Phreesia beats Q1 estimates as revenue climbs 13% to $130.9M

Phreesia posted Q1 earnings of $0.05 a share, beating estimates by 150%, as revenue climbed 13% to $130.9 million.

"Phreesia had a solid first quarter to build on in fiscal 2027," CEO and Co-Founder Chaim Indig said in a statement.

Revenue of $130.9 million topped the $130.54 million consensus by 0.5%. Adjusted EBITDA rose to $30.5 million from $20.8 million a year earlier, while free cash flow more than doubled to $16.4 million. The company's average healthcare services clients increased 7% to 4,708, and revenue per client rose 6% to $27,811. Net income swung to $3 million from a $3.9 million loss in the same quarter last year.

The results come after Phreesia's stock lost 47% this year through Tuesday, underperforming the S&P 500's 9.8% gain. The company maintained its full-year revenue forecast of $510 million to $520 million and its adjusted EBITDA outlook of $125 million to $135 million, after cutting guidance in March when it cited weaker pharmaceutical marketing commitments in its network solutions segment. The March revision triggered a 27% single-day drop and a securities class action lawsuit alleging the company failed to disclose slowing demand.

Phreesia's payment solutions revenue jumped 40% to $41.9 million, driven by the AccessOne acquisition that closed in November. The company processed $1.79 billion in total managed payments during the quarter. Subscription and related services revenue slipped 3% to $52.7 million, while network solutions revenue rose 15% to $36.3 million.

The guidance hold signals management expects the second half of the fiscal year to stabilize after the March cut. Investors will watch the company's ability to grow its healthcare services client base and expand AccessOne's financing offerings, with the securitization facility recently increased to $300 million from $200 million.

This article is for informational purposes only and does not constitute investment advice.