liabilities: $109.201 million; Total Non-Current Liabilities: $11.910 million
Debt: $11.132 million; Net Debt: -$70.608 million (net cash position)
Liquidity: Current Ratio 1.733; Quick Ratio 1.733; Cash Ratio 0.749; Days Sales Outstanding (DSO) 60.18; Revenue per DSO implied by data consistent with larger SaaS/recurring revenue base
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
106.80M |
16.57% |
4.59% |
| Gross Profit |
72.26M |
19.09% |
16.91% |
| Operating Income |
-13.84M |
56.80% |
19.62% |
| Net Income |
-14.40M |
54.91% |
20.04% |
| EPS |
0.65 |
212.07% |
309.68% |
Key Financial Ratios
operatingProfitMargin
-13%
operatingCashFlowPerShare
$0.1
freeCashFlowPerShare
$0.09
Management Commentary
No earnings call transcript provided in the supplied data. As a result, there are no management quotes or thematic highlights to summarize from the QQ3 2025 call. If a transcript or press release with management commentary is supplied, I can incorporate quotes and themes on strategy, operations, and market conditions.
Forward Guidance
No explicit forward guidance is included in the provided data for QQ3 2025. In the absence of formal guidance, the forward-looking assessment rests on the trajectory implied by the quarterly data and typical SaaS metrics: monetization of existing deployments, expansion within the current provider base, and potential cross-sell of add-on modules should support revenue growth with improving margins as scale is achieved. Management typically emphasizes platform stickiness, payer/clinic adoption, and continued investment in R&D and go-to-market activities. Key factors to monitor for guidance realism include: trajectory of ARR growth, customer retention/expansion (gross retention and net revenue retention), sales efficiency (CAC payback and LTV:CAC), progression toward operating leverage, and the rate of improvement in gross margins as SG&A scales with revenue. If management provides color in future communications, I would reassess guidance against these metrics, including any targets for adjusted operating income, EBITDA, and free cash flow margins.