Revenue growth has decelerated to 12.9% in 2027Q1, while gross margins experienced a contraction to 59.2% compared to the 67-69% range observed throughout 2026.
| Sales/Revenue | 495.59M | 480.59M | 419.81M | 356.3M | 280.91M | 213.23M | 148.68M | 124.78M | 99.89M | 79.83M |
| Revenue Growth % | 14.05% | 14.48% | 17.83% | 26.84% | 31.74% | 43.42% | 19.15% | 24.92% | 25.12% | - |
| Cost of Goods Sold | 169.46M | 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 | 326.13M | 326.47M | 284.88M | 232.29M | 171.64M | 131.84M | 96.29M | 80.06M | 62.89M | 50.06M |
| Gross Margin % | 65.81% | 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 | 322.49M | 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 | 180.26M | 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 | 117.98M | 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 | 2.67M | 31.45M | 27.89M | 29.49M | 25.3M | 21.3M | 15.91M | 13.92M | 11.59M | 9.64M |
| Operating Income | 3.64M | -6.61M | -58.1M | -136.48M | -176.55M | -116.82M | -25.67M | -15.3M | -9.49M | -14.55M |
| Operating Margin % | 0.73% | -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 | 38.29M | 24.84M | -30.21M | -105.94M | -147.78M | -92.3M | -7.74M | -1.37M | 2.1M | -3.52M |
| EBITDA Margin % | 7.73% | 5.17% | -7.2% | -29.73% | -52.61% | -43.29% | -5.2% | -1.1% | 2.1% | -4.41% |
| EBITDA Growth % | 382.1% | 182.22% | 71.48% | 28.32% | -60.11% | -1092.81% | -463.17% | -165.42% | 159.61% | - |
| D&A (Non-Cash Add-back) | 34.65M | 31.45M | 27.89M | 30.54M | 28.77M | 24.52M | 17.93M | 13.92M | 11.59M | 11.03M |
| EBIT | 7.72M | -1.99M | -53.46M | -133.49M | -174.25M | -116.82M | -25.55M | -19.03M | -9.49M | -14.55M |
| Net Interest Income | -6.55M | -4.78M | 330K | 2.21M | 1.06M | -1.08M | -1.57M | -2.44M | -3.5M | -3.64M |
| Interest Income | 2.77M | 2.17M | 2.68M | 4.07M | 2.48M | 79K | 122K | 598K | 185 | 401 |
| Interest Expense | 9.32M | 6.95M | 2.35M | 1.85M | 1.41M | 1.16M | 1.7M | 3.04M | 3.5M | 3.64M |
| Other Income/Expense | -4.68M | -2.33M | 2.29M | 1.14M | 889K | -1.16M | -1.57M | -6.78M | -5.57M | -3.64M |
| Pretax Income | -1.04M | -8.94M | -55.81M | -135.34M | -175.66M | -117.98M | -27.24M | -22.07M | -15.06M | -18.19M |
| Pretax Margin % | -0.21% | -1.86% | -13.29% | -37.99% | -62.53% | -55.33% | -18.32% | -17.69% | -15.08% | -22.79% |
| Income Tax | -10.22M | -11.25M | 2.72M | 1.54M | 483K | 182K | 49K | -1.78M | -2.06M | 0 |
| Effective Tax Rate % | 984.68% | 125.79% | -4.87% | -1.14% | -0.27% | -0.15% | -0.18% | 8.06% | 13.7% | 0% |
| Net Income | 9.18M | 2.31M | -58.53M | -136.88M | -176.15M | -118.16M | -27.29M | -20.29M | -15.06M | -18.19M |
| Net Margin % | 1.85% | 0.48% | -13.94% | -38.42% | -62.71% | -55.41% | -18.36% | -16.26% | -15.08% | -22.79% |
| Net Income Growth % | 121.5% | 103.94% | 57.24% | 22.29% | -49.07% | -332.95% | -34.49% | -34.73% | 17.21% | - |
| Net Income (Continuing) | 9.18M | 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) | 0.15 | 0.04 | -1.02 | -2.51 | -3.36 | -2.37 | -0.69 | -1.00 | -8.16 | -11.82 |
| EPS Growth % | -8.99% | 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 | 62.04M | 61.49M | 57.59M | 54.56M | 52.44M | 49.89M | 39.52M | 20.3M | 1.84M | 1.54M |
| Basic Shares Outstanding | 60.94M | 59.74M | 57.59M | 54.56M | 52.44M | 49.89M | 39.52M | 20.3M | 1.84M | 1.54M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
EHR platform native competition
As reported in recent financial filings, Phreesia's year-over-year revenue growth has decelerated from 24.1% in 2024Q4 to 12.9% in 2027Q1, suggesting that the company is transitioning from a high-growth phase toward a more mature, volume-dependent expansion model within the competitive healthcare information services landscape.
The consistent decline in quarterly revenue growth rates indicates that the initial rapid adoption of the platform is encountering market saturation or increased friction from incumbent EHR providers. Investors should monitor whether the company can sustain double-digit growth through cross-selling additional modules or if the current trajectory implies a permanent shift toward lower-growth, utility-like performance.
Based on the provided income statement data, Phreesia's gross margin experienced a notable contraction to 59.2% in 2027Q1, deviating from the 67-69% range maintained throughout 2026, which may indicate shifting revenue mix or increased costs associated with payment processing and service delivery.
This margin compression suggests that the company's high-margin life sciences segment may be facing headwinds or that the cost of revenue is rising faster than the associated service fees. A sustained deviation from the historical 68% baseline would imply that the platform's pricing power is being challenged by competitive pressures or changing transaction economics.
According to the latest quarterly results, Phreesia achieved a positive operating income of $7.0 million in 2027Q1, marking a significant departure from the persistent operating losses observed in previous periods and suggesting that the company is finally beginning to realize meaningful economies of scale.
The transition to positive operating income, despite the recent gross margin dip, implies that management has successfully exercised discipline over SG&A and R&D expenditures. This inflection point warrants further investigation to determine if the operating leverage is durable or merely a result of temporary cost-cutting measures.
Financial statements reveal that Phreesia continues to issue significant stock-based compensation, with $13.6 million recorded in 2027Q1 alone, which consistently offsets a large portion of the company's reported GAAP net income and complicates the assessment of true underlying operational profitability.
While the company has reached a near-breakeven GAAP status, the reliance on equity-based incentives suggests that cash-based profitability remains elusive. Analysts should adjust for these non-cash charges to determine if the business can generate sustainable free cash flow without diluting shareholders to fund ongoing operations.
As noted in recent industry analysis, the increasing integration of native intake features within major EHR systems like Epic and Cerner poses a structural threat to Phreesia's core value proposition, potentially forcing the company to lower prices or increase customer acquisition costs to maintain its market position.
The risk of commoditization is high, as the platform's primary utility is increasingly being offered as a standard feature by the very systems Phreesia integrates with. If the company cannot differentiate its life sciences marketing engine sufficiently, it may face a long-term margin squeeze that current valuations fail to fully incorporate.
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.