Phreesia, Inc.

Previous wording

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q and our financial statements and related notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, filed with the SEC on March 31, 2026. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements based upon current plans, expectations and beliefs that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” and “Special Note Regarding Forward-Looking Statements”: section of this Quarterly Report on Form 10-Q, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Our fiscal year ends January 31. References to fiscal 2027 and 2026 refer to the fiscal years ending January 31, 2027 and 2026, respectively. When we use the terms “we,” “us,” “our,” “Phreesia,” the “Company” or similar words in this report, we are referring to, as the context may require, (i) for periods prior to November 12, 2025, Phreesia, Inc., a Delaware corporation, together with its subsidiaries Access eForms, LLC, a Texas limited liability company; ConnectOnCall.com, LLC, a New York limited liability company; Insignia Health, LLC, an Oregon limited liability company; MediFind, Inc., a Delaware corporation; Phreesia International LLC, a Delaware limited liability company; and Phreesia India Private Limited, an India private limited company and (ii) for periods on or after November 12, 2025, this also includes AccessOne Parent Holdings, Inc., a Delaware corporation, and its subsidiaries (“AccessOne”).

Current wording

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q and our financial statements and related notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, filed with the SEC on March 31, 2026. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements based upon current plans, expectations and beliefs that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” and “Special Note Regarding Forward-Looking Statements”: sections of this Quarterly Report on Form 10-Q, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Our fiscal year ends January 31. References to fiscal 2027 and 2026 refer to the fiscal years ending January 31, 2027 and 2026, respectively. When we use the terms “we,” “us,” “our,” “Phreesia,” the “Company” or similar words in this report, we are referring to, as the context may require, (i) for periods prior to November 12, 2025, Phreesia, Inc., a Delaware corporation, together with its subsidiaries Access eForms, LLC, a Texas limited liability company; ConnectOnCall.com, LLC, a New York limited liability company; Insignia Health, LLC, an Oregon limited liability company; MediFind, Inc., a Delaware corporation; Phreesia International LLC, a Delaware limited liability company; and Phreesia India Private Limited, an India private limited company and (ii) for periods on or after November 12, 2025, this also includes AccessOne Parent Holdings, Inc., a Delaware corporation, and its subsidiaries (“AccessOne”).

Previous wording

•Net income was $3.0 million in the three months ended April 30, 2026, as compared to net loss of $3.9 million in the three months ended April 30, 2025.

Current wording

•Net income was $1.9 million in the three months ended July 31, 2026, as compared to net income of $0.7 million in the three months ended July 31, 2025.

Previous wording

•Cash, cash equivalents and restricted cash as of April 30, 2026 was $76.4 million, an increase of $2.6 million as compared to January 31, 2026. As of April 30, 2026, cash, cash equivalents and restricted cash included $1.7 million of long-term restricted cash classified within other long-term assets.

Current wording

•Cash, cash equivalents and restricted cash as of July 31, 2026 was $74.6 million, an increase of $0.8 million as compared to January 31, 2026. As of July 31, 2026, cash, cash equivalents and restricted cash included $1.7 million of long-term restricted cash classified within other long-term assets.

Previous wording

We provide an integrated software, payments, and engagement platform designed to address three foundational challenges in healthcare delivery: access to care, affordability of care, and health patient outcomes. Our platform is embedded directly into provider workflows and patient interactions, enabling healthcare organizations to activate patients, streamline administrative processes, and improve financial performance across the care continuum. Our integrated platform is designed to address challenges patients and healthcare providers face in three core areas: Access, Affordability, and Outcomes.

Current wording

We provide an integrated software, payments, and engagement platform designed to address three foundational challenges in healthcare delivery: access to care, affordability of care, and patient health outcomes. Our platform is embedded directly into provider workflows and patient interactions, enabling healthcare organizations to activate patients, streamline administrative processes, and improve financial performance across the care continuum. Our integrated platform is designed to address challenges patients and healthcare providers face in three core areas: Access, Affordability, and Outcomes.

Previous wording

Access: Our solutions facilitate access to care by reducing friction in how patients find, schedule, and register for care, while enabling providers to improve capacity utilization and reduce administrative burden. Key capabilities include care discovery and scheduling through MediFind, our online provider directory, and self-scheduling tools; appointment optimization and referral management using AI-enabled workflows; and our AI-based smart answering solution patient communications supported by voice and messaging solutions.

Current wording

Access: Our solutions facilitate access to care by reducing friction in how patients find, schedule, and register for care, while enabling providers to improve capacity utilization and reduce administrative burden. Key capabilities include care discovery and scheduling through MediFind, our online provider directory, and self-scheduling tools; appointment optimization and referral management using AI-enabled workflows; and our AI-based smart answering solution for patient communications supported by voice and messaging solutions.

Previous wording

On May 7, 2026, we implemented a restructuring plan intended to reduce operating expenses and better align our cost structure with our current business priorities. The plan includes the recent elimination of approximately 220 positions, approximately half of which are contractor roles. We expect the costs associated with the plan to be incurred primarily during fiscal year 2027. We expect the plan to result in meaningful annualized run-rate expense savings.

Current wording

On May 7, 2026, we implemented a restructuring plan intended to reduce operating expenses and better align our cost structure with our current business priorities. The plan includes the elimination of approximately 220 positions, approximately half of which are contractor roles. We incurred $2.8 million of charges in connection with the restructuring plan during the three months ended July 31, 2026. We expect to incur approximately $10 million of expenses in connection with the plan during fiscal year 2027, substantially all of which are expected to consist of employee transition costs, severance payments and related employee benefits, and taxes. We expect the plan to result in meaningful run-rate cost savings.

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 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 U.S. federal government has caused, and may continue to cause, additional geopolitical and macroeconomic uncertainty. For example, certain of our network solutions clients are committing fewer dollars due to brand-specific dynamics and the impact of regulatory policies, though we do not believe these developments are signaling a structural shift in demand for our solutions. 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.

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 U.S. federal government has caused, 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

•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 solutions 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 $27,811 for the three months ended April 30, 2026 compared to $26,283 for the same period in the prior year, an increase of 6%. The increase was primarily driven by network solutions 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 solutions 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 $27,289 for the three months ended July 31, 2026 compared to $26,249 for the same period in the prior year, an increase of 4%. The increase was primarily driven by network solutions revenue growth that outpaced AHSC growth.

Previous wording

We are introducing new metrics: total managed payments and payment solutions revenue rate. We believe these new metrics will enable investors to better evaluate the performance of our payment solutions business following the AccessOne Acquisition during the fourth quarter of fiscal 2026, which introduced new revenue-generating activities. These metrics replace patient payment volume and payment facilitator volume percentage, which reflected only the legacy Phreesia payment processing business. Total managed payments reflects both the transactional activity we facilitate and the financing solutions we provide to healthcare organizations and patients. These metrics provide a clear and consistent framework for understanding how payment activity translates into revenue, enabling investors to more effectively assess the growth, performance and overall value of our payment solutions business.

Current wording

Total managed payments and payment solutions revenue rate were introduced in the first quarter of fiscal 2027. We believe these metrics will enable investors to better evaluate the performance of our payment solutions business following the AccessOne Acquisition during the fourth quarter of fiscal 2026, which introduced new revenue-generating activities. These metrics have replaced patient payment volume and payment facilitator volume percentage, which reflected only the legacy Phreesia payment processing business 1. Total managed payments reflects both the transactional activity we facilitate and the financing solutions we provide to healthcare organizations and patients. These metrics provide a clear and consistent framework for understanding how payment activity translates into revenue, enabling investors to more effectively assess the growth, performance and overall value of our payment solutions business.

Previous wording

•Total managed payments. We define total managed payments as the sum of (i) our legacy patient payment volume, measured as the total dollar volume of transactions between our healthcare services clients and their patients utilizing our payment platform, including via credit and debit cards that we process as a payment facilitator as well as cash and check payments and credit and debit transactions for which we act as a gateway to other payment processors; and (ii) the average month-end outstanding balance of our managed portfolio of cardholder receivables, calculated as the average of the month-end balances during the applicable period. We believe total managed payments are a useful indicator of the scale and health of our payments ecosystem, reflecting both the volume of transactions we facilitate and the size of the receivables portfolio we service. Total managed payments are one of the primary drivers of our total payments revenue.

Current wording

•Total managed payments. We define total managed payments as the sum of (i) our legacy patient payment volume, measured as the total dollar volume of transactions between our healthcare services clients and their patients utilizing our payment platform, including via credit and debit cards that we process as a payment facilitator, as well as cash and check payments and credit and debit transactions for which we act as a gateway to other payment processors; and (ii) the average month-end outstanding balance of our managed portfolio of cardholder receivables, calculated as the average of all month-end balances during the applicable period. We believe total managed payments are a useful indicator of the scale and health of our payments ecosystem, reflecting both the volume of transactions we facilitate and the size of the receivables portfolio we service. Total managed payments are one of the primary drivers of our total payments revenue.

Previous wording

•Payment solutions revenue rate. We define our payment solutions revenue rate as total payment solutions revenue divided by total managed payments for a given period. This rate reflects the combined monetization of both our payment processing and patient financing activities in a single, unified rate. We believe this metric provides a useful lens into the efficiency and stability of our revenue model over time, enabling investors to better understand how changes in volume and portfolio size translate into revenue and to more easily evaluate the underlying performance and scalability of our payment solutions business. Because total managed payments includes both transaction volume and average receivables balances, payment solutions revenue rate should not be interpreted as a processing take rate, interest yield or margin.

Current wording

•Payment solutions revenue rate. We define our payment solutions revenue rate as total payment solutions revenue divided by total managed payments for a given period. This rate reflects the combined monetization of both our payment processing and patient financing activities into a single, unified rate. We believe this metric provides a useful lens into the efficiency and stability of our revenue model over time, enabling investors to better understand how changes in volume and portfolio size translate into revenue and to more easily evaluate the underlying performance and scalability of our payment solutions business. Because total managed payments includes both transaction volume and average receivables balances, payment solutions revenue rate should not be interpreted as a processing take rate, interest yield or margin.

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 the majority all of our U.S. deferred tax assets as of April 30, 2026 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 periods when we conclude we will have future taxable income sufficient to realize the deferred tax assets, we reduce the valuation allowance. Income tax expense 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.

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 the majority of all of our U.S. deferred tax assets as of July 31, 2026 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 periods when we conclude we will have future taxable income sufficient to realize the deferred tax assets, we reduce the valuation allowance. Income tax expense 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, 2026 and 2025

Current wording

Comparison of results of operations for the three and six months ended July 31, 2026 and 2025

Previous wording

•Subscription and related services. Our subscription and related services revenue from healthcare services organizations decreased $1.6 million to $52.7 million for the three months ended April 30, 2026, as compared to $54.4 million for the three months ended April 30, 2025, primarily due to one-time adjustments for non-recurring fees and a decline in one-time revenue recognition from license delivery.

Current wording

•Subscription and related services. Our subscription and related services revenue from healthcare services organizations decreased $1.0 million to $52.7 million for the three months ended July 31, 2026, as compared to $53.7 million for the three months ended July 31, 2025, primarily due to one-time adjustments for non-recurring fees and a decline in one-time revenue recognition from license delivery.

Previous wording

•Payment solutions. Our payment solutions revenue increased $12.0 million to $41.9 million for the three months ended April 30, 2026, as compared to $29.9 million for the three months ended April 30, 2025, due to revenue contributed by AccessOne during the three months ended April 30, 2026, as well as the addition of new healthcare services clients, which drove increases in patient visits and patient payments processed through our platform. The 40% increase in payment solutions revenue consisted of a 33% increase attributable to AccessOne and a 7% increase attributable to legacy payment processing revenue.

Current wording

•Payment solutions. Our payment solutions revenue increased $10.1 million to $38.5 million for the three months ended July 31, 2026, as compared to $28.4 million for the three months ended July 31, 2025, due to revenue contributed by AccessOne during the three months ended July 31, 2026, as well as 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 clients and other organizations increased $4.6 million to $36.3 million for the three months ended April 30, 2026, as compared to $31.7 million for the three months ended April 30, 2025, 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 clients and other organizations increased $3.1 million to $38.3 million for the three months ended July 31, 2026, as compared to $35.2 million for the three months ended July 31, 2025, 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 $0.6 million and $1.1 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

Stock compensation incurred related to cost of revenue was $0.5 million and $0.9 million for the three months ended July 31, 2026 and 2025, respectively.

Previous wording

Cost of revenue (excluding depreciation and amortization) increased $1.0 million to $17.7 million for the three months ended April 30, 2026, as compared to $16.6 million for the three months ended April 30, 2025. The increase resulted primarily from a $1.5 million increase in other third-party costs, as well as additional cost of revenue (excluding depreciation and amortization) recognized for AccessOne, partially offset by a $0.4 million decrease in labor costs.

Current wording

Cost of revenue (excluding depreciation and amortization) increased $2.9 million to $36.9 million for the six months ended July 31, 2026, as compared to $34.0 million for the six months ended July 31, 2025. The increase resulted primarily from a $3.3 million increase in other third-party costs, as well as additional cost of revenue (excluding depreciation and amortization) recognized for AccessOne, partially offset by a $0.4 million decrease in labor costs.

Previous wording

Payment solutions expense increased $4.2 million to $25.7 million for the three months ended April 30, 2026, as compared to $21.4 million for the three months ended April 30, 2025. 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, as well as additional payment solutions expense recognized for AccessOne.

Current wording

Payment solutions expense increased $3.7 million to $23.9 million for the three months ended July 31, 2026, as compared to $20.2 million for the three months ended July 31, 2025. 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, as well as additional payment solutions expense recognized for AccessOne.

Previous wording

Sales and marketing expense decreased $1.8 million to $24.2 million for the three months ended April 30, 2026, as compared to $26.0 million for the three months ended April 30, 2025. The decrease resulted primarily from a $2.3 million decrease in labor costs, partially offset by a $0.5 million increase in other third-party sales and marketing costs.

Current wording

Sales and marketing expense decreased $0.8 million to $24.6 million for the three months ended July 31, 2026, as compared to $25.4 million for the three months ended July 31, 2025. The decrease resulted primarily from a $0.9 million decrease in labor costs, partially offset by a $0.1 million increase in other third-party sales and marketing costs.

Previous wording

Stock compensation incurred related to sales and marketing expense was $3.9 million and $5.2 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

Stock compensation incurred related to sales and marketing expense was $3.8 million and $4.7 million for the three months ended July 31, 2026 and 2025, respectively.

Previous wording

Research and development expense decreased $3.5 million to $28.3 million for the three months ended April 30, 2026, as compared to $31.8 million for the three months ended April 30, 2025. The decrease resulted primarily from a $3.2 million decrease in labor costs and a $0.8 million decrease in other third-party research and development costs, partially offset by a $0.4 million increase in software costs.

Current wording

Research and development expense decreased $1.7 million to $27.6 million for the three months ended July 31, 2026, as compared to $29.3 million for the three months ended July 31, 2025. The decrease resulted primarily from a $6.3 million decrease in labor costs, partially offset by a $2.0 million increase in restructuring-related costs, a $1.5 million increase in other third-party research and development costs and a $1.1 million increase in software costs.

Previous wording

Stock compensation incurred related to research and development expense was $3.6 million and $4.4 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

Stock compensation incurred related to research and development expense was $2.2 million and $4.2 million for the three months ended July 31, 2026 and 2025, respectively.

Previous wording

Stock compensation incurred related to general and administrative expense was $5.5 million and $6.6 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

Stock compensation incurred related to general and administrative expense was $5.4 million and $6.4 million for the three months ended July 31, 2026 and 2025, respectively.

Previous wording

Depreciation expense increased $0.4 million to $3.4 million for the three months ended April 30, 2026, as compared to $3.0 million for the three months ended April 30, 2025. The increase was primarily attributable to higher computer equipment depreciation.

Current wording

Depreciation expense increased $0.4 million to $6.7 million for the six months ended July 31, 2026, as compared to $6.3 million for the six months ended July 31, 2025. The increase was primarily attributable to higher computer equipment depreciation.

Previous wording

Amortization expense increased $2.7 million to $6.6 million for the three months ended April 30, 2026 as compared to $3.9 million for the three months ended April 30, 2025. The increase was primarily driven by amortization of intangible assets acquired in connection with the AccessOne Acquisition as well as higher amortization of capitalized internal-use software development costs.

Current wording

Amortization expense increased $2.5 million to $6.7 million for the three months ended July 31, 2026 as compared to $4.1 million for the three months ended July 31, 2025. The increase was primarily driven by amortization of intangible assets acquired in connection with the AccessOne Acquisition as well as higher amortization of capitalized internal-use software development costs.

Previous wording

Other (expense) income, net was expense of less than $0.1 million for the three months ended April 30, 2026 as compared to income of $0.3 million for the three months ended April 30, 2025. Other (expense) income, net is comprised primarily of other miscellaneous income (expense) and foreign exchange gains and losses due to changes in rates.

Current wording

Other (expense) income, net was expense of $2.9 million for the three months ended July 31, 2026 as compared to income of $0.3 million for the three months ended July 31, 2025. The increase in other expense was driven primarily by $2.8 million of unrealized losses on the fair value of financial instruments. Other (expense) income, net is comprised primarily of other miscellaneous (expense) income, loss on the fair value of financial instruments and foreign exchange gains and losses due to changes in rates.

Previous wording

Interest expense was $2.3 million for the three months ended April 30, 2026, as compared to $0.4 million for the three months ended April 30, 2025. The increase is primarily attributable to interest expense recorded in connection with the Bridge Loan and New Capital One Credit Facility during the three months ended April 30, 2026.

Current wording

Interest expense was $1.7 million for the three months ended July 31, 2026, as compared to $0.4 million for the three months ended July 31, 2025. The increase is primarily attributable to interest expense recorded in connection with the New Capital One Credit Facility during the three months ended July 31, 2026.

Previous wording

Interest income was $0.3 million for the three months ended April 30, 2026, as compared to $0.2 million for the three months ended April 30, 2025. The increase is primarily attributable to higher interest income earned from our cash and cash equivalent balances.

Current wording

Interest income was $0.2 million for the three months ended July 31, 2026, as compared to $1.0 million for the three months ended July 31, 2025. The decrease is primarily attributable to lower interest income earned from our cash and cash equivalent balances.

Previous wording

Income tax expense increased to $1.8 million for the three months ended April 30, 2026, as compared to $0.7 million for the three months ended April 30, 2025. The increase in income tax expense is primarily due to increases in U.S. state and Canada income taxes, as well as a $0.6 million increase in valuation allowance related to a measurement period adjustment to deferred tax liabilities recorded in connection with the AccessOne Acquisition.

Current wording

Income tax (expense) benefit was a tax expense of $1.3 million for the three months ended July 31, 2026, as compared to a tax benefit of $1.2 million for the three months ended July 31, 2025. The increase in income tax expense is primarily due to increases in U.S. state and Canada income taxes, as well as a $0.6 million increase in valuation allowance related to a measurement period adjustment to deferred tax liabilities recorded in connection with the AccessOne Acquisition.

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, interest income, income tax expense, depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, other expense (income), net and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as acquisition- and restructuring-related costs.

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 expense, interest income, income tax expense (benefit), depreciation and amortization, stock-based compensation expense, loss on extinguishment of debt, other expense (income), net and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as acquisition- and restructuring-related costs.

Previous wording

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.

Current wording

Additionally, free cash flow is a supplemental measure of our liquidity 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.

Previous 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:

Current wording

The following table presents a reconciliation of free cash flow to 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, 2026 and January 31, 2026, we had cash, cash equivalents and restricted cash of $76.4 million and $73.8 million, respectively. Cash, cash equivalents and restricted cash consist of money market mutual funds and cash on deposit. As of April 30, 2026, cash, cash equivalents and restricted cash included $1.7 million of restricted cash classified within other long-term assets.

Current wording

As of July 31, 2026 and January 31, 2026, we had cash, cash equivalents and restricted cash of $74.6 million and $73.8 million, respectively. Cash, cash equivalents and restricted cash consist of money market mutual funds and cash on deposit. As of July 31, 2026, cash, cash equivalents and restricted cash included $1.7 million of restricted cash classified within other long-term assets.

Previous wording

On the March 13, 2026, (the “Refinancing Date”), we terminated without penalty, and repaid all outstanding indebtedness and obligations under, the Bridge Loan.

Current wording

On March 13, 2026, (the “Refinancing Date”), we terminated without penalty, and repaid all outstanding indebtedness and obligations under, the Bridge Loan.

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, 2026, there was $0.2 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, 2026, the financing agreement was fully paid and there was no outstanding principal and interest due under the agreement. The financing agreement required us to pay $0.1 million per month for 36 months beginning August 2023. The effective interest rate on the agreement was 10.5% per annum.

Previous wording

Ninth Amendment to the Receivables Purchase and Administration Agreement

Current wording

Our subsidiary, AccessOne Funding, LLC ("AccessOne Funding"), sells eligible cardholder receivables to PNC Bank, National Association ("PNC") pursuant to our Securitization Program, which is governed by the Receivables Purchase and Administration Agreement, as amended by Amendment No. 9 (the "Amendment"), effective April 30, 2026. The Amendment increased the facility limit from $200.0 million to $300.0 million and extended the scheduled termination date from May 4, 2026 to April 30, 2029. The Securitization Program supports AccessOne's ability to offer patients flexible payment plans while providing up-front cash to healthcare providers for eligible patient receivables.

Previous wording

During the three months ended April 30, 2026, and 2025, net cash provided by operating activities was $23.9 million and $14.9 million, respectively, as our cash received from customers in connection with our normal operations exceeded our cash paid for employee compensation, third-party operating costs, interest and income taxes.

Current wording

During the three and six months ended July 31, 2026, net cash provided by operating activities was $18.3 million and $42.3 million, respectively, as our cash received from customers in connection with our normal operations exceeded our cash paid for employee compensation, third-party operating costs, interest and income taxes.

Previous wording

During the three months ended April 30, 2026, net cash provided by investing activities was $4.8 million, principally resulting from $12.4 million of collections of cardholder receivables held for investment and deferred purchase price, partially offset by capital expenditures, the majority of which consisted of $3.2 million of capitalized internal-use software costs, as well as $4.3 million of purchases of property and equipment, principally for software and computer equipment.

Current wording

During the three months ended July 31, 2026, net cash provided by investing activities was $22.2 million, principally resulting from $26.7 million of collections of cardholder receivables held for investment and deferred purchase price, partially offset by capital expenditures, the majority of which consisted of $4.0 million of capitalized internal-use software costs, as well as $0.5 million of purchases of property and equipment, principally for software and computer equipment.

Previous wording

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 for computer equipment.

Current wording

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.