Phreesia Q3 2025 Earnings Report
Key Takeaways
Phreesia announced its Q3 Fiscal Year 2025 results, with total revenue up 17% year-over-year. The company narrowed its revenue outlook for fiscal 2025 to a range of $418 million to $420 million and updated its Adjusted EBITDA outlook for fiscal 2025 to a range of $34 million to $36 million.
Total revenue was $106.8 million, up 17% year-over-year.
Average number of healthcare services clients (AHSCs) was 4,237, up 15% year-over-year.
Net loss decreased to $14.4 million compared to $31.9 million in the same period of the prior year.
Adjusted EBITDA was $9.8 million compared to negative $6.6 million in the same period in the prior year.
Phreesia
Phreesia
Phreesia Revenue by Segment
Forward Guidance
The company is narrowing its revenue outlook for fiscal 2025 to a range of $418 million to $420 million, implying year-over-year growth of 17% to 18%. It is updating its Adjusted EBITDA outlook for fiscal 2025 to a range of $34 million to $36 million.
Positive Outlook
- Revenue outlook for fiscal 2025 narrowed to $418 million - $420 million, implying 17-18% year-over-year growth.
- Adjusted EBITDA outlook for fiscal 2025 updated to $34 million - $36 million.
- Expectation for AHSCs to reach approximately 4,200 for fiscal 2025.
- Expect Total revenue per AHSC to increase in fiscal 2025.
- Expect AHSCs to reach approximately 4,500 in fiscal 2026.
Challenges Ahead
- Revenue range provided for fiscal 2026 assumes no additional revenue from potential future acquisitions.
- Uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes.
- Assets being depreciated and amortized may have to be replaced in the future.
- Adjusted EBITDA does not reflect changes in working capital needs.
- Adjusted EBITDA does not reflect the potentially dilutive impact of non-cash stock-based compensation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income