Phreesia Q2 slightly beats estimates as restructuring plan lowers costs

Phreesia

02/09/2026 21:13

Overview
US patient activation platform's fiscal Q2 revenue rose 10% yr/yr, slightly beating analyst expectations
Adjusted EBITDA for fiscal Q2 rose to $32.9 mln from $22.1 mln a year earlier
Company implemented restructuring plan in May, cutting about 220 positions to reduce costs

Outlook
Phreesia maintains fiscal 2027 revenue outlook at $510 mln to $520 mln
Company maintains fiscal 2027 Adjusted EBITDA outlook at $125 mln to $135 mln
Phreesia expects mid-single-digit AHSC growth and low-single-digit revenue per AHSC growth in fiscal 2027

Result Drivers
RESTRUCTURING PLAN - Co said cost reductions from May restructuring, including elimination of about 220 positions, contributed to profitability expansion
PRODUCT INVESTMENTS - Co said enthusiasm for AccessOne and ProviderConnect products, as well as AI investments, are beginning to impact results
PAYMENT SOLUTIONS GROWTH - Co attributed expanded payment solutions revenue to AccessOne acquisition and integration

Company press release: ID:nBw1qbv3Ta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$129.46 mln
$129.07 mln (18 Analysts)
Q2 EPS
 
$0.03
 
Q2 Net Income
 
$1.92 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Phreesia, Inc. is $14.00, about 18.2% above its September 1 closing price of $11.84
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
Sept 2 - Sprinklr Q2 revenue inches up, slightly misses estimates
Sept 1 - MongoDB Q2 revenue beat; outlook fails to impress investors
Sept 1 - GitLab Q2 results top estimates on bookings growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)