Phreesia (NYSE:PHR) Shares Gap Down Following Weak Earnings

Key Points

• Phreesia shares fell sharply, opening at $11.02 versus a prior close of $11.85, after quarterly earnings of $0.03 per share missed the $0.09 consensus estimate.
• Revenue reached $129.46 million, slightly above expectations and up 10.4% year over year, but the earnings shortfall overshadowed the revenue performance.
• Analyst sentiment remains mixed: several firms maintain Buy ratings and targets of $14–$16, while Piper Sandler downgraded the stock to Neutral. The overall consensus rating is Hold, with an average price target of $16.29.

Phreesia, Inc. (NYSE:PHR - Get Free Report)'s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $11.85, but opened at $11.02. Phreesia shares last traded at $11.2050, with a volume of 151,610 shares.

The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.06). The firm had revenue of $129.46 million for the quarter, compared to analyst estimates of $129.06 million. Phreesia had a return on equity of 5.13% and a net margin of 1.85%.The business's revenue for the quarter was up 10.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.01 earnings per share.

Trending Headlines about Phreesia

Here are the key news stories impacting Phreesia this week:

• Positive Sentiment: Management maintained fiscal 2027 revenue guidance of $510 million to $520 million, broadly in line with Wall Street expectations, reducing the risk of a near-term outlook cut. Phreesia maintains FY2027 revenue outlook
• Positive Sentiment: Phreesia reported positive operating and free cash flow for the quarter and reduced debt principal by more than $23 million, supporting balance-sheet improvement and potentially lowering future interest costs. Phreesia Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: Management identified AccessOne as a multi-year growth opportunity, giving investors an additional potential driver beyond the company’s core revenue expansion. Needham & Company also initiated or reiterated a Buy rating, adding analyst support. Needham Buy Rating
• Neutral Sentiment: The quarter’s revenue growth and profitability expansion were described as in line with expectations, suggesting execution remains steady but did not produce a major upside surprise. Phreesia Q2 2027 Earnings Call Transcript
• Negative Sentiment: Adjusted earnings were materially below consensus at $0.03 per share versus the expected $0.09-$0.11. The miss may limit upside for PHR despite the revenue beat and maintained full-year outlook. Phreesia Q2 Earnings and Revenues Lag Estimates

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on PHR. Needham & Company LLC reissued a "buy" rating and set a $14.00 target price on shares of Phreesia in a report on Monday. Piper Sandler lowered shares of Phreesia from an "overweight" rating to a "neutral" rating and set a $12.00 price target on the stock. in a research report on Thursday, May 28th. Truist Financial raised their price target on shares of Phreesia from $11.00 to $12.00 and gave the stock a "hold" rating in a research report on Thursday, May 28th. DA Davidson reiterated a "buy" rating and issued a $14.00 price objective on shares of Phreesia in a research note on Thursday, May 28th. Finally, Canaccord Genuity Group reissued a "buy" rating and issued a $16.00 price objective on shares of Phreesia in a report on Thursday. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $16.29.

Institutional Trading of Phreesia

Institutional investors and hedge funds have recently modified their holdings of the business. Van ECK Associates Corp raised its stake in Phreesia by 78.7% during the fourth quarter. Van ECK Associates Corp now owns 2,502 shares of the company's stock worth $42,000 after acquiring an additional 1,102 shares in the last quarter. Rockefeller Capital Management L.P. increased its position in Phreesia by 354.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,755 shares of the company's stock worth $47,000 after purchasing an additional 2,149 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Phreesia by 1,119.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,269 shares of the company's stock valued at $27,000 after purchasing an additional 3,001 shares during the last quarter. Garner Asset Management Corp bought a new position in Phreesia in the 4th quarter valued at approximately $81,000. Finally, New York State Teachers Retirement System bought a new position in Phreesia in the 1st quarter valued at approximately $44,000. 92.10% of the stock is currently owned by institutional investors.

Phreesia Price Performance

The company has a debt-to-equity ratio of 0.41, a current ratio of 1.76 and a quick ratio of 1.76. The stock has a market cap of $696.10 million, a price-to-earnings ratio of 74.30 and a beta of 0.86. The business's 50-day simple moving average is $11.19 and its two-hundred day simple moving average is $10.48.

Phreesia Company Profile

Phreesia, Inc NYSE: PHR is a provider of patient intake management solutions designed to streamline front-office workflows for healthcare organizations. The company's cloud-based platform digitizes patient registration, appointment scheduling, insurance verification, consent documentation and payment collection through touchscreen kiosks, tablets and mobile devices. By replacing paper forms and manual processes, Phreesia enhances data accuracy, reduces administrative burden and improves the patient experience.

Founded in 2000 by Chaim Indig and headquartered in Burlington, Massachusetts, Phreesia offers a modular software suite that integrates with electronic medical record (EMR) and practice management systems.

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