Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 104

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 1
Chunk 104
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 because the interest rates approximated market rates and the related maturities are relatively short-term.The Company did not have any transfers of assets and liabilities between levels of the fair value measurement hierarchy during both the six months ended July 31, 2025 and 2024.

10. Leases

(a) Phreesia as LesseeThe 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.

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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 July 31, 2025, for operating leases, the weighted-average remaining lease term was 1.3 years and the weighted-average discount rate is 6.5%. As of July 31, 2025, for finance leases, the weighted-average remaining lease term was 1.7 years, and the weighted-average discount rate is 7.8%.The components of lease expense for the six months ended July 31, 2025 were as follows:July 31, 2025Operating leases:Operating lease cost$488 Variable lease cost— Total operating lease cost$488 Finance leases:Amortization of right-of-use assets$3,685 Interest on lease liabilities509 Total finance lease cost$4,194 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 July 31, 2025:July 31, 2025OperatingFinanceMaturity of lease liabilities2026 (remaining six months)$509 $3,310 Fiscal year ending January 31,2027583 5,688 202885 2,169 2029— — 2030— — Thereafter— — Total future minimum lease payments$1,177 $11,167 Less: interest(57)(796)Present value of lease liabilities$1,120 $10,371 Other supplemental cash flow information