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Phreesia, Inc. (NYSE:PHR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The US$1.4b market-cap company announced a latest loss of US$59m on 31 January 2025 for its most recent financial year result. Many investors are wondering about the rate at which Phreesia will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
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. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 83%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Phreesia given that this is a high-level summary, however, keep in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
See our latest analysis for Phreesia
One thing we’d like to point out is that 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 key fundamentals of Phreesia which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Phreesia, take a look at Phreesia's company page on Simply Wall St. We've also put together a list of key aspects you should look at:
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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.
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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.
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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.