Phreesia 2026 Q1 Earnings Revenue Growth as Net Loss Narrows by 80.2%

Phreesia (PHR) reported its fiscal 2026 Q1 earnings on May 28th, 2025. The company showed strong performance, surpassing revenue expectations with a 15% year-over-year increase to $115.9 million. Phreesia's net loss significantly narrowed to $3.9 million from $19.7 million the previous year, reflecting an 80.2% improvement. The company raised its adjusted EBITDA guidance to between $85 million and $90 million, demonstrating increased confidence in its fiscal outlook.

Revenue

Phreesia's revenue rose 14.5% to $115.94 million in fiscal Q1 2026, driven by a diverse range of segments. Subscription and related services contributed $54.35 million, while payment processing fees recorded $29.93 million. Network solutions added $31.66 million, culminating in a strong total revenue performance for the quarter.

Earnings/Net Income

Phreesia narrowed its losses to $0.07 per share in Q1 2026 from $0.35 per share in Q1 2025, marking an 80.0% improvement. The net loss reduced to $-3.91 million in Q1 2026 from $-19.72 million in Q1 2025. Despite ongoing financial challenges, the EPS improvement suggests positive momentum.

Price Action

The stock price of Phreesia experienced a decline of 4.27% during the latest trading day, falling 8.59% over the past week and 5.86% month-to-date.

Post-Earnings Price Action Review

Phreesia's strategy of purchasing shares when there is a revenue miss and holding for 30 days has not fared well historically. Backtesting revealed a significant loss of -41.25%, with an excess return of -72.48% and a Sharpe ratio of -0.22, indicating unfavorable risk-adjusted performance. The maximum drawdown was -79.61% with a volatility of 61.77%, signaling substantial risk and notable losses. These figures illustrate the challenges in timing the market based on revenue misses, highlighting the need for a more robust investment approach.

CEO Commentary

Chaim Indig, CEO, emphasized Phreesia's strong start to fiscal 2026, focusing on delivering scalable products that benefit patients and providers. Indig highlighted the success of new products in appointment readiness and enhanced bill pay, contributing to measurable impacts. He was optimistic about leveraging Phreesia's strong balance sheet and growing free cash flow to enhance long-term shareholder value.

Guidance

Phreesia maintained its revenue outlook for fiscal 2026 at $472 million to $482 million. The adjusted EBITDA outlook increased to a range of $85 million to $90 million, up from the prior range of $78 million to $88 million. The company expects to reach approximately 4,500 average healthcare services clients, with total revenue per client anticipated to grow compared to fiscal 2025.

Additional News

Recently, Phreesia Vice President of Product Management, Sally Thayer, was recognized as one of the Top Women Leaders in Software by The Software Report. This marks the seventh consecutive year a female leader from Phreesia has received this recognition, highlighting the company's commitment to diversity in leadership. Phreesia was also named to G2's 2025 Best Healthcare Software Products list, showcasing its strong reputation in the healthcare technology sector. Additionally, Phreesia announced it will host a conference call at 8:30 AM Eastern Time on May 28, 2025, to discuss fiscal Q1 2026 results.