Phreesia Inc. (NYSE:PHR) shares slipped Friday despite a stronger-than-expected second quarter. The healthcare software firm posted earnings of 1 cent per share, topping forecasts for a 6 cent loss, while revenue rose 15% year-over-year to $117.26 million, ahead of estimates.

Phreesia's average number of healthcare service clients climbed 7% to 4,467, with revenue per client also up 7% to $26,249. Adjusted EBITDA surged to $22.1 million from $6.5 million a year earlier.

Acquisition: Phreesia also announced a $160 million cash deal to acquire AccessOne Parent Holdings, a Frontier Growth portfolio company, with closing expected in the back half of fiscal 2026.

AccessOne, which manages about $450 million in healthcare receivables, works with major U.S. health systems. Phreesia expects the acquisition to add roughly $35 million in annual revenue and $11 million in adjusted EBITDA.

Guidance: Phreesia reaffirmed fiscal 2026 sales guidance of $472 million-$482 million versus consensus of $477.15 million.

The company updated its adjusted EBITDA outlook to $87 million-$92 million from $85 million-$90 million.

Analysts’ Reaction: William Blair says, “We believe investors may focus on the incremental integration risk and complexity associated with the deal, given the story to this point has largely been oriented around strong organic growth.”

Analyst Ryan Daniels called the second-quarter results solid but noted investors may be underwhelmed since the $2 million EBITDA guidance boost mainly matches the quarter's beat, despite recent strong operating leverage.

“We encourage investors to add PHR shares on weakness. We appreciate the strategic value of the acquisition, adding incremental payments capabilities and expanding the company's TAM, and we believe the mid-teens multiple is reasonable given the asset's strong 30% margin profile,” the analyst said on Friday.

Needham maintains Phreesia with a Buy and raises the price forecast from $29 to $35.

Piper Sandler also reiterates Phreesia with an Overweight rating and raises the price forecast from $33 to $34.

Price Action: PHR stock is down 8.35% at $28.61 at the last check on Friday.

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