Phreesia NYSE: PHR reported higher first-quarter revenue and profitability for fiscal 2027, with executives pointing to growth in payment solutions, expanding opportunities from its AccessOne acquisition and continued investment in patient intake, provider engagement and artificial intelligence.
On the company’s earnings call for the quarter ended April 30, 2026, Chief Financial Officer Balaji Gandhi said revenue rose 13% year over year to $130.9 million. Payment solutions revenue grew 40%, while network solutions revenue increased 15%. Gandhi noted that the payment solutions comparison benefited from the fact that the year-ago period did not include AccessOne, which Phreesia acquired in the fourth quarter of fiscal 2026.
Adjusted EBITDA increased to $30.5 million from $20.8 million a year earlier, representing a 23% adjusted EBITDA margin. Net income was $3 million, compared with a net loss of $3.9 million in the prior-year quarter. Gandhi said it marked Phreesia’s third consecutive quarter of positive net income.
Client Metrics and Payments Growth
Phreesia reported 4,708 Average Healthcare Services Clients, or AHSCs, up 50 from the prior quarter and up 297, or 7%, year over year. Total revenue per AHSC was $27,811, up 6% from the prior-year period.
The company also introduced two new payments-related metrics. Gandhi said total managed payments, which combines Phreesia’s legacy patient payment volume with AccessOne’s managed portfolio of cardholder receivables, totaled $1.786 billion in the quarter. Payment solutions revenue rate, defined as total payment solutions revenue divided by total managed payments, was 2.3%.
Chief Executive Officer Chaim Indig said Phreesia is prioritizing the integration of AccessOne’s financing solution into its payment workflow and working to bring the product to more of its existing client base. He said the company believes the effort can improve cash flow for healthcare provider clients and strengthen client loyalty and retention.
AccessOne Financing Capacity Expanded
Gandhi highlighted an expansion of AccessOne’s securitization facility with PNC Bank, completed April 30. The facility limit increased to $300 million from $200 million, and the term was extended through April 2029. Gandhi said the amendment also broadened Phreesia’s ability to offer upfront funding to non-investment grade clients, which he said includes many of Phreesia’s clients.
During the question-and-answer session, Gandhi said the expanded facility “opens up the addressable market” within Phreesia’s client base, where the company has long-standing relationships. He said it was “probably a little bit early” to discuss how economics might differ across client types, but emphasized that the aim is to drive cash flow improvement for healthcare providers.
In response to a later question, Gandhi said AccessOne operates two complementary programs: funded receivables, representing roughly 40% of the portfolio, and an unfunded portion, representing about 60%, where providers retain the receivables and Phreesia earns a servicing fee. He said the composition and strategy continue to evolve, but added that the company is “pretty pleased” with progress so far.
Guidance Maintained Despite Network Solutions Variability
Phreesia maintained its fiscal 2027 revenue outlook of $510 million to $520 million and its adjusted EBITDA outlook of $125 million to $135 million. The guidance assumes about $37 million of revenue contribution from AccessOne and no additional revenue from potential future acquisitions completed before Jan. 31, 2027.
Gandhi reiterated that network solutions clients are committing lower spending levels for the second half of fiscal 2027 than the company anticipated last December. He said some clients are committing fewer dollars because of brand-specific dynamics, including the impact of regulatory policies. However, he said Phreesia does not believe those developments signal a structural shift in demand for its solutions.
Phreesia also maintained expectations for AHSC growth in the mid-single-digit percentage range and total revenue per AHSC growth in the low-single-digit percentage range for fiscal 2027.
Asked about network solutions performance in the first quarter, Gandhi said it was “very much in line” with the company’s internal expectations. He declined to discuss specific clients or programs, saying the company’s broader commentary on the demand environment applied across multiple areas.
Product Strategy, ProviderConnect and AI
Indig said three factors are shaping Phreesia’s outlook: its focus on patient intake, the AccessOne opportunity and the potential impact of AI. He said Phreesia has done foundational work on infrastructure, security and operational discipline, and said AI is “fundamentally changing what’s possible” for the company at scale.
Gandhi said the company is seeing momentum in ProviderConnect, a new network solutions offering launched earlier in fiscal 2027. He said there is some contribution from ProviderConnect included in the current fiscal-year guidance, but described the product as more meaningful to the company’s runway in fiscal 2028, 2029 and 2030.
On the company’s broader go-to-market approach, Gandhi said Phreesia remains a product-led growth organization. He said the company has been following a “better, faster, cheaper” philosophy for provider software, deliberately moderating subscription pricing to support retention and drive downstream economics in payments and network solutions.
Asked about subscription revenue trends, Gandhi said Phreesia does not optimize for subscription revenue as a standalone line and instead focuses on total revenue opportunities across clients. He said the strategy is reflected in the company’s fiscal 2027 outlook.
Balance Sheet, Cash Flow and Cost Actions
Phreesia ended the quarter with $76.4 million in cash, cash equivalents and restricted cash, compared with $73.8 million at Jan. 31, 2026. Gandhi said the company completed the refinancing of its bridge loan on March 13, using $92 million of borrowings from a new five-year, $275 million senior secured revolving credit facility with Capital One. The facility matures on March 13, 2031. Phreesia ended the quarter with $84 million outstanding on the facility after paying down $8 million during the quarter.
Net cash provided by operating activities was $23.9 million, up $9.1 million year over year. Free cash flow was $16.4 million, up $8.9 million year over year. Gandhi cautioned that operating cash flow and free cash flow may fluctuate quarter to quarter based on invoicing and payment timing, working capital and capital expenditures.
Gandhi also said Phreesia implemented a restructuring plan in May, after quarter-end, intended to reduce operating expenses and better align its cost structure with current priorities. He said the expected annualized run-rate savings were already reflected in the adjusted EBITDA outlook the company provided in March.
Indig closed the call by thanking employees for what he called a “very good, strong quarter.”
About Phreesia NYSE: PHR
Phreesia, Inc NYSE: PHR is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company's cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.
Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.
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