When Will Phreesia, Inc. (NYSE:PHR) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Phreesia, Inc.'s (NYSE:PHR) future prospects. Phreesia, Inc. engages in the provision of an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. On 31 January 2025, the US$1.5b market-cap company posted a loss of US$59m for its most recent financial year. As path to profitability is the topic on Phreesia's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 14 of the American Healthcare Services analysts is that Phreesia is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$13m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 83% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Phreesia's upcoming projects, though, bear in mind that generally a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Check out our latest analysis for Phreesia

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Phreesia to cover in one brief article, but the key fundamentals for the company can all be found in one place – Phreesia's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Valuation: What is Phreesia worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Phreesia is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Phreesia’s board and the CEO’s background .
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.