Phreesia (PHR) Financials

Phreesia, Inc. (NYSE: PHR) has shown notable growth in operating revenue over the past four years, increasing from approximately $56 million in Q3 2022 to about $110 million in Q4 2025, reflecting consistent top-line expansion. However, the company's profitability remains under pressure, with sustained net losses reported each quarter although these losses have generally decreased in magnitude. For instance, the net loss improved from around -$40 million in Q3 2022 to about -$6.4 million in Q4 2025. This indicates some progress towards narrowing losses.

Operating expenses have consistently been high and growing alongside revenue. Marketing, research and development, and selling, general & administrative (SG&A) expenses remain significant cost components. For example, in Q4 2025, marketing expenses were approximately $28.9 million, R&D was about $29.6 million, and SG&A was $18.4 million.

From a cash flow perspective, Phreesia has improved operating cash flow significantly. Net cash from operating activities turned positive, reaching $16.3 million in Q4 2025 compared to negative cash flows several quarters prior, indicating improving cash generation capabilities. Capital expenditures on property, plant, and equipment remain sizeable but have varied quarter to quarter, with $7.1 million spent in Q4 2025.

The balance sheet shows growing total assets driven by increases in accounts receivable, goodwill, and intangible assets, reflecting ongoing investment in the business. Total equity has declined from approximately $458 million in Q1 2023 to about $255 million by Q3 2025, reflecting cumulative losses over time but still indicates a solid capital base. Total liabilities have remained relatively stable, around $110 million to $121 million in recent periods.

• Operating revenue has grown steadily, nearly doubling over the last three years, signaling strong business expansion.
• Gross profit has increased correspondingly, showing effective revenue scaling despite rising costs.
• Net cash provided by operating activities has turned positive and increased significantly, demonstrating improving cash flow health.
• The company has decreased net losses quarter over quarter, showing progress toward profitability.
• Phreesia maintains a strong asset base, with growing intangible assets and goodwill reflecting investments in product and market presence.
• Operating expenses, especially marketing and R&D, remain high and growing with revenue, requiring continued management focus.
• Capital expenditures fluctuate but remain substantial, reflecting ongoing investment but also pressure on free cash flow.
• Total equity has decreased over time due to losses, yet the company retains a healthy equity position.
• The company continues to operate at a loss in all reported quarters, which may pressure investor sentiment.
• Despite improving cash flows, Phreesia consistently reports negative net income, indicating challenges in reaching full profitability soon.

Overall, Phreesia demonstrates promising revenue growth and improving cash flow dynamics but faces ongoing challenges with profitability and high operating expenses. Investors should watch for continued cost control and operating leverage improvements as key drivers for future stock performance.