Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 113

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 1
Chunk 113
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 2025.(c) Other contractual commitmentsOther contractual commitments consist primarily of non-cancelable purchase commitments to support the Company’s technology infrastructure as well commitments related to its acquisitions.During the nine months ended October 31, 2025, the Company entered into a new non-cancelable purchase commitment to support its technology infrastructure. Total undiscounted payments through July 31, 2027 are $12,242.During the nine months ended October 31, 2025, the Company entered into a definitive agreement to acquire AccessOne for total cash consideration of approximately $160 million, subject to customary closing and post-closing adjustments (such transactions contemplated by the agreement, the “AccessOne Acquisition”). The Company completed the acquisition of AccessOne on November 12, 2025, subsequent to quarter-end. Refer to Note 17 - Subsequent events in Part I of this Quarterly Report on Form 10-Q for additional information on the AccessOne Acquisition.During the nine months ended October 31, 2025, there were no significant changes in the Company's material cash requirements as compared to the material cash requirements from known contractual and other obligations described in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed with the SEC on March 13, 2025, other than the commitments noted above.

12. Income taxes

For the three and nine months ended October 31, 2025, the Company recorded tax expense of $854 and $372, respectively, compared to $442 and $1,702, respectively, for the corresponding periods in the prior year. The Company’s tax expense was 26.9% and 3.4% of income (loss) before income taxes for the nine months ended October 31, 2025 and 2024, respectively. The Company's effective tax rate differs from the U.S. statutory tax rate of 21% primarily because the Company records a valuation allowance against its U.S. deferred tax assets, and due to foreign income tax expense related to its Canadian branch and its subsidiary in India.The $372 year-to-date tax expense includes a discrete tax benefit of $2,220 recorded in the nine months ended October 31, 2025 primarily related to recognizing stock-based compensation deferred tax assets, return to provision adjustments and excess windfall related to its Canadian branch. The Canadian deferred tax assets were assessed in more detail in connection with the Company’s expectation of continued growth in the Canadian jurisdiction.Deferred tax