Phreesia Downgraded by Four Brokers, Cuts 2027 Outlook by $35M–$39M
Four major brokerages downgraded Phreesia shares after the company cut its fiscal 2027 revenue outlook by $35–$39 million to $510–$520 million, triggering a 26% premarket slide. The company maintained its adjusted EBITDA forecast of $125–$135 million despite forecasting low-single-digit organic growth versus prior 8–10% expectations.
1. Guidance Revision Triggers 26% Pre-Market Sell-Off
Phreesia cut its fiscal 2027 revenue guidance by $35–$39 million to $510–$520 million, down from consensus of roughly $552 million, citing reduced spending commitments from pharmaceutical manufacturers. The outlook revision prompted a 26% drop in premarket trading as investors reacted to the magnitude of the cut.
2. Four Brokerages Downgrade Shares and Cut Price Targets
Baird, Truist Securities, JPMorgan and Citi all downgraded the stock from Buy to Neutral-equivalent, lowering price targets to between $10 and $16. Analysts flagged uncertainty in pharma direct-to-consumer ad spend and execution risks around the Network Solutions business.
3. Q4 Financial Performance and EBITDA Outlook
Phreesia reported Q4 revenue of $127 million, up 16% year-over-year, and adjusted EBITDA of $29 million, slightly ahead of estimates, alongside a record free cash flow of $28.5 million. Despite the revenue guidance cut, management maintained an adjusted EBITDA forecast of $125–$135 million, citing operating leverage and AI-driven efficiency gains.