Phreesia Q2 revenue rises 10% as profit turns positive

Phreesia (NYSE: PHR ) reported second-quarter financial results on Wednesday.

The transcript from the company's second-quarter earnings call has been provided below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Phreesia reported second quarter fiscal 2027 revenue of $129.5 million, marking a 10% year-over-year increase, but a 1% sequential decline due to seasonal payment processing revenue fluctuations.

The company achieved a positive net income of $1.9 million, reflecting its fifth consecutive quarter of profitability, and maintained a healthy cash position with $74.6 million in cash and equivalents.

Phreesia reduced its debt principal by over $23 million, supported by positive operating and free cash flows, and continues to focus on growing its network and expanding product offerings like AccessOne and Provider Connect.

The company reaffirmed its fiscal 2027 revenue guidance of $510 million to $520 million and adjusted EBITDA guidance of $125 million to $135 million, citing contributions from AccessOne and anticipated cost savings from a recent restructuring plan.

Management is optimistic about the growth potential of new products and the integration of AI to drive future innovations and efficiencies, while acknowledging the importance of adapting to evolving market dynamics and client needs.

Full Transcript OPERATOR And welcome to the Phreesia second quarter fiscal 2027 earnings conference call.

At this time all participants are in a listen-only mode.

We will provide instructions for the question-and-answer session to follow.

First, I would like to introduce Balaji Gandhi, Phreesia's Chief Financial Officer.

Mr.

Gandhi, you may begin.

Balaji Gandhi, Chief Financial Officer Thank you, operator.

Good evening and welcome to Phreesia's earnings conference call for the second quarter of fiscal 2027, which ended on July 31, 2026.

Joining me on today's call is Haim Indig, our Chief Executive Officer.

A more complete discussion of our results can be found in our earnings press release and in our related Form 8-K submission to the SEC, including our quarterly Stakeholder Letter, both issued after the markets closed today.

These documents are available on the Investor Relations section of our website at ir.phreesia.com.

As a reminder, today's call is being recorded and a replay will be available on our Investor Relations website at ir.phreesia.com following the conclusion of the call.

During today's call we may make forward-looking statements, including statements regarding trends, our anticipated growth, our strategies, predictions about our industry, and the anticipated performance of our business, including our outlook and visibility regarding future financial results.

Forward-looking statements are subject to various risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements.

Such risks are described more fully in our earnings press release, our Stakeholder Letter and our risk factors included in our SEC filings, including in our quarterly report on Form 10-Q that will be filed with the SEC tomorrow.

The forward-looking statements made on this call will be based on our current views and expectations and speak only as of the date on which the statements are made.

We undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events.

We may refer to certain financial measures not in accordance with generally accepted accounting principles, such as adjusted EBITDA and free cash flow, in order to provide additional information to investors.

These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results.

A reconciliation of GAAP to non-GAAP results may be found in our earnings release and Stakeholder Letter, which were furnished with our Form 8-K filed after the close today with the SEC and may also be found on our Investor Relations website at ir.phreesia.com.

I will now turn the call over to our CEO, Haim Indig.

Haim Indig, Chief Executive Officer Thank you, Balaji, and good evening, everyone.

Thank you for joining our second quarter fiscal year 2027 earnings call.

We delivered a solid fiscal second quarter with revenue growth and profitability expansion in line with our expectations.

We generated positive operating and free cash flow again this quarter which, together with available cash, allowed us to reduce debt principal by over $23 million while maintaining a healthy cash balance.

AccessOne is an important extension of our value proposition because healthcare consumers are bearing a greater share of the ever-growing cost of healthcare.

We've heard from our clients and many other providers across the country that the need for a humane and predictable financing solution for healthcare consumers has never been greater.

Provider Connect, our newest Network Solutions offering, also extends our value proposition and addressable market.