Shares of Phreesia, Inc. (PHR) plummeted 5.25% in Wednesday's intraday trading, despite the company reporting better-than-expected fiscal first-quarter results. The healthcare software firm posted a narrower net loss and higher revenue compared to the same period last year, but investors seemed unimpressed.

For the quarter ended April 30, Phreesia reported a net loss of $0.07 per diluted share, significantly improving from a $0.35 loss in the previous year and beating analysts' expectations of a $0.12 loss. Revenue for the quarter rose to $115.9 million from $101.2 million a year earlier, surpassing the FactSet consensus estimate of $114.9 million.

Despite the positive results, the stock's sharp decline suggests that investors may have been looking for even stronger performance or guidance. Phreesia reiterated its fiscal 2026 revenue guidance of $472 million to $482 million, which aligns with analysts' expectations of $475.5 million. The company also provided an outlook for fiscal year adjusted EBITDA of $85-90 million. The market's reaction indicates that these projections may not have met the high expectations set by some investors, leading to the sell-off despite the company's improved financial performance.