Phreesia Inc Q3 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sean Dodge - Bank of Montreal - Analyst : Congratulations on the quarter and on closing the acquisition. Chaim, you mentioned the new emerging solution areas that will help to continue driving higher revenue per AHSC. On AccessOne, maybe just anything more you can share on the growth potential for that business, specifically over the next couple of years and how you can accelerate it? And how much room is left to continue expanding within their existing base? And then maybe anything that you need to kind of change about that before you can start cross-selling it into the legacy free to base? When does that become an opportunity?

Question: Ryan Daniels - William Blair Capital Partners - Analyst : I wanted to dig a little bit more into the new HCP marketing initiative. And I'm curious, I guess, twofold. One, have you actively started to sell that for the 2026 season? And kind of what's been the reception from pharma clients? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 10:00PM, PHR.N - Q3 2026 Phreesia Inc Earnings Call And then second, when you think about that, are you seeing or do you anticipate that it will be all incremental dollars? Or do you think any of your kind of D2C dollars from the pharma companies could shift into HCP such that's not 100% incremental?

Question: Ryan MacDonald - Needham & Company LLC - Analyst : Balaji, maybe for you, just wanted to ask about the updated '26 guidance. I know you called out $7.5 million of in fourth quarter from AccessOne, yes, we've only increased the guidance range at the midpoint by about $3 million -- is there sort of a $4.5 million hole that we're refilling here? Or anything we should be concerned about, I guess, within the core subscription or network solutions business? And how is that sort of impacting your outlook of either of those segments kind of heading into '27?

Question: Ryan MacDonald - Needham & Company LLC - Analyst : Yes. So our prior guidance range was $472 million to $482 million. So we're taking a $477 million midpoint -- now the midpoint goes to $480 million in the updated guidance. And so up by $3 million at the midpoint, but you've got a $7.5 million revenue contribution from AccessOne. That wasn't in the prior guidance. So just wondering sort of what's the -- I guess, the difference there on the adding $7.5 million, but only increasing the guide by about $3 million at the midpoint?

Question: Richard Close - Canaccord Genuity Corp - Analyst : Congratulations on the acquisition in the quarter. Just curious if you guys could talk a little bit more about AccessOne, the funded and unfunded, how we think about like the demand in various products or those offerings? And then just like how you expect any type of seasonality in that business in terms of selling new customers and et cetera?

Question: Daniel Grosslight - Citi Infrastructure Investments LLC - Analyst : Balaji, I wanted to go back to the commentary you made around the fluidity in the network solution selling season this year. Is any of that due to just unknowns around how DTC advertising large is going to develop given just some of the political issues around that? And what gives you confidence that this fluidity is just really going to happen in fiscal '26 and what really impact fiscal '27?

Question: John Ransom - Raymond James - Analyst : Just looking at the Q3 EBITDA outperformance and the guide for 2027, what would you say because the jump in -- I know there's seasonality in payroll taxes, but the jumping all point seems a bit stronger than the implied guide. So any comments there other than the $900,000 you mentioned?

Question: John Ransom - Raymond James - Analyst : And marketing spend was the big variance in our model. So maybe in your guide, what are you contemplating for year-over-year marketing spend growth?

Question: Jessica Tassan - Piper Jaffray Inc - Analyst : And congrats on the close of AccessOne. Can you all elaborate a little bit on how Phreesia's call allows you to enter the provider workflow and surface educational content to the HCP just kind of mechanical mechanically, how does that work? And then can you just remind us how much of Network Solutions revenue typically books ahead of the start of the calendar year versus

Question: Clark Wright - DA Davidson & Co - Analyst : A lot of them have been answered, but wanted to real quick touch on if you can help us really understand the assumptions behind the fiscal 2027 top line outlook and the mix that you're seeing right now between the growth in account of AHSCs versus the total revenue per AHSC? And if the assumptions you've made includes AccessOne with those figures?