Phreesia reported second-quarter fiscal 2027 results for the period ended July 31, with revenue climbing to $129.5 million and adjusted EBITDA surging to $32.9 million. The healthcare technology company posted its fifth straight quarter of positive net income and its ninth straight quarter of positive operating cash flow, as revenue rose 10% year over year and average healthcare services clients reached 4,744, up 6%, with total revenue per client climbing 4% to $27,289. Adjusted EBITDA jumped $10.8 million year over year, pushing margin to 25%, while net income hit $1.9 million, operating cash flow reached $18.3 million and free cash flow $13.8 million. That cash, combined with existing reserves, let Phreesia retire more than $23 million in debt principal during the quarter, and management pointed to a May restructuring plan that eliminated 220 positions, about half of them contractor roles, at an estimated total cost of $10 million, of which $2.8 million was recognized this quarter. CFO Balaji Gandhi warned there is now more variability in network solutions revenue forecasting, particularly in the second half of each fiscal year, and CEO Chaim Indig described healthcare providers as under a significant amount of strain, with total revenue per client falling about 2% sequentially and total revenue dipping roughly 1% from the first quarter. Phreesia reaffirmed its $510 million to $520 million revenue outlook and its $125 million to $135 million adjusted EBITDA outlook for fiscal 2027.
Phreesia IncQ2 FY2027 revenue $129.5M, adjusted EBITDA $32.9M, fifth straight positive net income, debt paydown and reaffirmed guidance, but CFO flags network-solutions revenue variability and CEO cites client strain with revenue per client down 2% sequentially.
