Phreesia Plunges 13.01% Despite Strong Earnings

On September 5, 2025, Phreesia's stock experienced a significant drop of 13.01% in pre-market trading, marking a notable decline in its share price.

Phreesia reported strong financial results for the second quarter of fiscal 2026, with earnings of $0.01 per share, surpassing the estimated loss of $0.07 per share. The company's revenue for the quarter reached $117.3 million, reflecting a 15% year-over-year increase, which aligns with the growth trend observed in previous quarters.

In addition to its financial performance, Phreesia announced a strategic acquisition of AccessOne for $160 million in cash. This acquisition is expected to close in the third or early fourth quarter of 2026 and is aimed at expanding Phreesia's total addressable market (TAM). The company believes this move will enhance its market position and drive future growth.

Despite the positive earnings report and strategic acquisition, Phreesia's stock price experienced a significant decline. This drop can be attributed to investor concerns over the company's future outlook and the potential impact of the acquisition on its financial performance. The market's reaction highlights the volatility and uncertainty surrounding Phreesia's stock, as investors weigh the benefits of the acquisition against the potential risks.