v3.25.3
Revenue and contract costs
9 Months Ended
Oct. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue and contract costs Revenue and contract costs
The Company generates revenue primarily from providing integrated SaaS-based software and payment solutions for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s healthcare services clients for access to the Company's solutions, payment processing fees based on patient payment volume, and fees from life sciences companies and other organizations for delivering qualified direct communications to patients who consent to receive this type of engagement using the Company's solutions.
The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $1,764 and $2,395 for the three months ended October 31, 2025 and 2024, respectively, and $6,015 and $7,107 for the nine months ended October 31, 2025 and 2024, respectively.
Contract balances
The following table represents a roll-forward of contract assets:
Balance, January 31, 2025$4,743 
Amount transferred to receivables from beginning balance of contract assets(4,621)
Contract asset additions, net of reclassification to receivables10,591 
Balance, October 31, 2025
$10,713 
The following table represents a roll-forward of deferred revenue:
Balance, January 31, 2025$32,877 
Revenue recognized that was included in deferred revenue at the beginning of the period(30,292)
Current period activity in deferred revenue
27,278 
Balance, October 31, 2025
$29,863 
Cost to obtain a contract
The Company capitalizes certain incremental costs to obtain customer contracts and amortizes these costs over a period of benefit that the Company has estimated to be three years. The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $111 and $1,322 for the three months ended October 31, 2025 and 2024, respectively, and $463 and $1,706 for the nine months ended October 31, 2025 and 2024, respectively. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. During fiscal 2025, the Company updated its estimate of the period of benefit from five years to three years for certain deferred contract acquisition costs. There were no impairment losses recorded during the periods presented.

The following table represents a roll-forward of deferred contract acquisition costs:
Balance, January 31, 2025$984 
Additions to deferred contract acquisition costs350 
Amortization of deferred contract acquisition costs(463)
Balance, October 31, 2025
$871 
Deferred contract acquisition costs, current (to be amortized in next 12 months)$427 
Deferred contract acquisition costs, non-current444 
Total deferred contract acquisition costs$871