10-Q · May 28, 2026
Phreesia reported Q1 FY2027 revenue of $130.9 million, up 13% from $115.9 million in the same period last year, driven by strong growth in payment solutions and network solutions. However, diluted EPS came in at only…
Earnings analysis · 10-Q
PHR earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Phreesia delivered solid year-over-year growth, with revenue up 10% to $129.458 million and payment solutions up 36% to $38.489 million. Profitability and cash generation improved materially, including $7.608 million of…
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Phreesia delivered solid year-over-year growth, with revenue up 10% to $129.458 million and payment solutions up 36% to $38.489 million. Profitability and cash generation improved materially, including $7.608 million of operating income, $32.920 million of Adjusted EBITDA and $13.824 million of free cash flow. However, subscription revenue declined, restructuring and AccessOne integration remain execution risks, and higher debt-related interest expense and litigation exposure temper the positive outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.03
What stood out
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Revenue Growth Led by Payments
Revenue increased $12.203 million, or 10%, to $129.458 million from $117.255 million in the prior-year quarter. Payment solutions grew $10.097 million, or 36%, to $38.489 million, aided by AccessOne and higher patient payment activity.
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Operating Profitability Improved
Operating income improved to $7.608 million from a $1.507 million operating loss, lifting the derived operating margin to approximately 5.9% from negative 1.3%. Net income increased to $1.918 million from $0.654 million, while diluted EPS rose to $0.03 from $0.01.
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EBITDA and Free Cash Flow Expanded
Adjusted EBITDA increased to $32.920 million from $22.132 million, a gain of $10.788 million or 49%. The company reported $13.824 million of free cash flow versus $9.633 million in the prior-year quarter.
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Client Base and Monetization Increased
Average healthcare services clients increased to 4,744 from 4,467, while total revenue per average healthcare services client increased 4% to $27,289 from $26,249.
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Liquidity Remains Adequate
Cash, cash equivalents and restricted cash were $74.636 million at July 31, 2026, up $0.806 million from January 31, 2026. The company had $60.740 million of revolving debt outstanding and $214.260 million of unused borrowing capacity.
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Expanded Receivables Funding
The securitization facility limit increased from $200 million to $300 million and its scheduled termination date was extended to April 30, 2029, supporting AccessOne financing activity.
What to watch
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Subscription Revenue and Gross Margin Pressure
Subscription and related services revenue declined $1.007 million, or 2%, to $52.695 million, reflecting one-time fee adjustments and lower license-delivery revenue. The derived gross margin also declined to approximately 66.6% from 67.9% as payment solutions expense increased to $23.914 million from $20.243 million.
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Restructuring Execution Risk
The company expects approximately $10 million of restructuring charges in fiscal 2027 after recording $2.752 million through July 31, 2026 and eliminating approximately 220 positions. Management cautions that it may not realize the expected savings and that the reductions could affect execution, morale and the product roadmap.
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AccessOne Integration and Control Risk
AccessOne represented approximately 7% of total revenue but approximately 46% of total assets as of July 31, 2026. The filing states that AccessOne integration controls remain in process and that the consolidated statements used information from AccessOne's legacy systems.
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Higher Variable-Rate Debt Costs
Interest expense increased to $1.729 million from $0.391 million, primarily because of the new variable-rate facility. The company had $60.740 million outstanding at a 6.4% interest rate; a 1% rate increase would raise annual interest expense by approximately $0.6 million.
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Cybersecurity and Litigation Exposure
The company recorded a $4.950 million liability for the ConnectOnCall data-breach settlement, subject to final court approval, while also recording a $4.950 million insurance receivable. Two additional putative securities class actions were filed in 2026, and the company cannot reasonably estimate any associated loss.
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AI Investment and Compliance Risk
The filing expands its AI risk discussion, including potential competition, data leakage, regulatory costs and inaccurate outputs. Management expects to continue increasing AI-related research and development investment, which could increase R&D expense as a percentage of revenue; current-quarter R&D expense was $27.571 million.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance, and does not restate the prior $510 million-$520 million fiscal 2027 revenue outlook. Management expects approximately $10 million of fiscal 2027 restructuring charges and expects the plan to be substantially completed during fiscal 2027; management also believes liquidity will be sufficient for at least the next 12 months.
Earlier filings 4
10-K · March 31, 2026
Phreesia completed the AccessOne acquisition in fiscal 2026 and reports continued top-line expansion alongside very high gross margins. Revenue growth and positive free cash flow ($67.0M in FY2026) contrast with…
10-Q · September 5, 2025
Phreesia reported Q2 revenue of $117.255M, up 14.8% year‑over‑year, with GAAP net income of $0.654M (diluted EPS $0.01). Gross margin remained high at 85.2% while operating margin improved to -1.3% from -16.9% a year…
10-Q · December 9, 2024
Phreesia reported Q3 revenue of $106.8M, up $15.181M (16.6%) from $91.619M a year ago, while GAAP diluted loss per share narrowed to $(0.25) from $(0.58). Operating loss improved to $(13.843)M from $(32.045)M a year ago…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.