Why Phreesia Stock Tumbled Today

PHR dropped 6.33% after the company reported fiscal Q2 2027 earnings that fell short on the bottom line. Net income came in at $1.9 million, or $0.03 per share, missing the analyst consensus of $0.09 per share. Revenue beat expectations at $129.5 million, up 10% year-over-year.

The healthcare software provider maintained its full-year guidance despite the earnings miss. Management highlighted two new products—AccessOne and ProviderConnect—during the call, though the market focused on the profitability shortfall. The company remains in the midst of a restructuring effort.

The gap between the $0.03 actual and $0.09 expected earnings represents a significant 67% miss on the bottom line, explaining the negative market reaction despite the revenue beat. Phreesia has grown net income from negative territory to positive in recent quarters, but the pace of improvement is slower than analysts anticipated.