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Phreesia, Inc.
12/8/2025
Ladies and gentlemen, thank you for standing by my name is Abby and I would I will be your conference operator today. At this time, I would like to welcome everyone to the freesia third quarter fiscal 2026 earnings conference call all lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session, if you would like to ask a question during that time simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 a second time. Thank you. And I would now like to turn the conference over to Balaji Gandhi, Chief Financial Officer. You may begin.
Thank you, operator. Good morning, and welcome to Freesia's earnings conference call for the third quarter of fiscal 2026, which ended on October 31st of 2025. Joining me on today's call is Haim Indig, our Chief Executive Officer. A more complete discussion of our results can be found in our earnings press release and in our related Form 8K submission to the SEC, including our quarterly stakeholder letter, both issued after the markets closed today. These documents are available on the investor relations section of our website at ir.freesia.com. As a reminder, today's call is being recorded and a replay will be available on our investor relations website at ir.freesia.com following the conclusion of the call. During today's call, we may make forward-looking statements, including statements regarding trends, our anticipated growth, our strategies, predictions about our industry, and the anticipated performance of our business, including our outlook regarding future financial results and acquisitions. Forward-looking statements are subject to various risks and uncertainties and other factors that may cause our actual results, performance, or achievements to differ materially from those described in our forward-looking statements. Such risks are described more fully in our earnings pressure lease, our stakeholder letter, and our risk factors included in our SEC filings, including in our quarterly report on Form 10Q that will be filed with the SEC tomorrow. The forward-looking statements made on this call will be based on our current views and expectations and speak only as of the date on which the statements are made. We undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events. We may also refer to certain financial measures not in accordance with generally accepted accounting principles, such as adjusted EBITDA and free cash flows, in order to provide additional information to investors. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our earnings released and stakeholder letter, which were furnished with our Form 8K filed after the market closed today with the SEC, and may also be found on our investor relations website at ir.freesia.com. I will now turn the call over to our CEO. Hi, Mindy.
Thank you, Balaji, and good evening, everyone. Thank you for joining our third quarter fiscal 2026 earnings call. I'm very proud and thankful of our team, the work they do for our clients, and their contribution to another solid quarter of growth and profitability. Balaji will review some of the highlights of our results and update our outlook. Before I hand it off to Balaji, I'd like to frame our view of Freesia's next three years for all of you. Today, we have a large network of healthcare providers who rely on Freesia's products and services. have new emerging products that extend our reach in ways that is consistent with our mission to make care easier every day. We believe these emerging products will enable us to sustain growth and enhance stakeholder value. I'd like to highlight two of the product areas we are excited about. First, provider financing. It's no secret that patient financial responsibility has been rising in this country. And we expect this trend to continue. People can't afford to pay their bills all at once. Our platform has enabled us to track this trend for years. For healthcare providers, this means more patient balances go unpaid. Payment cycles get longer and providers carry more financial risk. Hospitals and health systems have seen the number of days cash on hand decline by 28% since 2022. As a result, providers need tools to convert patient receivables into predictable cash flow. Patient balances often take years to resolve, which creates working capital pressure for providers. Our financing solutions improve days cash on hand and decrease days outstanding. Financing or payment plan programs can significantly improve the patient experience and affordability and decreases the need to use credit cards or a home equity line. Our expansion into the provider financing market through the acquisition of AccessOne helps us solve this large and growing problem with a market-leading solution. We believe we have a new growth lever to complement our existing solutions for providers and are excited about this opportunity. The second emerging market for us is healthcare provider or HCP marketing. HCP engagement is a natural extension of the offering that works so well to engage patients. We help providers and life sciences partners engage patients just before key visits where important health decisions are made, supporting behavioral change and positive measurable outcomes. Now we're extending that same proven playbook to engage healthcare providers in addition to patients. This positions Frisia to participate in a multibillion-dollar HCP digital marketing opportunity while leveraging the trusted relationships and infrastructure we've already built. Our approach differentiates Frisia by closing the loop between patient and provider engagements. Because we're embedded in clinical workflows, we help coordinate consumer and HCP messaging, ensuring that both are prepared for upcoming appointments, reaching physicians with relevant evidence-based information before they see the right patient, not weeks or months later. Our ability to align both sides of the care conversation is something we believe no one else in the market can do as comprehensively as Grisha. Our acquisitions are central to our ability to understand, reach, and engage healthcare providers. MediFind brings deep insights into appointments with active providers and specialty care patterns, helping us identify when specific clinicians need information about specific conditions or treatments based on their upcoming appointments. Connect on Call, now free to on call, along with our voice AI capabilities, allow us to introduce high value moments directly into the provider workflow. Together, these assets create a premium endemic offering and help us reach a broad set of providers in the natural flow of care, not just when they're off the clock. This new initiative plays into our strength. We have two decades of experience working with thousands of provider organizations in the top 10 pharma companies, earning a reputation for performance, compliance and truly consultative partnerships. By making HCP activation available within that same trusted ecosystem and centered on real care encounters, we believe it will deepen our relationship with both providers and life sciences clients, while adding a durable, differentiated revenue stream to Freesia's growth story. We look forward to updating you on these two important initiatives when we speak in 2026. I'll now turn it over to Balaji to walk through the Q3 results, our updated outlook for fiscal 2026, and an initial view into fiscal 2027. Thank you, Haim.
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