Composition of certain financial statement captions

3 Months Ended

Apr. 30, 2026

Composition of Certain Financial Statements [Abstract]

Composition of certain financial statement captions

(a) Accrued expenses

Accrued expenses as of April 30, 2026 and January 31, 2026 are as follows:


	April 30, 2026		January 31, 2026
Payroll-related expenses and taxes	$	7,647	$	12,535
Stock-based compensation liability	1,475		7,652
Payment processing fees liability	7,482		7,056
Acquisition-related liabilities	119		119
Income and other tax liabilities	3,529		2,674
Information technology	6,560		5,546
Other	3,709		5,675
Total accrued expenses	$	30,521	$	41,257

(b) Property and equipment

Property and equipment as of April 30, 2026 and January 31, 2026 are as follows:


	April 30, 2026		January 31, 2026
PhreesiaPads and Arrivals Kiosks	$	17,557	$	16,523
Computer equipment	77,975		84,380
Computer software	14,685		12,887
Hardware development	575		577
Other	161		158
Total property and equipment	$	110,953	$	114,525
Less: accumulated depreciation	(90,385)		(94,193)
Property and equipment — net	$	20,568	$	20,332

Depreciation expense related to property and equipment amounted to $3,371 and $2,986 for the three months ended April 30, 2026 and 2025, respectively.

Property and equipment — net and related depreciation expense includes assets acquired under finance leases. Assets acquired under finance leases included in computer equipment was $41,571 and $49,009 as of April 30, 2026 and January 31, 2026, respectively. Accumulated amortization of assets under finance leases was $36,192 and $42,060 as of April 30, 2026 and January 31, 2026, respectively. See Note 10 - Leases for additional information regarding finance leases.

For the three months ended April 30, 2026 and 2025, the Company capitalized $4,326 and $3,791 of costs related to the Company’s solutions, respectively.

During the three months ended April 30, 2026 and 2025, amortization expense related to capitalized internal-use software was $3,972 and $3,022, respectively.

(d) Intangible assets and goodwill

The following presents the details of intangible assets as of April 30, 2026 and January 31, 2026:


	Useful Life
	(years)	April 30, 2026		January 31, 2026
Acquired technology	5 to 7	$	22,910	$	22,910
Customer relationship	7 to 15	53,940		53,940
License	15	6,200		6,200
Trademarks	12 to 15	10,200		10,200
Total intangible assets, gross carrying value		$	93,250	$	93,250
Less: accumulated amortization		(16,099)		(13,489)
Net carrying value		$	77,151	$	79,761

The weighted-average remaining useful life for acquired technology in years was 5.1 and 5.4 as of April 30, 2026 and January 31, 2026, respectively. The remaining useful life for customer relationships in years was 8.4 and 8.6 as of April 30, 2026 and January 31, 2026, respectively. The remaining useful life for the license to the Patient Activation Measure ("PAM"®) in years was 10.6 and 10.8 as of April 30, 2026 and January 31, 2026, respectively. The remaining useful life for the trademarks in years was 11.7 and 12.0 as of April 30, 2026 and January 31, 2026, respectively.

Amortization expense associated with intangible assets for the three months ended April 30, 2026 and 2025, was $2,611 and $870, respectively.

The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of April 30, 2026:


	April 30, 2026
2027 (Remaining nine months)	$	7,885
Fiscal year ending January 31,
2028	10,513
2029	10,412
2030	10,212
2031 - thereafter	38,129
Total	$	77,151

The following table presents a roll-forward of goodwill for the three months ended April 30, 2026:


Balance, January 31, 2026	$	170,064
Goodwill from measurement period adjustments on acquisitions	(551)
Balance, April 30, 2026	$	169,513

As of April 30, 2026, the Company completed its quarterly triggering event assessments and determined that the decline in the market value of its publicly-traded stock, which resulted in a corresponding decline in its market capitalization, constituted a triggering event. Due to the decline in the Company’s market capitalization during the three months ended April 30, 2026, the Company has evaluated whether changes in the Company’s market capitalization indicate that the carrying value of goodwill in the Company’s single reporting unit is impaired. As of April 30, 2026, the Company’s market capitalization exceeded the carrying value of the Company’s equity. As a result, the Company does not believe that changes in the Company’s market capitalization during the three months ended April 30, 2026 indicate that the carrying amount of the Company’s goodwill is impaired as of April 30, 2026.

As of January 31, 2026, the Company determined that it was more likely than not that the fair value of its single reporting unit exceeded its carrying value. As a result, the Company does not believe that the Company’s goodwill was impaired as of January 31, 2026.

During the measurement period, in the three months ended April 30, 2026, the Company recorded a decrease to acquired deferred tax liabilities of $551 and a corresponding adjustment to goodwill in connection with the acquisition of AccessOne. The Company did not record any impairments of goodwill during the three months ended April 30, 2026 or 2025.

(e) Accounts receivable

Accounts receivable as of April 30, 2026 and January 31, 2026 are as follows:


	April 30, 2026		January 31, 2026
Billed	$	83,201	$	93,296
Unbilled	7,873		5,680
Total accounts receivable, gross	$	91,074	$	98,976
Less: accounts receivable allowances	(1,467)		(1,523)
Total accounts receivable	$	89,607	$	97,453

Activity in the Company's allowance for doubtful accounts was as follows for the three months ended April 30, 2026:


	April 30, 2026
Balance, January 31, 2026	$	1,523
Bad debt expense	14
Write-offs and adjustments	(70)
Balance, April 30, 2026	$	1,467

The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as expected future changes in credit losses and considerations for specific customers as applicable. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. Activity in the allowance for doubtful accounts and write-offs of accounts receivable were not material for the three months ended April 30, 2026 and 2025.

(f) Prepaid and other current assets

Prepaid and other current assets as of April 30, 2026 and January 31, 2026 are as follows:


	April 30, 2026		January 31, 2026
Prepaid software and business systems	$	6,177	$	7,246
Prepaid data center expenses	4,226		4,661
Prepaid insurance	1,216		1,721
Other prepaid expenses and other current assets	4,510		4,350
Total prepaid and other current assets	$	16,129	$	17,978

(g) Cloud computing implementation costs

The Company enters into cloud computing service contracts to support its sales and marketing, product development and administrative activities. The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other current assets and within other assets on its consolidated balance sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption in the consolidated statements of operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $1,532. These arrangements were fully amortized by the three months ended April 30, 2025.

(h) Other income, net

Other income, net for the three months ended April 30, 2026 and 2025 were composed primarily of miscellaneous other income and expense and foreign exchange gains and losses due to changes in rates.