Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 202

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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 of our investment activities is to preserve principal while maximizing income without significantly increasing risk. Because our cash equivalents have a short maturity, our portfolio’s fair value is relatively insensitive to interest rate changes. We do not believe that an increase or decrease in interest rates of 100 basis points would have a material effect on our financial condition. Changes in interest rates impact the amount of interest income we record on our cash equivalents. In future periods, we will continue to evaluate our investment policy in order to ensure that we continue to meet our overall objectives. 

Although we had no debt outstanding under the Capital One Credit Facility as of October 31, 2025, changes in interest rates would affect interest expense if we borrowed under the Capital One Credit Facility in the future.

Subsequent to quarter-end, on November 12, 2025, we entered into the Bridge Credit Agreement with respect to a 364-day $110 million secured term loan, which bears interest at a per annum rate equal to the three month SOFR rate plus a margin of 4.00% per annum. The interest rate applicable to the Bridge Loan will increase by 0.5% every three months following the closing date of November 12, 2025. See Liquidity and capital resources in Part I - Item 2 of this Quarterly Report on Form 10-Q for additional information regarding the Bridge Loan.

Foreign currency exchange risk

Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian Dollar and Indian Rupee, and may be adversely affected in the future due to changes in foreign currency exchange rates. For example, changes in exchange rates negatively affected our expenses as expressed in U.S. dollars for the fiscal year ended January 31, 2025. Additionally, changes in exchange rates largely offset operating income for the fiscal year ended January 31, 2025. For the three months ended October 31, 2025, approximately 86% of our expenses were denominated in US Dollars. 

We have also experienced and will continue to experience foreign currency fluctuations due to the periodic re-measurement of monetary account balances that are denominated in currencies other than the functional currency of the entities in which they are recorded, and such fluctuations can impact our net income. Foreign currency gains and losses, primarily resulting from changes in the fair value of non-designated foreign currency forward contracts and from the re-measurement of monetary account balances, were gains of $0.2 million and losses of $0.3