Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 185

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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Because of these and other limitations, you should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, net income (loss), and our GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods indicated: Three months ended July 31,Six months ended July 31,(in thousands, unaudited)2025202420252024Net income (loss)$654 $(18,012)$(3,260)$(37,734)Interest income, net(608)(46)(378)(285)Income tax (benefit) expense(1,217)750 (482)1,260 Depreciation and amortization7,409 7,303 14,287 13,976 Stock-based compensation expense16,230 16,448 33,455 33,288 Other (income) expense, net(336)86 (674)117 Adjusted EBITDA$22,132 $6,529 $42,948 $10,622 

We calculate free cash flow as net cash provided by operating activities less capitalized internal-use software development costs and purchases of property and equipment.

Additionally, free cash flow is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business, making strategic investments, partnerships and acquisitions and strengthening our financial position.

The following table presents a reconciliation of free cash flow from net cash provided by operating activities, the most directly comparable GAAP financial measure, for each of the periods indicated:

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 Three months endedJuly 31,Six months endedJuly 31,(in thousands, unaudited)2025202420252024Net cash provided by operating activities$14,835 $11,061 $29,685 $10,340 Less:Capitalized internal-use software(3,435)(2,976)(7,323)(7,546)Purchases of property and equipment(1,767)(4,427)(5,271)(5,303)Free cash flow$9,633 $3,658 $17,091 $(2,509)

Liquidity and