Phreesia (PHR) investor relations material

Executive summary

• Achieved 10% year-over-year revenue growth to $129.5M in Q2 FY2027, with net income rising to $1.9M and Adjusted EBITDA up 49% year-over-year to $32.9M; free cash flow increased to $13.8M.

• Reduced debt principal by over $23M, ending the quarter with $74.6M in cash, cash equivalents, and restricted cash.

• Product innovation and expansion, including AccessOne and ProviderConnect, are driving value and extending market reach, with early wins and positive client feedback.

• A restructuring plan was implemented in May 2026, eliminating approximately 220 positions and incurring $2.8M in charges this quarter, with expected total charges of $10M.

• Investments in AI and new products are expected to drive future growth and operational efficiency.

Financial highlights

• Q2 FY2027 revenue was $129.5M, up 10% year-over-year and down 1% sequentially; net income was $1.9M, up 193% year-over-year.

• Adjusted EBITDA reached $32.9M, up $10.8M year-over-year, with a margin of approximately 25%.

• Free cash flow was $13.8M for the quarter; cash, cash equivalents, and restricted cash stood at $74.6M as of July 31, 2026.

• Payment solutions revenue surged 36% year-over-year, driven by the AccessOne acquisition and new client additions.

• Total managed payments reached $1.626B for the quarter, with a payment solutions revenue rate of 2.4%.

Outlook and guidance

• Fiscal 2027 revenue outlook maintained at $510M–$520M, including $37M from AccessOne; Adjusted EBITDA guidance remains $125M–$135M.

• Expecting mid-single-digit percentage growth in AHSCs and low-single-digit growth in revenue per AHSC for FY2027.

• Management expects meaningful run-rate cost savings from the restructuring plan implemented in May 2026.

• Sufficient liquidity to meet obligations and achieve outlook for at least the next twelve months.