PHR earnings analysis
What we found in PHR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.03
- Gross margin
- 66.6%
- Operating margin
- 5.9%
- Segment
- Technology solutions: $129.458 million total revenue, up 10% year over year from $117.255 million; the company operates as one reportable segment.
- Segment
- Subscription and related services: $52.695 million, down 2% year over year from $53.702 million.
- Segment
- Payment solutions: $38.489 million, up 36% year over year from $28.392 million, primarily reflecting AccessOne revenue and higher patient payments processed.
- Segment
- Network solutions: $38.274 million, up 9% year over year from $35.161 million.
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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