Phreesia, Inc. (PHR) | Investment Case

1. Company Snapshot

1.a. Company Description

Phreesia, Inc.provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada.Its Phreesia Platform offers a suite of solutions to manage the patient intake process, as well as an integrated payments solution for processing of patient payments.

The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, which are self-service intake tablets; and Arrivals Kiosks that are on-site kiosks.Its Phreesia Platform also provides a registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, and cost estimation tools; access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking; and life sciences solution to deliver targeted and clinically relevant marketing content to patients.In addition, the company's Phreesia Platform offers clinical support solution, which collects clinical intake and patient reported outcome (PRO) data for approximately 25 specialties, as well as enables healthcare services clients to communicate with their patients through surveys, announcements, text and email messaging, and health campaigns; and COVID-19 support modules for managing COVID-19 vaccine delivery and identify vaccine-hesitant patients, screening for self-reported COVID-19 risk factors, enabling contactless check-in during in-person visits, and collecting intake information during telehealth visits.

It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies.The company was incorporated in 2005 and is headquartered in Raleigh, North Carolina.

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1.b. Last Insights on PHR

Negative drivers behind Phreesia's recent 3-month performance include a slight deceleration in customer growth, which may impact future revenue growth. Additionally, the company's reliance on network solutions for revenue growth may be a concern, as it may not be sustainable in the long term. Furthermore, the increasing competition in the healthcare software market may lead to a decrease in market share and revenue.

1.c. Company Highlights

2005 - Phreesia, Inc. was founded by Chaim Indig, with the goal of creating a patient-centered, self-service kiosk for healthcare check-in.

2007 - Phreesia launched its first product, a patient check-in and payment solution, and signed its first major client, Continuum Health Partners.

2010 - Phreesia expanded its product line to include a patient engagement platform, offering a range of tools for patient communication and education.

2013 - Phreesia went public with an initial public offering (IPO), listing on the New York Stock Exchange (NYSE) under the ticker symbol PHR.

2015 - Phreesia acquired Insignia Health, a provider of patient engagement and education solutions, expanding its product offerings.

2018 - Phreesia launched its In-office Patient Engagement Platform, a comprehensive solution for patient check-in, payment, and engagement.

2020 - Phreesia acquired Luma Health, a provider of patient engagement and communication solutions, further expanding its product offerings.

Last Price	20.29
Change Percentage	-1.27%
Open	20.5
Previous Close	20.55
Market Cap ( Millions)	1216
Volume	840679
Year High	32.76
Year Low	18.55
M A 50	22.21
M A 200	25.33

FCF Yield	2.87%
Dividend Yield	0.00%
ROE	-8.75%
Debt / Equity	1.60%
Net Debt / EBIDTA	-1365.52%
Price To Book	4.04
Price Earnings Ratio	-49.99
Price To FCF	34.84
Price To sales	2.7
EV / EBITDA	163.87

2. Phreesia Delivers Strong Q1 Fiscal 2026 Results

Phreesia reported robust financial performance in its first quarter of fiscal 2026, with revenue reaching $115.9 million, a 15% year-over-year increase. The company demonstrated strong operating leverage, with adjusted EBITDA of $20.8 million and an 18% margin. Cash and cash equivalents grew to $90.9 million, supported by positive operating and free cash flow of $14.9 million and $7.5 million, respectively. The company also reported a net loss per share of $0.11, outperforming analyst estimates of $-0.19. As CEO Chaim Indig noted, "Our focus on scalable, value-driven products is already showing measurable impact," highlighting the effectiveness of Phreesia's strategic initiatives.

Publication Date: May -28

                                    📋 Highlights
                                    Revenue Growth:
                                                Phreesia reported $115.9 million in Q1 revenue, a 15% year-over-year increase.
Client Expansion:
                                                The company added 346 new clients, ending the quarter with 4,411 average clients and $26,283 in revenue per client, up 6% YoY.
Adjusted EBITDA:
                                                Achieved $20.8 million in adjusted EBITDA with an 18% margin, reflecting strong operating leverage.
Cash Position:
                                                Cash and cash equivalents grew to $90.9 million, with $14.9 million in operating cash flow and $7.5 million in free cash flow.
Guidance Increase:
                                                Raised fiscal 2026 adjusted EBITDA guidance to $85-$90 million, maintaining revenue outlook of $472-$482 million.

                                

Strategic Initiatives and Growth Outlook

Phreesia's strategic focus on AI integration and product-led expansion is driving growth. The company is well-positioned to reach 4,500 clients by the end of the fiscal year, with increasing revenue per client. CFO Balaji Gandhi emphasized the team's strong execution, maintaining the fiscal 2026 revenue outlook of $472 million to $482 million and raising adjusted EBITDA guidance to $85 million to $90 million. The strong balance sheet and growing free cash flow provide Phreesia with the flexibility to pursue opportunistic capital deployment, enhancing long-term shareholder value.

Valuation and Financial Health

From a valuation perspective, Phreesia currently trades at a P/S ratio of 3.3, reflecting the market's confidence in its growth prospects. The company's free cash flow yield of 0.84% indicates a reasonable valuation relative to its cash generation capabilities. While the EV/EBITDA ratio of -52.58 may raise concerns, the company's strong financial performance and growth initiatives suggest a path toward improving profitability. The board's approval of a share repurchase plan for up to 2.5 million shares further underscores management's confidence in the company's future prospects.

Operational Highlights and Client Engagement

Phreesia's operational execution was a key highlight in the quarter. The company saw strong subscription revenue growth, excluding a one-time $1 million benefit, reaching 3.5% growth, the best since 2021. This growth was driven by new product introductions and expansion within existing clients. The integration of AI across products and operations is a strategic focus, with CEO Chaim Indig emphasizing that clients buy solutions to complex problems, and Phreesia is leveraging AI to enhance its platform and deliver value. The company also highlighted increased trust in Phreesia as a reliable partner, contrasting with smaller VC-backed firms that struggled during COVID.

3. NewsRoom

Phreesia's Megan Turco Named to MM+M 40 Under 40

Dec -04

Source: businesswire.com

Stay Ahead of the Game With Phreesia (PHR) Q3 Earnings: Wall Street's Insights on Key Metrics

Dec -03

Source: zacks.com

Phreesia (PHR) Earnings Expected to Grow: Should You Buy?

Dec -01

Source: zacks.com

Phreesia, Inc. $PHR Shares Bought by American Century Companies Inc.

Dec -01

Source: defenseworld.net

Phreesia (NYSE:PHR) Stock Acquired Rep. Gilbert Ray Cisneros, Jr.

Nov -21

Source: defenseworld.net

After Plunging 18.2% in 4 Weeks, Here's Why the Trend Might Reverse for Phreesia (PHR)

Nov -20

Source: zacks.com

Phreesia Named to the 2025 Deloitte Technology Fast 500™

Nov -19

Source: businesswire.com

Phreesia, Inc. $PHR Shares Purchased by Arcadia Investment Management Corp MI

Nov -15

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.15%)

6. Segments

Subscription and Related Services

Expected Growth: 14.37%

Phreesia's Subscription and Related Services segment growth of 14.37% is driven by increasing adoption of its patient engagement platform, expansion into new healthcare markets, and rising demand for digital check-in and payment solutions. Additionally, strategic partnerships and investments in AI-powered patient intake tools have contributed to the segment's growth.

Network Solutions

Expected Growth: 9.9%

Phreesia's Network Solutions growth is driven by increasing adoption of patient engagement platforms, expansion into new healthcare markets, and strategic partnerships. The 9.9% growth rate is also fueled by the company's ability to provide a comprehensive patient intake and payment solution, improving operational efficiency and revenue cycle management for healthcare providers.

Payment Processing

Expected Growth: 10.58%

Phreesia's 10.58% growth in Payment Processing is driven by increasing adoption of digital payment solutions, expansion into new healthcare markets, and strategic partnerships. Additionally, the company's focus on improving patient engagement and reducing bad debt through its innovative payment platform has contributed to its growth.

7. Detailed Products

Patient Intake

A digital check-in solution that allows patients to complete paperwork, update demographics, and make payments electronically.

Patient Engagement

A platform that enables healthcare providers to engage patients through targeted messaging, reminders, and educational content.

Revenue Cycle Management

A comprehensive solution that helps healthcare providers manage patient payments, claims, and billing processes.

Data Analytics

A data analytics platform that provides insights into patient behavior, practice performance, and revenue cycle trends.

Patient Payment Solutions

A suite of payment solutions that enable patients to pay bills online, by phone, or in-person.

Integration and Connectivity

A platform that integrates with existing healthcare systems, including EHRs, practice management systems, and billing systems.

8. Phreesia, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Phreesia, Inc. operates in a niche market, providing patient intake management solutions to healthcare providers. While there are some substitutes available, such as manual patient intake processes or alternative digital solutions, Phreesia's specialized platform and strong customer relationships reduce the threat of substitutes.

Bargaining Power Of Customers

Phreesia, Inc. has a diverse customer base of healthcare providers, which reduces the bargaining power of individual customers. Additionally, Phreesia's solutions are often integrated into customers' existing workflows, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Phreesia, Inc. has a diversified supply chain, and its solutions are built using standard technologies and platforms. This reduces the bargaining power of suppliers, as Phreesia can easily switch to alternative suppliers if needed.

Threat Of New Entrants

While there are some barriers to entry in the patient intake management market, such as the need for specialized knowledge and regulatory compliance, Phreesia, Inc. still faces a moderate threat from new entrants. New companies may enter the market with innovative solutions or lower prices, potentially disrupting Phreesia's business.

Intensity Of Rivalry

The patient intake management market is highly competitive, with several established players competing for market share. Phreesia, Inc. faces intense competition from companies like athenahealth, Cerner, and Meditech, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.27%
Debt Cost	8.69%
Equity Weight	96.73%
Equity Cost	8.69%
WACC	8.69%
Leverage	3.38%

11. Quality Control: Phreesia, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CareCloud

A-Score: 5.2/10

Value: 7.6

Growth: 6.9

Quality: 7.8

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

Privia Health Group

A-Score: 5.1/10

Value: 1.9

Growth: 8.0

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

OptimizeRx

A-Score: 4.3/10

Value: 3.5

Growth: 6.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Phreesia

A-Score: 4.0/10

Value: 3.3

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

Health Catalyst

A-Score: 3.6/10

Value: 9.2

Growth: 5.6

Quality: 4.3

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

Omnicell

A-Score: 3.1/10

Value: 4.7

Growth: 3.3

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.93%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.69%

Phreesia, Inc. - US71944F1066

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PHR

1.c. Company Highlights

Stable Momentum

Average Yield

Fairly Valued

Earnings Beats

Revenues Beats

Average Growth

Revenues Miss

Average Quality

Strong Momentum

Lower Quality

Medium Volatility

Expensive

2. Phreesia Delivers Strong Q1 Fiscal 2026 Results

Strategic Initiatives and Growth Outlook

Valuation and Financial Health

Operational Highlights and Client Engagement

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.15%)

6. Segments

Subscription and Related Services

Expected Growth: 14.37%

Network Solutions

Expected Growth: 9.9%

Payment Processing

Expected Growth: 10.58%

7. Detailed Products

Patient Intake

Patient Engagement

Revenue Cycle Management

Data Analytics

Patient Payment Solutions

Integration and Connectivity

8. Phreesia, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Phreesia, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.29$

Current Price

20.29$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA