Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 162

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 8
Chunk 162
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 entered into a new non-cancelable purchase commitment to support its technology infrastructure. Total undiscounted payments through July 31, 2027 are $12,242.During the six months ended July 31, 2025, there were no significant changes in the Company's material cash requirements as compared to the material cash requirements from known contractual and other obligations described in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed with the SEC on March 13, 2025, other than the new non-cancelable purchase commitment noted above.

12. Income taxes

For the three and six months ended July 31, 2025, the Company recorded a tax benefit of $1,217 and $482, respectively, compared to a tax expense of $750 and $1,260, respectively, for the corresponding periods in the prior year. For the six months ended July 31, 2025 and 2024, the Company’s effective tax rate was 12.9% and negative 3.5%, respectively. The Company's effective tax rate differs from the U.S. statutory tax rate of 21% primarily because the Company records a valuation allowance against its U.S. deferred tax assets, and due to foreign income tax expense related to its Canadian branch and its subsidiary in India.The $1,217 year-to-date tax benefit includes a discrete tax benefit of $2,220 recorded in the three months ended July 31, 2025 primarily related to recognizing stock-based compensation deferred tax assets, return to provision adjustments and excess windfall related to its Canadian branch. The Canadian deferred tax assets were assessed in more detail in connection with the Company’s expectation of continued growth in the Canadian jurisdiction.Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. Management of the Company has evaluated the positive and negative evidence pertaining to the realizability of its deferred tax assets, including the Company’s history of losses, and concluded that it is more likely than not that the Company will not recognize the benefits for its U.S. deferred tax assets. On the basis of this evaluation, the Company has recorded a valuation allowance against its deferred tax assets that are not more likely than not to be realized at both July 31, 2025 and January 31, 2025.On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA