Phreesia (PHR) Q2 2025 earnings summary

Executive summary

• Achieved positive free cash flow for the first time as a public company, marking a significant milestone in financial evolution and a new era of internally funded growth.

• Q2 FY25 revenue grew 19% year-over-year to $102.1 million, with net loss narrowing to $18.0 million from $36.8 million and Adjusted EBITDA turning positive at $6.5 million from negative $11.5 million.

• Operating cash flow was $11.1 million, up from negative $9.3 million in the prior year.

• Free cash flow improved to $3.7 million, up from negative $15.2 million year-over-year.

• Fiscal Q2 results were strong across key financial and operating metrics, supporting confidence in executing the full-year plan and continued profitable growth.

Financial highlights

• Q2 FY25 total revenue reached $102.1 million, up 19% year-over-year; subscription and related services contributed $48.6 million, payment processing $25.3 million, and network solutions $28.2 million.

• Net loss narrowed to $18.0 million, improved from $36.8 million year-over-year; net loss per share was $0.31, improved from $0.68.

• Adjusted EBITDA was $6.5 million, up from negative $11.5 million year-over-year.

• Free cash flow was $3.7 million, up from negative $15.2 million year-over-year.

• Cash and cash equivalents were $81.8 million as of July 31, 2024.

Outlook and guidance

• Fiscal 2025 revenue guidance maintained at $416–$426 million, representing 17–20% year-over-year growth.

• Adjusted EBITDA guidance for FY25 raised to $26–$31 million from $21–$26 million.

• AHSCs expected to reach ~4,200 in FY25 and ~4,500 in FY26.

• Total revenue per AHSC expected to increase in FY25 and FY26.

• Management believes cash and equivalents, along with normal business cash flow and available credit, are sufficient to fund operations for at least the next 12 months.