Phreesia (PHR 29.71%) stock collapsed on Tuesday, falling 27.5% through 10:20 a.m. ET after reporting mixed earnings results for its fiscal Q4 2026 last night.
Heading into the report, analysts expected the digital doctor's office front desk service to earn $0.06 per share on sales of $126.9 million in sales. Phreesia actually beat the revenue estimate, reporting $127.1 million, but it missed badly on earnings, reporting only $0.02 per share.
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Phreesia Q4 earnings
Not all the news was bad. Phreesia grew sales 16% year over year, and flipped to a Q4 profit -- and a full-year profit as well ($0.04 per share). Free cash flow was also positive, $28.5 million for the quarter and $54.4 million for the year (deducting both capital spending and capitalized software costs from operating cash flow, to arrive at FCF).
Even admitting the earnings miss, however, it wasn't really last year's results that tripped up Phreesia this morning. It was the guidance for next year.
NYSE: PHR
Key Data Points
What's next for Phreesia
Turning to fiscal 2027 guidance, Phreesia warned that it's losing "visibility" into spending commitments by "certain" pharmaceutical manufacturers. These customers might still spend as previously expected, but they are not "committing" to do so, making Phreesia less certain of its guidance numbers.
Phreesia is responding by giving more conservative revenue guidance for the coming fiscal year -- $510 million to $520 million, down from $545 million to $559 million previously. This is still 7% projected growth from fiscal 2026, but it's well below the $552 million that Wall Street has been expecting.
With Phreesia stock trading at roughly 26 times trailing FCF and growth now in the single digits, Phreesia stock appears to cost more than it's worth.
