Phreesia, Inc.
For the period ended Jul 31, 2025. Filed Sep 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2025 · Filed Sep 5, 2025
PHR$12.62-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-30; filed 2025-05-28.
0001412408-25-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-31; filed 2025-09-05.
0001412408-25-000062
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 163 current paragraphs.
73 unchanged; 45 reworded; 38 added; 11 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 16 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
•Total revenue increased 15% to $233.2 million in the six months ended July 31, 2025, as compared to $203.3 million in the six months ended July 31, 2024.
Current report
•Net income was $0.7 million in the three months ended July 31, 2025, as compared to net loss of $18.0 million in the three months ended July 31, 2024.
Current report
•Net loss was $3.3 million in the six months ended July 31, 2025, as compared to $37.7 million in the six months ended July 31, 2024.
Current report
•Adjusted EBITDA was $22.1 million in the three months ended July 31, 2025, as compared to $6.5 million in the three months ended July 31, 2024.
Current report
•Adjusted EBITDA was $42.9 million in the six months ended July 31, 2025, as compared to $10.6 million in the six months ended July 31, 2024.
Current report
•Net cash provided by operating activities was $14.8 million for the three months ended July 31, 2025, as compared to $11.1 million for the three months ended July 31, 2024.
Current report
•Net cash provided by operating activities was $29.7 million for the six months ended July 31, 2025, as compared to $10.3 million for the six months ended July 31, 2024.
Current report
•Free cash flow was $9.6 million for the three months ended July 31, 2025, as compared to $3.7 million for the three months ended July 31, 2024.
Current report
Recent developments and current economic conditions
Current report
AccessOne Acquisition
Current report
On August 29, 2025, we entered into a definitive agreement (the “Merger Agreement”) to acquire AccessOne Parent Holdings, Inc. (together with its subsidiaries, “AccessOne”), for total cash consideration of $160 million, subject to customary closing and post-closing adjustments (the "AccessOne Acquisition"). The transaction is expected to close during the third quarter or early fourth quarter of our 2026 fiscal year, subject to customary closing conditions and regulatory approvals. In connection with, and concurrently with entry into, the Merger Agreement, we entered into a debt commitment letter which provides for a new senior secured bridge loan facility (the “Bridge Loan”), subject to the satisfaction of certain conditions. We intend to finance the acquisition through a combination of cash from our balance sheet and proceeds from the Bridge Loan.
Current report
AccessOne is a market leader in providing financing solutions for healthcare receivables, working with some of the largest health systems in the U.S. AccessOne takes minimal credit risk and offers healthcare providers a scalable, compliant and operationally efficient tool that improves collections without undermining patient trust. We believe the addition of AccessOne’s platform is a natural progression that will integrate well with our existing products.
Current report
See Note 17 - Subsequent events in Part I - Item 8 of this Quarterly Report on Form 10-Q for additional information regarding the AccessOne Acquisition.
Current report
Income tax benefit (expense)
Current report
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). We reflected the estimated impact of the OBBBA in the year-to-date and quarterly tax provision as of July 31, 2025. Further analysis will be performed through year-end; however, it is not expected to have a material impact on our effective tax rate due to the valuation allowance position recorded against the Company’s deferred tax assets that are not more likely than not to be realized.
Current report
Cost of revenue (excluding depreciation and amortization) increased $1.3 million to $17.4 million for the three months ended July 31, 2025, as compared to $16.1 million for the three months ended July 31, 2024. The increase resulted primarily from a $2.8 million increase in other third-party costs, partially offset by a $1.6 million decrease in labor costs.
Current report
Cost of revenue (excluding depreciation and amortization) increased $2.2 million to $34.0 million for the six months ended July 31, 2025, as compared to $31.9 million for the six months ended July 31, 2024. The increase resulted primarily from a $5.0 million increase in other third-party costs, partially offset by a $2.8 million decrease in labor costs.
Current report
Stock compensation incurred related to cost of revenue was $2.0 million and $2.5 million for the six months ended July 31, 2025 and 2024, respectively.
Current report
Sales and marketing expense decreased $10.8 million to $51.4 million for the six months ended July 31, 2025, as compared to $62.2 million for the six months ended July 31, 2024. The decrease resulted primarily from a $12.2 million decrease in labor costs, partially offset by a $1.5 million increase in other third-party sales and marketing costs.
Current report
Stock compensation incurred related to sales and marketing expense was $9.9 million and $11.1 million for the six months ended July 31, 2025 and 2024, respectively.
Current report
Research and development expense decreased $0.3 million to $29.3 million for the three months ended July 31, 2025, as compared to $29.5 million for the three months ended July 31, 2024. The decrease resulted primarily from a $0.6 million decrease in other third-party costs, partially offset by a $0.4 million increase in software costs.
Current report
Stock compensation incurred related to research and development expense was $8.6 million and $7.3 million for the six months ended July 31, 2025 and 2024, respectively.
Current report
Stock compensation incurred related to general and administrative expense was $12.9 million and $12.5 million for the six months ended July 31, 2025 and 2024, respectively.
Current report
Depreciation expense decreased $1.2 million to $6.3 million for the six months ended July 31, 2025, as compared to $7.4 million for the six months ended July 31, 2024. The decrease was primarily attributable to lower computer equipment depreciation.
Current report
Amortization expense increased $1.5 million to $8.0 million for the six months ended July 31, 2025 as compared to $6.5 million for the six months ended July 31, 2024. The increase was primarily driven by higher amortization of capitalized internal-use software development costs.
Current report
Interest income, net
Current report
Interest income, net was income of $0.6 million for the three months ended July 31, 2025, as compared to income of less than $0.1 million for the three months ended July 31, 2024. The increase is primarily attributable to the timing of interest received during the three months ended July 31, 2025.
Current report
Interest income, net was income of $0.4 million for the six months ended July 31, 2025, as compared to income of $0.3 million for the six months ended July 31, 2024. The increase is primarily attributable to the timing of interest received during the six months ended July 31, 2025.
Current report
Income tax benefit (expense)
Current report
Income tax benefit (expense) was a tax benefit of $1.2 million for the three months ended July 31, 2025, as compared to a tax expense of $0.8 million for the three months ended July 31, 2024. The increase in benefit from income taxes relates primarily to a deferred tax benefit recognized as a discrete item during the three months ended July 31, 2025.
Current report
Income tax benefit (expense) was a tax benefit of $0.5 million for the six months ended July 31, 2025, as compared to a tax expense of $1.3 million for the six months ended July 31, 2024. The increase in benefit from income taxes relates primarily to a deferred tax benefit recognized as a discrete item during the six months ended July 31, 2025.
Current report
Subsequent to quarter end, on August 29, 2025, we entered into the Merger Agreement to acquire AccessOne for total cash consideration of $160 million, subject to customary closing and post-closing adjustments. In connection with, and concurrently with entry into, the Merger Agreement, we entered into a debt commitment letter which provides for a new senior secured bridge loan facility, subject to the satisfaction of certain conditions. The Company intends to finance the AccessOne Acquisition through a combination of cash from its balance sheet and proceeds from the Bridge Loan.
Current report
During the three months ended July 31, 2025, net cash used in investing activities was $5.2 million, principally resulting from $3.4 million of capitalized internal-use software costs, as well as $1.8 million of purchases of property and equipment, principally for software and computer equipment.
Current report
During the six months ended July 31, 2025, net cash used in investing activities was $12.6 million, principally resulting from $7.3 million of capitalized internal-use software costs, as well as $5.3 million of purchases of property and equipment, principally for software and computer equipment.
Current report
During the six months ended July 31, 2024, net cash used in investing activities was $12.8 million, principally resulting from capital expenditures, the majority of which consisted of $7.5 million of capitalized internal-use software costs, as well as $5.3 million of purchases of property and equipment, principally for software and computer equipment.
Current report
During the three months ended July 31, 2025, net cash used in financing activities was $2.1 million, primarily consisting of $2.8 million used for principal payments on finance leases and financing arrangements, partially offset by $0.7 million in proceeds from our equity compensation plans.
Current report
During the six months ended July 31, 2025, net cash used in financing activities was $3.0 million, primarily consisting of $4.5 million used for principal payments on finance leases and financing arrangements, partially offset by $1.6 million in proceeds from our equity compensation plans.
Current report
During the three and six months ended July 31, 2025, we entered into a new non-cancelable purchase commitment to support our technology infrastructure. Total undiscounted payments through July 31, 2027 are $12,242.
Removed paragraphs (11)
Previous report
•Net loss was $3.9 million in the three months ended April 30, 2025, as compared to $19.7 million in the three months ended April 30, 2024.
Previous report
•Adjusted EBITDA was $20.8 million in the three months ended April 30, 2025, as compared to $4.1 million in the three months ended April 30, 2024.
Previous report
•Net cash provided by operating activities was $14.9 million for the three months ended April 30, 2025, as compared to net cash used in operating activities of $0.7 million for the three months ended April 30, 2024.
Previous report
Provision for income taxes
Previous report
Cost of revenue (excluding depreciation and amortization) increased $0.9 million to $16.6 million for the three months ended April 30, 2025, as compared to $15.7 million for the three months ended April 30, 2024. The increase resulted primarily from a $2.1 million increase in other third-party costs, partially offset by a $1.2 million decrease in labor costs.
Previous report
Interest (expense) income, net
Previous report
Interest (expense) income, net was expense of $0.2 million for the three months ended April 30, 2025, as compared to income of $0.2 million for the three months ended April 30, 2024. The decrease is primarily attributable to lower interest income earned from our cash and cash equivalent balances, partially offset by lower interest expense on our finance leases and other financing obligations.
Previous report
Provision for income taxes
Previous report
Provision for income taxes increased by $0.2 million to $0.7 million for the three months ended April 30, 2025, as compared to $0.5 million for the three months ended April 30, 2024. The increase in provision for income taxes relates primarily to an increase in Canadian and Indian income tax expense.
Previous report
During the three months ended April 30, 2025, net cash used in investing activities was $7.4 million, principally resulting from $3.9 million of capitalized internal-use software costs, as well as $3.5 million of purchases of property and equipment, primarily computer equipment.
Previous report
The increase in cash used in investing activities was partially driven by the Company’s first quarter fiscal 2026 decision to directly purchase data center equipment instead of entering into a new finance lease.
Reworded paragraphs (45)
Previous wording
•Total revenue increased 15% to $115.9 million in the three months ended April 30, 2025, as compared to $101.2 million in the three months ended April 30, 2024.
Current wording
•Total revenue increased 15% to $117.3 million in the three months ended July 31, 2025, as compared to $102.1 million in the three months ended July 31, 2024.
Previous wording
•Free cash flow was $7.5 million for the three months ended April 30, 2025, as compared to negative $6.2 million for the three months ended April 30, 2024.
Current wording
•Free cash flow was $17.1 million for the six months ended July 31, 2025, as compared to negative $2.5 million for the six months ended July 31, 2024.
Previous wording
•Cash and cash equivalents as of April 30, 2025 was $90.9 million, an increase of $6.7 million as compared to January 31, 2025.
Current wording
•Cash and cash equivalents as of July 31, 2025 was $98.3 million, an increase of $14.1 million as compared to January 31, 2025.
Previous wording
For a reconciliation of Adjusted EBITDA to net loss and a reconciliation of free cash flow to net cash provided by (used in) operating activities, and for more information as to how we calculate such measures, see the section below titled “Non-GAAP financial measures.”
Current wording
For a reconciliation of Adjusted EBITDA to net income (loss) and a reconciliation of free cash flow to net cash provided by operating activities, and for more information as to how we calculate such measures, see the section below titled “Non-GAAP financial measures.”
Previous wording
We also sell products and services to life sciences and other organizations, healthcare advertising agencies, government entities and advocacy groups through our direct sales and marketing teams. Unlike healthcare services programs, most of the life science campaigns need to be measured and resold each year. Like healthcare services, the marketing team supports net new business and client retention for network solutions by educating ideal customer profiles about the value of Phreesia and the positive impact on health outcomes Phreesia campaigns have on patients.
Current wording
We also sell products and services to life sciences companies and other organizations, healthcare advertising agencies, government entities and advocacy groups through our direct sales and marketing teams. Unlike healthcare services programs, most of the life science campaigns need to be measured and resold each year. Like healthcare services, the marketing team supports net new business and client retention for network solutions by educating ideal customer profiles about the value of Phreesia and the positive impact on health outcomes Phreesia campaigns have on patients.
Previous wording
Our business is directly and indirectly affected by macroeconomic conditions, geopolitical conditions and the state of global financial markets. Geopolitical uncertainty resulting, in part, from the military conflict between Russia and Ukraine, the conflict in the Middle East and the intensification of the hostilities between India and Pakistan, as well as other macro-economic conditions, such as the impact of pandemics, changes in interest rates, inflation in the cost of goods, services and labor, tariff and trade issues, or a recession or an economic slowdown in the U.S. or internationally, have contributed to significant volatility and declines in global financial markets. The uncertainty over the extent and duration of the ongoing conflicts and these macroeconomic conditions continues to cause disruptions to businesses and markets worldwide. Additionally, the change in U.S. presidential administration has resulted in, and may continue to cause, additional geopolitical and macroeconomic uncertainty. While none of these factors individually has had a material impact on our business to date, it is difficult to predict the potential impact these factors may have on our future business results, and each could adversely impact our business operations, financial performance and results of operations.
Current wording
Our business is directly and indirectly affected by macroeconomic conditions, geopolitical conditions and the state of global financial markets. Geopolitical uncertainty resulting, in part, from the military conflict between Russia and Ukraine and the conflict in the Middle East, as well as other macro-economic conditions, such as the impact of pandemics, changes in interest rates, inflation in the cost of goods, services and labor, tariff and trade issues, or a recession or an economic slowdown in the U.S. or internationally, have contributed to significant volatility and declines in global financial markets. The uncertainty over the extent and duration of the ongoing conflicts and these macroeconomic conditions continues to cause disruptions to businesses and markets worldwide. Additionally, the change in U.S. presidential administration has resulted in, and may continue to cause, additional geopolitical and macroeconomic uncertainty. While none of these factors individually has had a material impact on our business to date, it is difficult to predict the potential impact these factors may have on our future business results or in the financial condition or purchasing patterns of our customers, partners and suppliers, and each could adversely impact our business operations, financial performance and results of operations. We continue to closely monitor these macroeconomic and geopolitical developments and their potential impact on our business and financial condition.
Previous wording
•AHSCs. We define AHSCs as the average number of clients that generate subscription and related services or payment processing revenue each month during the applicable period. In cases where we act as a subcontractor providing white-label services to our partner's clients, we treat the contractual relationship as a single healthcare services client. We believe growth in AHSCs is a key indicator of the performance of our business and depends, in part, on our ability to successfully develop and market our solutions to healthcare services organizations that are not yet clients. We believe growth in AHSCs provides useful information to investors as an important indicator of expected revenue growth. In addition, growth in AHSCs informs our management of the areas of our business that will require further investment to support expected future AHSC growth. For example, as AHSCs increase, we may need to add to our customer support team and invest to maintain effectiveness and performance of our solutions for our healthcare services clients and their patients.
Current wording
•AHSCs. We define AHSCs as the average number of clients that generate subscription and related services or payment processing fees revenue each month during the applicable period. In cases where we act as a subcontractor providing white-label services to our partner's clients, we treat the contractual relationship as a single healthcare services client. We believe growth in AHSCs is a key indicator of the performance of our business and depends, in part, on our ability to successfully develop and market our solutions to healthcare services organizations that are not yet clients. We believe growth in AHSCs provides useful information to investors as an important indicator of expected revenue growth. In addition, growth in AHSCs informs our management of the areas of our business that will require further investment to support expected future AHSC growth. For example, as AHSCs increase, we may need to add to our customer support team and invest to maintain effectiveness and performance of our solutions for our healthcare services clients and their patients.
Previous wording
•Total revenue per AHSC. We define total revenue per AHSC as total revenue in a given period divided by AHSCs during that same period. Our healthcare services clients directly generate subscription and related services and payment processing revenue. Additionally, our relationships with healthcare services clients who subscribe to our technology give us the opportunity to engage with life sciences companies, government entities, patient advocacy, public interest and not-for-profit organizations who deliver direct communication to patients through our solutions. As a result, we believe that our ability to increase total revenue per AHSC provides useful information to investors as an indicator of the long-term value of our solutions. Total revenue per AHSC was $26,283 for the three months ended April 30, 2025 compared to $24,900 for the same period in the prior year, an increase of 6%. The increase was primarily driven by revenue growth that outpaced AHSC growth.
Current wording
•Total revenue per AHSC. We define total revenue per AHSC as total revenue in a given period divided by the number of AHSCs during that same period. Our healthcare services clients directly generate subscription and related services and payment processing fees revenue. Additionally, our relationships with healthcare services clients who subscribe to our solutions give us the opportunity to engage with life sciences companies, government entities, patient advocacy, public interest and not-for-profit and other organizations who deliver direct communication to patients through our solutions. As a result, we believe that our ability to increase total revenue per AHSC provides useful information to investors as an indicator of the long-term value of our solutions. Total revenue per AHSC was $26,249 for the three months ended
Previous wording
•Payment facilitator volume percentage. We define payment facilitator volume percentage as the volume of credit and debit card patient payment volume that we process as a payment facilitator as a percentage of total patient payment volume. Payment facilitator volume is a major driver of our payment processing revenue.
Current wording
•Payment facilitator volume percentage. We define payment facilitator volume percentage as the volume of credit and debit card patient payments that we process as a payment facilitator as a percentage of total patient payment volume. Payment facilitator volume is a major driver of our payment processing fees revenue.
Previous wording
Payment processing expense consists primarily of interchange fees set by payment card networks that are ultimately paid to the card-issuing financial institution, assessment fees paid to payment card networks, and fees paid to third-party payment processors and gateways. Payment processing expense may increase as a percentage of payment processing revenue if card networks raise pricing for interchange and assessment fees or if we reduce pricing to our clients.
Current wording
Payment processing expense consists primarily of interchange fees set by payment card networks that are ultimately paid to the card-issuing financial institution, assessment fees paid to payment card networks, and fees paid to third-party payment processors and gateways. Payment processing expense may increase as a percentage of payment processing fees revenue if card networks raise pricing for interchange and assessment fees or if we reduce pricing to our clients.
Previous wording
Based upon our cumulative pre-tax losses in recent years and available evidence, we have determined that it is more likely than not that substantially all of our U.S. deferred tax assets as of April 30, 2025 will not be realized in the near term. Consequently, we have established a valuation allowance against our deferred tax assets that are not more likely than not to be realized. In future periods, if we conclude we have future taxable income sufficient to realize the deferred tax assets, we may reduce or eliminate the valuation allowance. Provision for income taxes also includes U.S. state and local income taxes and foreign income taxes. We record unrecognized tax benefits as liabilities or as reductions to deferred tax assets and adjust these balances when our judgement changes as a result of the evaluation of new information previously not available.
Current wording
Based upon our cumulative pre-tax losses in recent years and available evidence, we have determined that it is more likely than not that substantially all of our U.S. deferred tax assets as of July 31, 2025 will not be realized in the near term. Consequently, we have established a valuation allowance against our deferred tax assets that are not more likely than not to be realized. In future periods, if we conclude we have future taxable income sufficient to realize the deferred tax assets, we may reduce or eliminate the valuation allowance. Benefit (expense) from income taxes also includes U.S. state and local income taxes and foreign income taxes. We record unrecognized tax benefits as liabilities or as reductions to deferred tax assets and adjust these balances when our judgment changes as a result of the evaluation of new information previously not available.
Previous wording
Comparison of results of operations for the three months ended April 30, 2025 and 2024
Current wording
Comparison of results of operations for the three and six months ended July 31, 2025 and 2024
Previous wording
•Subscription and related services. Our subscription and related services revenue from healthcare services organizations increased $7.6 million to $54.4 million for the three months ended April 30, 2025, as compared to $46.7 million for the three months ended April 30, 2024, primarily due to new healthcare services clients as well as expansion of and cross-selling to existing healthcare services clients.
Current wording
•Subscription and related services. Our subscription and related services revenue from healthcare services organizations increased $5.1 million to $53.7 million for the three months ended July 31, 2025, as compared to $48.6 million for the three months ended July 31, 2024, primarily due to new healthcare services clients as well as expansion of and cross-selling to existing healthcare services clients.
Previous wording
•Payment processing fees. Our revenue from patient payments processed through our solutions increased $2.9 million to $29.9 million for the three months ended April 30, 2025, as compared to $27.1 million for the three months ended April 30, 2024, due to the addition of new healthcare services clients, which drove increases in patient visits and patient payments processed through our platform.
Current wording
•Payment processing fees. Our revenue from patient payments processed through our solutions increased $3.1 million to $28.4 million for the three months ended July 31, 2025, as compared to $25.3 million for the three months ended July 31, 2024, due to the addition of new healthcare services clients, which drove increases in patient visits and patient payments processed through our platform.
Previous wording
•Network solutions. Our revenue from life sciences companies and other organizations increased $4.2 million to $31.7 million for the three months ended April 30, 2025, as compared to $27.4 million for the three months ended April 30, 2024, due to an increase in engagement, education programs and deeper patient outreach among the existing programs.
Current wording
•Network solutions. Our revenue from life sciences companies and other organizations increased $7.0 million to $35.2 million for the three months ended July 31, 2025, as compared to $28.2 million for the three months ended July 31, 2024, due to an increase in engagement, education programs and deeper patient outreach among the existing programs.
Previous wording
Stock compensation incurred related to cost of revenue was $1.1 million and $1.2 million for the three months ended April 30, 2025 and 2024, respectively.
Current wording
Stock compensation incurred related to cost of revenue was $0.9 million and $1.2 million for the three months ended July 31, 2025 and 2024, respectively.
Previous wording
Payment processing expense increased $3.1 million to $21.4 million for the three months ended April 30, 2025, as compared to $18.3 million for the three months ended April 30, 2024. The increase resulted primarily from the increase in payment processing fees revenue and patient payments processed through our solutions, each driven by an increase in patient visits over the prior year.
Current wording
Payment processing expense increased $3.6 million to $20.2 million for the three months ended July 31, 2025, as compared to $16.7 million for the three months ended July 31, 2024. The increase resulted primarily from the increase in payment processing fees revenue and patient payments processed through our solutions, each driven by an increase in patient visits over the prior year.
Previous wording
Sales and marketing expense decreased $6.0 million to $26.0 million for the three months ended April 30, 2025, as compared to $32.0 million for the three months ended April 30, 2024. The decrease resulted primarily from a $6.5 million decrease in labor costs, partially offset by a $0.6 million increase in other third-party sales and marketing costs.
Current wording
Sales and marketing expense decreased $4.8 million to $25.4 million for the three months ended July 31, 2025, as compared to $30.2 million for the three months ended July 31, 2024. The decrease resulted primarily from a $6.2 million decrease in labor costs, partially offset by a $1.4 million increase in other third-party sales and marketing costs.
Previous wording
Stock compensation incurred related to sales and marketing expense was $5.2 million and $5.8 million for the three months ended April 30, 2025 and 2024, respectively.
Current wording
Stock compensation incurred related to sales and marketing expense was $4.7 million and $5.3 million for the three months ended July 31, 2025 and 2024, respectively.
Previous wording
Stock compensation incurred related to research and development expense was $4.4 million and $3.6 million for the three months ended April 30, 2025 and 2024, respectively.
Current wording
Stock compensation incurred related to research and development expense was $4.2 million and $3.6 million for the three months ended July 31, 2025 and 2024, respectively.
Previous wording
Research and development expense increased $2.9 million to $31.8 million for the three months ended April 30, 2025, as compared to $28.9 million for the three months ended April 30, 2024. The increase resulted primarily from a $1.4 million increase in labor costs, a $1.1 million increase in software costs and a $0.5 million increase in other third-party costs.
Current wording
Research and development expense increased $2.7 million to $61.1 million for the six months ended July 31, 2025, as compared to $58.4 million for the six months ended July 31, 2024. The increase resulted primarily from a $1.5 million increase in software costs, a $0.9 million increase in labor costs and a $0.3 million increase in other third-party costs.
Previous wording
Stock compensation incurred related to general and administrative expense was $6.6 million and $6.2 million for the three months ended April 30, 2025 and 2024, respectively.
Current wording
Stock compensation incurred related to general and administrative expense was $6.4 million and $6.3 million for the three months ended July 31, 2025 and 2024, respectively.
Previous wording
General and administrative expense decreased $2.6 million to $16.4 million for the three months ended April 30, 2025, as compared to $19.1 million for the three months ended April 30, 2024. The decrease primarily resulted from a $1.8 million decrease in other third-party costs and a $0.8 million decrease in labor costs.
Current wording
General and administrative expense decreased $3.1 million to $35.5 million for the six months ended July 31, 2025, as compared to $38.5 million for the six months ended July 31, 2024. The decrease primarily resulted from a $2.6 million decrease in labor costs and a $0.5 million decrease in other third-party costs.
Previous wording
Depreciation expense decreased $0.5 million to $3.0 million for the three months ended April 30, 2025, as compared to $3.5 million for the three months ended April 30, 2024. The decrease was primarily attributable to lower computer equipment depreciation.
Current wording
Depreciation expense decreased $0.6 million to $3.3 million for the three months ended July 31, 2025, as compared to $3.9 million for the three months ended July 31, 2024. The decrease was primarily attributable to lower computer equipment depreciation.
Previous wording
Amortization expense increased $0.7 million to $3.9 million for the three months ended April 30, 2025 as compared to $3.1 million for the three months ended April 30, 2024. The increase was primarily driven by higher amortization of capitalized internal-use software development costs.
Current wording
Amortization expense increased $0.7 million to $4.1 million for the three months ended July 31, 2025 as compared to $3.4 million for the three months ended July 31, 2024. The increase was primarily driven by higher amortization of capitalized internal-use software development costs.
Previous wording
Other income (expense), net was income of $0.3 million for the three months ended April 30, 2025 as compared to expense of less than $0.1 million for the three months ended April 30, 2024. Other income (expense), net is comprised primarily of foreign exchange gains and losses and other miscellaneous income (expense).
Current wording
Other income (expense), net was income of $0.3 million for the three months ended July 31, 2025 as compared to expense of $0.1 million for the three months ended July 31, 2024. Other income (expense), net is comprised primarily of foreign exchange gains and losses due to changes in rates and other miscellaneous income (expense).
Previous wording
Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or loss or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity. We calculate Adjusted EBITDA as net income or loss before interest expense (income), net, provision for income taxes, depreciation and amortization, and before stock-based compensation expense and other (income) expense, net.
Current wording
Adjusted EBITDA is a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or loss or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity. We calculate Adjusted EBITDA as net income or loss before interest income, net, income tax (benefit) expense, depreciation and amortization, and before stock-based compensation expense and other (income) expense, net.
Previous wording
We have provided below a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. We have presented Adjusted EBITDA in this Quarterly Report on Form 10-Q because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Current wording
We have provided below a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure. We have presented Adjusted EBITDA in this Quarterly Report on Form 10-Q because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Previous wording
•Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) the potentially dilutive impact of non-cash stock-based compensation; (3) tax payments that may represent a reduction in cash available to us; or (4) interest expense (income), net; and
Current wording
•Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) the potentially dilutive impact of non-cash stock-based compensation; (3) tax payments that may represent a reduction in cash available to us; or (4) interest income, net; and
Previous wording
Because of these and other limitations, you should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, net loss, and our GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods indicated:
Current wording
Because of these and other limitations, you should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, net income (loss), and our GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods indicated:
Previous wording
We calculate free cash flow as net cash provided by (used in) operating activities less capitalized internal-use software development costs and purchases of property and equipment.
Current wording
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.
Previous wording
The following table presents a reconciliation of free cash flow from net cash provided by (used in) operating activities, the most directly comparable GAAP financial measure, for each of the periods indicated:
Current wording
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:
Previous wording
As of April 30, 2025 and January 31, 2025, we had cash and cash equivalents of $90.9 million and $84.2 million, respectively. Cash and cash equivalents consist of money market mutual funds and cash on deposit.
Current wording
As of July 31, 2025 and January 31, 2025, we had cash and cash equivalents of $98.3 million and $84.2 million, respectively. Cash and cash equivalents consist of money market mutual funds and cash on deposit.
Previous wording
We believe that our existing cash and cash equivalents, along with cash generated in the normal course of business, will be sufficient to meet our needs for at least the next 12 months.
Current wording
We believe that our existing cash and cash equivalents, along with cash generated in the normal course of business and the Bridge Loan, will be sufficient to meet our needs for at least the next 12 months.
Previous wording
In June 2023, we entered into a financing agreement to obtain financing for internal-use software and related software support. As of April 30, 2025, there was $1.6 million in outstanding principal and interest due under the agreement. The financing agreement requires us to pay $0.1 million per month for 36 months beginning August 2023. The effective interest rate on the agreement is 10.5% per annum.
Current wording
In June 2023, we entered into a financing agreement to obtain financing for internal-use software and related software support. As of July 31, 2025, there was $1.3 million in outstanding principal and interest due under the agreement. The financing agreement requires us to pay $0.1 million per month for 36 months beginning August 2023. The effective interest rate on the agreement is 10.5% per annum.
Previous wording
During the three months ended April 30, 2025, net cash provided by operating activities was $14.9 million, as our cash received from customers in connection with our normal operations exceeded our cash paid to employees and suppliers.
Current wording
During the three and six months ended July 31, 2025, net cash provided by operating activities was $14.8 million and $29.7 million, respectively, as our cash received from customers in connection with our normal operations exceeded our cash paid to employees and suppliers.
Previous wording
During the three months ended April 30, 2024, net cash used in operating activities was $0.7 million, as our cash paid to employees and suppliers exceeded our cash received from customers in connection with our normal operations.
Current wording
During the three and six months ended July 31, 2024, net cash provided by operating activities was $11.1 million and $10.3 million, respectively, as our cash received from customers in connection with our normal operations exceeded our cash paid to employees and suppliers.
Previous wording
The change in net cash provided by (used in) operating activities was driven primarily by an increase in cash received from customers driven by higher revenues during the three months ended April 30, 2025.
Current wording
The change in net cash provided by operating activities was driven primarily by an increase in cash received from customers driven by higher revenues during the three months ended July 31, 2025.
Previous wording
During the three months ended April 30, 2024, net cash used in investing activities was $5.4 million, principally resulting from capital expenditures, the majority of which consisted of $4.6 million of capitalized internal-use software costs, as well as $0.9 million of purchases of property and equipment, principally for software and computer equipment.
Current wording
During the three months ended July 31, 2024, net cash used in investing activities was $7.4 million, principally resulting from capital expenditures, the majority of which consisted of $4.4 million of purchases of property and equipment, principally for software and computer equipment, as well as $3.0 million of capitalized internal-use software costs.
Previous wording
During the three months ended April 30, 2025, net cash used in financing activities was $0.8 million, primarily consisting of $1.7 million used for principal payments on finance leases and financing arrangements, partially offset by $0.9 million in proceeds from our equity compensation plans.
Current wording
During the three months ended July 31, 2024, net cash used in financing activities was $1.4 million, primarily consisting of $2.3 million used for principal payments on finance leases and financing arrangements, partially offset by $0.9 million in proceeds from our equity compensation plans.
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Current report — wording carried from elsewhere
July 31, 2025 compared to $24,494 for the same period in the prior year, an increase of 7%. The increase was primarily driven by revenue growth that outpaced AHSC growth.
Current report — wording carried from elsewhere
•Subscription and related services. Our subscription and related services revenue from healthcare services organizations increased $12.7 million to $108.1 million for the six months ended July 31, 2025, as compared to $95.4 million for the six months ended July 31, 2024, primarily due to new healthcare services clients as well as expansion of and cross-selling to existing healthcare services clients.
Current report — wording carried from elsewhere
•Payment processing fees. Our revenue from patient payments processed through our solutions increased $6.0 million to $58.3 million for the six months ended July 31, 2025, as compared to $52.4 million for the six months ended July 31, 2024, due to the addition of new healthcare services clients, which drove increases in patient visits and patient payments processed through our platform.
Current report — wording carried from elsewhere
•Network solutions. Our revenue from life sciences companies and other organizations increased $11.2 million to $66.8 million for the six months ended July 31, 2025, as compared to $55.6 million for the six months ended July 31, 2024, due to an increase in engagement, education programs and deeper patient outreach among the existing programs.
Current report — wording carried from elsewhere
Payment processing expense increased $6.7 million to $41.7 million for the six months ended July 31, 2025, as compared to $35.0 million for the six months ended July 31, 2024. The increase resulted primarily from the increase in payment processing fees revenue and patient payments processed through our solutions, each driven by an increase in patient visits over the prior year.
Current report — wording carried from elsewhere
General and administrative expense decreased $0.5 million to $19.0 million for the three months ended July 31, 2025, as compared to $19.5 million for the three months ended July 31, 2024. The decrease primarily resulted from a $1.8 million decrease in labor costs, partially offset by a $1.3 million increase in other third-party costs.
Current report — wording carried from elsewhere
Other income (expense), net was income of $0.7 million for the six months ended July 31, 2025 as compared to expense of $0.1 million for the six months ended July 31, 2024. Other income (expense), net is comprised primarily of foreign exchange gains and losses due to changes in rates and other miscellaneous income (expense).