Forensic Analysis · Professional & Commercial Services · as of Aug 11, 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
-0.6
Distress distance
Clean
Earnings quality
4
Forensic signals
85.0
P / E (ttm)
0.7%
ROE
$765M
Market cap
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 (red flags, auditor quality, say on pay, board independence). 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 -0.6, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+59.5%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +59.5% relative to their own average in FY2026 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +32% against revenue +14%. This is the third straight fiscal year of building accruals — a multi-year streak is a materially stronger tell than a single year's move. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 27% of net operating assets, diverging from the balance-sheet accrual read.
-1.3%
FY2026
Return on invested capital.Return on invested capital is -1.3% in the latest fiscal year and rising from -117% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+5.5%/yr
FY2023–FY2026
Share-count dilution.Diluted share count changed +17% over the last 3 years to FY2026 (+5.5%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.5% 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 FY2023 has been diluted ~15%.
14% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 14% of revenue and 100% of free cash flow in FY2026 — about $1.10 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 5.5% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
Key fundamentals
Latest Revenue$480.6M
Revenue Growth YoY+14.5%
Revenue CAGR (3yr)+19.6%
Net Margin0.5%
Free Cash Flow$67.7M
Return on Equity0.7%
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?