Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 187

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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 Credit Facility includes financial covenants including but not limited to requiring us to maintain minimum Consolidated EBITDA, minimum Liquidity, a minimum Consolidated Fixed Charge Coverage Ratio and limiting the amount of cash and cash equivalents we hold outside Capital One, each as defined in the Credit Agreement. We were in compliance with all covenants related to the Capital One Credit Facility as of July 31, 2025.

We believe that our cash and cash equivalents along with cash generated in the normal course of business are sufficient to fund our operations for at least the next twelve months.

Financing agreements

In June 2023, we entered into a financing agreement to obtain financing for internal-use software and related software support. As of July 31, 2025, there was $1.3 million in outstanding principal and interest due under the agreement. The financing agreement requires us to pay $0.1 million per month for 36 months beginning August 2023. The effective interest rate on the agreement is 10.5% per annum.

The following table summarizes our sources and uses of cash for each of the periods presented:

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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 Net cash used in investing activities(5,202)(7,403)(12,594)(12,849)Net cash used in financing activities(2,149)(1,381)(2,987)(3,206)Effect of exchange rate changes on cash and cash equivalents(89)(6)(58)(7)Net increase (decrease) in cash and cash equivalents$7,395 $2,271 $14,046 $(5,722)

Operating activities

The primary sources of cash from operating activities are cash received from our customers and interest earned on our money market mutual funds. The primary uses of cash for operating activities are for payroll, payments to suppliers, payments for operating leases, as well as cash paid for interest on our finance leases and other borrowings and cash paid for various sales, property and income taxes.

During the three and six months ended July 31, 2025, net cash provided by operating activities was $14.8 million and $29.7 million, respectively, as our cash received from customers in connection with our normal operations exceeded our cash paid to