Free cash flow margins have improved to 13.3% in 2027Q1, supported by a reduction in capital expenditure intensity to 3.3% of revenue.
| Cash from Operations | 86.04M | 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 % | 357.2% | 143.4% | 200.01% | 64.07% | -20.63% | -2685.12% | 249.88% | 138.78% | 80.88% | - |
| Net Income | 9.18M | 2.31M | -58.53M | -136.88M | -176.15M | -118.16M | -27.29M | -20.29M | -15.06M | -18.19M |
| Depreciation & Amortization | 34.53M | 31.45M | 27.89M | 29.49M | 25.3M | 21.3M | 15.91M | 13.92M | 11.59M | 9.64M |
| Stock-Based Compensation | 63.78M | 67.45M | 66.97M | 71.7M | 58.77M | 36.14M | 13.49M | 6.18M | 1.45M | 805K |
| Deferred Taxes | -12.68M | -13.27M | 214K | 228K | 434K | 143K | -65K | -775K | 2.06M | 598K |
| Other Non-Cash Items | 1.37M | 4.96M | 2.33M | 4.73M | 5.37M | 4.43M | 4.94M | 7.54M | 1.38M | 2.29M |
| Working Capital Changes | -11.16M | -14.09M | -6.49M | -1.64M | -3.86M | -18.57M | -4.09M | -5.75M | -3.55M | -6.29M |
| Change in Receivables | 6.91M | -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 | 7.16M | 5.26M | -3.23M | -1.99M | 4.77M | 2.88M | -3.82M | -30K | 1.96M | -2.06M |
| Cash from Investing | -149.69M | -161.88M | -24.09M | -39.67M | -26.2M | -65.23M | -25.09M | -12.32M | -11.02M | -11.96M |
| Capital Expenditures | -11.91M | -11.1M | -8.71M | -5.81M | -26.2M | -30.8M | -18.57M | -12.32M | -9.83M | -11.96M |
| CapEx % of Revenue | 2.4% | 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 | -12.65M | -13.3M | -15.38M | -19.29M | 0 | 0 | 0 | -5.3M | -5.11M | -5.38M |
| Cash from Financing | 49.45M | 72.85M | -11.49M | -17.11M | -20.8M | 234.97M | 150.66M | 100.27M | 4.19M | 31.29M |
| Debt Issued (Net) | 75.19M | 83.17M | -7.81M | -6.78M | -5.95M | -4.27M | -25.21M | -11.15M | 4.03M | -1.1M |
| Equity Issued (Net) | 3.58M | 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 | -29.33M | -14.15M | -7.61M | 1.84M | -397K | 2.42M | 6.04M | -4.41M | 165.63K | -77K |
| Net Change in Cash | -16.16M | -10.39M | -3.3M | -89.16M | -137.13M | 95.03M | 128.47M | 88.77M | -8.96M | 8.18M |
| Free Cash Flow | 73.72M | 67.71M | 8.29M | -57.48M | -116.33M | -105.52M | -15.69M | -11.49M | -11.96M | -23.11M |
| FCF Margin % | 14.88% | 14.09% | 1.98% | -16.13% | -41.41% | -49.48% | -10.55% | -9.21% | -11.98% | -28.94% |
| FCF Growth % | 189.29% | 716.61% | 114.43% | 50.59% | -10.25% | -572.71% | -36.46% | 3.92% | 48.23% | - |
| FCF per Share | 1.19 | 1.10 | 0.14 | -1.05 | -2.22 | -2.12 | -0.40 | -0.57 | -6.48 | -15.02 |
| FCF Conversion (FCF/Net Income) | 8.03x | 34.18x | -0.55x | 0.24x | 0.51x | 0.63x | -0.11x | -0.04x | 0.14x | 0.61x |
| Interest Paid | 5.14M | 1.61M | 2.19M | 1.31M | 763K | 802K | 1.47M | 0 | 0 | 0 |
| Taxes Paid | 2.53M | 1.9M | 3.07M | 37K | 39K | 49K | 64K | 0 | 0 | 0 |
EHR platform native competition
According to recent financial disclosures, Phreesia's operating cash flow consistently exceeds net income, with the 2027Q1 OCF/NI ratio reaching 7.45, largely driven by significant stock-based compensation expenses that reconcile the gap between GAAP losses and the cash generated from core operational activities.
The persistent divergence between net income and operating cash flow suggests that GAAP profitability remains heavily reliant on non-cash adjustments. Investors should monitor whether the company can achieve positive cash flow without the ongoing dilution associated with high levels of stock-based compensation.
As reported in quarterly filings, Phreesia's free cash flow margin has improved from a negative 11.3% in 2024Q4 to a positive 13.3% in 2027Q1, indicating a structural shift toward self-funding operations as the company scales its high-margin life sciences and payment processing revenue streams.
This trajectory suggests that the business is successfully moving past its heavy investment phase. However, the sustainability of this FCF growth warrants further investigation, particularly given the potential for increased competition to pressure margins in the coming fiscal periods.
Based on the provided financial data, Phreesia has successfully reduced its capital expenditure intensity, with the CapEx-to-revenue ratio declining from 8.3% in 2024Q4 to 3.3% in 2027Q1, reflecting a transition toward a more efficient, less asset-heavy operational model as the platform matures.
The reduction in capital intensity appears to be a deliberate effort to improve free cash flow conversion. Analysts should evaluate whether this lower spending level is sufficient to maintain the platform's competitive edge against evolving EHR-integrated intake solutions.
Financial statements indicate that Phreesia's cash flow profile is significantly impacted by non-operational items, including $153.2 million in net acquisition costs during 2026Q4 and consistent quarterly stock-based compensation charges exceeding $13 million, which complicate the assessment of true underlying cash-generating capability.
These items suggest that the company's cash position is subject to significant volatility from inorganic growth strategies and equity-based incentives. Investors should be cautious in interpreting headline cash flow figures without adjusting for these recurring, yet non-operational, cash outflows.
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.