Phreesia Reports Improved Margins but Faces Uncertainty Over Growth
On September 2, 2026, Phreesia (NYSE:PHR) reported second-quarter fiscal 2027 results showing a 10% revenue increase to $129.5 million and adjusted EBITDA rising by 25% year-over-year to $32.9 million with an improved margin of 25%. The company maintained its full-year guidance for revenue between $510 million and $520 million, as well as adjusted EBITDA in the range of $125 million to $135 million. Analysts are divided on what these results mean. Wells Fargo raised its price target from $9 to $10 while maintaining an Equal Weight rating due to strong performance in Network Solutions and improved cash flow, including free cash flow reaching $13.8 million. However, Raymond James downgraded Phreesia to Market Perform citing slowing organic growth, increased AI spending, and strategic uncertainty. Despite positive financial metrics like profitability for five consecutive quarters and debt reduction of over $23 million during the quarter, concerns remain about reduced visibility in future revenue forecasting from network solutions and pressure on subscription pricing.
Tickers: $PHR
Topics: EBITDA growth Phreesia restructuring Wall Street analysis