Phreesia Inc
Q1 2027 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did PHR Beat Earnings? Q1 2027 Results
Phreesia delivered a sharply split fiscal first-quarter 2027 report, posting earnings that fell well short of expectations even as revenue held its ground. The healthcare technology company earned just $0.05 per share against a consensus estimate of $0.29, a miss of 82.66%, though revenue of $130.94 million edged past the $130.07 million estimate by 0.66% and grew 12.9% year-over-year. The standout driver was payment solutions, where the AccessOne acquisition powered a 40% revenue surge, helping the company post GAAP net income of $2.96 million compared to a net loss of $3.91 million a year ago. That acquisition-fueled momentum, however, is unfolding against a backdrop of active securities fraud investigations tied to prior guidance cuts, adding weight to management's acknowledgment that network solutions clients are committing lower second-half spend due to brand-specific dynamics and regulatory headwinds. Phreesia maintained its full-year revenue outlook of $510 million to $520 million and Adjusted EBITDA of $125 million to $135 million, with a post-quarter restructuring of roughly 200 positions already embedded in those figures.
- AccessOne acquisition contributed 33% of payment solutions revenue growth
- Payment solutions revenue grew 40% year-over-year, led by AccessOne and 7% organic growth
- Network solutions revenue increased 15% year-over-year
- AHSC count grew 7% year-over-year to 4,708
- Total revenue per AHSC grew 6% year-over-year to $27,811
- Operating leverage improvement with total expenses growing slower than revenue
“Phreesia had a solid first quarter to build on in fiscal 2027. We entered the new fiscal year with an experienced team, a strong financial profile and continued momentum across several key initiatives, including positioning AccessOne for future growth, the successful launch of our healthcare provider (HCP) marketing offerings and the infusion of AI into the Phreesia operating model.”
Phreesia CEO, on the earnings call
Forward Guidance & Outlook
Phreesia is maintaining its fiscal 2027 outlook: revenue of $510 million to $520 million and Adjusted EBITDA of $125 million to $135 million. The revenue range assumes approximately $37 million from AccessOne and no revenue from potential future acquisitions. Network solutions clients are committing lower spend for H2 FY2027 than initially anticipated, driven by brand-specific dynamics and regulatory policy impacts, though management does not view this as a structural demand shift. AHSC growth is expected in the mid-single-digit percent range and total revenue per AHSC is expected to grow in the low-single-digit percent range. A post-quarter restructuring plan eliminating approximately 100 positions and a similar number of contractors is expected to result in meaningful annualized expense savings, already reflected in the Adjusted EBITDA outlook.
PHR YoY Financials
PHR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.