One-glance verdict
Undervalued
$48.88 our estimate vs market $12.40
Wall Street consensus: $13.93 (-71.5% lower than our fair-value estimate)
75% below our estimate, below the bear case
Fundamentals snapshot
Phreesia, Inc.
PHR · NYQ · Healthcare · Health Information Services
Current price
$12.40
52-week range
$7.77 - $23.86
Market cap
$769.68M
Balance sheet
Healthy
-0.95x Concerning
Net cash $5.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 5.7% last year.
- Reward Returns 3.1% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 2/10 years.
What this company does
Phreesia, Inc.
Phreesia sells software and payment tools to healthcare providers to make patient check-in and payments easier. Their main money comes from subscriptions to their software and fees for processing payments, and this matters because it helps doctor's offices and hospitals get paid faster and manage appointments more efficiently.
How the company got here
Phreesia was founded in 2005 with the goal of making healthcare easier for patients and providers. Initially, the company focused on digitizing the patient check-in process, offering self-service kiosks in medical offices. Over time, Phreesia expanded its offerings to include a broader patient intake and payments platform, incorporating mobile check-in, registration, and financial tools. A significant turning point was its initial public offering (IPO) in 2019, which provided access to capital and increased its visibility in the healthcare technology sector. The company also made strategic acquisitions, such as Insignia Health in 2021, to enhance its patient engagement and activation capabilities.
What it actually does
Phreesia provides a software-as-a-service (SaaS) platform designed to streamline the administrative and financial aspects of a patient's healthcare journey. Think of it as a digital front door for healthcare providers. Its tools help patients manage their appointments, complete necessary paperwork digitally, verify insurance information, and make payments. For healthcare organizations, Phreesia aims to reduce administrative burdens, improve data accuracy, enhance the patient experience, and accelerate cash collections.
Phreesia Platform
This is Phreesia's core offering, a comprehensive suite of tools that manage the patient's journey from before they arrive for an appointment to after they leave. It includes digital patient intake and registration, where patients fill out forms and provide information on their mobile devices or at kiosks. It also covers appointment scheduling and management, helping to reduce no-shows and optimize clinic schedules. Furthermore, this segment handles patient payments, allowing for the collection of co-pays and outstanding balances through integrated digital workflows. This part of the business is the largest, serving as the foundation for most of Phreesia's customer relationships.
Network Solutions
This segment leverages Phreesia's extensive network of patients and providers to offer targeted communication and engagement opportunities. Life sciences companies, such as pharmaceutical firms, use this platform to deliver relevant educational content and program information to patients within their clinical workflows. This is a smaller but growing part of Phreesia's business, providing an additional revenue stream by connecting healthcare companies with patients at key moments in their care journey.
What management is betting on now
Phreesia's management is focused on expanding its platform to be the standard for patient access and intake in healthcare, aiming to improve both patient experience and provider financial outcomes. They are investing in artificial intelligence (AI) to enhance product development and operational efficiency, such as through their VoiceAI solution for handling patient calls. The strategy also involves building out their network solutions to create more value for life sciences companies and further integrating their services to offer a more complete patient engagement and activation solution.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$5.17M
FY2025 Q4
$13.47M
FY2026 Q1
$11.35M
FY2026 Q2
$13.07M
FY2026 Q3
$12.20M
FY2026 Q4
$31.10M
FY2027 Q1
$19.61M
FY2027 Q2
$17.84M
Revenue
$129.46M
Net income
$1.92M
Diluted EPS
0.03
Operating cash flow
$18.33M
Free cash flow
$17.84M
Fetching…
Sources
Revenue
$130.94M
Net income
$2.96M
Diluted EPS
0.05
Operating cash flow
$23.92M
Free cash flow
$19.61M
Fetching…
Sources
Revenue
$127.07M
Net income
$1.29M
Diluted EPS
0.03
Operating cash flow
$33.66M
Free cash flow
$31.10M
Fetching…
Sources
Revenue
$120.33M
Net income
$4.27M
Diluted EPS
0.07
Operating cash flow
$15.47M
Free cash flow
$12.20M
Fetching…
Sources
Revenue
$117.25M
Net income
$654.00K
Diluted EPS
0.01
Operating cash flow
$14.84M
Free cash flow
$13.07M
Fetching…
Sources
Revenue
$115.94M
Net income
$-3.91M
Diluted EPS
-0.07
Operating cash flow
$14.85M
Free cash flow
$11.35M
Fetching…
Sources
Revenue
$109.68M
Net income
$-6.39M
Diluted EPS
-0.11
Operating cash flow
$16.26M
Free cash flow
$13.47M
Fetching…
Sources
Revenue
$106.80M
Net income
$-14.40M
Diluted EPS
-0.25
Operating cash flow
$5.79M
Free cash flow
$5.17M
Fetching…
Sources
Is it cheap or expensive?
Fair value $48.88 vs current price $12.40
Wall Street consensus is the average analyst price target: $13.93 (-71.5% lower than our fair-value estimate).
Our most-likely fair value is $48.88 a share — about 294.2% above today's price of $12.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $5.0M - more cash than debt. Interest coverage -1.0x.
Net debt
$-5.00M
Interest coverage
-0.95x
Phreesia, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PHR
BASELINE
Phreesia, Inc.
Total debt $67.95M Interest coverage -0.95x This is the baseline the peer rows are being compared against.
Total debt $51.38M Interest coverage -18.01x Neither company has much profit cushion over interest right now.
Total debt $218.81M Interest coverage -3.08x Neither company has much profit cushion over interest right now.
Total debt $54.01M Interest coverage 40.06x This peer still has a real interest-payment cushion, while PHR does not.
Total debt $8.73M Interest coverage 32.00x This peer still has a real interest-payment cushion, while PHR does not.
What you should know
The case for and against PHR
3 Rewards
0 Risks
Rewards
-
Revenue grew 5.7% last year.
-
Returns 3.1% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
72.94x
Forward P/E
7.76x
P/B
2.07x
P/S
1.52x
EV/EBITDA
17.77x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
67.5%
Operating margin
5.9%
Net margin
2.1%
ROE
3.1%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.18x
Current ratio
1.76x
Quick ratio
1.44x
Total debt
$67.95M
Total cash
$72.94M
Growth
How the business has been compounding
Revenue TTM
$507.79M
Revenue 5Y CAGR
22.5%
EPS TTM
0.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$91.38M
Free CF TTM
$67.71M
FCF margin
13.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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