Revenue growth has decelerated from 20.7% to 10.4% while gross margin has compressed by over 1,000 basis points to 58.8%, indicating a challenging transition from a high-growth to a profitability-focused model.
Phreesia, Inc. (PHR) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 |
|---|
| Sales/Revenue | 507.79M | 480.59M | 419.81M | 356.3M | 280.91M | 213.23M | 148.68M | 124.78M | 99.89M | 79.83M |
| Revenue Growth % | 12.93% | 14.48% | 17.83% | 26.84% | 31.74% | 43.42% | 19.15% | 24.92% | 25.12% | - |
| Cost of Goods Sold | 185.11M | 154.12M | 134.93M | 124.01M | 109.27M | 81.39M | 52.39M | 44.72M | 37M | 29.77M |
| COGS % of Revenue | - | 32.07% | 32.14% | 34.81% | 38.9% | 38.17% | 35.23% | 35.84% | 37.04% | 37.29% |
| Gross Profit | 322.68M | 326.47M | 284.88M | 232.29M | 171.64M | 131.84M | 96.29M | 80.06M | 62.89M | 50.06M |
| Gross Margin % | 63.55% | 67.93% | 67.86% | 65.19% | 61.1% | 61.83% | 64.77% | 64.16% | 62.96% | 62.71% |
| Gross Profit Growth % | - | 14.6% | 22.64% | 35.33% | 30.19% | 36.92% | 20.27% | 27.3% | 25.62% | - |
| Operating Expenses | 306.49M | 333.08M | 342.98M | 368.77M | 348.19M | 248.66M | 121.96M | 95.36M | 72.39M | 64.62M |
| OpEx % of Revenue | - | 69.31% | 81.7% | 103.5% | 123.95% | 116.62% | 82.03% | 76.42% | 72.47% | 80.94% |
| Selling, General & Admin | 176.93M | 180.15M | 197.73M | 226.93M | 231.65M | 175.09M | 83.43M | 62.81M | 46.44M | 43.6M |
| SG&A % of Revenue | - | 37.48% | 47.1% | 63.69% | 82.46% | 82.11% | 56.12% | 50.34% | 46.49% | 54.61% |
| Research & Development | 116.28M | 121.48M | 117.36M | 112.35M | 91.24M | 52.27M | 22.62M | 18.62M | 14.35M | 11.38M |
| R&D % of Revenue | - | 25.28% | 27.96% | 31.53% | 32.48% | 24.51% | 15.22% | 14.92% | 14.37% | 14.25% |
| Other Operating Expenses | 667K | 31.45M | 27.89M | 29.49M | 25.3M | 21.3M | 15.91M | 13.92M | 11.59M | 9.64M |
| Operating Income | 16.2M | -6.61M | -58.1M | -136.48M | -176.55M | -116.82M | -25.67M | -15.3M | -9.49M | -14.55M |
| Operating Margin % | 3.19% | -1.38% | -13.84% | -38.3% | -62.85% | -54.78% | -17.27% | -12.26% | -9.5% | -18.23% |
| Operating Income Growth % | - | 88.62% | 57.43% | 22.7% | -51.14% | -355.05% | -67.81% | -61.14% | 34.76% | - |
| EBITDA | 53.54M | 24.84M | -30.21M | -105.94M | -147.78M | -92.3M | -7.74M | -1.37M | 2.1M | -3.52M |
| EBITDA Margin % | 10.54% | 5.17% | -7.2% | -29.73% | -52.61% | -43.29% | -5.2% | -1.1% | 2.1% | -4.41% |
| EBITDA Growth % | 2502.67% | 182.22% | 71.48% | 28.32% | -60.11% | -1092.81% | -463.17% | -165.42% | 159.61% | - |
| D&A (Non-Cash Add-back) | 37.34M | 31.45M | 27.89M | 30.54M | 28.77M | 24.52M | 17.93M | 13.92M | 11.59M | 11.03M |
| EBIT | 18.95M | -1.99M | -53.46M | -133.49M | -174.25M | -116.82M | -25.55M | -19.03M | -9.49M | -14.55M |
| Net Interest Income | -8.64M | -4.78M | 330K | 2.21M | 1.06M | -1.08M | -1.57M | -2.44M | -3.5M | -3.64M |
| Interest Income | 2.02M | 2.17M | 2.68M | 4.07M | 2.48M | 79K | 122K | 598K | 185 | 401 |
| Interest Expense | 10.66M | 6.95M | 2.35M | 1.85M | 1.41M | 1.16M | 1.7M | 3.04M | 3.5M | 3.64M |
| Other Income/Expense | -13.43M | -2.33M | 2.29M | 1.14M | 889K | -1.16M | -1.57M | -6.78M | -5.57M | -3.64M |
| Pretax Income | 2.76M | -8.94M | -55.81M | -135.34M | -175.66M | -117.98M | -27.24M | -22.07M | -15.06M | -18.19M |
| Pretax Margin % | 0.54% | -1.86% | -13.29% | -37.99% | -62.53% | -55.33% | -18.32% | -17.69% | -15.08% | -22.79% |
| Income Tax | -7.68M | -11.25M | 2.72M | 1.54M | 483K | 182K | 49K | -1.78M | -2.06M | 0 |
| Effective Tax Rate % | -277.97% | 125.79% | -4.87% | -1.14% | -0.27% | -0.15% | -0.18% | 8.06% | 13.7% | 0% |
| Net Income | 10.45M | 2.31M | -58.53M | -136.88M | -176.15M | -118.16M | -27.29M | -20.29M | -15.06M | -18.19M |
| Net Margin % | 2.06% | 0.48% | -13.94% | -38.42% | -62.71% | -55.41% | -18.36% | -16.26% | -15.08% | -22.79% |
| Net Income Growth % | 143.43% | 103.94% | 57.24% | 22.29% | -49.07% | -332.95% | -34.49% | -34.73% | 17.21% | - |
| Net Income (Continuing) | 10.45M | 2.31M | -58.53M | -136.88M | -176.15M | -118.16M | -27.29M | -20.29M | -15.06M | -18.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.17 | 0.04 | -1.02 | -2.51 | -3.36 | -2.37 | -0.69 | -1.00 | -8.16 | -11.82 |
| EPS Growth % | -65.1% | 103.68% | 59.36% | 25.3% | -41.77% | -243.48% | 31% | 87.75% | 30.96% | - |
| EPS (Basic) | - | 0.04 | -1.02 | -2.51 | -3.36 | -2.37 | -0.69 | -1.00 | -8.16 | -11.82 |
| Diluted Shares Outstanding | 62.46M | 61.49M | 57.59M | 54.56M | 52.44M | 49.89M | 39.52M | 20.3M | 1.84M | 1.54M |
| Basic Shares Outstanding | 61.88M | 59.74M | 57.59M | 54.56M | 52.44M | 49.89M | 39.52M | 20.3M | 1.84M | 1.54M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PHR stock.
For fiscal year 2026, Phreesia, Inc. (PHR) reported total revenue of $480.6M. This represents a 502.0% increase compared to $79.8M in 2018.
Phreesia, Inc. (PHR) is profitable, generating $2.3M in net income for the fiscal year ending 2026 with a net profit margin of 0.5%.
Phreesia, Inc. (PHR) reported an operating income of $-6.6M, resulting in an operating profit margin of -1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Phreesia, Inc. (PHR) generated $326.5M in gross profit for the year, representing a gross profit margin of 67.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from payment mix shift
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Profitability Pivot
Revenue growth has decelerated from a peak of 20.7% in 2025Q1 to 10.4% in 2027Q2, suggesting the company is transitioning from a high-growth phase to a more mature, profitability-focused stage.
The sequential decline in year-over-year revenue growth rates across the last ten quarters indicates a natural maturation of the core patient intake platform. This deceleration appears to be a deliberate trade-off as management shifts focus from aggressive market capture toward operational efficiency and margin expansion, as evidenced by the concurrent improvement in operating income.
Gross Margin Compression from Revenue Mix Shift
Gross margin has contracted significantly from 69.4% in 2025Q4 to 58.8% in 2027Q2, a trend that warrants close monitoring as it may signal a less favorable revenue mix or increased costs within the payment processing segment.
The sharp decline in gross margin, particularly the drop from the high-60s to the high-50s over the past two years, suggests a structural shift in the business. This could be driven by a higher proportion of lower-margin payment processing revenue relative to high-margin life sciences marketing, or by rising interchange fees. The trend is concerning as it directly undermines the company's path to sustainable profitability.
Operating Leverage Emerging from Cost Discipline
Operating income has swung from a loss of $19.4M in 2025Q1 to a profit of $11.1M in 2027Q2, demonstrating significant operating leverage as revenue scales while SG&A expenses are held relatively flat.
The company has achieved a remarkable turnaround in operating profitability by scaling revenue while maintaining SG&A expenses in the low-$40M range, down from over $50M. This indicates successful cost discipline and the inherent operating leverage in the software-based model. However, the recent uptick in R&D spending suggests continued investment, which could temper near-term margin expansion.
Net Income Volatility from Non-Operating Items
Reported net income has been highly volatile, swinging from a loss of $19.7M in 2025Q1 to a profit of $1.9M in 2027Q2, indicating that non-operating items and tax effects significantly impact the bottom line.
The erratic pattern of net income, which does not consistently track operating income, suggests the influence of non-operating gains/losses, interest expense, or tax adjustments. For instance, the $654K net income in 2026Q2 occurred despite an operating loss, implying a non-operating benefit. Investors should focus on operating income as a cleaner measure of core business performance.
SG&A Efficiency Driving Path to Profitability
SG&A expenses as a percentage of revenue have improved from 50.5% in 2025Q1 to 31.7% in 2027Q2, representing the primary driver of the company's transition toward operating profitability.
The substantial reduction in SG&A as a percentage of revenue, achieved while growing the top line, is the clearest indicator of improved operational efficiency and expense management. This discipline has more than offset the pressure from declining gross margins. The key question is whether this level of SG&A efficiency is sustainable or if it reflects a temporary reduction in sales and marketing investment.
Gross Margin Erosion Threatens Profitability Thesis
The persistent decline in gross margin from near 70% to below 60% poses a fundamental risk to the investment thesis, as it may indicate a loss of pricing power or an unsustainable shift toward lower-margin business lines.
A short-seller would focus on the gross margin trend as evidence that the company's competitive position is weakening. The compression could be driven by increased competition forcing lower subscription prices, or by the payment processing segment growing faster than the high-margin life sciences business. If this trend continues, it could fully offset the gains from SG&A efficiency and prevent the company from achieving durable, meaningful profitability.