Phreesia Inc (PHR) Stock Forecast & Price Target

Phreesia Inc. has demonstrated a positive financial trajectory, with total revenue per Accountable Healthcare Service Client (AHSC) increasing to $26,622, reflecting a 5.6% year-over-year growth, driven by client expansion across its comprehensive solution areas. The company's payment-facilitator volume percentage reached 85%, alongside a 9.3% year-over-year increase in patient payment volumes to $1.181 billion in the third quarter of FY26, underscoring the strong demand for its services. Furthermore, Phreesia raised its fiscal year 2026 adjusted EBITDA guidance to a range of $99 million to $101 million—representing a 172% year-over-year growth—while also projecting continued increases in revenue per AHSC and an expansion in client numbers to approximately 4,515, indicating robust operational performance and future growth potential.

Phreesia Inc. is facing challenges reflected in its financial metrics, with a decline in take rate from 2.8% to 2.7% and a reduction in expected organic growth for FY26 to approximately 13%, down from 18% in FY25. The company's subscription revenue per Accountable Healthcare Service Client (AHSC) is projected to decrease by 7% in FY27, indicating potential difficulties in expanding revenue from existing clients. Additionally, the slight miss in revenue and provider client count relative to expectations, coupled with the looming risk of a COVID-19 surge negatively affecting patient visit volumes, compounds the negative outlook on Phreesia's stock.