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Phreesia Cuts 2027 Revenue Outlook on Softer Pharma Spending

The downgrade pushed the shares down in premarket trading.

Overview

  • Shares fell 26.8% to $8.35 in premarket trading after the company lowered its fiscal 2027 revenue forecast to $510 million to $520 million from $545 million to $559 million.
  • Management cited weaker visibility into drugmakers’ marketing budgets and smaller second‑half commitments tied to regulatory timing, including most favored nation pricing talks.
  • Phreesia kept its adjusted EBITDA target at $125 million to $135 million as it leans on operating leverage and more AI tools to replace manual and outsourced work.
  • The company now plans for mid‑single‑digit growth in its average number of healthcare service clients and only low‑single‑digit gains in revenue per client.
  • Quarterly results released this week showed revenue of $127.07 million that topped forecasts and GAAP earnings of 2 cents per share, with adjusted earnings of 12 cents per share.