Good evening, ladies and gentlemen, and welcome to the Phreesia Second Quarter Fiscal 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will provide instructions for the question-and-answer session to follow. First, I would like to introduce Balaji Gandhi, Phreesia's Chief Financial Officer. Mr. Gandhi, you may begin. Thank you, operator. Good evening, and welcome to Phreesia's earnings conference call for the second quarter of fiscal 2025, which ended on July 31st of 2024. Joining me on today's call is Chaim 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 8-K 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.phreesia.com. As a reminder, today's call is being recorded, and a replay will be available on our investor relations website at ir.phreesia.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. Forward-looking statements are subject to various risks, 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 press release, our stakeholder letter, and our risk factors included in our SEC filings, including in our quarterly report on Form 10-Q 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 Flow, 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 press release and stakeholder letter, which were furnished with our Form 8-K filed after the markets closed today with the SEC and may also be found on our investor relations website at ir.phreesia.com. I will now turn the call over to our CEO, Chaim Indig. Thank you, Balaji, and good evening, everyone. Thank you for joining our fiscal second quarter earnings call. We achieved another important milestone in the fiscal second quarter by reaching positive free cash flow for the first time as a public company. We believe this milestone marks the start of a new era for Phreesia, in which we will be able to utilize internally generated cash to drive stakeholder value. Our fiscal second quarter results were solid across all of our key financial and operating metrics. We believe we are set up well to execute on our full year financial plan and plan for continued revenue and profitable growth this year, next year, and beyond. I feel very good about where we are as an organization and appreciate my teammates for their commitment to our mission of making care easier every day, and also to our vision to make every person an active participant in their care. I will now hand it over to Balaji to provide some financial highlights. Thank you, Chaim, and good evening, everyone. Let me start with a couple of the highlights in our letter regarding the fiscal second quarter. Q2 revenue was $102.1 million, up 19% and $16 million year-over-year. Adjusted EBITDA was $6.5 million, up $18 million year-over-year. Our average healthcare services clients, or AHSCs, increased by 104 from the prior quarter, and total revenue per AHSC was $24,494, down 2% year-over-year. Q2 fiscal 2025 total revenue per AHSC was flat year-over-year when compared to Q2 fiscal 2024 total revenue per AHSC, excluding the revenue from the clearinghouse client relationship that we wound down earlier this year. Turning to our cash flow and balance sheet, we achieved two important milestones in the fiscal second quarter. First, we returned to positive operating cash flow. And second, as Chaim mentioned, we achieved positive free cash flow for the first time as a publicly traded company. Operating cash flow was positive at $11.1 million, up $20.4 million year-over-year. Free cash flow was positive at $3.7 million, up $19 million year-over-year. Cash was at $82 million on July thirty-first, up $2.3 million from the end of our fiscal first quarter on April thirtieth. We expect to continue to generate positive free cash flow while investing in long-term revenue and profit growth. Now, moving on to our financial outlook for fiscal 2025. We are maintaining our revenue outlook for fiscal year 2025 at a range of $416 million-$426 million. We are updating our adjusted EBITDA outlook for fiscal year 2025 to a range of $26 million-$31 million, from a previous range of $21 million-$26 million. That's a $5 million increase at the top and bottom end of our range. We have also provided an outlook for two metrics: AHSCs and total revenue per AHSC. We expect AHSCs to reach approximately 4,200 for the full fiscal 2025, compared to 3,601 we reported in fiscal 2024. We expect total revenue per AHSC to increase in fiscal 2025 compared to the $98,944 we achieved in fiscal 2024. In order to help you model beyond fiscal 2025, we are also sharing our expectations for AHSCs and total revenue per AHSC in fiscal 2026. We expect AHSCs to reach approximately 4,500 in fiscal 2026. Additionally, we expect total revenue per AHSC to increase in fiscal 2026 compared to fiscal 2025. Finally, I would like to reiterate Chaim's comment that I feel very good about where we are as an organization, and would like to thank and congratulate all my Phreesia teammates for their contribution to our results. Operator, I think we can now open the lines up for a Q&A session. Thank you. If you have a question, please press star one on your telephone keypad. To withdraw your question, simply press star one again. Please ensure that your line is not on mute when called upon. Thank you. Your first question comes from the line of Anne Samuel with J.P. Morgan. Your line is open. Hi, congrats on the strong results, and thanks so much for providing the really helpful modeling color for 2026. I was hoping maybe you could just spend a little bit of time discussing how to think about the drivers of that ramp of the revenue growth provider client, just kind of keeping in mind your longer term revenue target of 20% growth beyond 2025, and with the new clients growing, call it high single digits next year, it does imply a pretty significant inflection, so I was hoping you could talk about, you know, what the key drivers of that inflection are. Thanks. Sure. Thanks, Anne, for the question. Balaji. So a couple of things I think on your question. First, I think you have some good perspective on these growth drivers, having followed us for a long time. And if you think about when we went public, that was sort of the core algorithm we had in the first year and a half of being public. So, we're certainly capable of driving a lot of revenue, both in our base and driving sort of the total value of a deal size higher. And then maybe just to give you some additional color on that, if you think about our pipeline, it's been as big right now, you know, for the first half of fiscal 2025, as it was in the first half of 2024. Our pipeline win rates have been consistent first half over first half, and the size total value of the transactions that we're doing are about 20% bigger in the first half of this year versus last year. So this is probably, you know, something you could sort of go back to fiscal 2019, fiscal 2020 and look at that, and that's how it'll probably play out over the next couple of years. That's great, and, you know, happening, I think, sooner maybe than I anticipated. Maybe just a follow-up. Was hoping you could provide some more color on the patient bill pay product and maybe how that differs from how your patients are currently transacting with you. Is there any kind of leveraging of card on file for any of that? Thank you. Anne, this is Chaim, and yes, there is. We are leveraging card on file for it, but it's also, as I'm sure you'll see at some of your doctor's offices, it's a product where we've invested heavily in, and it really provides a significantly better experience for the patient and their ability to pay their bill without actually having to do a lot of work and write a check and get a statement. So it's been a big investment. We're really proud of the team. The initial response from our clients has been well beyond what we even thought it would be. So, hats off to the team that's been rolling out. Probably took us a little longer than we expected, but it was a lot harder than we thought. So it's been really nice. Let me know when you see it at your doctor's. Will do. Congrats, guys. Cheers. Your next question comes from the line of Ryan Daniels with William Blair. Your line is open. Yeah, guys, I'll add my congratulations on the move to free cash flow positive. That's a great milestone. Maybe two questions. I'll start with one for you, Balaji. Really impressive downward trend in your sales and marketing spend. I think, you know, trend it down from a peak of $40 million- $30 million now. Is that more of a sustainable level going forward, or should we start to see that maybe modestly trend up a bit, as we continue to drive the growth outlook going forward? Yeah. Thanks, Ryan. I think you should. It's been in that level, call it, you know, plus or minus $31-$32 million for 11 quarters or so now. I think you should expect us to continue to get nice leverage out of that number. One thing I will point out, Ryan, is that just 1 Q to 2 Q sequentially, recall that we talked about that clearinghouse client unwinding. There were actually some sales and marketing costs that were built into that, which is frankly what made it, you know, not very, very profitable to us. So that came out from one Q to 2 Q. So I think sort of being in that, you know, the range we've been in for a while, we can continue to get nice leverage. We've got a large organization of, you know, about 500 people in the sales and marketing organization, and, you know, we're spending $120 million. So we think that can support a much bigger organization, revenue-wise. Okay, very helpful. And then just a question on the MEDITECH alliance that you announced in the shareholder letter tonight. Maybe twofold: One, will they actually be a reseller of the Phreesia product? And number two, when will the full product integration be available for the client base? I know that's a pretty sizable client base, especially in the acute care market. Thanks, guys. Yeah. So they are a reseller of one of our, a small piece of the technology, for some of their clients. But a lot of the clients that I'd say the alliance allows us... It's really opening the door and making it easier for MEDITECH clients to buy directly from Phreesia from a large subset of our other products. But they are a reseller of one of our products. Great. And then any comments on the full integration that you mentioned, when that will occur? Thank you. You know, I'd say I expect that to continuously roll out over the coming years, and we do already have integration with it, and we'll keep investing in MEDITECH as a platform. And the customer base is, you know, has been very, very supportive of what we've been rolling out. So it's been very fruitful. And we agree, it's a huge potential market. Yeah, yeah, big enough. Okay, thanks again, guys. Cheers. Thanks, Ryan. Your next question comes from the line of Scott Schoenhaus with KeyBank. Your line is open. Hey, guys. Thanks for taking my question. Just wanted to poke around the more, you know, the additional color we got on this fiscal 2026 target. You know, my understanding was always that, you know, the network solutions would grow maybe mid- to high-teens as a percentage every year. Is that still the right way to think about it for next year? And, you know, what does that really imply on the subscription business if you could break out some of that color more, I'd appreciate it. Thanks. Yeah. Scott, I think what we can, you know, do to try to be helpful is we don't want to get into revenue line item, you know, forecasting. But I think, you know, we talk about total revenue, and I think we have said that network solutions will continue to be a bigger part of our revenue. So as a percentage, it will grow over time. And so, you know, I think I talked about size of and value of transactions being bigger, that's inclusive of network solutions. So, you know, I think you should just expect that to grow as a percentage of revenue. And it's been growing, you know, at or faster than subscription of late, but it will fluctuate quarter to quarter, and that's really one of the really nice things about our business, is that we have these sort of three different ways to grow. Yeah, that's very helpful, Balaji. And just as a follow-up there, I guess you mentioned about the inorganic opportunities provided by the new cash generation. Anything to call out there in terms of which part of the business you think that there's more attractive in currently, market opportunities, for M&A? Thanks. Yeah, maybe... Chaim and I are looking at each other a little confused. I don't think we mentioned anything about, specifically about inorganic opportunities, or just- Oh, it just said about, you know, your cash, your free cash generation would help you achieve these targets. So I... Sorry, I read between the lines of saying that- Oh, yeah -cash generation. Look, I think you should expect, you know, that comment around free cash flow to be, you know, generating more cash flow. We think that's good, just makes us a stronger company and creates a ton of value. It allows us to keep investing in products and doing the things we're doing. I don't think I'd take anything more away from that comment. Okay. My bad. Thanks. Glad we cleared it up, then. Your next question comes from the line of Jessica Tassan with Piper Sandler. Your line is open. Hi, guys. Thanks for taking the question. So I wanted to understand kind of what changed in your visibility on the average revenue per AHSC. We appreciate the guidance, but just, are you guys seeing kind of the size of the pipeline or the magnitude of the opportunities grow? I think you referenced that. Is it new products or just what's giving you kind of sufficient confidence to be able to guide to growth in revenue per? Yeah. Thanks, Jess. So, I think what you're seeing today with the new information we shared is more the output of some things we put in place a couple of years ago in terms of how we wanted to think about the business over the next several years. And so we've just got a much broader suite of solutions, both for providers, but also for our clients in life sciences, which falls into that network solutions area. So when we're talking about breadth and total value getting bigger, that's a very intentional thing that we started to put in place almost two years ago. And so we've been expecting it and seeing it, and I think, you know, we're reacting a little bit to conversations we've had with a lot of analysts and shareholders about... Hey, where is this going, you know, quantitatively? And that's why we shared what we did today. So hopefully that's helpful. Yeah, that's really helpful. And then congratulations on the PAM renewal. I was hoping that you guys could just maybe remind us. I think we understand why patient activation is so important, but just what is kind of the opportunity to leverage PAM within your existing AHSC install base, if at all? Thanks. Yeah. I mean, look, first of all, and one of the reasons we, you know, we're very interested in acquiring the Patient Activation Measure, was that some of our clients were already utilizing it. I think the easiest, you know, application you could think about is in the nephrology space, where as part of the Kidney Care Choices Program that the Center for Medicare and Medicaid Innovation have launched, PAM is required to be measured. So if you think about a nephrology client of Phreesia's that's participating in the KCC program, they have to measure PAM. It makes our product stickier. It allows us to do a lot of things, you know, around both, all the things that Phreesia does, and over time, integrate that with PAM. But now, I think you think about that renewal, and I think it's all public information out there. It gives us an opportunity over a longer period of time to get that included in new models within CMMI, and those new models could be in various specialties or provider settings that Phreesia works with. Great. Thank you. Yeah. Your next question comes from the line of Jailendra Singh with Truist Securities. Your line is open. Thank you, and thanks for taking my questions. I actually want to go back to fiscal twenty-six, metrics, color guidance you're giving. Quick clarification. I know, looks like that modeling data is helpful, looks like street might be slightly higher on this AHSC count, but you're not trying to talk down the top line growth expectation. You're essentially saying that maybe we are underestimating revenue per AHSC for fiscal twenty-six, might be slightly higher on the total AHSC count. Just want to make sure that the message is clear. It's not a top-line talking down, but just a mix of the two metric, something you want to give some guidance on, right? Yeah, I think that's right. I think what we'd say is we haven't formally, you know, said anything about fiscal 2026 in terms of revenue for the year, but I think that's the right takeaway, is that what we're trying to do is say you will see more contribution from total revenue per AHSC in 2026 than you have in the last couple of years. Okay. Then my main, main question around EBITDA outperformance and guidance raised this fiscal year. Would you attribute this outperformance to you guys able to find incremental, like, find cost efficiencies and leverage faster than you previously thought? Or are these incremental cost efficiencies which you did not expect at all? Just trying to understand if there is any change to your, the long-term margin profile in this business you think about. Yeah, and, you know, I think on the earlier question about revenue, it applies really throughout the company. I think there's, there was really a lot of effort and focus by a lot of people at the company around what we wanted-- what kind of company we wanted to be, what kind of company we want to look like, how are we going to fund our growth. And so a lot. First of all, just to acknowledge that a lot of different people at Phreesia were part of this. And when you put a lot of things in motion like that, Jailendra, you know, you don't know the timing with precision about where you're going to be in any particular quarter. I think we've, we've done well, but we're constantly looking for opportunities to, to be more efficient. You know, we still spend a you know large amount of capital. So, I think it's mentioned in Chaim's section of the letter, this isn't some kind of finish line. Okay, and the last one, if I can sneak in here. What was the SDR count at the end of the quarter, and any color you can provide, as a guidance on that metric band of the fiscal year? Yeah. And this is something, another topic we've talked about a lot internally over the past couple of quarters. I think I talked about, on Anne's question, about that organization, and it's a 500-person organization, as we sit here today, inclusive of all the work we do in network solutions. We're spending over $120 million. I think there's a little bit of confusion from the investment community about SDRs in the context of this. I mean, that 500-person organization has lots of people that are driving net new growth across the company. SDRs have been one tactic. I think we'd rather just sort of say, if you wanted to, you know, keep score of how, of the inputs on sales and marketing, think about it as 500, which is about the same as it was last year, and think about it as $120 million. You know, I don't think it's probably, you know, it's not something we're probably going to share. Great. Thanks a lot. Sure. Your next question comes from the line of Glenn Santangelo with Jefferies. Your line is open. Yeah, thanks for taking my questions. Just two quick ones from me. You know, back to the fiscal twenty-six outlook on the provider adds, I'm kind of curious, you know, as we sit here with five months left in fiscal twenty-five, you know, how much visibility, how much forward visibility do you have on those provider adds at this point? Like, I know you're working now for deals towards next year, and I'm just kind of curious as to how much, you know, how much visibility you really have in throwing out that forward guidance at this point. Yeah. I'll answer the question this way, Glenn. We have entering a year, when we think about the provider space, and we think about subscription revenue and payment processing, we have lots of visibility. I'm going to say, you know, 90% visibility. So that's the part of our business we have the most. And I think in network solutions, we've been pretty consistent. That's where most of the variability is. So even this late in the year, that $10 million revenue range we have, most of the variability there is in network solutions. So we do have, we do have a lot, which is why, you know, when we're sitting here in September, we've given a target for the full fiscal year for next year. So a lot, but not 90% today, but entering a year 90%. Okay, perfect. Then maybe, Chaim, if I could just sort of follow up on one with you. You know, I'm kind of curious as to, you know, where you think industry penetration rates might be for automated solutions, like what you're selling. Because I think, you know, obviously, a great quarter, but some of the pushback may be on the slower provider adds next year, and so I guess people are always wondering, and, you know, I know you always say this is a hard business, you know, and I'm sure it continues to be, but are you seeing any movement in the competitive landscape on from the EHR companies or, you know, or are we starting to push up against higher penetration rates? Like, what do you think is going on? Look, I think the team's doing a great job. I think we've invested heavily in a lot of new products, which are bearing fruit, so I think the investments we've been making in our product organization and diversifying away from just being known as intake, so we're really a lot more on that, which has helped us frankly win fairly regularly on a weekly, monthly, and yearly basis, continuing to win more deals, and I think we're starting to see more and more of those venture-backed businesses that or private equity-backed businesses that are starting to struggle, you know, having not invested, and I don't have the ability to invest at the rate they did. So, you know, to be very blunt, I think our view is if you continually invest in product and it's not what you did, it's what you're doing, then we believe we should have a continuous right to keep growing the business, and so far, that thesis has played out. Glenn, what I'd add is we have different ways of growing, and that's the point, I think client growth is absolutely an important part of it, but so is the revenue associated with clients. Like, I don't hear people often saying, "Wow, my experience in healthcare has been amazing. Like, it's so seamless. Okay, appreciate the comments, guys. Your next question comes from the line of Stephanie Davis with Barclays. Your line is open. Hey, guys, congrats on the quarter. We haven't really seen you push on the gas pedal, and that rev per metric when at the scale before. So I was hoping you can give us some insight into the balance of how much of it is from new deals of scale that you talked about, which might have a bit longer to flow through, how much of it is that cross sales of the broader solution suite? And when we think about your client base and the recent off-boarding you had in 1Q, is there any further off-boarding that might make sense if some clients aren't at the sale or sophistication fit this next stage of your platform? What was the last part of that? Is there further what? Any further off-boardings of client relationships that might not be able to scale in the same way that you folks are looking to do? Yeah, yeah, no, I got it. So a couple of things I'd say, really two things around your question. First of all, what you're seeing in fiscal 2025, you just—it's, and I think we've tried to unpack this in what we've shared, is just that when you take $8 million out from that, you know, clearinghouse client, that was a very unusual client for us, which is one AHSC with $8 million, it distorts a lot of, you know, the trend. The second thing, though, is, and I think I mentioned this earlier, you think about the pipeline, it's the same as it was a year ago, but the size of these, the value of these deals is larger. And I think it's, you know, as I said, about 20% larger compared to a year ago at this time. That flows through into, you know, into the future, and that's how you get a lift on revenue per client. You guys have seen a lot of leverage on the sales and marketing front. Should we think about a change in your go-to-market, like maybe a more narrow focus or a bit more upmarket focus? No. No, I think it's been pretty consistent. I think there's lots of analysis you can do now with, you know, over five years of data on visits and clients, and the revenue associated with them, and, and, and it's, you know, the size and composition's pretty much been the same. It bounces around quarter to quarter, but it's pretty much been the same over that whole period of time. All right. Thank you. Your next question comes from the line of Joe Vruwink with Baird. Your line is open. Great. Thank you. On the expectation for customer counts, obviously, those are net numbers. I'm wondering if you could speak to the gross experience, retention on maybe even a logo basis or dollar basis over that stretch of time. And I guess I'm wondering, you know, you talked about the progress you've had on kind of new deals and new transactions and shorter paybacks and those cohorts. I'm wondering if the economics have changed for the better within the established installed base, and that's driving some of the good updates we're now seeing. Yeah. I'd say yes is the short answer on the second question. And on the first part, we've been in a very tight range of 94%-96% on gross revenue retention since we went public, so and we continue to be in that range. Okay, thank you. And then, second question, yeah, the way you framed in the prepared remarks incrementally the DOT and the incremental Free Cash Flow, both year-over-year, I'm wondering if you just have an expectation for that conversion rate and where the relationship might settle over a rolling, let's say, twelve-month basis? Not at this time, Joe. I mean, I think there will continue to be nice pull-through. I think we feel comfortable now saying I wouldn't be modeling 100% pull-through, but we still think it'll be very strong in the next year. We'll tell you more in December. That's it for me. Thank you. Your next question comes from the line of John Ransom with Raymond James. Your line is open. Hey, good evening. A couple for me. If we think about your overall expenses outside of payment, which is variable, what kind of revenue do you think you could support with that level of expense compared to what you have today? Is this your way of trying to get to a revenue number for next year, John? No, it's a way to try to understand how much expenses will grow- Yeah -independent of revenue. I think we have said you shouldn't expect that expense number that you talked about, which is around $79 million in a quarter, going up much over the next couple of years as we continue to grow it at, you know, at a pretty healthy clip. Okay. And then secondly, just kind of trying to read between the lines a little bit, and this is state school reading between the lines, which is always in question. So for you to drive a higher revenue per client, not only do you have to tackle bigger clients, but I'm assuming that you're also targeting clients that have a bigger willingness to write prescriptions so that the data flow through to pharma would be more valuable. So are you looking at groups that might be more high prescribers than maybe what you were in the past? Hey, John. No, I think the way we think about it is, making sure that we drive, more of our holistic solutions across the board to the provider on initial sale. So as opposed to... And I think we've mentioned this on a couple of calls, where it's as opposed to going in with a lower entry product or a, or just one of our offerings going in with a fuller suite initially to drive more value early on. But the reality is, I think the other thing that we're seeing is the investment that we've been making in R&D, in product, is starting to pull through as we have a broader offering to take to those clients, both initially and ongoing throughout the- Right ... throughout the patient's journey. I think this is- So what? And we really do appreciate our investors, giving us the rope to invest in product to be able to do this. Right. So, so just thinking about your sales and marketing, what has been done to, I mean, the productivity has gone up, obviously. I mean, you did that experiment where you hired a bunch of people, and you've been on this, you did this growth experiment, now you're on this productivity experiment. What have you done to improve the productivity of your sales and marketing team? Because, I mean, it's pretty evident in the numbers, but I'm just curious about the specifics. Yeah, and I mean, John, I don't—I wouldn't think of them as two experiments, though I understand why you asked it that way. It was really we took capital that we, you know, thought was, you know, very appropriate, put it to work with the idea that if we got faster growth, we would be able to drive a lot of operating leverage. Now, the way you do that is you just focus on a lot of operating metrics and getting good, you know, results and returns. I think we've been pretty clear, you don't get everything right. So when you don't, you got to look at it, measure it, and sort of take care of that. So I think that's what you're probably seeing a lot in the numbers, if I'm anything. No, easy to get you. Yeah, and Chaim, you're, I think, last one. You're the only company I follow that's completely virtual, but you've had this good return on R&D. How do you keep people in so many locations going with a developing product at such a pace? Thanks. Look, I think we are very purposeful, John, in how we think about communication, documentation, and ideating, but the team does pull together on a fairly regular basis. But it also allows us to attract and retain top talent from all over. And I think so we recognize that it is not the same as in person, but we try to play to our strengths, being fully virtual, but also recognizing that we have to get together, and we have to have a really focused time on that collaboration, as we do on a regular basis. Thank you. Your next question comes from the line of Richard Close with Canaccord Genuity. Your line is open. Great. Thank you for all the information in the letter. On product updates, Ryan took the MEDITECH, so I guess I'll hit medication adherence. Can you remind us what the revenue model is associated with that offering? Is that being paid for by pharma, thus part of network solutions? And if that is the process, is it like a drug-by-drug that the clients sign up for, or do you go to each pharma company and say, "Hey, you know, we'll show you all the prescriptions"? Just curious how that all works. Yeah. So I'll give some detail, probably not as much as you'd like. So just to be clear, we don't actually disclose any information back to the pharmaceutical company on who or what, so no, no patient identifiable information is delivered back to them. And the vast majority of that revenue is, would probably be realized on our network solutions line, and it would more often than not be part of an offering, a suite of offerings around the patient's journey, that we would work with our network solutions clients to provide them access to that network. But it'd be one of multiple things that they'd often pick on, as opposed to just like we're going and selling that thing. Okay, that's helpful. And then maybe, Balaji, on the pipeline being the same year-over-year, you know, you obviously focused or stated last quarter, you're focusing in on, you know, the shorter payback. So I assume, you know, some stuff probably fell out of the pipeline, you know, just because they were maybe you know, not as broad, you know, from a product offering or interested in the broader product offering. Is that fair to say? No, I don't think that'd be fair to say. I think what you're... You know, I talked about size earlier, and if you just think about the value, that's what we've been driving. And a lot of this, Richard, is the output of things we put in place a couple of years ago. So I think our comment really is just that pipeline's still good, it's about the same size, and the deals, you know, are bigger. That's what will get us to the place we're trying to get next year and beyond. Okay, and... okay, that's helpful. And then, final question here is: I appreciate the retention comments, a couple questions earlier. Can you just talk to us a little bit about, let's say, a, you know, client decides to switch, you know, from one vendor to, you know, let's say, Epic. What's your history in terms of, you know, keeping that client on the patient access side? And just curious there. Yeah. I mean, I don't think we talk about any specific vendor, you know, EMR vendor, Richard, but I think, you know, we talked about our retention rates, we talked about the breadth we have, and, you know, we're focusing on starting with these clients in a bigger way. But, you know, I don't think there's anything specifically to call out. There's—we don't win every deal, but, you know— Mm-hmm ... when those situations happen, it's not. There's not one specific theme to bring out, and obviously, you know, we're a pretty big player in this space. Okay. Thank you. Congratulations. Yep. Thanks. Your next question comes from the line of Daniel Grosslight with Citi. Your line is open. Hey, guys. Thanks for taking the question. I wanted to go back to the components of rev for AHSC growth in 2026 and beyond. First, just wanted to confirm that you are still committed to that 20% top-line growth for your medium-term targets. And then, if I look at your growth algorithm back in the 2018, 2019 timeframe, obviously, much of that growth was driven by subscription revenue per provider, given the life sciences segment at that time was relatively nascent. Fast-forward to today, you know, the networks business is your fastest-growing segment. So as we think about rev per HSC growth in the future, is, you know, is networks really going to drive the majority of that now? And how does that impact the visibility that you have in achieving those longer term targets? Sure. So, first point, Daniel, you know, the network solutions revenue is actually the first revenue line in the history of the company, going back to two thousand and five. So, and I just wanted to make sure, you know, when you said nascent, it you know, it's the earliest revenue we had and the first product we had. I think what you have to appreciate is how much smaller the network was then. And, you know, we had done 54 million visits the year we went public. And so one of the reasons that network solutions has grown so much, we're now working with over 100 brands, you know. I think that's because the size of the network has grown so much that it gives us a nice tailwind to be able to have a lot of these conversations with a lot more people, frankly, that we couldn't a few years ago. I think that is a very different sort of thing. You know, I think as you talked about next year, I want to also clarify. We've never talked about 20% growth as any kind of target. I think we'll talk to you, you know, we'll keep giving you updates about things. We'll talk about 2026 in December, but that's really, I mean, that's. I think you'll get updates from us, but this year you obviously have the growth and the revenue that we're targeting. Got it. Thank you. Yep. Your next question comes from the line of Sean Dodge with RBC Capital Markets. Your line is open. Yep. Thanks. Good afternoon. You mentioned with respect to the guidance, the variability in that range being associated with network solutions selling activity. I guess, is there a big seasonal component or cadence in that business? Or are Q3s and Q4 still the heaviest? ... for that segment? And then just anything you can share on visibility you have at this point into that revenue heading into the back half of this year. Thanks. Yeah. So you're right, Sean. Absolutely, that's been the case every year. We were pretty intentional about having a wider revenue guidance range for this year because of that. And so, there will be a lot of balls up in the air in the fall, and we'll keep you apprised to that as we get through it. But that is the time of year where we're doing a lot of sales. Okay. Thank you, again. Your next question comes from the line of Jeff Garro with Stephens. Your line is open. Yeah, good afternoon. Thanks for taking the questions. Maybe follow up a little bit on that last one. If you could just give any comments specifically about any impact you've anticipated from it being an election year. You know, I would imagine maybe you guys are an attractive non-media channel for life sciences, given the increased spend this fall, but curious to get your comments there. Yeah. No, I'm looking at time, too, and I don't think there's anything we'd call out about election season, and you know, we went through this in 2020 and 2022 as well, and frankly, well before we were public. Fair enough. One more for me. Just want to see if we could get an update on MediFind. Curious what's working there in terms of customer adoption within the Phreesia base, and any early insights on the value realized by clients that are using that service? Yeah. No, look, I-- it's just crossed the one-year anniversary in July. I think if you... You know, talking to our life sciences team, it's helped, you know, spark a lot of good conversations around how we can bring value just, you know, beyond what we've done historically, with this asset. And I think, you know, it's gonna be a driver of our growth in the future. So when you think about the conversations like total revenue per client and network solutions growth, absolutely, MediFind is going to be part of that. Great. Thanks for taking the questions. Sure. Your next question comes from the line of Ryan MacDonald with Needham. Your line is open. Yeah, thanks. This is Matt Shea on for Ryan. Thanks for taking the questions, and congrats on the quarter here, guys. Wanted to follow up on the new provider adds to the back half of 2025, kind of below that hundred plus per quarter rate. Should we view this as the maybe new selling seasonality going forward, that new deals might be more first half of the year or first half of the fiscal year weighted going forward? Or is this more of a signal of a shift towards fewer but bigger new clients? I guess just trying to understand if we should expect new provider adds to be linear in FY 2026 or, or more front half weighted. Yeah. No, Matt, actually, what you should take away, and this is some, you know, feedback and conversations we've had with a lot of folks, this is a very intentional effort on our part to get out of the quarterly cadence of AHSCs and giving you a bigger runway. And so what we're saying is, you know, we're giving you a sense for where we think we'll be for the full year on average and where we'll be next year. But I do think I'll confirm that this is not anything about seasonality or anything like that. It's just a point in time where we're choosing to, you know, set expectations and longer term. Okay, fair enough. Yeah, that makes sense. And then just to follow up on the PAM renewal, just curious, were you guys pitted against any other vendors in that process? And then as we think about the expansionary opportunity, those four potential additional models, does that create a revenue uplift as CMS adds you to additional models, or is that just included in your renewal contract, kind of as no revenue uplift? Yeah. So first of all, one of the reasons we were very excited about that measure is it is very unique. I think there's public information out there, Matt, on why PAM was selected and what makes it unique, that you could probably chase down. And then in terms of the programs, yeah, there's opportunity there. I think that's also, you know, out there publicly, if we can get into some more models, that creates revenue opportunities, which we're excited about. Okay, great. Thank you. Yep. Your next question comes from the line of Jack Wallace with Guggenheim. Your line is open. Hey, thanks for taking my questions, and congrats on getting the cash flow positive. Wanted to send another question your way about the growth algorithm for next year. Wanted to, you know, maybe ask about the same sort of sales growth. It sounds like you're adding some bigger deals, you may be moving upmarket a little bit. But thinking about the clients you do have, how much additional upselling is contemplated within the algo for next year? Is there any price, you know, that we should be considering? And then just kind of the general impact or lack thereof of the sunsetting of the initial demo periods. Thank you. No, no- nothing you should take away from that, in terms of change to any of our go-to-market. And I think, you know, when you-- I wouldn't characterize it as upmarket or downmarket, we're just talking about value. And like I said, there's just the total value that we can drive in the business, and that's gotten bigger, this half versus last half. And that's why, you know, we feel sort of... You know, we feel comfortable, sharing our outlook for next year. Appreciate that. So it maybe another way to ask it is, at least on the subscription line, you've been hovering around a little higher than a third penetrated against your per provider TAM. Should we expect that, you know, that penetration to go up next year? Or is it really just a function of the larger deals or, and higher value deals coming in? Yeah, and again, I think what we're going to emphasize when we say value is total revenue. Some of them will be larger on subscriptions, some of them could be larger on payments, and you know, some could be larger on network solutions, but really, when we say total value, we mean all three. Got it. Thank you. Sure. Your next question comes from the line of Aaron Kimson with Citizens JMP. Your line is open. Thank you. You announced the availability of Phreesia on the Oracle Healthcare Marketplace at the end of July, and then an integration with Oracle EHR. Can you talk about what you've seen from the partnership and integration in the first month and the potential you see for it to help Phreesia land customers going forward? Yeah, Aaron, it's early. I mean, you know, and we just announced that, so I don't think there's anything particular to call out where, you know, we're happy to get, you know, formalize that. But I don't think there's anything specific to call out. Okay. Thank you. Yep. This concludes the question-and-answer session. I will turn the call to Chaim for closing remarks. Thanks a lot, everyone, for joining us. I hope everyone's gotten back into the fall swing, and everyone's happy that their kids are back at school, and I look forward to seeing everyone over the next ninety days, and we'll talk to you all in December. Bye-bye. This concludes today's conference call. We thank you for joining. You may now disconnect your lines.