With the business potentially at an important milestone, we thought we'd take a closer look at Phreesia, Inc.'s (NYSE:PHR) future prospects. Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. With the latest financial year loss of US$137m and a trailing-twelve-month loss of US$83m, the US$1.4b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Phreesia's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Phreesia is bordering on breakeven, according to the 15 American Healthcare Services analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$12m in 2027. Therefore, the company is expected to breakeven roughly 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 89% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Phreesia given that this is a high-level summary, however, bear in mind that by and large a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we'd like to point out is that The company has managed its capital prudently, with debt making up 0.9% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Phreesia to cover in one brief article, but the key fundamentals for the company can all be found in one place – Phreesia's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

1. Valuation: What is Phreesia worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Phreesia is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Phreesia's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.