Phreesia Inc
Q2 2027 Earnings
Includes $2.8 million in restructuring charges and $0.7 million in AccessOne acquisition-related integration costs classified as other items affecting comparability
Market Reaction
Did PHR Beat Earnings? Q2 2027 Results
Phreesia, Inc. delivered a split verdict for fiscal Q2 2027, posting revenue that edged past expectations while GAAP earnings fell well short of Wall Street's forecast. The healthcare technology company reported revenue of $129.46 million, a 10.4% year-over-year gain that cleared the $128.99 million consensus by 0.36%, driven in large part by a 36% surge in Payment Solutions revenue tied to the November 2025 AccessOne acquisition. On the bottom line, however, GAAP EPS of $0.03, which includes $2.8 million in restructuring charges and $0.7 million in AccessOne integration costs, trailed the $0.32 consensus by 90.69%, a gap that underscores how one-time items and transformation costs continue to weigh on reported profitability. Beneath the headline, the operational picture brightened considerably, with operating income swinging to $7.61 million from a loss of $1.51 million a year earlier and Adjusted EBITDA expanding to $32.92 million. Management held its fiscal 2027 revenue outlook at $510 million to $520 million and Adjusted EBITDA of $125 million to $135 million, though it flagged increased variability in second-half network solutions forecasting, drawing mixed sentiment from analysts who largely maintain a hold stance on the stock.
- AccessOne acquisition driving 36% growth in payment solutions revenue
- Operating leverage with revenue growth exceeding expense growth
- Restructuring plan reducing operating expenses and aligning cost structure
- Stock-based compensation expense declined significantly year-over-year
- 6% year-over-year AHSC growth to 4,744 clients
- 4% year-over-year growth in total revenue per AHSC to $27,289
“Phreesia delivered a solid fiscal second quarter, with revenue growth and profitability expansion in line with our expectations. We generated positive operating and free cash flow again this quarter, which together with available cash allowed us to reduce debt principal by over $23 million while maintaining a healthy cash balance.”
Phreesia CEO, on the earnings call
Forward Guidance & Outlook
Phreesia is maintaining its fiscal 2027 revenue outlook of $510 million to $520 million, assuming approximately $37 million of contribution from AccessOne and no additional revenue from potential future acquisitions. The company is also maintaining its Adjusted EBITDA outlook of $125 million to $135 million. AHSC growth is expected in the mid-single-digit percentage range, and total revenue per AHSC is expected to grow in the low-single-digit percentage range. The company noted increased variability in network solutions revenue forecasting, particularly in the fiscal second half. The May 2026 restructuring plan is expected to result in meaningful annualized run-rate expense savings.
PHR YoY Financials
PHR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.