Phreesia Announces First Quarter Fiscal 2027 Results
ALL-REMOTE COMPANY/WILMINGTON, Del.--( BUSINESS WIRE)--Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company") announced financial results today for the fiscal first quarter ended April 30, 2026.
“Phreesia had a solid first quarter to build on in fiscal 2027. We entered the new fiscal year with an experienced team, a strong financial profile and continued momentum across several key initiatives, including positioning AccessOne for future growth, the successful launch of our healthcare provider (HCP) marketing offerings and the infusion of AI into the Phreesia operating model,” said CEO and Co-Founder Chaim Indig.
Please visit the Phreesia investor relations website at ir.phreesia.com to view the Company's Q1 Fiscal 2027 Stakeholder Letter.
Fiscal First Quarter Ended April 30, 2026 Highlights
Recent Developments
New Capital One Credit Agreement and Refinancing
On March 13, 2026, we completed a refinancing pursuant to which we terminated without penalty and repaid all outstanding indebtedness and obligations under the Bridge Loan (as defined below) with $92.2 million of borrowings from a new 5-year, $275 million senior secured revolving credit facility (the "New Capital One Credit Facility") maturing on March 13, 2031. The Bridge Loan, a 364-day, $110 million secured term loan entered into on November 12, 2025 (the “Bridge Loan”), was used to fund a portion of the consideration for the acquisition of AccessOne Parent Holdings, Inc. and its subsidiaries (collectively, “AccessOne” and such acquisition, the “AccessOne Acquisition”). The New Capital One Credit Facility also replaced our previous credit facility with Capital One, which had no outstanding borrowings and was terminated on the same date. The unused borrowing capacity on the New Capital One Credit Facility is available to the Company for working capital, capital expenditures, permitted acquisitions and general corporate purposes.
For more information regarding the New Capital One Credit Facility and the termination of the Bridge Loan and the Previous Capital One Credit Facility, please see our Current Report on Form 8-K filed with the SEC on March 16, 2026.
AccessOne Securitization Program Expansion
On April 30, 2026, we entered into an amendment (the “Amendment”) to the agreement governing AccessOne’s securitization facility with PNC Bank (the “Securitization Program”). The Securitization Program supports AccessOne’s ability to offer patients flexible payment plans while providing up-front cash to healthcare providers for eligible patient receivables. The Amendment extended the term of the Securitization Program through April 30, 2029 and increased the facility limit from $200 million to $300 million, expanding our capacity to bring AccessOne’s financing capabilities to more healthcare services clients. The Amendment also amended certain covenants, allowing us to offer upfront receivables funding to a greater portion of our provider network — including non-investment grade organizations like community hospitals and specialty practices that are central to our growth strategy for AccessOne.
In connection with the Amendment, Phreesia, AccessOne Holdings, Inc. (“AccessOne Holdings”) and PNC Bank entered into an Amended and Restated Performance Guaranty (the “Guaranty”), pursuant to which Phreesia became a joint and several co-guarantor of AccessOne MedCard’s obligations under certain transaction documents. The Guaranty expressly provides that it is not a guarantee of the collection of any pool receivables and that Phreesia and AccessOne Holdings are not responsible for any non-payment or delay in the payment of any pool receivables solely due to the insolvency, bankruptcy, lack of creditworthiness or other financial inability to pay of the related obligor or provider.
For more information regarding the Amendment and the Guaranty, please see our Current Report on Form 8-K filed with the SEC on May 4, 2026.
Fiscal 2027 Outlook
We are maintaining our revenue outlook for fiscal 2027. We expect revenue to be in the range of $510 million to $520 million. As we noted last quarter, network solutions clients are committing lower spend levels for the second half of fiscal 2027 than we had anticipated last December. Certain clients are committing fewer dollars due to brand-specific dynamics including the impact of regulatory policies. Though we do not believe these developments are signaling a structural shift in demand for Phreesia's solutions, there is now more variability in our internal network solutions revenue forecasting, particularly in the second half of each fiscal year. Our visibility into revenue across the other parts of our business is generally consistent with our views in March 2026. The revenue range provided for fiscal 2027 assumes approximately $37 million of contribution from AccessOne and no additional revenue from potential future acquisitions completed between now and January 31, 2027.
We are maintaining our Adjusted EBITDA outlook for fiscal 2027. We expect Adjusted EBITDA to be in the range of $125 million to $135 million. In addition to our continued belief in the operating leverage embedded in our model, we have more recently identified opportunities to reduce our reliance on manual processes across Phreesia through the adoption of artificial intelligence. In May 2026, subsequent to quarter end, we implemented a restructuring plan intended to reduce operating expenses and better align our cost structure with our current business priorities. The plan is expected to result in meaningful annualized run-rate expense savings, which were reflected in our Adjusted EBITDA outlook provided on March 30, 2026.
We are maintaining our expectation for AHSC growth in the mid-single-digit percent range, and we are maintaining our outlook for total revenue per AHSC to grow in the low-single-digit percent range, respectively, in fiscal 2027.
We believe our cash, cash equivalents, restricted cash and cash generated in our normal operations will be sufficient to reach our fiscal 2027 outlook and meet our obligations. As of April 30, 2026 we had $84.2 million in borrowings outstanding under the New Capital One Credit Facility.
Non-GAAP 3 Financial Measures
We have not reconciled our Adjusted EBITDA outlook to GAAP net income (loss) because we do not provide an outlook for GAAP net income (loss) due to the uncertainty and potential variability of other expense (income), net and income tax expense, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss). For further information regarding the non-GAAP financial measures included in this press release, including a reconciliation of GAAP to non-GAAP financial measures and an explanation of these measures, please see “Non-GAAP Financial Measures” below.
Available Information
We intend to use our Company website (including our Investor Relations website) as well as our Facebook, X, LinkedIn and Instagram accounts as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
Forward Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. These statements include, but are not limited to, statements regarding: our future financial and operating performance, including our revenue, operating leverage, Adjusted EBITDA and cash flows; our expectations regarding demand for our solutions and visibility into future revenue; our expectations regarding our restructuring plan, reductions in operating expenses and resulting expense savings; the expected results of the AccessOne Acquisition discussed herein, including anticipated additional revenue, Adjusted EBITDA and AHSCs; our ability to finance our plans to achieve our fiscal 2027 outlook with our current cash balance, cash generated in the normal course of business; our outlook for fiscal 2027, including our expectations regarding revenue, Adjusted EBITDA, AHSCs and total revenue per AHSC; our growth strategies for the AccessOne business; our ability to offer the AccessOne solution to additional clients and access to capital; our expectations regarding opportunities to reduce reliance on manual processes across the Company through the adoption of artificial intelligence; and expectations regarding our restructuring plan, reductions in operating expenses and annualized run-rate expense savings. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks associated with: our ability to effectively manage our growth and meet our growth objectives; our focus on the long-term and our investments in growth; the ability to integrate operations or realize any operational or corporate synergies and other benefits from the AccessOne Acquisition; the competitive environment in which we operate; our ability to comply with the covenants in our New Capital One Credit Facility and the Securitization Program; changes in market conditions and receptivity to our products and services; our ability to develop and release new products and services and successful enhancements, features and modifications to our existing products and services; our ability to maintain the security and availability of our platform; the impact of cyberattacks, security incidents or breaches impacting our business; changes in laws and regulations applicable to our business model; our ability to make accurate predictions about our industry and addressable market; our ability to attract, retain and cross-sell to healthcare services clients; our ability to continue to operate effectively with a primarily remote workforce and attract and retain key talent; our ability to realize the intended benefits of our acquisitions and partnerships; difficulties in integrating our acquisitions and investments; artificial intelligence that can impact our business, including by posing security risks to our confidential information, proprietary information and personal data, increasing our regulatory and compliance burden and increasing competition; and other general, market, political, economic and business conditions (including from the U.S. federal government, tariff and trade issues, and the warfare and/or political and economic instability in Ukraine, the Middle East or elsewhere). The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those listed or described in our filings with the Securities and Exchange Commission (“SEC”), including in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2026 that will be filed with the SEC following this press release. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
This press release includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, with the exception of our Adjusted EBITDA outlook for the reasons described above.
Conference Call Information
We will hold a conference call on Wednesday, May 27, 2026 at 5:00 p.m. Eastern Time to review our fiscal 2027 first quarter financial results. To participate in our live conference call and webcast, please dial (833) 461-5787 (or (626) 884-3620 for international participants) using conference code number 953036497 or visit the “Events & Presentations” section of our Investor Relations website at ir.phreesia.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
About Phreesia
Phreesia is a trusted leader in patient activation, giving healthcare providers, life sciences companies and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled more than 180 million patient visits in 2025—1 in 6 visits across the U.S. This scale allows Phreesia to make meaningful impact across the healthcare ecosystem. Offering patient-driven digital solutions for intake, outreach, education and more, Phreesia enhances the patient experience, drives operational efficiency and improves healthcare outcomes. To learn more, visit phreesia.com.
Phreesia, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
April 30, 2026
January 31, 2026
(Unaudited)
Assets
Current:
Cash, cash equivalents and restricted cash (including restricted cash of $— and $1,691 as of April 30, 2026 and January 31, 2026, respectively)
$
74,706
$
73,830
Settlement assets
32,720
32,999
Accounts receivable, net of allowance for doubtful accounts of $1,467 and $1,523 as of April 30, 2026 and January 31, 2026, respectively
89,607
97,453
Cardholder receivables
29,740
38,330
Deferred purchase price receivables
23,247
18,003
Accrued interest and fees receivables
711
840
Deferred contract acquisition costs
401
410
Prepaid expenses and other current assets
16,129
17,978
Total current assets
267,261
279,843
Property and equipment, net of accumulated depreciation and amortization of $90,385 and $94,193 as of April 30, 2026 and January 31, 2026, respectively
20,568
20,332
Capitalized internal-use software, net of accumulated amortization of $73,362 and $69,390 as of April 30, 2026 and January 31, 2026, respectively
54,624
54,270
Operating lease right-of-use assets
1,769
2,002
Deferred contract acquisition costs
231
338
Intangible assets, net of accumulated amortization of $16,099 and $13,489 as of April 30, 2026 and January 31, 2026, respectively
77,151
79,761
Goodwill
169,513
170,064
Deferred tax assets
1,593
1,593
Other assets (includes $1,691 and $— of long-term restricted cash as of April 30, 2026 and January 31, 2026, respectively)
7,283
2,442
Long-term cardholder receivables
59,494
47,723
Long-term deferred purchase price receivables
6,654
5,422
Total Assets
$
666,141
$
663,790
Liabilities and Stockholders’ Equity
Current:
Settlement obligations
$
32,720
$
32,999
Current portion of debt and finance lease liabilities
5,301
7,971
Current portion of operating lease liabilities
1,062
1,254
Accounts payable
11,891
11,477
Accrued expenses
30,521
41,257
Due to healthcare providers
30,331
38,056
Deferred revenue
39,561
49,522
Other current liabilities
722
705
Total current liabilities
152,109
183,241
Long-term debt and finance lease liabilities
85,303
92,117
Operating lease liabilities, non-current
891
1,107
Long-term due to healthcare providers
60,826
45,329
Long-term deferred revenue
3,223
244
Long-term deferred tax liabilities
4,624
4,498
Other long-term liabilities
75
47
Total Liabilities
307,051
326,583
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, undesignated, $0.01 par value—20,000,000 shares authorized as of both April 30, 2026 and January 31, 2026; no shares issued or outstanding as of both April 30, 2026 and January 31, 2026
—
—
Common stock, $0.01 par value—500,000,000 shares authorized as of both April 30, 2026 and January 31, 2026; 63,249,229 and 62,020,186 shares issued as of April 30, 2026 and January 31, 2026, respectively
632
620
Additional paid-in capital
1,201,871
1,181,679
Accumulated deficit
(796,227
)
(799,190
)
Accumulated other comprehensive loss
(571
)
(382
)
Treasury stock, at cost, 1,474,884 and 1,355,169 shares as of April 30, 2026 and January 31, 2026, respectively
(46,615
)
(45,520
)
Total Stockholders’ Equity
359,090
337,207
Total Liabilities and Stockholders’ Equity
$
666,141
$
663,790
Phreesia, Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share data)
Three months ended
April 30,
2026
2025
Revenue:
Subscription and related services
$
52,721
$
54,355
Payment solutions (1)
41,941
29,925
Network solutions
36,273
31,656
Total revenues
130,935
115,936
Expenses:
Cost of revenue (excluding depreciation and amortization)
17,659
16,637
Payment solutions expense (1)
25,675
21,428
Sales and marketing
24,209
26,043
Research and development
28,328
31,829
General and administrative
18,361
16,408
Depreciation
3,371
2,986
Amortization
6,583
3,892
Total expenses
124,186
119,223
Operating income (loss)
6,749
(3,287
)
Other (expense) income, net
(7
)
338
Loss on extinguishment of debt
(17
)
—
Interest expense
(2,299
)
(435
)
Interest income
297
205
Total other (expense) income, net
(2,026
)
108
Income (loss) before income tax expense
4,723
(3,179
)
Income tax expense
(1,760
)
(735
)
Net income (loss)
$
2,963
$
(3,914
)
Net income (loss) per share attributable to common stockholders:
Basic
$
0.05
$
(0.07
)
Diluted
$
0.05
$
(0.07
)
Weighted-average common shares outstanding:
Basic
60,944,962
58,920,782
Diluted
62,040,865
58,920,782
(1) Beginning with the fourth quarter of the fiscal year ended January 31, 2026, the revenue line previously labeled “Payment processing fees” was relabeled “Payment solutions” to reflect the expanded scope of our payments offerings following the AccessOne Acquisition, which closed on November 12, 2025. “Payment solutions” includes all revenue previously presented as “Payment processing fees” and all revenue from the operations acquired in the AccessOne Acquisition. Additionally, “Payment processing expense” was relabeled “Payment solutions expense” and includes all expenses previously presented as “Payment processing expense” and direct costs of revenue related to the operations acquired in the AccessOne Acquisition. Prior period amounts have not been reclassified, as the Company did not own the acquired operations in prior periods and the change in presentation did not affect any previously reported amounts.
Phreesia, Inc.
Unaudited Consolidated Statements of Comprehensive Income (Loss)
(in thousands)
Three months ended
April 30,
2026
2025
Net income (loss)
$
2,963
$
(3,914
)
Other comprehensive (loss) income:
Net change in unrealized gains on cash flow hedges
(81
)
407
Change in foreign currency translation adjustments
(108
)
28
Other comprehensive (loss) income
(189
)
435
Comprehensive income (loss)
$
2,774
$
(3,479
)
Phreesia, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Three months ended
April 30,
2026
2025
Operating activities:
Net income (loss)
$
2,963
$
(3,914
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
9,954
6,878
Stock-based compensation expense
13,554
17,225
Amortization of deferred financing costs
434
62
Loss on extinguishment of debt
17
—
Cost of Phreesia hardware purchased by customers
188
436
Deferred contract acquisition costs amortization
116
110
Non-cash operating lease expense
233
215
Deferred taxes
677
85
Changes in operating assets and liabilities:
Accounts receivable
7,731
(1,490
)
Cash received for sale of receivables
7,711
—
Accrued interest receivable
129
—
Prepaid expenses and other assets
828
(256
)
Accounts payable
159
(1,739
)
Accrued expenses and other liabilities
(6,985
)
(891
)
Payment of due to provider for receivables sold to securitization
(5,060
)
—
Lease liabilities
(410
)
(252
)
Deferred revenue
(8,317
)
(1,619
)
Net cash provided by operating activities
23,922
14,850
Investing activities:
Collections of cardholder receivables held for investment and deferred purchase price
12,352
—
Capitalized internal-use software
(3,240
)
(3,888
)
Purchases of property and equipment
(4,310
)
(3,504
)
Net cash provided by (used in) investing activities
4,802
(7,392
)
Financing activities:
Proceeds from issuance of common stock upon exercise of stock options
131
128
Treasury stock to satisfy tax withholdings on stock compensation awards
(1,095
)
—
Proceeds from employee stock purchase plan
522
768
Finance lease payments
(1,680
)
(1,376
)
Principal payments on financing agreements
(355
)
(320
)
Debt issuance costs and loan facility fee payments
(2,259
)
(38
)
Financing payments of acquisition-related liabilities
—
—
Debt extinguishment costs
(42
)
—
Proceeds from debt instruments
92,240
—
Principal payments on debt instruments
(98,000
)
—
Payments due to provider for unfunded receivables
(15,555
)
—
Net cash used in financing activities
(26,093
)
(838
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(64
)
31
Net increase in cash, cash equivalents and restricted cash
2,567
6,651
Cash, cash equivalents and restricted cash – beginning of period
73,830
84,220
Cash, cash equivalents and restricted cash – end of period
$
76,397
$
90,871
Supplemental information of non-cash investing and financing information:
Non-cash activity related to credit card receivables and deferred purchase price
$
27,717
$
—
Exchange of right of use asset for property and equipment
$
57
$
—
Purchase of property and equipment and capitalized software included in accounts payable and accrued liabilities
$
2,304
$
1,117
Capitalized stock-based compensation
$
342
$
332
Issuance of stock to settle liabilities for stock-based compensation
$
8,053
$
6,508
Cash paid for:
Interest
$
3,848
$
324
Income taxes
$
1,181
$
551
Reconciliation of cash, cash equivalents and restricted cash shown in statements of cash flows
Cash, cash equivalents and restricted cash per balance sheets
$
74,706
$
90,871
Restricted cash included in other long-term assets
1,691
—
Total cash, cash equivalents and restricted cash shown in statements of cash flows
$
76,397
$
90,871
Non-GAAP Financial Measures
This press release and statements made during the above-referenced webcast may include certain non-GAAP financial measures as defined by SEC rules.
Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or loss or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity. We calculate Adjusted EBITDA as net income (loss) before interest expense, interest income, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, other expense (income), net and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as acquisition- and restructuring-related costs. The calculation of Adjusted EBITDA was updated beginning in the three months ended October 31, 2025 to include an adjustment for acquisition-related costs, which consist primarily of legal, advisory and other professional fees and integration costs related to acquisitions. Management believes adjusting for these acquisition-related costs provides investors with a more consistent period-to-period comparison of our core operating performance and trends. For periods prior to the three and nine months ended October 31, 2025, the calculation of Adjusted EBITDA did not adjust for acquisition-related costs, and prior periods have not been retroactively adjusted.
We have provided below a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure. We have presented Adjusted EBITDA in this press release and our Quarterly Report on Form 10-Q to be filed after this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
We have not reconciled our Adjusted EBITDA outlook to GAAP net income (loss) because we do not provide an outlook for GAAP net income (loss) due to the uncertainty and potential variability of other expense (income), net and income tax expense which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss).
Our use of Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:
Because of these and other limitations, you should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, net income (loss), and our GAAP financial results.
The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, for each of the periods indicated:
Phreesia, Inc.
Adjusted EBITDA
Three months ended
April 30,
(in thousands, unaudited)
2026
2025
Net income (loss)
$
2,963
$
(3,914
)
Interest expense
2,299
435
Interest income
(297
)
(205
)
Income tax expense
1,760
735
Depreciation and amortization
9,954
6,878
Stock-based compensation expense
13,554
17,225
Loss on extinguishment of debt
17
—
Other expense (income), net
7
(338
)
Other items affecting comparability (1)
217
—
Adjusted EBITDA
$
30,474
$
20,816
(1) For the three months ended April 30, 2026, consisted of legal, advisory and other professional fees and integration costs related to the AccessOne Acquisition.
We calculate free cash flow as net cash provided by operating activities less capitalized internal-use software development costs and purchases of property and equipment.
Additionally, free cash flow is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investments, partnerships and acquisitions, and strengthening our financial position.
The following table presents a reconciliation of free cash flow from net cash provided by operating activities, the most directly comparable GAAP financial measure, for each of the periods indicated:
Phreesia, Inc.
Free cash flow
Three months ended
April 30,
(in thousands, unaudited)
2026
2025
Net cash provided by operating activities
$
23,922
$
14,850
Less:
Capitalized internal-use software
(3,240
)
(3,888
)
Purchases of property and equipment
(4,310
)
(3,504
)
Free cash flow
$
16,372
$
7,458
Phreesia, Inc.
Supplementary Information
(Unaudited)
Three months ended
April 30,
(in thousands)
2026
2025
GAAP operating expenses
General and administrative
$
18,361
$
16,408
Sales and marketing
24,209
26,043
Research and development
28,328
31,829
Cost of revenue (excluding depreciation and amortization)
17,659
16,637
$
88,557
$
90,917
Stock compensation included in GAAP operating expenses
General and administrative
$
5,489
$
6,573
Sales and marketing
3,902
5,174
Research and development
3,565
4,393
Cost of revenue (excluding depreciation and amortization)
598
1,085
$
13,554
$
17,225
Acquisition-related costs included in GAAP operating expenses
General and administrative
$
217
$
—
Phreesia, Inc.
Key Metrics
(Unaudited)
Three months ended
April 30,
2026
2025
Average number of healthcare services clients ("AHSCs")
4,708
4,411
Total revenue per AHSC
$
27,811
$
26,283
The definitions of our key metrics are presented below.
Phreesia, Inc.
Additional Information
(Unaudited)
Three months ended
April 30,
2026
January 31,
2026 (1)
Total managed payments (in billions)
$
1.786
$
1.560
Payment solutions revenue rate
2.3
%
2.3
%
(1) The AccessOne Acquisition was completed on November 12, 2025. Reflects inclusion of the business operations of AccessOne from November 12, 2025 to January 31, 2026 and therefore the payment solutions revenue rate for the three months ended January 31, 2026 is not indicative of AccessOne’s full-quarter performance.
We are introducing new metrics: total managed payments and payment solutions revenue rate. We believe these new metrics will enable investors to better evaluate the performance of our payment solutions business following the AccessOne Acquisition during the fourth quarter of fiscal 2026, which introduced new revenue-generating activities. These metrics replace patient payment volume and payment facilitator volume percentage, which reflected only the legacy Phreesia payment processing business 4. Total managed payments reflects both the transactional activity we facilitate and the financing solutions we provide to healthcare organizations and patients. These metrics provide a clear and consistent framework for understanding how payment activity translates into revenue, enabling investors to more effectively assess the growth, performance and overall value of our payment solutions business.
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1 Adjusted EBITDA is a non-GAAP measure. We calculate Adjusted EBITDA as net income (loss) before interest expense, interest income, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, other expense (income), net and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as acquisition- and restructuring-related costs. The calculation of Adjusted EBITDA was updated beginning in Q3 of Fiscal 2026 to include an adjustment for acquisition-related costs. Prior periods have not been retroactively adjusted. See “Non-GAAP Financial Measures” for more information and a reconciliation of Adjusted EBITDA to the closest GAAP measure.
2 Free cash flow is a non-GAAP measure. We calculate free cash flow as net cash provided by operating activities less capitalized internal-use software development costs and purchases of property and equipment. See “Non-GAAP Financial Measures” for a reconciliation of free cash flow to the closest GAAP measure.
3 GAAP is defined as generally accepted accounting principles in the United States.
4 For periods prior to the three months ended April 30, 2026, we presented (i) patient payment volume (measured as the total dollar volume of transactions between our healthcare services clients and their patients utilizing our payment platform, including via credit and debit cards that we process as a payment facilitator as well as cash and check payments and credit and debit transactions for which we act as a gateway to other payment processors) and (ii) payment facilitator volume percentage (defined as the volume of credit and debit card patient payments that we process as a payment facilitator as a percentage of total patient payment volume).