Phreesia, Inc.PHR
Phreesia, Inc. Revenue Disclosure
Revenue and contract costs
(a) Disaggregation of revenue
Revenue from the Company’s contracts with its customers are disaggregated by service offering on the accompanying consolidated statements of operations. The Company’s core service offerings are: subscription and related services; payment solutions, which include payment processing fees and financing fees; and network solutions, which provides a channel for life sciences companies and other organizations to deliver compliant, personalized engagements to patients who use the Company’s solutions. In addition, substantially all of the Company’s revenue is derived from customers in the United States.
The following table represents a summary of sources of revenue:
| January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
Revenue from contracts with customers | $ | 467,819 | $ | 410,484 | $ | 345,992 | |||||||||||
| Revenue from other sources | 12,772 | 9,329 | 10,307 | ||||||||||||||
Total revenues | $ | 480,591 | $ | 419,813 | $ | 356,299 | |||||||||||
(b) Remaining performance obligations
The Company does not disclose the value of unsatisfied performance obligations as the majority of its contracts relate to either contracts with an original term of one year or less or contracts with variable consideration (i.e., the Company’s payment solutions revenue).
(c) Contract balances
Unbilled accounts receivable is a contract asset related to the delivery of the Company’s subscription and related services and for its life sciences revenue for which the related billings will occur in a future period. Contract assets and contract liabilities are reported on a net basis for each customer contract. Deferred revenue is a contract liability primarily related to billings in advance of revenue recognition from the Company's subscription and life sciences services and, to a lesser extent, professional services and other revenues described above. Deferred revenue is recognized as the Company satisfies its performance obligations. The Company generally invoices its customers in monthly or quarterly installments for subscription services. Accordingly, the deferred revenue balance does not generally represent the total contract value of a subscription arrangement. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue on the accompanying consolidated balance sheets. Deferred revenue that will be recognized subsequent to the succeeding 12-month period is recorded as long-term deferred revenue on the accompanying consolidated balance sheets.
The following table represents a roll-forward of contract assets:
| January 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Beginning balance | $ | 4,743 | $ | 3,375 | |||||||
| Amount transferred to receivables from beginning balance of contract assets | (4,706) | (3,375) | |||||||||
| Contract asset additions, net of reclassification to receivables | 5,643 | 4,743 | |||||||||
| Ending balance | $ | 5,680 | $ | 4,743 | |||||||
The following table represents a roll-forward of deferred revenue:
| January 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Beginning balance | $ | 32,877 | $ | 24,210 | |||||||
| Revenue recognized that was included in deferred revenue at the beginning of the period | (31,719) | (23,335) | |||||||||
| Deferred revenue added from acquisitions | 8,475 | — | |||||||||
| Other current year activity in deferred revenue | 40,133 | 32,002 | |||||||||
| Ending balance | $ | 49,766 | $ | 32,877 | |||||||
(d) 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 $570 and $1,815 for the years ended January 31, 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 the year ended January 31, 2025, the Company updated its estimate of the period of benefit from five years to three years for certain deferred contract acquisition costs. The Company recorded $1,198 of additional amortization during the year ended January 31, 2025 to amortize deferred contract amortization costs over their updated remaining period of benefit. There were no impairment losses recorded during the periods presented.
The following table represents a roll-forward of deferred contract acquisition costs:
| January 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Beginning balance | $ | 984 | $ | 1,754 | |||||||
| Additions to deferred contract acquisition costs | 334 | 1,045 | |||||||||
| Amortization of deferred contract acquisition costs | (570) | (1,815) | |||||||||
| Ending balance | $ | 748 | $ | 984 | |||||||
| Deferred contract acquisition costs, current (to be amortized in next 12 months) | $ | 410 | $ | 401 | |||||||
| Deferred contract acquisition costs, non-current | 338 | 583 | |||||||||
| Total deferred contract acquisition costs | $ | 748 | $ | 984 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 31, 2026 | Showing above |
| 2025 | Mar 13, 2025 | |
| 2024 | Mar 15, 2024 | |
| 2023 | Mar 23, 2023 | |
| 2022 | Mar 31, 2022 | |
| 2021 | Mar 31, 2021 | |
| 2020 | Apr 23, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.