Free cash flow has surged to $17.8M in 2027Q2, but this is heavily reliant on non-cash add-backs like $11.9M in stock-based compensation, with operating cash flow exceeding net income by a factor of 10.01.
Phreesia, Inc. (PHR) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 |
|---|
| Cash from Operations | 89.53M | 78.81M | 32.38M | -32.38M | -90.12M | -74.71M | 2.89M | 826K | -2.13M | -11.14M |
| Operating CF Margin % | - | 16.4% | 7.71% | -9.09% | -32.08% | -35.04% | 1.94% | 0.66% | -2.13% | -13.96% |
| Operating CF Growth % | 346.62% | 143.4% | 200.01% | 64.07% | -20.63% | -2685.12% | 249.88% | 138.78% | 80.88% | - |
| Net Income | 10.45M | 2.31M | -58.53M | -136.88M | -176.15M | -118.16M | -27.29M | -20.29M | -15.06M | -18.19M |
| Depreciation & Amortization | 37.12M | 31.45M | 27.89M | 29.49M | 25.3M | 21.3M | 15.91M | 13.92M | 11.59M | 9.64M |
| Stock-Based Compensation | 59.43M | 67.45M | 66.97M | 71.7M | 58.77M | 36.14M | 13.49M | 6.18M | 1.45M | 805K |
| Deferred Taxes | -9.96M | -13.27M | 214K | 228K | 434K | 143K | -65K | -775K | 2.06M | 598K |
| Other Non-Cash Items | 4.18M | 4.96M | 2.33M | 4.73M | 5.37M | 4.43M | 4.94M | 7.54M | 1.38M | 2.29M |
| Working Capital Changes | -12.69M | -14.09M | -6.49M | -1.64M | -3.86M | -18.57M | -4.09M | -5.75M | -3.55M | -6.29M |
| Change in Receivables | 9.9M | -10.15M | -8.81M | -11.21M | -11.13M | -10.22M | -6.62M | -5.91M | -3.8M | -3.38M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 2.62M | 3.37M | -2.45M | 1.65M |
| Change in Payables | 5.58M | 5.26M | -3.23M | -1.99M | 4.77M | 2.88M | -3.82M | -30K | 1.96M | -2.06M |
| Cash from Investing | -122.31M | -161.88M | -24.09M | -39.67M | -26.2M | -65.23M | -25.09M | -12.32M | -11.02M | -11.96M |
| Capital Expenditures | -10.63M | -11.1M | -8.71M | -5.81M | -26.2M | -30.8M | -18.57M | -12.32M | -9.83M | -11.96M |
| CapEx % of Revenue | 2.09% | 2.31% | 2.07% | 1.63% | 9.33% | 14.45% | 12.49% | 9.87% | 9.84% | 14.99% |
| Acquisitions | -153.19M | -153.19M | 0 | -14.57M | 0 | -34.42M | -6.51M | 0 | -1.19M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -13.22M | -13.3M | -15.38M | -19.29M | 0 | 0 | 0 | -5.3M | -5.11M | -5.38M |
| Cash from Financing | 9.31M | 72.85M | -11.49M | -17.11M | -20.8M | 234.97M | 150.66M | 100.27M | 4.19M | 31.29M |
| Debt Issued (Net) | 52.61M | 83.17M | -7.81M | -6.78M | -5.95M | -4.27M | -25.21M | -11.15M | 4.03M | -1.1M |
| Equity Issued (Net) | 3.14M | 3.83M | 3.93M | -12.18M | -14.46M | 236.82M | 169.84M | 130.78M | 0 | 32.46M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -14.96M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -12.18M | -19.38M | -8.99M | -4.96M | 0 | 0 | 0 |
| Other Financing | -46.43M | -14.15M | -7.61M | 1.84M | -397K | 2.42M | 6.04M | -4.41M | 165.63K | -77K |
| Net Change in Cash | -25.32M | -10.39M | -3.3M | -89.16M | -137.13M | 95.03M | 128.47M | 88.77M | -8.96M | 8.18M |
| Free Cash Flow | 78.49M | 67.71M | 8.29M | -57.48M | -116.33M | -105.52M | -15.69M | -11.49M | -11.96M | -23.11M |
| FCF Margin % | 15.46% | 14.09% | 1.98% | -16.13% | -41.41% | -49.48% | -10.55% | -9.21% | -11.98% | -28.94% |
| FCF Growth % | 124.94% | 716.61% | 114.43% | 50.59% | -10.25% | -572.71% | -36.46% | 3.92% | 48.23% | - |
| FCF per Share | 1.26 | 1.10 | 0.14 | -1.05 | -2.22 | -2.12 | -0.40 | -0.57 | -6.48 | -15.02 |
| FCF Conversion (FCF/Net Income) | 7.51x | 34.18x | -0.55x | 0.24x | 0.51x | 0.63x | -0.11x | -0.04x | 0.14x | 0.61x |
| Interest Paid | 5.51M | 1.61M | 2.19M | 1.31M | 763K | 802K | 1.47M | 0 | 0 | 0 |
| Taxes Paid | 4.65M | 1.9M | 3.07M | 37K | 39K | 49K | 64K | 0 | 0 | 0 |
Quick answers to the most common questions about buying PHR stock.
Phreesia, Inc. (PHR) generated $78.8M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Phreesia, Inc. (PHR) generated $67.7M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Phreesia, Inc. (PHR) spent $11.1M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Gross margin erosion from payment mix shift
Metrics are mathematically derived from official filings.
Earnings Quality Driven by Non-Cash Add-Backs
Operating cash flow has consistently and significantly exceeded net income, with the OCF/NI ratio reaching 10.01 in 2027Q2, indicating that non-cash charges, primarily stock-based compensation, are the dominant driver of cash generation.
The persistent and wide gap between operating cash flow and net income suggests that reported earnings are heavily influenced by non-cash expenses. This pattern is typical for high-growth software companies where stock-based compensation is a major component of employee costs. While this provides strong cash flow, investors should monitor the sustainability of this dynamic as the company approaches GAAP profitability, as the relative impact of these add-backs will diminish.
FCF Trajectory Turns Sharply Positive
Free cash flow has surged from a negative $6.3M in 2025Q1 to a positive $17.8M in 2027Q2, with FCF margins expanding from -6.2% to 13.8%, demonstrating a successful pivot toward cash generation.
The dramatic improvement in free cash flow is a direct result of operating leverage, as revenue growth has been paired with disciplined cost control, particularly in SG&A. This trajectory is a critical positive signal, indicating the business model can generate substantial cash even before achieving consistent GAAP net income. The sustainability of this FCF margin will depend on maintaining the current revenue mix and cost structure.
Working Capital Swings Mask Underlying Cash Flow
Working capital changes have been volatile, swinging from a $13.6M source of cash in 2026Q4 to a $9.6M use in 2027Q2, which can obscure the underlying operational cash flow trend.
The significant quarterly fluctuations in working capital, particularly the large positive swing in 2026Q4, suggest timing differences in collections and payables that are not reflective of core operational performance. This volatility makes quarter-over-quarter comparisons of operating cash flow less reliable. Analysts should focus on the longer-term trend, which shows working capital generally consuming cash, a typical pattern for a growing company extending terms to customers.
Strategic Acquisition Consumes Cash Reserves
The company deployed $153.2M for an acquisition in 2026Q4, a significant use of capital that temporarily reduced free cash flow but appears aligned with its platform expansion strategy.
The large acquisition in late 2026 represents a major strategic bet, likely aimed at enhancing the life sciences or clinical modules. This deployment consumed the majority of the cash generated in that quarter and was funded from existing reserves. The success of this investment will be critical for future growth and margin expansion, and its integration should be closely monitored for signs of operational synergy or drag.
SBC and Capex Mask True Cash Generation
Stock-based compensation averaged $15.4M per quarter over the last ten periods, representing a significant non-cash add-back that inflates operating cash flow relative to net income.
While operating cash flow appears robust, a substantial portion is derived from adding back stock-based compensation, which is a real economic cost to shareholders through dilution. Furthermore, capital expenditures have been relatively low, averaging around 2.5% of revenue, which may understate the true investment required to maintain and grow the software platform. Investors should consider adjusted cash flow metrics that account for the dilutive impact of SBC to assess true economic profit.