Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 112

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 1
Chunk 112
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 Canadian Dollars in exchange for US Dollars in order to hedge the functional currency equivalent cash flows related to the Company’s Canadian Dollar denominated payroll payments. The Company designated 75% of the forward contract as a cash flow hedging instrument. The remaining 25% of the forward contract was not designated as a cash flow hedge and is being used by the Company as an economic hedge of forecasted Canadian Dollar denominated payroll payments not hedged by the designated portion of the forward contract. The Company does not hold any derivatives for trading or speculative purposes.As of July 31, 2025, the notional value of the foreign currency forward contract that the Company held to buy Canadian Dollars in exchange for US Dollars was a total of 11,500 Canadian Dollars, including a notional value of 8,625 Canadian Dollars designated as foreign currency cash flow hedges and a notional value of 2,875 not designated as hedges.The fair values of outstanding derivative foreign currency forward contract was as follows:Consolidated balance sheet locationJuly 31, 2025January 31, 2025Foreign currency cash flow hedgesPrepaid expenses and other current assets$216 $— Non-designated hedgesPrepaid expenses and other current assets72 — The effect of derivative instruments on the Company’s consolidated statements of operations were as follows:Consolidated statements of operations locationThree months endedJuly 31,Six months endedJuly 31,2025202420252024Foreign currency cash flow hedgesExpenses$(159)$— $(139)$— Foreign currency cash flow hedgesIncome tax benefit (expense)— — — — Non-designated hedgesOther income (expense), net(14)— 236 — 

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Pre-tax gains (losses) associated with cash flow hedges were as follows:Consolidated statements of operations and Statements of comprehensive income (loss) locationsThree months endedJuly 31,Six months endedJuly 31, 2025202420252024Gains recognized in accumulated other comprehensive income (included in assessment of effectiveness)Unrealized gain on cash flow hedge$(40)$— $347 $— Gains reclassified from accumulated other comprehensive income into income (effective portion)Expenses(159)— (139)— Tax effect reclassified from accumulated other comprehensive income into income (effective portion)Income tax benefit (expense)— — — —  As of July 31, 2025