Phreesia Reports Strong Q4 Earnings Amid Strategic Growth Goals

NEW YORK, N.Y. — Phreesia, Inc., a leading provider of patient activation solutions, released its fourth-quarter earnings report on March 12, 2025, showcasing notable financial growth and strategic advancements. The company reported a 15% year-over-year increase in total revenue, reaching $109.7 million. This growth marks a significant rebound for Phreesia as it moves toward a positive outlook for fiscal 2026.

In the earnings call, Chaim Indig, CEO of Phreesia, noted that strong growth in key areas, particularly Network Solutions, contributed to financial improvements. “We are pleased with our solid finish to fiscal 2025, and I am excited about the new products we have introduced over the past several quarters that improve medication adherence and the overall patient and provider experience,” Indig said.

Phreesia’s average number of healthcare services clients rose by 10%, while revenue per client increased by 5%. The company also reported a reduced net loss of $6.4 million, down from a net loss of $30.6 million in the previous year. Adjusted EBITDA turned positive at $16.4 million, demonstrating a significant shift in financial health compared to the negative $3.5 million reported for the same quarter last year.

For the fiscal year ending January 31, 2025, total revenue grew by 18% to $419.8 million, while the net loss was significantly cut from $136.9 million in fiscal 2024 to $58.5 million in fiscal 2025. Indig emphasized the importance of maintaining a focus on durable growth, stated, “No change in priorities. We focus on allocating capital for profitable, durable growth, both organically and inorganically, leveraging our strong balance sheet.”

Balaji Gandhi, CFO of Phreesia, addressed questions about the company’s strategies and market conditions moving into 2026. “We expect market conditions to be very similar as we head into the year,” he said, indicating confidence in the company’s operational trajectory.

Phreesia’s strategy includes leveraging artificial intelligence (AI) and automation to enhance customer engagement. Indig explained that AI is being used to forecast trends and improve operational efficiency, particularly within the Network Solutions team. “AI is having a real-time impact, and we plan to implement it thoughtfully across the organization,” he added.

The integration of new products such as the appointment readiness tool aims to solidify the company’s positioning in the healthcare market. Indig stated that “our product organization ensures scale from early stages,” suggesting a proactive approach to product readiness before engaging pharma customers.

Despite positive growth figures, challenges remain. Gandhi discussed macroeconomic concerns, saying, “We monitor these trends closely, but there’s nothing significant to report currently. Our network’s payer mix aligns with the broader population.”

This quarter’s performance showed a year-on-year revenue growth of 15.4%, with expectations of continued growth. “We see a healthy demand for our products and services,” said Gandhi, as revenues exceeded Wall Street’s estimates by 0.7%.

Looking forward, Phreesia is optimistic about fiscal 2026, projecting revenue between $472 million and $482 million, with adjusted EBITDA expected to land between $78 million and $88 million. This forecast reflects the company’s continued commitment to enhancing its healthcare solutions and expanding its client base.

Despite the positive results, shares of Phreesia dipped 5.5% to $22.57 following the earnings presentation. Market analysts will be watching closely to gauge the stock’s trajectory as the company ventures into a new fiscal year with robust plans for growth.