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.

Show Full description

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	11.55
Change Percentage	-9.13%
Open	12.3
Previous Close	12.71
Market Cap ( Millions)	696
Volume	770123
Year High	32.76
Year Low	11.54
M A 50	15.17
M A 200	22.71

FCF Yield	6.02%
Dividend Yield	0.00%
ROE	-1.85%
Debt / Equity	1.09%
Net Debt / EBIDTA	-389.19%
Price To Book	2.15
Price Earnings Ratio	-127.79
Price To FCF	16.61
Price To sales	1.5
EV / EBITDA	22.45

2. Phreesia's Strong Q3 Fiscal 2026 Earnings: Growth and Profitability on the Rise

Phreesia reported a robust third quarter fiscal 2026, with total revenue reaching $120.3 million, a 13% year-over-year increase. Adjusted EBITDA was $29.1 million, up 19% year over year, resulting in an all-time high adjusted EBITDA margin of 24%. Earnings per share (EPS) came in at $0.1, beating estimates of -$0.00036. The company's average healthcare services clients (AHSCs) grew to 4,520, and total revenue per AHSC was $26,622, a 6% year-over-year increase.

Publication Date: Dec -20

                                    📋 Highlights
                                    Revenue and Profitability Growth::
                                                Q3 FY2026 revenue reached $120.3 million (+13% YoY), with adjusted EBITDA at $29.1 million (+19% YoY) and a record 24% adjusted EBITDA margin.
AccessOne Acquisition Impact::
                                                Anticipated to add ~80 AHSCs annually, contributing $7.5 million in FY2026 revenue, though midpoint guidance increased only $3 million due to measured network solutions growth.
FY2027 Guidance::
                                                Revenue projected at $545-559 million (+11-14% YoY), with 8-10% core organic growth, led by network solutions and payment processing.
HCP Marketing Expansion::
                                                New initiative with pilot clients, expected to drive incremental revenue as a separate budget line from DTC advertising.
Debt Prioritization Over Buybacks::
                                                Free cash flow will first retire AccessOne acquisition debt; share buybacks remain a long-term consideration amid current valuation levels.

                                

Revenue Growth Drivers

The company's revenue growth is driven by its core products, as well as its emerging product areas, including provider financing and healthcare provider (HCP) marketing. The acquisition of AccessOne, a provider financing solution, is expected to contribute to revenue growth, with approximately 80 AHSCs added annually. Phreesia's HCP marketing initiative is also gaining traction, with high demand from clients.

Guidance and Outlook

Phreesia updated its fiscal 2026 outlook, expecting revenue of $479-481 million and adjusted EBITDA of $99-101 million. For fiscal 2027, the company expects revenue of $545-559 million, with AccessOne contributing approximately 6.5% of total revenue. The company's guidance implies 8-10% core organic growth, with network solutions growing the fastest, followed by payment processing and subscription.

Valuation and Growth Expectations

Analysts estimate next year's revenue growth at 14.6%. With a current P/S Ratio of 2.15, the market is pricing in moderate growth expectations. However, the EV/EBITDA ratio of 1466.99 suggests that the market is expecting significant profitability growth in the future. The company's ROE and ROIC are currently negative, but the acquisition of AccessOne and the growth of HCP marketing are expected to drive future profitability.

Investment Considerations

The company's management prioritizes retiring debt from the AccessOne acquisition using free cash flow, but considers share buyback as a long-term priority. With a Free Cash Flow Yield of 4.2%, Phreesia's valuation metrics suggest that the stock may be attractive to investors seeking growth and value.

3. NewsRoom

Phreesia Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses

Feb -19

Source: newsfilecorp.com

Phreesia Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses

Feb -18

Source: businesswire.com

Phreesia Sets Release Date for Fiscal Fourth Quarter and Fiscal Year 2026 Results

Feb -17

Source: businesswire.com

Phreesia CEO Chaim Indig Named to The Software Report's Top 50 CEOs of 2025

Feb -11

Source: businesswire.com

New York State Common Retirement Fund Buys 120,309 Shares of Phreesia, Inc. $PHR

Feb -08

Source: defenseworld.net

Phreesia: Profitable At Last, Priced Like It Isn't

Dec -22

Source: seekingalpha.com

Phreesia Named to The Software Report's “Top 50 Software Companies” for the Fourth Consecutive Year

Dec -18

Source: businesswire.com

Phreesia (PHR) Loses 32.2% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Dec -10

Source: zacks.com

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

Privia Health Group

A-Score: 4.8/10

Value: 2.2

Growth: 8.0

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

CareCloud

A-Score: 4.3/10

Value: 7.2

Growth: 6.9

Quality: 7.1

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

OptimizeRx

A-Score: 4.3/10

Value: 2.7

Growth: 6.0

Quality: 6.1

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Phreesia

A-Score: 3.9/10

Value: 4.2

Growth: 5.9

Quality: 5.4

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

1-Year Total Return ->

Health Catalyst

A-Score: 3.7/10

Value: 9.8

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: 3.7

Growth: 3.2

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.07%

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's Strong Q3 Fiscal 2026 Earnings: Growth and Profitability on the Rise

Revenue Growth Drivers

Guidance and Outlook

Valuation and Growth Expectations

Investment Considerations

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

11.55$

Current Price

11.55$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA