Forensic Analysis · Professional & Commercial Services · as of Nov 8, 2026
Phreesia, Inc. (PHR)
A forensic read on Phreesia, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-1.9
Distress distance
Clean
Earnings quality
4
Forensic signals
0.8%
ROE
14.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Phreesia, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -1.9, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-1.7%
FY2026
Return on invested capital.Return on invested capital is -1.7% in the latest fiscal year and rising across FY2024–FY2026 from -60.3%. After-tax operating profit was ($108M) in FY2024 and ($5M) in FY2026, with operating income at -38.3% of revenue in FY2024, -13.8% in FY2025 and -1.4% in FY2026. The capital base behind it grew +71% across FY2024–FY2026, from $179M to $306M, and the return did not fall doing it, so the dollars added over that window earned at least the -60.3% the older base was already earning.
+6.2%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +13% over the last 2 years to FY2026 (+6.2%/yr). The count is growing — 54.6M shares in FY2024, 61.5M in FY2026: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~6.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~11%.
14% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 14% of revenue and 124% of free cash flow in FY2026 — about $1.10 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 6.2% a year across FY2024–FY2026 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
74d DSO
FY2025→FY2026
Receivables vs revenue.Days sales outstanding moved from 64 to 74 days FY2025→FY2026 (receivables +32% vs revenue +14%). Across FY2024–FY2026 the day count ran 66 → 64 → 74 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue grew +51% over the same period, which accounts for part of the balance but not for a day count that widened against the same quarters a year earlier. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 5 consecutive quarters (Jul 2025 +5, Oct 2025 +6, Jan 2026 +9, Apr 2026 +3, Jul 2026 +3 days). In the latest of them the receivable balance grew +16% against sales +10%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2025's opening balance is on file, but across the 3 fiscal years read here (FY2024–FY2026) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
Key fundamentals
Latest Revenue$480.6M
Revenue Growth YoY+14.5%
Revenue CAGR (2yr)+16.1%
Net Margin0.5%
Free Cash Flow$54.4M
Return on Equity0.8%
Debt / Equity0.30x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Phreesia, Inc.'s actual 10-K/10-Q/8-K filings?