Phreesia (NYSE:PHR) Posts Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Phreesia (NYSE:PHR) posted its quarterly earnings data on Wednesday. The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.06), FiscalAI reports. The company had revenue of $129.46 million for the quarter, compared to analysts’ expectations of $129.31 million. Phreesia had a net margin of 2.06% and a return on equity of 5.35%. The firm’s quarterly revenue was up 10.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.01 earnings per share.

Here are the key takeaways from Phreesia’s conference call:

• Phreesia reported 10% year-over-year revenue growth to $129.5 million, while Adjusted EBITDA rose $10.8 million to $32.9 million, producing a 25% margin and the company’s fifth consecutive quarter of positive net income.
• The company generated $18.3 million in operating cash flow and $13.8 million in free cash flow, enabling it to reduce debt principal by more than $23 million while maintaining $74.6 million in cash and restricted cash.
• Management highlighted early momentum in growth initiatives: AccessOne is seeing initial market wins and positive client feedback, ProviderConnect activity is building, and a GLP-1 campaign generated a 4% incremental lift in new-to-brand prescriptions versus a matched control group.
• Phreesia reaffirmed its fiscal 2027 outlook, including revenue of $510 million–$520 million, Adjusted EBITDA of $125 million–$135 million, mid-single-digit healthcare-services-client growth, and low-single-digit revenue-per-client growth.
• Management is moderating subscription pricing to provide more value to financially pressured providers and encourage downstream payments and network revenue, which could create continued volatility in revenue mix and revenue per client even though total revenue guidance was maintained.

Phreesia Price Performance

NYSE:PHR opened at $11.07 on Friday. The business’s 50-day moving average is $11.23 and its 200 day moving average is $10.47. Phreesia has a 12 month low of $7.77 and a 12 month high of $31.38. The company has a market capitalization of $684.24 million, a P/E ratio of 65.12 and a beta of 0.86. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.41.

Analyst Ratings Changes

A number of equities research analysts have commented on PHR shares. Needham & Company LLC restated a “buy” rating and set a $14.00 target price on shares of Phreesia in a research note on Monday. Citigroup restated a “market perform” rating on shares of Phreesia in a research report on Friday. Truist Financial lifted their target price on shares of Phreesia from $11.00 to $12.00 and gave the company a “hold” rating in a research note on Thursday, May 28th. Piper Sandler downgraded shares of Phreesia from an “overweight” rating to a “neutral” rating and set a $12.00 target price for the company. in a report on Thursday, May 28th. Finally, Barclays reissued an “equal weight” rating and set a $10.00 price target (down from $24.00) on shares of Phreesia in a report on Thursday, May 14th. Nine equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $16.29.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Van ECK Associates Corp raised its stake in Phreesia by 78.7% during the fourth quarter. Van ECK Associates Corp now owns 2,502 shares of the company’s stock valued at $42,000 after purchasing an additional 1,102 shares in the last quarter. State of Wyoming bought a new stake in shares of Phreesia in the 4th quarter worth about $99,000. Tower Research Capital LLC TRC raised its position in shares of Phreesia by 332.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,610 shares of the company’s stock valued at $160,000 after buying an additional 4,313 shares in the last quarter. State of Tennessee Department of Treasury bought a new position in shares of Phreesia in the 4th quarter valued at about $202,000. Finally, Creative Planning purchased a new position in Phreesia in the third quarter worth about $218,000. 92.10% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Phreesia

Here are the key news stories impacting Phreesia this week:

• Positive Sentiment: Phreesia reported fiscal second-quarter revenue of approximately $129.5 million, up 10.4% year over year and slightly above the $129.1 million consensus estimate. Adjusted EBITDA reached $32.9 million, and the company again generated positive operating and free cash flow. Phreesia Q2 fiscal 2027 results
• Positive Sentiment: Management maintained fiscal 2027 revenue guidance of $510 million to $520 million, in line with the roughly $515 million analyst consensus. The company also reduced debt principal by more than $23 million, supporting its balance-sheet position. Phreesia maintains fiscal 2027 outlook
• Positive Sentiment: Royal Bank of Canada reaffirmed its “outperform” rating with a $19 price target, while Canaccord Genuity reiterated its “buy” rating and set a $16 target. Needham also initiated or maintained a buy rating. These targets imply substantial upside from recent trading levels.
• Neutral Sentiment: Management highlighted AccessOne as a potential multi-year growth driver, but investors may need additional evidence that the business will meaningfully accelerate growth beyond the current outlook. AccessOne growth outlook
• Negative Sentiment: Quarterly EPS was $0.03, below consensus estimates ranging from $0.09 to $0.11, although it improved from $0.01 a year earlier. The earnings shortfall is the primary factor weighing on PHR despite the revenue beat, profitability expansion and maintained guidance. Phreesia Q2 earnings miss

About Phreesia

Phreesia, Inc (NYSE: PHR) is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company’s cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.

Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.