Phreesia, Inc. Q2 2027 Earnings Recap

Shares fell 6.2% as investors reacted to sequential revenue deceleration driven by seasonal payment processing declines and a cautious outlook for modest growth in revenue per client. Despite margin expansion and debt reduction, the lack of upward revision to growth targets and muted guidance weighed on sentiment.

Key Takeaways

• Q2 revenue grew 10% year-over-year to $129.5 million but declined about 1% sequentially, primarily due to seasonality in legacy payment processing.
• Adjusted EBITDA rose $10.8 million year-over-year to $32.9 million, with a 25% margin reflecting operational leverage.
• Average health care services clients increased by 36 sequentially to 4,744, supporting expected mid-single-digit AHSC growth for fiscal 2027.
• Revenue per client rose 4% year-over-year but declined about 2% from Q1, reflecting payment processing seasonality and modest growth expectations.
• Fiscal 2027 guidance was maintained at $510-$520 million revenue and $125-$135 million adjusted EBITDA, indicating no upside surprise amid ongoing restructuring and cautious optimism.