Phreesia Inc (PHR) Stock Forecast & Price Target

Phreesia Inc. exhibits a positive financial outlook as evidenced by a 5.6% year-over-year increase in total revenue per Accountable Healthcare Service Client (AHSC), reaching $26,622, driven by client expansion across its solution areas. The company reported a significant growth in patient payment volumes, which rose to $1.181 billion in 3Q26, representing a 9.3% year-over-year increase, indicating strong demand and effective client retention strategies. Furthermore, Phreesia raised its FY26 adjusted EBITDA guidance to a range of $99 million to $101 million, reflecting a robust growth rate of 172% year-over-year at the midpoint, and projecting continued upward trends in both AHSC count and revenue per AHSC for FY26.

Phreesia Inc. has experienced a decline in its take rate, falling from 2.8% to 2.7%, while its guidance for FY26 suggests organic growth will decrease to approximately 13%, down from 18% in FY25, indicating potential challenges in expanding its revenue base. Although operating expenses decreased year-over-year, the company's revenue of $120.3 million for 3Q26 fell slightly short of estimates, raising concerns about its ability to meet financial expectations. Further exacerbating the situation is the potential risk posed by another surge in COVID-19 cases, which could lead to a decline in patient visit volumes and negatively impact overall topline performance.