Phreesia Stock (PHR) Under Pressure Ahead of Earnings: What to Expect

Phreesia's stock (NYSE: PHR) is 3% lower today ahead of earnings, as bearish sentiment that has taken over since September continues at pace. With the stock price ~40% off the highs of late August, the street will be looking for something significant to shift gears when earnings drop after the close. 

Analysts are projecting Phreesia to report earnings per share (EPS) of $0.24 for the quarter, $0.04 GAAP. Revenue is expected to reach $120.03 million, representing a 12.39% increase compared to the same quarter last year.

Recent analyst ratings present a mixed picture. KeyCorp lowered its price target on Phreesia from $35.00 to $32.00, while maintaining an “overweight” rating. Canaccord on the other hand, increased its price target from $34.00 to $38.00, assigning a “buy” rating.

Looking to previous reports for clues, in the fiscal first quarter of 2026, Phreesia reported total revenue of $115.9 million, a 15% year-over-year increase. The net loss was reduced to $3.9 million from $19.7 million in the previous year, and adjusted EBITDA improved to $20.8 million from $4.1 million year-over-year. The company's average healthcare services clients grew by 9% to 4,411, and revenue per client increased by 6% to $26,283. These positive trends suggest that Phreesia is on track to meet its fiscal year 2026 revenue outlook of $472-482 million and adjusted EBITDA guidance of $85-90 million.

A key factor influencing Phreesia's future performance is its recent acquisition of AccessOne Parent Holdings, Inc. for approximately $163 million in cash. The acquisition, completed on November 12, is expected to enhance Phreesia's payment solutions and broaden its market reach. Management will likely provide updates on the integration of AccessOne and its contribution to revenue growth during the earnings call.

The implied move for PHR stock is 11.58%, based on options market data, indicating significant volatility is anticipated following the earnings announcement. This suggests that investors are bracing for a potentially large swing in the stock price, depending partly on the guide, and whether Phreesia meets, exceeds, or falls short of expectations.

Given the current market sentiment, the company's ability to demonstrate continued revenue growth, improved profitability, and successful integration of AccessOne will be critical in shaping sentiment.