Phreesia’s (PHR) Profit Turnaround Meets A Cash-Strapped Client Base
Phreesia, a healthcare technology company, reported strong financial results for the second quarter of fiscal 2027, with revenue reaching $129.5 million and adjusted EBITDA rising to $32.9 million. The company saw a 10% increase in revenue year-over-year, driven by growth in Network Solutions and Payment Solutions. Adjusted EBITDA increased by $10.8 million, pushing the margin to 25%, while net income hit $1.9 million and operating cash flow reached $18.3 million.
The company also retired over $23 million in debt principal and eliminated 220 positions as part of a restructuring plan. However, the company warned of growing unpredictability in its core revenue lines, particularly in Network Solutions, and cited broader economic pressure and shifting payer dynamics as challenges facing healthcare providers.
Phreesia's stock trades at a forward P/E of 12.80, suggesting that the market has yet to fully recognize the profitability turnaround.
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