Phreesia, Inc. Q3 FY2026 earnings call

• Chaim Indig highlighted emerging product areas like provider financing (via AccessOne acquisition) and HCP marketing as key for growth.
• Balaji Gandhi discussed revenue growth, adjusted EBITDA margin, AHSC numbers, and provided details on AccessOne's financing solutions including its portfolio and take rates.
• Mentioned the one-time G&A tax benefit in Q3 that boosted adjusted EBITDA, and the focus on improving returns on investment and attach rates across revenue streams.

Total revenue for the third quarter was $120.3 million, a 13% increase year over year. Adjusted EBITDA was $29.1 million, an increase of $19 million year over year and $7 million quarter over quarter. The adjusted EBITDA margin reached an all-time high of 24%, representing an improvement of five percentage points quarter over quarter and 15 percentage points year over year. Third quarter average healthcare services clients (AHSCs) came in at 4,520, an increase of 53 from the prior quarter. Excluding the impact from the AccessOne acquisition, total revenue per AHSC was $26,622, up 6% year over year.

• Fiscal 2026 revenue outlook revised to $479 million to $481 million, including ~$7.5 million from AccessOne. Adjusted EBITDA outlook revised to $99 million to $101 million. AHSCs outlook for 2026 is ~4,515.
• Fiscal 2027 revenue expected to be in the range of $545 million to $559 million, with AccessOne contributing ~6.5% of total revenue. Adjusted EBITDA outlook for 2027 is $125 million to $135 million. AHSCs expected to grow in mid-single digits and total revenue per AHSC to grow double digits.

• Forward-looking statements subject to various risks and uncertainties as outlined in SEC filings, including risks that actual results may differ from forward-looking statements. Risks related to market conditions, competition, and execution of growth initiatives.

Q: Sean Dodge asked about the growth potential of AccessOne and cross-selling into legacy Phreesia.

A: Chaim Indig said AccessOne's product needs investment before cross-selling to most legacy clients, and they plan to invest in go-to-market for it over the next quarters with resources from the company and acquisition team.

Q: Scott Schoenhaus inquired about refinancing the bridge loan and go-to-market strategy for AHSC growth.

A: Balaji Gandhi said they're actively looking to refinance the bridge loan and expect to hear about it in the next few months. Chaim Indig mentioned demand for intake, voice AI workflows, PatientConnect, and new offerings like post-script engagement and HCP offering for go-to-market.

Q: Jailendra Singh asked about core growth in business and visibility into fiscal 2026 and 2027.

A: Balaji Gandhi said network solutions are growing fastest, payment processing second, and subscription third, with visibility into selling season still ongoing and being measured.

Q: Brian Tanquilut asked about margin drivers and sustainability.

A: Balaji Gandhi said the team has been good stewards of capital, balancing growth and margin, with G&A being an area for leverage but continuing to invest in sales, marketing, and R&D as growth supports it.

Q: Ryan Daniels asked about the HCP marketing initiative's sales in 2026 and incremental dollars.

A: Chaim Indig said they've started piloting for select clients in the New Year, with demand high, and believe it's incremental as DTC and HCP budgets are different.

Q: Ryan MacDonald questioned the updated '26 guidance and core business impact.

A: Balaji Gandhi said it's about being measured on network solutions during selling season and not reading into it as an issue for future segments.

Q: Richard Close asked about AccessOne's funded and unfunded offerings and seasonality.

A: Chaim Indig said AccessOne offers flexibility with funded and unfunded models to meet client needs, and go-to-market will be similar to provider positioning, with growth expected to show chunkiness as clients are added.

Q: Daniel Grosslight asked about fluidity in network solution selling season and DTC impact.

A: Balaji Gandhi said it's around DTC topic, with being measured due to fluidity, but positioned well long term with regulatory commentary, and visibility to improve in coming weeks.

Q: Jeff Garro asked about MediPhine's traction and competitive advantages.

A: Chaim Indig said they're focused on being the go-to source for top specialists, seeing strong volume usage in the Phreesia platform, and will continue investing in it.

Q: John Ransom asked about EBITDA outperformance and marketing spend.

A: Balaji Gandhi said Q4 has seasonality with payroll taxes, and marketing dollars are expected to increase with growth initiatives.

Q: Jessica Tassan asked about Phreesia on call and network solutions revenue booking.

A: Chaim Indig said they're testing ad formats in Phreesia on call with pilots, and network solutions revenue typically has 60-70% visibility entering the calendar year.

Q: Jailendra Singh asked about share buyback consideration.

A: Balaji Gandhi said share buybacks are a consideration, with priority currently on retiring debt from the AccessOne acquisition, but it's part of long-term thinking.