AI Earnings Predictions for Phreesia Inc. (PHR)

EX-99.1

2 phr-ex991q2fy27.htm

EX-99.1

Document

Exhibit 99.1

Phreesia Announces Second Quarter Fiscal 2027 Results

ALL-REMOTE COMPANY/WILMINGTON, Del., September 2, 2026 – Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company") announced financial results today for the fiscal second quarter ended July 31, 2026.

“Phreesia delivered a solid fiscal second quarter, with revenue growth and profitability expansion in line with our expectations. We generated positive operating and free cash flow again this quarter, which together with available cash allowed us to reduce debt principal by over $23 million while maintaining a healthy cash balance,” said CEO and Co-Founder Chaim Indig. “We remain enthusiastic about two products that we believe will drive future growth, AccessOne and ProviderConnect, as well as the impact that our artificial intelligence (AI) investments are beginning to have on many aspects of our products and broader organization.”

Please visit the Phreesia investor relations website at ir.phreesia.com to view the Company's Q2 Fiscal 2027 Stakeholder Letter.

Fiscal Second Quarter Ended July 31, 2026 Highlights

•Total revenue was $129.5 million in the quarter, up 10% year-over-year.

•Average number of healthcare services clients ("AHSCs") was 4,744 in the quarter, up 6% year-over-year.

•Total revenue per AHSC was $27,289 in the quarter, up 4% year-over-year. See "Key Metrics" below for additional information.

•Net income was $1.9 million in the quarter, as compared to net income of $0.7 million in the same period in the prior year.

•Adjusted EBITDA1 was $32.9 million in the quarter, as compared to $22.1 million in the same period in the prior year.

•Net cash provided by operating activities was $18.3 million in the quarter, as compared to $14.8 million in the same period in the prior year.

•Free cash flow2 was $13.8 million in the quarter, as compared to $9.6 million in the same period in the prior year.

•Cash, cash equivalents and restricted cash as of July 31, 2026 was $74.6 million, an increase of $0.8 million from January 31, 2026. As of July 31, 2026, cash, cash equivalents and restricted cash included $1.7 million of long-term restricted cash classified within other long-term assets.

Recent Developments

Restructuring Plan

On May 7, 2026, we implemented a restructuring plan (the “Plan”) intended to reduce operating expenses and better align the cost structure with our current business priorities. The Plan includes the elimination of approximately 220 positions, approximately half of which are contractor roles. We expect total restructuring charges in connection with the Plan to be approximately $10 million, substantially all of which are expected to consist of employee transition costs, severance payments and related employee benefits, and taxes. Restructuring charges of

1 Adjusted EBITDA is a non-GAAP measure. We calculate Adjusted EBITDA as net income (loss) before interest expense, interest income, income tax expense (benefit), depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, other expense (income), net and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as acquisition- and restructuring-related costs. The calculation of Adjusted EBITDA was updated beginning in Q3 of Fiscal 2026 to include an adjustment for acquisition-related costs. Prior periods have not been retroactively adjusted. See “Non-GAAP Financial Measures” for more information and a reconciliation of Adjusted EBITDA to the closest GAAP measure.

2 Free cash flow is a non-GAAP measure. We calculate free cash flow as net cash provided by operating activities less capitalized internal-use software development costs and purchases of property and equipment. See “Non-GAAP Financial Measures” for a reconciliation of free cash flow to the closest GAAP measure.

approximately $2.8 million were recognized for the Plan during the second quarter of fiscal 2027. We expect the Plan to be substantially completed during fiscal year 2027.

Fiscal 2027 Outlook

We are maintaining our revenue outlook for fiscal 2027. We expect revenue to be in the range of $510 million to $520 million. As we noted over the past several quarters, there is now more variability in our network solutions revenue forecasting, particularly in the second half of each fiscal year. Our visibility into revenue across the other parts of our business is generally consistent with our views in our March 2026 earnings disclosure. The revenue range provided for fiscal 2027 assumes approximately $37 million of contribution from AccessOne (as defined below) and no additional revenue from potential future acquisitions completed between now and January 31, 2027.

We are maintaining our Adjusted EBITDA outlook for fiscal 2027. We expect Adjusted EBITDA to be in the range of $125 million to $135 million. As a reminder, in May 2026,

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