Phreesia (PHR) Q1 2027 earnings summary

Executive summary

• Revenue grew 13% year-over-year to $130.9 million in Q1 FY2027, led by strong payment and network solutions performance and supported by AccessOne integration.

• Net income reached $3 million, marking a return to profitability and a significant year-over-year improvement.

• Adjusted EBITDA rose to $30.5 million, up 46% year-over-year, with margin at 23%.

• Free cash flow improved to $16.4 million, more than doubling year-over-year.

• Strategic focus on integrating AccessOne, expanding payment solutions, leveraging AI, and launching ProviderConnect.

Financial highlights

• Payment solutions revenue surged 40% year-over-year to $41.9 million, reflecting the AccessOne acquisition.

• Network solutions revenue grew 15% to $36.3 million, with ProviderConnect contributing to growth.

• Subscription and related services revenue was $52.7 million, down 3% due to one-time adjustments.

• Average Healthcare Services Clients (AHSCs) increased 7% to 4,708, with total revenue per AHSC up 6% to $27,811.

• Free cash flow and operating cash flow reached $16.4 million and $23.9 million, respectively.

Outlook and guidance

• Fiscal 2027 revenue guidance maintained at $510–$520 million, including $37 million from AccessOne.

• Adjusted EBITDA outlook unchanged at $125–$135 million.

• Expect mid-single-digit AHSC growth and low-single-digit growth in revenue per AHSC for fiscal 2027.

• Restructuring plan implemented in May 2026 to reduce operating expenses and drive annualized run-rate savings.

• Cautious on network solutions spend in the second half due to client budget variability and regulatory impacts.