Composition of certain financial statement captions

9 Months Ended

Oct. 31, 2025

Composition of Certain Financial Statements [Abstract]

Composition of certain financial statement captions

(a) Accrued expenses

Accrued expenses as of October 31, 2025 and January 31, 2025 were as follows:


	October 31, 2025		January 31, 2025
Payroll-related expenses and taxes	$	6,911	$	12,016
Stock-based compensation liability	4,082		6,135
Payment processing fees liability	6,785		6,578
Acquisition-related liabilities	151		844
Income and other tax liabilities	2,732		2,503
Information technology	5,377		4,562
Other	4,479		4,822
Total	$	30,517	$	37,460

(b) Property and equipment

Property and equipment as of October 31, 2025 and January 31, 2025 were as follows:


	October 31, 2025		January 31, 2025
PhreesiaPads and Arrivals Kiosks	$	16,340	$	15,763
Computer equipment	83,816		77,704
Computer software	14,222		14,114
Hardware development	575		575
Total property and equipment	$	114,953	$	108,156
Less: accumulated depreciation	(93,842)		(84,505)
Property and equipment — net	$	21,111	$	23,651

Depreciation expense related to property and equipment amounted to $3,199 and $3,566 for the three months ended October 31, 2025 and 2024, respectively, and $9,464 and $11,011 for the nine months ended October 31, 2025 and 2024, respectively.

Property and equipment - net and related depreciation expense includes assets acquired under finance leases. Assets acquired under finance leases included in computer equipment was $49,009 as of October 31, 2025 and January 31, 2025. Accumulated amortization of assets under finance leases was $40,280 and $34,815 as of October 31, 2025 and January 31, 2025, respectively. See Note 10 - Leases for additional information regarding finance leases.

For the nine months ended October 31, 2025 and 2024, the Company capitalized $11,020 and $12,625, respectively, of costs related to the Company’s solutions.

During the nine months ended October 31, 2025 and 2024, amortization expense related to capitalized internal-use software was $9,690 and $7,441, respectively.

(d) Intangible assets and goodwill

The following presents the details of intangible assets as of October 31, 2025 and January 31, 2025:


	Useful Life
	(years)	October 31, 2025		January 31, 2025
Acquired technology	5 to 7	$	9,310	$	9,310
Customer relationship	7 to 15	17,940		17,940
License	15	6,200		6,200
Trademarks	15	3,100		3,100
Total intangible assets, gross carrying value		$	36,550	$	36,550
Less: accumulated amortization		(11,018)		(8,407)
Net carrying value		$	25,532	$	28,143

The weighted average remaining useful life for acquired technology in years was 4.4 and 5.1 as of October 31, 2025 and January 31, 2025, respectively. The remaining useful life for customer relationships in years was 11.0 and 11.6 as of October 31, 2025 and January 31, 2025, respectively. The remaining useful life for the license to the Patient Activation Measure ("PAM"®) in years was 11.1 and 11.8 as of October 31, 2025 and January 31, 2025, respectively. The remaining useful life for the trademarks in years was 12.8 and 13.5 as of October 31, 2025 and January 31, 2025, respectively.

Amortization expense associated with intangible assets for the nine months ended October 31, 2025 and 2024, was $2,611.

The estimated amortization expense for intangible assets for the next five years and thereafter was as follows as of October 31, 2025:


	October 31, 2025
2026 (Remaining three months)	$	840
Fiscal year ending January 31,
2027	3,157
2028	3,157
2029	3,057
2030 - thereafter	15,321
Total	$	25,532

There were no changes to the Company's goodwill balance during the nine months ended October 31, 2025. The Company did not record any impairments of goodwill during the three and nine months ended October 31, 2025 or 2024.

(e) Accounts receivable

Accounts receivable as of October 31, 2025 and January 31, 2025 were as follows:


	October 31, 2025		January 31, 2025
Billed	$	79,719	$	70,342
Unbilled	10,713		4,743
Total accounts receivable, gross	$	90,432	$	75,085
Less: accounts receivable allowances	(2,175)		(1,468)
Total accounts receivable	$	88,257	$	73,617

Activity in the Company's allowance for doubtful accounts was as follows for the nine months ended October 31, 2025:


	October 31, 2025
Balance, January 31, 2025	$	1,468
Bad debt expense	1,556
Write-offs and adjustments	(849)
Balance, October 31, 2025	$	2,175

The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as considerations for specific customers as applicable. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. Activity in the allowance for doubtful accounts and write-offs of accounts receivable were not material for the three months ended October 31, 2025 and 2024.

(f) Prepaid and other current assets

Prepaid and other current assets as of October 31, 2025 and January 31, 2025 were as follows:


	October 31, 2025		January 31, 2025
Prepaid software and business systems	$	6,844	$	6,849
Prepaid data center expenses	5,050		3,558
Prepaid insurance	1,472		912
Other prepaid expenses and other current assets	7,094		4,552
Total prepaid and other current assets	$	20,460	$	15,871

(g) Cloud computing implementation costs

The Company enters into cloud computing service contracts to support its sales and marketing, product development and administrative activities. The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other current assets and within other assets on its consolidated balance sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption in the consolidated statements of operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $1,532 as of January 31, 2025. Accumulated amortization of capitalized implementation costs for these arrangements were $1,432 as of January 31, 2025. These arrangements were fully amortized during the three months ended April 30, 2025.