Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 138

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 1
Chunk 138
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AP financial results. 

The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods indicated: Three months ended October 31,Nine months ended October 31,(in thousands, unaudited)2025202420252024Net income (loss)$4,271 $(14,403)$1,011 $(52,137)Interest income, net(380)(26)(758)(311)Income tax expense854 442 372 1,702 Depreciation and amortization7,478 7,087 21,765 21,063 Stock-based compensation expense15,959 16,525 49,414 49,813 Other (income) expense, net(1,006)144 (1,680)261 Acquisition-related costs (1)1,973 — 1,973 — Adjusted EBITDA$29,149 $9,769 $72,097 $20,391 (1) Consists primarily of legal, advisory and other professional fees and integration costs related to acquisitions, including the AccessOne Acquisition.

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:

48

 Three months endedOctober 31,Nine months endedOctober 31,(in thousands, unaudited)2025202420252024Net cash provided by operating activities$15,467 $5,785 $45,152 $16,125 Less:Capitalized internal-use software(3,395)(3,566)(10,718)(11,112)Purchases of property and equipment(3,271)(616)(8,542)(5,919)Free cash flow$8,801 $1,603 $25,892 $(906)

Liquidity and capital resources

As of