Phreesia, Inc. Q1 FY2026 earnings call

• Focus on delivering valuable and scalable products for patients and providers, with products like appointment readiness, post script engagement, enhanced bill pay showing impact. - AI integration across the organization and products. - Strong balance sheet and growing free cash flow for capital allocation. - Team's focus on growing network, expanding offerings, and driving operating leverage. - Products driving value in conversations with clients. - Investments in sales and marketing and other areas with expected returns. - AI enabling new capabilities and clients seeking trusted partners. - Share repurchase plan for opportunistic use. - Medaphine contributing revenue and early stage, with potential for growth. - Consistent focus on adding value to clients through products and services

Revenue was $115.9 million, up 15% year-over-year. Adjusted EBITDA was $20.8 million, up 16.7% year-over-year with a margin of 18%. Ended the quarter with $90.9 million in cash and cash equivalents. Operating cash flow was $14.9 million, up $15.6 million year-over-year. Free cash flow was $7.5 million, up $13.7 million year-over-year. Revenue for fiscal 2026 is maintained at $472 million to $482 million range. Adjusted EBITDA outlook for fiscal 2026 is updated to $85 million to $90 million from previous $78 million to $88 million. Anticipated to reach approximately 4,500 AHSCs in fiscal 2026 and total revenue per AHSC to increase compared to fiscal 2025

• Maintained revenue outlook for fiscal 2026 at $472M - $482M. - Updated adjusted EBITDA outlook for fiscal 2026 to $85M - $90M from previous $78M - $88M. - Reiterated outlook to reach approximately 4,500 AHSCs in fiscal 2026 and total revenue per AHSC to increase compared to fiscal 2025. - Revenue range assumes no additional revenue from potential future acquisitions completed between now and January 31, 2026

Q: On network solutions, thoughts on customer conversations in current environment and hesitancy.

A: Testament to team and product-led approach driving results.

Q: Thoughts on providers' market and conversations.

A: Focus on product value, competitive market but products bring value.

Q: Visibility on ROI campaign success for network solutions customers.

A: Campaigns go through MLR process, can titrate up/down, strong ROI and scale driving results.

Q: Sales and marketing and G&A lines.

A: Upfront investments paying off, team's work, expense trend likely flattish.

Q: Potential capital deployments and end markets for buy vs build.

A: Evaluate opportunities through buy, build, rent lens, more capital but same evaluation.

Q: Standout acquisitions and those not meeting expectations.

A: Portfolio of acquisitions, ConnectOnCall had setback but team restored it.

Q: Visibility on phase in segment volume.

A: Not much fluctuation from weather/calendar, bill pay product getting traction.

Q: Labor strategy moving forward.

A: Consolidation of Phreesia India mentioned.

Q: Proposed no handouts for Drug Advertisements Act and impact.

A: No new update, focus on platform value proposition.

Q: Seasonality of network solutions business.

A: Pacing of programs causing fluctuations, no major seasonality to call out.

Q: Subscription revenue growth and module ramp.

A: Revenue per provider clients growing, products introduced causing lift, expansion in base clients.

Q: AI competitive landscape and customer behavior.

A: AI enabling new capabilities, clients seeking trusted partners, AI driving value.

Q: Share repurchase plan motivation.

A: Opportunistic, due to share price volatility.

Q: Cash conversion rates and payment processing revenue seasonality.

A: Transitional year with cash flow ramp, payment processing revenue seasonality similar to prior years.

Q: Monetizing Medaphine and visits.

A: Medaphine in early stage, contributing revenue, enables patients to schedule visits with providers.

Q: Nature of engagements changing for customer success.

A: Related services component of revenue, no shift, quick work for existing client