Thanks for the reply @jmdobry.  I had `karma-phantomjs-launcher@0.0.1` installed.  This was pulling in 0.8.x of `phantomjs`, which did not extract the binary in `node_modules/phantomjs/lib/phantom/bin/` (only in `node_modules/phantomjs/bin/`).

It looks like this was fixed in `phantomjs` with [the switch](https://github.com/Obvious/phantomjs/commit/95c26f9de988c0c98a93186ee76f0d6218cc90a8) to `adm-zip`.  I didn't see until after I made the initial comment that the `karma-phantomjs-launcher` [was updated](https://github.com/karma-runner/karma-phantomjs-launcher/commit/c768f3075ff0b966851cff28309a60bb4e9ed156) to pull this fix in with `phantomjs` 0.9.x.  And this [was published](https://github.com/karma-runner/karma-phantomjs-launcher/commit/cc1634c55b31eb45724653e6d05bfc7dfa69d894) with 0.0.2.

So things are working for me now (@0.0.2) as expected.