Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 277

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 2
Chunk 277
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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 capital resources

As of July 31, 2025 and January 31, 2025, we had cash and cash equivalents of $98.3 million and $84.2 million, respectively. Cash and cash equivalents consist of money market mutual funds and cash on deposit.

In addition, we also have potential borrowing capacity under our credit agreement subject to certain restrictive covenants.

Subsequent to quarter end, on August 29, 2025, we entered into the Merger Agreement to acquire AccessOne for total cash consideration of $160 million, subject to customary closing and post-closing adjustments. In connection with, and concurrently with entry into, the Merger Agreement, we entered into a debt commitment letter which provides for a new senior secured bridge loan facility, subject to the satisfaction of certain conditions. The Company intends to finance the AccessOne Acquisition through a combination of cash from its balance sheet and