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

Phreesia (NYSE:PHR) released its quarterly earnings results on Wednesday. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.06), FiscalAI reports. Phreesia had a return on equity of 5.13% and a net margin of 1.85%.The firm had revenue of $129.46 million for the quarter, compared to analyst estimates of $129.06 million. During the same period last year, the firm earned $0.01 EPS. The company’s quarterly revenue was up 10.4% on a year-over-year basis.

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

Shares of NYSE PHR opened at $11.88 on Thursday. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.76 and a quick ratio of 1.76. The stock has a fifty day moving average price of $11.19 and a 200 day moving average price of $10.48. Phreesia has a 1-year low of $7.77 and a 1-year high of $31.83. The company has a market cap of $734.30 million, a PE ratio of 79.20 and a beta of 0.86.

Hedge Funds Weigh In On Phreesia

Several institutional investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its stake in shares of Phreesia by 208.8% in the 1st quarter. Royal Bank of Canada now owns 24,119 shares of the company’s stock worth $617,000 after acquiring an additional 16,309 shares during the period. AQR Capital Management LLC increased its stake in shares of Phreesia by 471.2% during the first quarter. AQR Capital Management LLC now owns 160,032 shares of the company’s stock worth $4,090,000 after acquiring an additional 132,015 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Phreesia by 3.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 62,557 shares of the company’s stock worth $1,599,000 after acquiring an additional 2,158 shares during the period. NewEdge Advisors LLC increased its stake in shares of Phreesia by 262.7% during the first quarter. NewEdge Advisors LLC now owns 15,437 shares of the company’s stock worth $395,000 after acquiring an additional 11,181 shares during the period. Finally, Goldman Sachs Group Inc. raised its holdings in Phreesia by 0.4% during the first quarter. Goldman Sachs Group Inc. now owns 600,012 shares of the company’s stock worth $15,336,000 after purchasing an additional 2,402 shares in the last quarter. 92.10% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on PHR. Piper Sandler lowered shares of Phreesia from an “overweight” rating to a “neutral” rating and set a $12.00 target price on the stock. in a research report on Thursday, May 28th. Canaccord Genuity Group decreased their price target on shares of Phreesia from $22.00 to $16.00 and set a “buy” rating for the company in a research note on Thursday, May 28th. Citigroup reissued a “market perform” rating on shares of Phreesia in a research report on Friday, May 29th. Wells Fargo & Company restated an “equal weight” rating and issued a $9.00 price objective (down from $15.00) on shares of Phreesia in a research note on Wednesday, May 20th. Finally, Truist Financial upped their target price on shares of Phreesia from $11.00 to $12.00 and gave the company a “hold” rating in a report on Thursday, May 28th. Nine equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Phreesia currently has a consensus rating of “Hold” and a consensus price target of $16.65.

Key Headlines Impacting Phreesia

Here are the key news stories impacting Phreesia this week:

• Positive Sentiment: Phreesia reported revenue of $129.46 million, up 10.4% year over year and slightly above the $129.06 million analyst consensus. Management also highlighted positive operating and free cash flow and said it reduced debt principal by more than $23 million. Phreesia Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: The company maintained its fiscal 2027 revenue outlook of $510 million to $520 million, broadly consistent with the $515 million consensus estimate. Management also presented AccessOne as a potential multi-year growth driver. Phreesia maintains FY2027 revenue outlook
• Positive Sentiment: Needham & Company issued Phreesia a Buy rating, offering a favorable analyst signal despite the quarterly earnings shortfall. Phreesia earns Buy rating from Needham
• Neutral Sentiment: Phreesia’s shares remain above their 50-day and 200-day moving averages, but are well below the 12-month high of $31.83, indicating that investors continue to value the company cautiously.
• Negative Sentiment: Adjusted earnings were $0.03 per share, below analyst expectations of $0.09 to $0.11, although earnings improved from $0.01 in the year-ago quarter. The miss is likely weighing on the stock because profitability did not meet elevated expectations. Phreesia Q2 earnings and revenues lag estimates

Phreesia Company Profile

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.