Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 166

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 8
Chunk 166
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 Company estimated the fair value of the PSUs using a Monte Carlo Simulation model that projected TSR for Phreesia and each member of the Peer Group over the performance period. The Company recognizes the grant date fair value of PSUs as compensation expense over the vesting period.Market-based PSU activity for the nine months ended October 31, 2025 was as follows:Performance stock unitsOutstanding, January 31, 20251,204,971 Granted in nine months ended October 31, 2025— Vested— Forfeited and expired — Outstanding, October 31, 20251,204,971 As of October 31, 2025, unrecognized compensation cost for the PSUs was $21,631, to be recognized over a weighted average remaining vesting period of 1.82 years, subject to the participants' continued employment with the Company. (f) Employee stock purchase planThe ESPP is a compensatory plan because it provides participants with terms that are more favorable than those offered to other holders of the Company's common stock. Employees purchase shares at the lesser of (1) 85% of the closing stock price on the first day of the offering period or (2) 85% of the closing stock price on the last day of 

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the offering period. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the U.S. Internal Revenue Code of 1986. During the nine months ended October 31, 2025, the Company issued 61,142 shares of common stock under the ESPP. In connection with these issuances, the Company recorded increases of $1,309 to common stock and additional paid-in capital within stockholders' equity. As of October 31, 2025, unrecognized compensation cost related to the ESPP was $135, to be recognized over the next two months.(g) Liability awardsAt the beginning of each year, the Company provides eligible employees the option to elect to receive all or a portion of their incentive compensation in the form of immediately vested restricted stock units instead of cash. Restricted stock units issued to settle liability awards are covered by the 2019 Plan. Share-settled bonus awards will be settled at a value equal to 115% of the cash bonuses. These share-settled bonus awards vest based on the achievement of the Company’s predefined performance targets. As share-settled bonus awards will be settled in a variable number of shares, the Company