Phreesia Inc (PHR) Stock Forecast & Price Target

Phreesia Inc. has demonstrated a positive trend in its total revenue per Accountable Health Service Client (AHSC), reaching $26,622, which reflects a year-over-year increase of 5.6% and a sequential increase of 1.5%, driven by the expansion of client relationships across its solution areas. The company's patient payment volumes exhibited growth of 9.3% year-over-year, totaling $1.181 billion in the third quarter of FY26, further supported by its improved payment-facilitator volume percentage of 85%. Additionally, Phreesia raised its FY26 adjusted EBITDA guidance to a range of $99 million to $101 million, representing a significant growth projection of 172% year-over-year at the midpoint, while also anticipating an increase in total revenue per AHSC.

Phreesia Inc. reported 3Q26 revenue of $120.3 million, which marginally fell short of the $120.4 million estimate, indicating potential challenges in revenue generation despite a slight increase in adjusted EBITDA. The decline in take rate from 2.8% to 2.7% raises concerns about the company's pricing power and revenue sustainability in the payment facilitation segment. Additionally, with a client count of 4,520, slightly below expectations, and the potential impact of COVID-19 surges on patient visit volumes, there are significant headwinds that could adversely affect Phreesia's financial outlook.