Phreesia announced on March 16, 2026 that it has refinanced its existing bridge loan by entering into a new senior secured revolving credit facility with Capital One. The facility provides up to $275 million in aggregate principal and allows the company to draw $92.2 million to repay the outstanding balance of its bridge loan, which had originally been $110 million before a $20 million reduction. The new line also replaces a $50 million asset‑based revolving credit facility that was previously in place.
The bridge loan that was repaid had been used to fund Phreesia’s $160 million acquisition of AccessOne, which closed on November 12, 2025. The $92.2 million draw on the new facility means the company is no longer debt‑free, although the new structure consolidates its debt and improves leverage ratios. The refinancing also eliminates the short‑term bridge loan and the asset‑based facility, simplifying the capital structure and reducing borrowing costs.
The credit line is subject to financial covenants based on the Total Net Leverage Ratio and Fixed Charge Coverage Ratio, and it is secured by the company’s assets. Management noted that the new facility “reduces our borrowing costs and enhances our longer‑term financial flexibility.” CEO Chaim Indig added, “This refinancing is consistent with our stated plan to replace the bridge loan with a long‑term revolving credit facility.”
Phreesia’s financial health remains strong. The company reported Q3 FY2026 revenue of $120.3 million, up 13% year‑over‑year, and an adjusted EBITDA margin of 24%, a record high. CFO Balaji Gandhi highlighted that “Total revenue was $120.3 million a 13% increase year‑over‑year. Adjusted EBITDA was $29.1 million, an increase of $19 million year‑over‑year and $7 million quarter‑over‑quarter. We achieved another major milestone this quarter with our adjusted EBITDA margin reaching an all‑time high of 24%.” The company projects fiscal 2027 revenue between $545 million and $559 million and maintains a low debt‑to‑equity ratio of 0.01 to 0.07, a current ratio of 2.44, and a “GREAT” financial health score.
The refinancing positions Phreesia to pursue future growth opportunities, including additional acquisitions and product development, without immediate equity dilution. By consolidating debt and securing a larger, more flexible credit line, the company can respond quickly to market opportunities and support the integration of AccessOne’s provider‑financing platform, which expands its addressable market and strengthens its competitive position in the healthcare technology sector.
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