v3.25.3
Leases
9 Months Ended
Oct. 31, 2025
Leases [Abstract]  
Leases Leases
(a) Phreesia as Lessee
The Company leases third-party data center space and office space in the U.S. under operating leases that expire on various dates through July 2027. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically three years and are secured by the underlying equipment.
For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance.
As of October 31, 2025, for operating leases, the weighted-average remaining lease term was 1.1 years and the weighted-average discount rate is 6.5%. As of October 31, 2025, for finance leases, the weighted-average remaining lease term was 1.5 years, and the weighted-average discount rate is 7.8%.
The components of lease expense for the nine months ended October 31, 2025 were as follows:
October 31, 2025
Operating leases:
Operating lease cost$732 
Variable lease cost— 
Total operating lease cost$732 
Finance leases:
Amortization of right-of-use assets$5,465 
Interest on lease liabilities711 
Total finance lease cost$6,176 
Amortization of right-of-use assets for finance leases is included within depreciation expense on the Company's consolidated statements of operations.
The following represents a schedule of maturing lease commitments for operating and finance leases as of October 31, 2025:
October 31, 2025
OperatingFinance
Maturity of lease liabilities
2026 (remaining three months)
$247 $1,324 
Fiscal year ending January 31,
2027583 5,688 
202885 2,169 
2029— — 
2030
— — 
Thereafter— — 
Total future minimum lease payments$915 $9,181 
Less: interest(37)(593)
Present value of lease liabilities$878 $8,588 
Other supplemental cash flow information for the nine months ended October 31, 2025 was as follows:
October 31, 2025
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used for operating leases$799 
Operating cash used for finance leases$711 
Financing cash used for finance leases$5,669 
For the three and nine months ended October 31, 2025 there were no right-of-use assets obtained in exchange for lease liabilities.
(b) Phreesia as Lessor
In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. The Company accounts for these rentals as leases. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases.
During the three and nine months ended October 31, 2025, the Company recognized $1,764 and $6,015, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks.
Future lease payments receivable under operating leases were immaterial as of October 31, 2025, except for those with terms of one year or less.
Leases Leases
(a) Phreesia as Lessee
The Company leases third-party data center space and office space in the U.S. under operating leases that expire on various dates through July 2027. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically three years and are secured by the underlying equipment.
For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance.
As of October 31, 2025, for operating leases, the weighted-average remaining lease term was 1.1 years and the weighted-average discount rate is 6.5%. As of October 31, 2025, for finance leases, the weighted-average remaining lease term was 1.5 years, and the weighted-average discount rate is 7.8%.
The components of lease expense for the nine months ended October 31, 2025 were as follows:
October 31, 2025
Operating leases:
Operating lease cost$732 
Variable lease cost— 
Total operating lease cost$732 
Finance leases:
Amortization of right-of-use assets$5,465 
Interest on lease liabilities711 
Total finance lease cost$6,176 
Amortization of right-of-use assets for finance leases is included within depreciation expense on the Company's consolidated statements of operations.
The following represents a schedule of maturing lease commitments for operating and finance leases as of October 31, 2025:
October 31, 2025
OperatingFinance
Maturity of lease liabilities
2026 (remaining three months)
$247 $1,324 
Fiscal year ending January 31,
2027583 5,688 
202885 2,169 
2029— — 
2030
— — 
Thereafter— — 
Total future minimum lease payments$915 $9,181 
Less: interest(37)(593)
Present value of lease liabilities$878 $8,588 
Other supplemental cash flow information for the nine months ended October 31, 2025 was as follows:
October 31, 2025
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used for operating leases$799 
Operating cash used for finance leases$711 
Financing cash used for finance leases$5,669 
For the three and nine months ended October 31, 2025 there were no right-of-use assets obtained in exchange for lease liabilities.
(b) Phreesia as Lessor
In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. The Company accounts for these rentals as leases. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases.
During the three and nine months ended October 31, 2025, the Company recognized $1,764 and $6,015, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks.
Future lease payments receivable under operating leases were immaterial as of October 31, 2025, except for those with terms of one year or less.
Leases Leases
(a) Phreesia as Lessee
The Company leases third-party data center space and office space in the U.S. under operating leases that expire on various dates through July 2027. Certain of these arrangements have escalating rent payment provisions or optional renewal clauses. The Company has also entered into various finance lease arrangements for computer equipment. These agreements are typically three years and are secured by the underlying equipment.
For office leases and leased equipment, the Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance, utilities and equipment maintenance.
As of October 31, 2025, for operating leases, the weighted-average remaining lease term was 1.1 years and the weighted-average discount rate is 6.5%. As of October 31, 2025, for finance leases, the weighted-average remaining lease term was 1.5 years, and the weighted-average discount rate is 7.8%.
The components of lease expense for the nine months ended October 31, 2025 were as follows:
October 31, 2025
Operating leases:
Operating lease cost$732 
Variable lease cost— 
Total operating lease cost$732 
Finance leases:
Amortization of right-of-use assets$5,465 
Interest on lease liabilities711 
Total finance lease cost$6,176 
Amortization of right-of-use assets for finance leases is included within depreciation expense on the Company's consolidated statements of operations.
The following represents a schedule of maturing lease commitments for operating and finance leases as of October 31, 2025:
October 31, 2025
OperatingFinance
Maturity of lease liabilities
2026 (remaining three months)
$247 $1,324 
Fiscal year ending January 31,
2027583 5,688 
202885 2,169 
2029— — 
2030
— — 
Thereafter— — 
Total future minimum lease payments$915 $9,181 
Less: interest(37)(593)
Present value of lease liabilities$878 $8,588 
Other supplemental cash flow information for the nine months ended October 31, 2025 was as follows:
October 31, 2025
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used for operating leases$799 
Operating cash used for finance leases$711 
Financing cash used for finance leases$5,669 
For the three and nine months ended October 31, 2025 there were no right-of-use assets obtained in exchange for lease liabilities.
(b) Phreesia as Lessor
In connection with the patient intake and registration process, Phreesia offers its customers the ability to lease PhreesiaPads and Arrivals Kiosks along with their monthly subscription. The Company accounts for these rentals as leases. The Company elected the practical expedient to not separate lease and non-lease components. More specifically, all contractual hardware maintenance is included with the hardware lease components. The leases contain no variable lease payments, no options to extend the lease that are reasonably certain to be exercised, and do not give the lessee an option to purchase the hardware at the end of the lease term. Additionally, the lease term does not represent a major part of the remaining economic life of the assets, and the present value of the lease payments does not equal or exceed substantially all of the fair value of the assets. As a result, all leased hardware in the SaaS arrangements are classified as operating leases.
During the three and nine months ended October 31, 2025, the Company recognized $1,764 and $6,015, respectively, in subscription and related services revenue related to the leasing of PhreesiaPads and Arrivals Kiosks.
Future lease payments receivable under operating leases were immaterial as of October 31, 2025, except for those with terms of one year or less.