Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 102

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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-based condition is satisfied, the number of shares vesting could be between 0% and 220% of the number of PSUs originally granted. To earn the target number of PSUs (which represents 100% of the number of PSUs granted), the Company must perform at the 60th percentile for awards granted during fiscal 2023 and fiscal 2024 and at the 55th percentile for awards granted during fiscal 2025, with the maximum number of PSUs earned if the Company performed at least at the 90th percentile for all awards. If Phreesia's TSR for the performance period is negative, the maximum number of PSUs that can be earned will be capped at 100%. The Company estimated the fair value of the PSUs using a Monte Carlo Simulation model that projected TSR for Phreesia and each member of the Peer Group over the performance period. The Company recognizes the grant date fair value of PSUs as compensation expense over the vesting period.Market-based PSU activity for the six months ended July 31, 2025 was as follows:Performance stock unitsOutstanding, January 31, 20251,204,971 Granted in six months ended July 31, 2025— Vested— Forfeited and expired — Outstanding, July 31, 20251,204,971 As of July 31, 2025, unrecognized compensation cost for the PSUs was $25,902, to be recognized over a weighted average remaining vesting period of 2.0 years, subject to the participants' continued employment with the Company. (f) Employee stock purchase planThe ESPP is a compensatory plan because it provides participants with terms that are more favorable than those offered to other holders of the Company's common stock. Employees purchase shares at the lesser of (1) 85% of the closing stock price on the first day of the offering period or (2) 85% of the closing stock price on the last day of the offering period. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the U.S. Internal Revenue Code of 1986. 

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As of July 31, 2025, unrecognized compensation cost related to the ESPP was $339, to be recognized over the next five months.(g) Liability awardsAt the beginning of each year, the Company provides eligible employees the option to elect to receive all or a portion of their incentive compensation