PHR - Quick Take - Catchup with Mgmt on Restructuing Plan & Other Topics

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PHR - Quick Take - Catchup with Mgmt on Restructuing Plan & Other Topics

Truist Securities

Equity Research Report May 11, 2026

HEALTHCARE: HCIT Phreesia, Inc. (PHR)

PHR - Quick Take - Catchup with Mgmt on Restructuing Plan & Jailendra Singh

212-401-4406 Other Topics

Jailendra.Singh@truist.com

Payton Engdahl We caught up with Phreesia (PHR, Hold) to discuss its 8-K released after the close regarding

212-319-5476 its announced workforce reduction, the extent to which the initiative had already been

Payton.Engdahl@truist.com embedded within guidance, the company’s evolving AI-driven operating model, and broader

industry dynamics surrounding the migration from print-based patient statements toward

Eduardo Ron digital payment workflows. We offer our takeaways below.

212-326-3152

Eduardo.Ron@truist.com Traditional Cost Cutting vs a More Structural AI-driven Workflow Transformation.

PHR pushed back against the notion that the effort represented simple expense reduction

and instead framed the initiative as a direct result of evolving AI capabilities. The

company noted that approximately 220 individuals were impacted, roughly half of whom

Current Price (May 11, $9.57 were contractors located in Eastern Europe. PHR specifically highlighted QA engineering

2026) functions, explaining that historically large amounts of manual labor had been required for

Stock Rating HOLD code review and testing workflows, but that advancements in AI had materially reduced the need for portions of that labor pool. PHR suggested that broad segments of software Unchanged

engineering support functions were beginning to change structurally as AI tools became

Price Target $11.00 more capable. Importantly, PHR emphasized that the initiative was not solely about

Unchanged eliminating expenses.