Phreesia (PHR) AI Stock Analysis

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Phreesia

(NYSE:PHR)

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Rating:66Neutral

Price Target:$13.50▲(10.38% Upside)

Action:reiterated

Date:09/06/26

PHR’s score is driven primarily by improving financial performance, led by strong and rising operating/free cash flow and a clear shift into positive profitability versus prior heavy losses. The earnings call supports this with reaffirmed FY2027 guidance, EBITDA margin expansion, continued positive cash flow, and debt reduction. Offsetting these strengths are a relatively weak short-term technical trend (price below 20D/50D with subdued momentum) and a rich valuation (P/E ~63.5), which increases sensitivity to any growth or margin disappointments.

Positive Factors

Strong cash generationThe sustained shift to positive operating and free cash flow strengthens Phreesia’s ability to fund product investment, reduce debt, and support growth internally. Rising cash generation also improves resilience and provides evidence that the recent profitability improvement is translating into actual liquidity.

Negative Factors

Thin profitability cushionAlthough earnings have turned positive, margins remain narrow, so modest cost increases or slower revenue growth could materially reduce profitability. The limited cushion makes execution important and means the company has less room to absorb operating setbacks while its improved model is still being established.

Phreesia Key Performance Indicators (KPIs)

Revenue by SegmentBreakdown of revenue across software subscriptions, payment services, and professional services, revealing which parts of the business drive growth and margins. Shifts between segments indicate strategic progress—such as moving toward higher-margin software—or increasing reliance on lower-margin services.

Chart Insights

Subscription revenue — Phreesia’s steadier, higher‑margin recurring base — has flattened and dipped sequentially in the latest quarter, reflecting deliberate pricing moderation and a tough prior‑year comp, which raises near‑term predictability risk. By contrast Payment Processing Fees have surged (driving most recent quarter’s growth) largely from the Access One acquisition and higher managed payments, shifting the growth mix toward transaction‑driven revenue. Network Solutions is growing but more variable, leaving back‑half guidance sensitive to client spend; restructuring and financing steps help liquidity but don’t remove acquisition‑driven growth risk.

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The Fly

Phreesia (PHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $759.13M
Dividend Yield: ―
Average Volume (3M): 722.08K
Price to Earnings (P/E): 71.0
Beta (1Y): 1.10
Revenue Growth: 12.93%
EPS Growth: ―
Country: US
Employees: 1,789
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Healthcare Information Services

Phreesia Business Overview & Revenue Model

Company Description

Phreesia, Inc. offers a comprehensive, cloud-based software-as-a-service (SaaS) and payment platform specifically designed for the healthcare industry in the United States and Canada. Its flagship Phreesia Platform streamlines the patient intake proc...

How the Company Makes Money

Phreesia primarily generates revenue by selling access to its software platform and related services to healthcare provider organizations. The core revenue stream is subscription-based (typically recurring) fees paid by medical practices and health s...

Phreesia Earnings Call Summary

Earnings Call Date:Sep 01, 2026(Q2-2027)|% Change Since:3.21%|Next Earnings Date:Dec 08, 2026

Earnings Call SentimentPositive

The call was strongly constructive, with 10% year-over-year revenue growth, substantial adjusted EBITDA expansion, positive net income for the fifth consecutive quarter, continued positive cash flow, more than $23 million of debt reduction, and reaffirmed fiscal 2027 guidance. AccessOne, Provider Connect, the GLP-1 campaign, and AI initiatives showed encouraging momentum. The main challenges were sequential declines tied to payment-processing seasonality, provider economic strain, pricing moderation, and some earlier volume weakness beyond seasonality.

Positive Updates

Revenue Growth in Line with Expectations

Second-quarter revenue was $129.5 million, up 10% year-over-year, with revenue growth and profitability expansion described as in line with expectations.

Negative Updates

Sequential Revenue Decline from Payment Seasonality

Total revenue declined approximately 1% sequentially from the first quarter, driven primarily by legacy payment processing revenue. Management noted that payment processing revenue is typically highest in the first fiscal quarter because of health plan deductible resets.

Company Guidance

For fiscal 2027, Phreesia is maintaining its revenue outlook at a range of $510 million to $520 million, including approximately $37 million of contribution from AccessOne and no additional revenue from potential future acquisitions completed between now and January 31, 2027; adjusted EBITDA guidance remains at a range of $125 million to $135 million, with the restructuring plan expected to result in meaningful annualized run rate expense savings, and AHSC growth expected in the mid-single-digit percentage range and total revenue per AHSC growth in the low single-digit percentage range.

Phreesia Financial Statement Overview

Summary

Overall fundamentals are improving materially: profitability has inflected positive (TTM net margin ~2.6%, EBIT margin ~3.3%) after multiple years of deep losses, and cash generation is a standout with strong, rising operating cash flow (91.4M TTM) and free cash flow (77.5M TTM). Balance sheet leverage remains moderate (debt-to-equity ~0.17), though absolute debt rose versus earlier years and profitability is still thin, leaving less cushion if growth or costs deteriorate.

Income Statement

74Positive

Balance Sheet

71Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	507.79M	480.59M	419.81M	356.30M	280.91M	213.23M
Gross Profit	322.68M	326.47M	284.88M	232.29M	171.64M	131.84M
EBITDA	56.12M	29.47M	-25.58M	-104.00M	-148.95M	-92.30M
Net Income	10.45M	2.31M	-58.53M	-136.88M	-176.15M	-118.16M
Balance Sheet
Total Assets	646.98M	663.79M	388.42M	370.33M	370.06M	494.48M
Cash, Cash Equivalents and Short-Term Investments	72.94M	73.83M	84.22M	87.52M	176.68M	313.81M
Total Debt	67.95M	102.45M	17.80M	11.98M	9.18M	15.80M
Total Liabilities	275.13M	326.58M	123.61M	118.88M	82.24M	77.20M
Stockholders Equity	371.85M	337.21M	264.81M	251.45M	287.82M	417.28M
Cash Flow
Free Cash Flow	77.51M	67.71M	8.29M	-57.48M	-116.33M	-105.52M
Operating Cash Flow	91.38M	78.81M	32.38M	-32.38M	-90.12M	-74.71M
Investing Cash Flow	-122.31M	-161.88M	-24.09M	-39.67M	-26.20M	-65.23M
Financing Cash Flow	7.46M	72.85M	-11.49M	-17.11M	-20.80M	234.97M

Phreesia Technical Analysis

Technical Analysis SentimentPositive

Last Price12.23

Price Trends

50DMA11.06Positive

100DMA10.93Positive

200DMA10.88Positive

Market Momentum

MACD0.48Negative

RSI61.76Neutral

STOCH53.48Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHR, the sentiment is Positive. The current price of 12.23 is above the 20-day moving average (MA) of 11.70, above the 50-day MA of 11.06, and above the 200-day MA of 10.88, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 53.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHR.

Phreesia Risk Analysis

Phreesia disclosed 57 risk factors in its most recent earnings report. Phreesia reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Phreesia Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

PHR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAY	77Outperform	$5.40B	39.51	3.41%	―	21.43%	9.80%
PHR	66Neutral	$772.16M	71.02	3.01%	―	12.93%	―
CCLD	62Neutral	$73.09M	24.64	16.56%	―	15.07%	―
EVH	59Neutral	$503.11M	-0.96	-99.16%	―	-4.50%	-184.71%
AMWL	53Neutral	$212.95M	-3.73	-33.27%	―	-19.00%	40.98%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HCAT	47Neutral	$118.91M	-0.39	-129.70%	―	-7.54%	-143.41%

* Healthcare Sector Average

Performance Comparison

PHR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PHR	Phreesia	12.23	-10.44	-46.05%
CCLD	Carecloud, Inc.	1.72	-1.23	-41.69%
EVH	Evolent Health Inc.	4.30	-2.05	-32.28%
HCAT	Health Catalyst	1.44	-1.61	-52.79%
AMWL	American Well Corporation	12.74	8.17	178.77%
WAY	Waystar Holding Corp.	27.66	-9.09	-24.75%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Phreesia AI Stock Analysis