Revenue and contract costs |
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| Revenue and contract costs | Revenue and contract costs The Company generates revenue primarily from providing integrated SaaS-based software and payment solutions for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s healthcare services clients for access to the Company's solutions, payment processing fees based on patient payment volume and financing fees based on a portfolio of cardholder receivables, and fees from life sciences companies and other organizations for delivering qualified direct communications to patients who consent to receive this type of engagement using the Company's solutions. The amount of subscription and related services revenue recorded pursuant to ASC 842, Leases for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $2,074 and $2,419 for the three months ended April 30, 2026 and 2025, respectively. Contract balances The following table represents a roll-forward of contract assets:
The following table represents a roll-forward of deferred revenue:
Cost to obtain a contract The Company capitalizes certain incremental costs to obtain customer contracts and amortizes these costs over a period of benefit that the Company has estimated to be to five years. The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $116 and $110 for the three months ended April 30, 2026 and 2025, respectively. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. During fiscal 2025, the Company updated its estimate of the period of benefit from five years to three years for certain deferred contract acquisition costs. There were no impairment losses recorded during the periods presented. The following table represents a roll-forward of deferred contract acquisition costs:
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