Is Phreesia (PHR) Poised for a Turnaround in Q2 2026? A Deep Dive into Earnings Revisions and Operational Metrics

Phreesia (PHR), a healthcare services company focused on patient engagement and revenue cycle management, has shown mixed signals in its recent financial performance. With its Q2 2026 earnings report due on September 4, 2025, investors are scrutinizing whether the company can reverse its profitability challenges while maintaining its strong revenue growth trajectory. This analysis examines earnings revisions, revenue drivers, and key operational metrics to assess Phreesia’s potential for a turnaround.

Earnings Revisions: A Slight Optimism Amid Persistent Losses

Analysts have revised their EPS forecasts for Q2 2026 to -$0.06, a modest improvement from last year’s -$0.31 [6]. Over the past 30 days, four upgrades offset one downgrade, indicating cautious optimism [5]. However, the consensus still anticipates a loss, reflecting ongoing challenges in achieving profitability. Phreesia’s Q1 2026 results—where it reported an EPS of -$0.07, beating estimates by $0.06—suggest the company is narrowing its losses [2]. While this is a positive trend, the path to profitability remains uncertain without significant cost optimization or margin expansion.

Revenue Growth: A Strong Foundation

Phreesia’s revenue growth has been a bright spot. Q1 2026 revenue hit $115.9 million, up 15% year-over-year, with Q2 2026 expected to reach $116.45 million, a 14% increase [3]. The company has maintained its full-year 2026 revenue guidance of $472–$482 million, underscoring confidence in its ability to scale [3]. This growth is driven by an expanding client base in healthcare services and a 14.5% YoY increase in revenue from Q1 [5]. Analysts project annualized revenue growth of 10.5% for 2026, which, if sustained, could provide a buffer against near-term profitability pressures [3].

Beyond EPS: Adjusted EBITDA and Operational Efficiency

While EPS remains negative, Phreesia’s adjusted EBITDA margin of 18% in Q1 2026 highlights operational efficiency [3]. The company recently updated its full-year adjusted EBITDA forecast to $85–$90 million, a $5 million increase from prior guidance [3]. This suggests management is prioritizing cost discipline and margin improvement. A would illustrate whether this trend is accelerating.

Key Risks and Opportunities

Phreesia’s ability to turn around its earnings hinges on two factors: scaling its client base and reducing operating expenses. The healthcare services market is expanding, but competition and pricing pressures could constrain margins. Additionally, while the company’s revenue growth outpaces its EBITDA expansion, this gap must narrow for profitability to materialize.

Conclusion: A Cautious Case for Optimism

Phreesia’s Q2 2026 earnings report will be a critical test of its turnaround potential. While the company continues to report losses, its revenue growth, EBITDA improvements, and maintained guidance suggest a path toward profitability. However, investors should remain cautious until Phreesia demonstrates consistent margin expansion and reduces its reliance on top-line growth alone. For now, the stock appears to be in a holding pattern, with its future dependent on execution against its operational and financial targets.

Source:
[1] Phreesia Sets Release Date for Fiscal Second Quarter 2026 Results [https://ir.phreesia.com/news/news-details/2025/Phreesia-Sets-Release-Date-for-Fiscal-Second-Quarter-2026-Results-2025-b_qKxu0D4C/default.aspx]
[2] Phreesia (PHR) Earnings Date and Reports 2025 [https://www.marketbeat.com/stocks/NYSE/PHR/earnings/]
[3] Phreesia (PHR) Earnings Dates, Call Summary & Reports [https://www.tipranks.com/stocks/phr/earnings]
[4] Phreesia, Inc. (PHR) Analyst Ratings, Estimates & Forecasts [https://finance.yahoo.com/quote/PHR/analysis/]
[5] Phreesia (NYSE:PHR) Stock Forecast & Analyst Predictions [https://simplywall.st/stocks/us/healthcare/nyse-phr/phreesia/future]
[6] Phreesia Q2 2026 Earnings Report [https://www.marketbeat.com/earnings/reports/2025-9-3-phreesia-inc-stock/]