8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 8-K

___________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported)

May 30, 2024

___________________________________

Phreesia, Inc.

(Exact name of registrant as specified in its charter)

___________________________________

Delaware (State or other jurisdiction of incorporation or organization) 001-38977 (Commission File Number) 20-2275479 (I.R.S. Employer Identification Number)

1521 Concord Pike, Suite 301 PMB 221

Wilmington, Delaware 19803

(Address of principal executive offices and zip code)

(888) 654-7473

(Registrant's telephone number, including area code)

___________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	PHR	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On May 30, 2024, Phreesia, Inc. (the “Company”) announced its financial results for the fiscal quarter ended April 30, 2024 by issuing a Letter to Stakeholders (the "Letter") and a press release. Copies of the press release and the Letter are furnished as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K, respectively, and are incorporated by reference herein.

The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 and Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number	Description
99.1	Press release, dated May 30, 2024, by Phreesia, Inc.
99.2	Stakeholder letter, dated May 30, 2024, by Phreesia, Inc.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 30, 2024	Phreesia, Inc.
	By:	/s/ Balaji Gandhi
	Name:	Balaji Gandhi
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Phreesia Announces First Quarter Fiscal 2025 Results

ALL-REMOTE COMPANY/WILMINGTON, D.E., May 30, 2024 – Phreesia, Inc. (NYSE: PHR) (“Phreesia” or the "Company") announced financial results today for the fiscal first quarter ended April 30, 2024.

"I am tremendously proud of our team’s commitment to our growth and profitability1 objectives." said CEO and Co-Founder Chaim Indig.

Please visit the Phreesia investor relations website at ir.phreesia.com to view the Company's Q1 Fiscal Year 2025 Stakeholder Letter.

Fiscal First Quarter Ended April 30, 2024 Highlights

•Total revenue was $101.2 million in the quarter, up 21% year-over-year.

•Average number of healthcare services clients ("AHSCs") was 4,065 in the quarter, up 23% year-over-year.

•Healthcare services revenue per AHSC was $18,243 in the quarter, down 3% year-over-year. See "Key Metrics" below for additional information.

•Total revenue per AHSC was $24,900 in the quarter, down 2% year-over-year. See "Key Metrics" below for additional information.

•Net loss was $19.7 million in the quarter compared to net loss of $37.5 million in the same period in the prior year.

•Adjusted EBITDA was $4.1 million in the quarter compared to negative $13.8 million in the same period in the prior year.

•Cash and cash equivalents as of April 30, 2024 was $79.5 million, down $8.0 million from January 31, 2024.

Fiscal Year 2025 Outlook

We are updating our revenue outlook for fiscal year 2025 to a range of $416 million to $426 million from a previous range of $424 million to $434 million. The updated revenue range incorporates the accelerated wind-down of a clearinghouse client relationship. For additional information regarding this client relationship refer to the Stakeholder Letter filed together with this earnings release. The revenue range provided for fiscal 2025 assumes no additional revenue from potential future acquisitions completed between now and January 31, 2025.

We are also updating our Adjusted EBITDA outlook for fiscal year 2025 to a range of $21 million to $26 million from a previous range of $12 million to $20 million. Our outlook reflects the slight impact of the accelerated wind-down of the clearinghouse client relationship and our greater focus on growing profitably1 through a combination of growth and continued margin improvement.

We believe our $79.5 million in cash and cash equivalents as of April 30, 2024, along with cash generated in our normal operations gives us sufficient flexibility to reach our fiscal 2025 revenue and Adjusted EBITDA outlook. Additionally, our available borrowing capacity under our credit facility with Capital One provides us with an additional source of capital to pursue future growth opportunities not incorporated into our fiscal 2025 revenue and Adjusted EBITDA outlook.

Non-GAAP Financial Measures

We have not reconciled our Adjusted EBITDA outlook to GAAP Net income (loss) because we do not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss). For further information regarding the non-GAAP financial measures included in this press release, including a reconciliation of

1During the first quarter of fiscal 2025, our net loss was $19.7 million and our Adjusted EBITDA was $4.1 million. We define “profitability” and “profitably,” discussed herein, in terms of Adjusted EBITDA. See Non-GAAP Financial Measures for a reconciliation of our Net loss to Adjusted EBITDA.

GAAP to non-GAAP financial measures and an explanation of these measures, please see “Non-GAAP financial measures” below.

Available Information

We intend to use our Company website (including our Investor Relations website) as well as our Facebook, Twitter, LinkedIn and Instagram accounts as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.

Forward Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. These statements include, but are not limited to, statements regarding: our future financial and operating performance, including our revenue, margins and Adjusted EBITDA; our ability to finance our plans to achieve our fiscal year 2025 outlook with our current cash balance and cash generated in the normal course of business; our outlook for fiscal year 2025; the impacts of the accelerated wind-down of our relationship with a clearinghouse client; and our belief that our revolving credit facility with Capital One gives us additional financial flexibility. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks associated with: our ability to effectively manage our growth and meet our growth objectives; our focus on the long-term and our investments in growth; the competitive environment in which we operate; our ability to comply with the covenants in our credit agreement with Capital One; changes in market conditions and receptivity to our products and services; our ability to develop and release new products and services and successful enhancements, features and modifications to our existing products and services; our ability to maintain the security and availability of our platform; the impact of cyberattacks, security incidents or breaches impacting our business, such as the cyberattack affecting ConnectOnCall, or the recent cyberattacks announced by Change Healthcare and Ascension Health; changes in laws and regulations applicable to our business model; our ability to make accurate predictions about our industry and addressable market; our ability to attract, retain and cross-sell to healthcare services clients; our ability to continue to operate effectively with a primarily remote workforce and attract and retain key talent; our ability to realize the intended benefits of our acquisitions and partnerships; and difficulties in integrating our acquisitions and investments; and the recent high inflationary environment and other general, market, political, economic and business conditions (including as a result of the warfare and/or political and economic instability in Ukraine, the Middle East or elsewhere). The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those listed or described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024 that will be filed with the SEC following this press release. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

This press release includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, with the exception of our Adjusted EBITDA outlook for the reasons described above.

Conference Call Information

We will hold a conference call on Thursday May 30, 2024, at 5:00 p.m. Eastern Time to review our fiscal 2025 first quarter financial results. To participate in our live conference call and webcast, please dial (888) 350-3437 (or (646) 960-0153 for international participants) using conference code number 4000153 or visit the “Events &

Presentations” section of our Investor Relations website at ir.phreesia.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

ABOUT PHREESIA

Phreesia is a trusted leader in patient activation, giving providers, life sciences companies, payers and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled approximately 150 million patient visits in 2023—more than 1 in 10 visits across the U.S.—scale that we believe allows us to make meaningful impact. Offering patient-driven digital solutions for intake, outreach, education and more, Phreesia enhances the patient experience, drives efficiency and improves healthcare outcomes.

Investor Relations Contact:

Balaji Gandhi

Phreesia, Inc.

investors@phreesia.com

(929) 506-4950

Media Contact:

Nicole Gist

Phreesia, Inc.

nicole.gist@phreesia.com
(407) 760-6274

Phreesia, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

	April 30, 2024		January 31, 2024
	(Unaudited)
Assets
Current:
Cash and cash equivalents	$	79,527	$	87,520
Settlement assets	30,063		28,072
Accounts receivable, net of allowance for doubtful accounts of $1,480 and $1,392 as of April 30, 2024 and January 31, 2024, respectively	66,255		64,863
Deferred contract acquisition costs	768		768
Prepaid expenses and other current assets	14,288		14,461
Total current assets	190,901		195,684
Property and equipment, net of accumulated depreciation and amortization of $80,377 and $76,859 as of April 30, 2024 and January 31, 2024, respectively	22,112		16,902
Capitalized internal-use software, net of accumulated amortization of $48,048 and $45,769 as of April 30, 2024 and January 31, 2024, respectively	48,248		46,139
Operating lease right-of-use assets	857		266
Deferred contract acquisition costs	794		986
Intangible assets, net of accumulated amortization of $5,796 and $4,925 as of April 30, 2024 and January 31, 2024, respectively	30,754		31,625
Goodwill	75,845		75,845
Other assets	2,575		2,879
Total Assets	$	372,086	$	370,326
Liabilities and Stockholders’ Equity
Current:
Settlement obligations	$	30,063	$	28,072
Current portion of finance lease liabilities and other debt	7,745		6,056
Current portion of operating lease liabilities	558		393
Accounts payable	6,684		8,480
Accrued expenses	33,227		37,130
Deferred revenue	24,075		24,113
Other current liabilities	5,930		5,875
Total current liabilities	108,282		110,119
Long-term finance lease liabilities and other debt	8,690		5,400
Operating lease liabilities, non-current	512		134
Long-term deferred revenue	79		97
Long-term deferred tax liabilities	333		270
Other long-term liabilities	1,448		2,857
Total Liabilities	119,344		118,877
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, undesignated, $0.01 par value—$20,000,000 shares authorized as of both April 30, 2024 and January 31, 2024; no shares issued or outstanding as of both April 30, 2024 and January 31, 2024	—		—
Common stock, $0.01 par value - 500,000,000 shares authorized as of both April 30, 2024 and January 31, 2024; 58,711,456 and 57,709,762 shares issued as of April 30, 2024 and January 31, 2024, respectively	587		577
Additional paid-in capital	1,060,365		1,039,361
Accumulated deficit	(762,691)		(742,969)
Accumulated other comprehensive income	1		—
Treasury stock, at cost, 1,355,169 shares as of both April 30, 2024 and January 31, 2024	(45,520)		(45,520)
Total Stockholders’ Equity	252,742		251,449
Total Liabilities and Stockholders’ Equity	$	372,086	$	370,326

Phreesia, Inc.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share data)

	Three months ended April 30,
	2024		2023
Revenue:
Subscription and related services	$	46,742	$	37,887
Payment processing fees	27,060		24,253
Network solutions	27,415		21,705
Total revenues	101,217		83,845
Expenses:
Cost of revenue (excluding depreciation and amortization)	15,723		14,907
Payment processing expense	18,297		16,090
Sales and marketing	32,011		37,413
Research and development	28,881		26,469
General and administrative	19,052		19,877
Depreciation	3,524		4,504
Amortization	3,149		2,486
Total expenses	120,637		121,746
Operating loss	(19,420)		(37,901)
Other expense, net	(31)		(42)
Interest income, net	239		718
Total other income, net	208		676
Loss before provision for income taxes	(19,212)		(37,225)
Provision for income taxes	(510)		(306)
Net loss	$	(19,722)	$	(37,531)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.35)	$	(0.70)
Weighted-average common shares outstanding, basic and diluted	56,666,311		53,347,709
(1) Our potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.

Phreesia, Inc.

Consolidated Statements of Comprehensive Loss

(Unaudited)

(in thousands)

	Three months ended April 30,
	2024		2023
Net loss	$	(19,722)	$	(37,531)
Other comprehensive income, net of tax:
Change in foreign currency translation adjustments, net of tax	1		—
Other comprehensive income, net of tax	1		—
Comprehensive loss	$	(19,721)	$	(37,531)

Phreesia, Inc.

Consolidated Statements of Cash Flows
(Unaudited)

(in thousands)

	Three months ended April 30,
	2024		2023
Operating activities:
Net loss	$	(19,722)	$	(37,531)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,673		6,990
Stock-based compensation expense	16,840		17,138
Amortization of deferred financing costs and debt discount	61		85
Cost of Phreesia hardware purchased by customers	343		416
Deferred contract acquisition costs amortization	192		340
Non-cash operating lease expense	173		233
Deferred taxes	63		217
Changes in operating assets and liabilities:
Accounts receivable	(1,393)		(1,538)
Prepaid expenses and other assets	414		1,152
Accounts payable	(2,936)		(2,983)
Accrued expenses and other liabilities	(1,155)		1,822
Lease liabilities	(219)		(247)
Deferred revenue	(55)		247
Net cash used in operating activities	(721)		(13,659)
Investing activities:
Capitalized internal-use software	(4,570)		(4,732)
Purchases of property and equipment	(876)		(1,347)
Net cash used in investing activities	(5,446)		(6,079)
Financing activities:
Proceeds from issuance of common stock upon exercise of stock options	347		249
Treasury stock to satisfy tax withholdings on stock compensation awards	—		(6,950)
Proceeds from employee stock purchase plan	913		967
Finance lease payments	(1,280)		(1,444)
Principal payments on financing agreements	(289)		—
Debt issuance costs and loan facility fee payments	(152)		—
Financing payments of acquisition-related liabilities	(1,364)		—
Net cash used in financing activities	(1,825)		(7,178)
Effect of exchange rate changes on cash and cash equivalents	(1)		—
Net decrease in cash and cash equivalents	(7,993)		(26,916)
Cash and cash equivalents – beginning of period	87,520		176,683
Cash and cash equivalents – end of period	$	79,527	$	149,767

Supplemental information of non-cash investing and financing information:
Right of use assets acquired in exchange for operating lease liabilities	$	764	$	—
Property and equipment acquisitions through finance leases	$	6,529	$	7,067
Purchase of property and equipment and capitalized software included in current liabilities	$	2,440	$	3,485
Capitalized stock-based compensation	$	348	$	337
Issuance of stock to settle liabilities for stock-based compensation	$	6,177	$	5,297
Cash paid for:
Interest	$	483	$	58
Income taxes	$	1,593	$	40

Non-GAAP Financial Measures

This press release and statements made during the above-referenced webcast may include certain non-GAAP financial measures as defined by SEC rules.

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 define Adjusted EBITDA as net income or loss before interest income, net, provision for income taxes, depreciation and amortization, and before stock-based compensation expense and other expense, net.

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 press release and our Quarterly Report on Form 10-Q to be filed after this press release 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. We have not reconciled our Adjusted EBITDA outlook to GAAP Net income (loss) because we do not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss).

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:

•Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

•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

•Other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure.

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:

Phreesia, Inc.

Adjusted EBITDA
(Unaudited)

	Three months ended April 30,
(in thousands)	2024		2023
Net loss	$	(19,722)	$	(37,531)
Interest income, net	(239)		(718)
Provision for income taxes	510		306
Depreciation and amortization	6,673		6,990
Stock-based compensation expense	16,840		17,138
Other expense, net	31		42
Adjusted EBITDA	$	4,093	$	(13,773)

Phreesia, Inc.

Reconciliation of GAAP and Adjusted Operating Expenses
(Unaudited)

	Three months ended April 30,
(in thousands)	2024		2023
GAAP operating expenses
General and administrative	$	19,052	$	19,877
Sales and marketing	32,011		37,413
Research and development	28,881		26,469
Cost of revenue (excluding depreciation and amortization)	15,723		14,907
	$	95,667	$	98,666
Stock compensation included in GAAP operating expenses
General and administrative	$	6,209	$	5,878
Sales and marketing	5,766		6,417
Research and development	3,627		3,878
Cost of revenue (excluding depreciation and amortization)	1,238		965
	$	16,840	$	17,138
Adjusted operating expenses
General and administrative	$	12,843	$	13,999
Sales and marketing	26,245		30,996
Research and development	25,254		22,591
Cost of revenue (excluding depreciation and amortization)	14,485		13,942
	$	78,827	$	81,528

Phreesia, Inc.
Key Metrics
(Unaudited)

	Three months ended April 30,
	2024		2023
Key Metrics:
Average number of healthcare services clients ("AHSCs")	4,065		3,309
Healthcare services revenue per AHSC	$	18,243	$	18,779
Total revenue per AHSC	$	24,900	$	25,338

We remain focused on building secure and reliable products that derive a strong return on investment for our clients and implementing them with speed and ease. This strategy continues to enable us to grow our network of healthcare services clients. The investments we make to grow, strengthen and sustain our network of healthcare services clients lead to growth in all of our revenue categories.

The definitions of our key metrics are presented below.

•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. While growth in AHSCs is an important indicator of expected revenue growth, it also 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.

•Healthcare services revenue per AHSC. We define Healthcare services revenue as the sum of subscription and related services revenue and payment processing revenue. We define Healthcare services revenue per AHSC as Healthcare services revenue in a given period divided by AHSCs during that same period. We are focused on continually delivering value to our healthcare services clients and believe that our ability to increase Healthcare services revenue per AHSC is an indicator of the long-term value of our solutions.

•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 solutions give us the opportunity to engage with life sciences companies, health plans and other payer organizations, patient advocacy, public interest and other 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 is an indicator of the long-term value of our solutions.

Additional Information

(Unaudited)

	Three months ended April 30,
	2024			2023
Patient payment volume (in millions)	$	1,166		$	1,016
Payment facilitator volume percentage	81		%	82		%

•Patient payment volume. We believe that patient payment volume is an indicator of both the underlying health of our healthcare services clients’ businesses and the continuing shift of healthcare costs to patients. We measure patient payment volume 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.

•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. Our payment facilitator volume percentage could decline slightly over time should we increase our penetration of enterprise customers that are less likely to use Phreesia as a payment facilitator.

EX-99.2

Quarterly Stakeholder Letter FIRST QUARTER | FISCAL YEAR 2025

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 2 1 During the first quarter of fiscal 2025, our net loss was $19.7 million and our Adjusted EBITDA was $4.1 million. We define “profitability,” “profitable” and “profitably,” discussed herein, in terms of Adjusted EBITDA. See Non-GAAP Financial Measures for a reconciliation of our Net loss to Adjusted EBITDA. 2 For the purposes of this statement, we define cash flows as net cash used in operating activities. MAY 30, 2024 Dear Phreesia stakeholders, In our first quarter of fiscal 2025, we reached a very important milestone in Phreesia’s evolution by returning to profitability1. Three years ago, the first quarter of fiscal 2022 represented our sixth profitable1 quarter as a public company and our revenue was $48 million. In our quarterly letter three years ago, having raised additional capital in late 2020 and early 2021, we highlighted our increased focus on ramping up investments to accelerate growth across Phreesia—something we believed was in the best interests of our stakeholders, including our shareholders. That decision added new challenges for our team. We needed to quickly expand our hiring and infrastructure, while looking to the future to ensure that we would generate sufficient returns to return to profitability1. Looking back on that decision three years ago, I am tremendously proud of our team’s commitment to our growth and profitability1 objectives. Our revenue has more than doubled over the past three years, and we are excited that we have returned to profitability1. While this most recent quarter does not represent a “finish line,” we believe it represents an important milestone in Phreesia’s journey and one that I would like to acknowledge. As we have shared with you over the past few quarters, we believe that in a higher interest rate environment, shorter payback periods on investments drive greater value. Our adoption of this philosophy several quarters ago continues to accelerate our cash flows2, while resulting in a deliberate slowing of revenue growth associated with investments with longer payback periods and profitability1. We have a large, diverse and growing network of patients and providers who we believe enjoy increasing value from our solutions. I’m most excited about the opportunities that our network and our experienced and dedicated team give us to broaden and deepen our relationships in the life sciences space. I also am excited to share that Phreesia was recently named one of Modern Healthcare’s "2024 Best Places to Work in Healthcare," our eighth year on this prestigious list. It is an honor to be recognized for supporting our employees and fostering a sense of excitement for our mission, as we work together to make care easier every day. We are off to a solid start in fiscal 2025. We look forward to updating you further throughout the year ahead. Thank you for your continued interest in Phreesia. Chaim Indig Chief Executive Officer and Co-Founder

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 3 Fiscal Year 2025 First Quarter Highlights3 Revenue Total revenue was up 21% year-over-year to $101.2 million in the first fiscal quarter. Year-over-year growth was led by Network solutions at 26%, followed closely by Subscription and related services at 23%. Payment processing fees revenue was up 12% year-over-year. 1 Revenue may not add up due to rounding. 2 Fiscal year ended January 31; FY2021 only includes Q2’21, Q3’21 and Q4’21. FY2025 only includes Q1’25. Subscription and related services Payment processing fees Network Solutions Quarterly Revenue1 (Q2 FY2021 - Q1 FY20252) 3 Fiscal quarter ended April 30, 2024 is unaudited.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 4 Average Healthcare Services Clients In the fiscal first quarter of 2025, we supported 4,065 Average Healthcare Services Clients (“AHSCs”),4 an increase of 103 AHSCs over the fourth quarter of fiscal year 2024 and an increase of 756 AHSCs (or 23%) year-over-year. In the fiscal second quarter of 2025, we expect to see AHSCs increase by approximately 100. Total Revenue and Healthcare Services Revenue Per AHSC In the fiscal first quarter of 2025, total revenue per AHSC was $24,900, down 2% year-over-year and up 4% over the previous quarter. Healthcare services revenue5 per AHSC6 for the quarter was $18,243, down 3% year-over-year and up 5% over the previous quarter. We expect that total revenue per AHSC for the full fiscal year 2025 will be greater than the full fiscal year 2024. As a reminder, Subscription and related services and Network solutions revenue growth are driven by two factors: 1) the growth of our network of healthcare services clients; and 2) our ability to drive more value for our existing clients across the solutions within each of our revenue categories. By contrast, our 1 Fiscal year ended January 31; FY2021 only includes Q2’21, Q3’21 and Q4’21. FY2025 only includes Q1’25. 4 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. 5 We define healthcare services revenue as the sum of Subscription and related services revenue and Payment processing fees revenue. 6 We define Healthcare services revenue per AHSC as healthcare services revenue in a given period divided by AHSCs during that same period. AHSCs (Q2 FY2021 - Q1 FY20251)

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 5 Total Revenue1 Per AHSC2 (Q2 FY2021 - Q1 FY20253) Subscription and related services Network Solutions Payment processing fees 1 Revenue may not add up due to rounding. 2 Calculated by revenue stream for each period presented as revenue for that period divided by AHSCs during the same period. 3 Fiscal year ended January 31; FY2021 only includes Q2’21, Q3’21 and Q4’21. FY2025 only includes Q1’25. Payment processing fees revenue is almost entirely driven by the growth of our provider network, which our AHSC metric closely mirrors. Existing clients who utilize our payment-facilitator model have only nominal additional payments to process on our network after we have transitioned them to our payment-facilitator model. Our Network solutions revenue also benefits from the size of our provider network. We believe that having multiple methods of monetizing our network is a key factor behind our historical revenue growth. We estimate that our total addressable market (“TAM”) of approximately $10 billion7 and our target client universe in the ambulatory and hospital markets of approximately 50,000 addressable healthcare services clients8 implies a total annual revenue opportunity of approximately $200,000 per addressable healthcare services client9 or approximately double our annualized fiscal first quarter total revenue per AHSC. 7 Management’s estimate of a $10 billion total addressable market is derived from: (1) the potential $6.3 billion of Subscription and related services revenue, generated from the approximately 1.4 million U.S.-based healthcare services organizations that take medical appointments in ambulatory care settings and healthcare service providers who work in hospital settings; (2) the estimated potential $2.3 billion of consumer-related transactions and payment processing fees, which are based on a percentage of payments that we process through our platform and address approximately $95.0 billion of annual out-of-pocket patient spend in ambulatory healthcare related professional services; and (3) an estimated potential $1.9 billion in Network solutions revenue, based on projections of direct-to- consumer point-of-care marketing spend and other digital, direct-to-consumer life sciences marketing spend. 8 IQIVIA, Definitive Healthcare and company estimates as of April 2021. 9 Management’s estimated total annual revenue opportunity per addressable healthcare services client of more than $200,000 is derived from an estimated potential: (1) ~$126,000 in annual Subscription and related services revenue per addressable healthcare services client; (2) ~$46,000 in annual Payment processing fees revenue per addressable healthcare services client; and (3) ~$38,000 in annual Network solutions revenue per addressable healthcare services client.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 6 Subscription and Related Services Subscription and related services revenue for the first quarter of fiscal year 2025 grew 23% compared to the first quarter of the prior fiscal year. Subscription and related services revenue per AHSC was $11,500 in the fiscal first quarter, relatively flat both year-over-year and on a sequential basis. We expect this figure to grow over the long-term as we deepen our relationships with our clients through continued improvements in our solutions and the addition of new products. Payment Processing Our Payment processing fees revenue grew 12% over the prior year’s fiscal first quarter, driven by a 15% increase in patient payment volume. Payment processing fees revenue generally grows in line with our network growth. Included in our patient payment volume and payment processing fees revenue is a long-standing relationship we have with a clearinghouse client. The client contracted with Phreesia to act as their merchant processor for patient payments, while also contracting with Change Healthcare to operate their online payment portal and handle print communications. In 2022, the client made the decision to consolidate to one vendor for multiple solutions. The product scope and cost associated with the client’s desired new relationship, which would include print statements, drove us to the conclusion that the best path forward for Phreesia was to work with the client to wind-down the relationship which we expected to run through at least fiscal year 2026. In planning for this wind-down, we anticipated losing the approximately $8 million of annual revenue associated with this relationship in fiscal year 2026. The revenue was generating a negligible benefit to our (Net loss) and Adjusted EBITDA. The cyberattack on Change Healthcare and subsequent outage accelerated the wind-down of our relationship because Change Healthcare has not re-enabled the solution used by our client. As a result, our patient payment volume declined, reducing our payment processing revenue by approximately $1.7 million in the fiscal first quarter of 2025. Our new revenue and Adjusted EBITDA outlook for fiscal year 2025 discussed later in this letter incorporates this development. Our Payment processing expense as a percentage of Payment processing fees revenue was 68% in the fiscal first quarter of 2025, compared to 66% and 66% in the fiscal first quarter of 2024 and the fiscal fourth quarter of 2024, respectively. Our fiscal first quarter take rate percentage10 decreased slightly to 2.87% from 2.91% in the fiscal first quarter of 2024 and 2.93% in the fiscal fourth quarter of 2024. Our payment-facilitator volume percentage has remained relatively consistent over time, coming in at 81% in the first quarter of fiscal year 2025, down 1% on a sequential and year-over-year basis. 10 We define take rate percentage as payment processing fees divided by the result of multiplying patient payment volume and payment facilitator volume percentage.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 7 Network Solutions Our Network solutions revenue includes fees for direct communications through our solutions that are designed to educate, engage and activate patients on topics critical to their health. Fiscal first quarter 2025 Network solutions revenue increased 26% compared to the fiscal first quarter of 2024. AHSCs that enable us to generate Network solutions revenue have a more attractive payback profile. Our team continues to execute well in a competitive market, and we believe that our network and product offerings help differentiate us. Network solutions revenue from our life sciences clients is based largely on the delivery of messages at a contracted price per message to those patients from whom we receive permission. Campaigns are sold for a specified number of messages delivered to qualified patients over an expected timeframe, and revenue is recognized as those messages are delivered. Patient Payment Statistics (Q2 FY2021 - Q1 FY20251) 1 Fiscal year ended January 31; FY2021 only includes Q2’21, Q3’21 and Q4’21. FY2025 only includes Q1’25. 2 We define take rate percentage as payment processing fees divided by the result of multiplying patient payment volume and payment facilitator volume percentage. 3 We believe that patient payment volume is an indicator of both the underlying health of our healthcare services clients’ businesses and the continuing shift of healthcare costs to patients. We measure patient payment volume as the total dollar volume of transactions between our healthcare services clients and their patients who utilize our solutions, including via credit and debit cards that we process as a payment facilitator, as well as through cash and check payments, and credit and debit transactions for which Phreesia acts as a gateway to other payment processors. 4 Payment facilitator volume percentage is defined 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 fees revenue. Payment Facilitator Volume Percentage4Take Rate Percentage2 Patient Payment Volume (in millions)3

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 8 Life Sciences In the fiscal first quarter, we launched our first campaign on MediFind, in partnership with the Prevent Cancer Foundation, which garnered 1.3 million views within its first 45 days. These early results reinforce the potential this platform offers in reaching wide audiences with information that drives better health outcomes for patients and their providers. In a recent survey of our Life Sciences clients, 86% of respondents said they were highly likely to recommend Phreesia to a colleague. The survey results also indicated our team’s exceptional level of client service and proactivity, Phreesia’s deep understanding of our clients’ brand strategies, the flexibility we provide for client customization and our ability to enhance our clients’ understanding of our platform. Product Update MediFind Appointment Requests We have identified an opportunity to add more value for our clients by giving patients the ability to request appointments with providers directly through MediFind. The MediFind platform uses advanced analytics to help patients—especially those with serious, chronic and rare diseases—find better care faster. With this new offering, patients can request appointments on the same trustworthy site where they find care, streamlining the scheduling process for patients and helping alleviate staff burden. After Hours Service On May 12, 2024, Phreesia learned of a service disruption to the ConnectOnCall service, an application created by a subsidiary Phreesia acquired in October 2023. While investigating this matter, we determined that a cybercriminal had gained access to the ConnectOnCall service. The ConnectOnCall service remains offline, and we are working diligently to assess the potential impact and restore the service. We have engaged with law enforcement, and we are working with a third-party cybersecurity firm and other experts to support our investigation. The ConnectOnCall service is separate from Phreesia’s other services, including our patient intake platform. Based on our investigation to date, we have seen no evidence that our other services have been affected. We understand the importance of this service to our clients’ business, and we are working to restore the ConnectOnCall service as quickly as is feasible. Additionally, as of this time, the incident has not had a material impact on our overall business operations, nor do we believe the incident is likely to have a material impact, based on our investigation to date and our current understanding that this incident is limited to the ConnectOnCall service. We regret any inconvenience this incident may have caused, and we appreciate our clients’ understanding and patience as we work to address this matter. A Leading Voice in Person-Centered Care As we continue to align our day-to-day efforts with the new Phreesia mission, vision and values that we shared in our Stakeholder Letter last quarter, we’re participating in more industry events and conversations as healthcare organizations recognize that activated patients are key to their business, operational and clinical objectives.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 9 Our Chief Clinical Officer Hilary Hatch, PhD, has been an important thought leader in these discussions. Dr. Hatch spent the past two years contributing to the National Quality Forum’s recently published report, “Social Drivers of Health Data Utilization,” and was just named as a steering committee member of the newly formed Alliance for Person-Centered Care. Dr. Hatch has also been vocal about the patient voice in the media. She recently wrote an opinion piece in Medical Economics on the urgency of supporting patients in learning how to take a more active role in their care, and she was interviewed on Xtelligent Healthcare’s Healthcare Strategies podcast this month about vaccine hesitancy. In addition, she was interviewed by Fierce Healthcare about how providers can leverage patient engagement tools to close gaps in cancer screenings. Culture We are proud to share that two Phreesians, Alicia Cowley, MD, MBA, Director, Clinical Content; and Natasha Vega, MS, Senior Client Experience Manager; were named to MM+M’s Women to Watch class of 2024. The publication honors healthcare marketing executives who have significantly impacted their organizations, and the industry at large. Cowley and Vega were two of only 23 women to receive the distinction this year. Innovative software to improve efficiency, cash flow and the patient experience Access to care Registration Revenue Cycle Network Provider directory for patients seeking care Integrated patient scheduling Automated appointment rescheduling Appointment reminders Patient text messaging After-hours care Smart answering solution Mobile and in-office intake modalities Registration for virtual visits Specialty-specific workflows Consent management Self-service patient-reported outcomes and screenings Point-of-service payments Insurance verification Payment plans Online payments Card on file and payment assurance Education and engagement before, during and after the visit Patient insights Referral management Doctor finder Alicia Cowley MD, MBA, Director of Clinical Content Natasha Vega MS, Senior Client Experience Manager

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 10 This past quarter, we also published our third report based on the Sustainability Accounting Standards Board ("SASB") framework and standards. The report included information about our environmental footprint, data privacy and security, diversity, intellectual property and technology risk management. Operating Leverage Our first quarter fiscal 2025 Adjusted EBITDA reflects continued operating leverage across the company. We expect our Sales and marketing, Research and development and General and administrative expense lines to all show improvement as a percentage of revenue through fiscal 2025. Cost of Revenue Cost of revenue (excluding depreciation and amortization) increased $0.8 million to $15.7 million for the three months ended April 30, 2024, as compared to $14.9 million for the three months ended April 30, 2023. The increase resulted primarily from a $0.4 million increase in employee salary and benefits costs and a $0.2 million increase in employee stock compensation costs, as well as a $0.2 million increase in third-party costs driven by growth in revenue. Stock compensation incurred related to cost of revenue was $1.2 million and $1.0 million for the three months ended April 30, 2024 and 2023, respectively. Sales & Marketing Sales and marketing expense decreased $5.4 million to $32.0 million for the three months ended April 30, 2024, as compared to $37.4 million for the three months ended April 30, 2023. The decrease was primarily attributable to a $3.2 million decrease in employee salary and benefits costs, a $1.0 million decrease in travel and internal costs, a $0.6 million decrease in employee stock compensation costs and a $0.7 million decrease in outside services costs. We note that the decline in expenses in the first quarter includes the impact of the full run-off of expenses from winding down our Medicare Advantage lead generation activities. Stock compensation incurred related to sales and marketing expense was $5.8 million and $6.4 million for the three months ended April 30, 2024 and 2023, respectively. Research & Development Research and development expense increased $2.4 million to $28.9 million for the three months ended April 30, 2024, as compared to $26.5 million for the three months ended April 30, 2023. The increase resulted primarily from a $1.7 million increase in employee salary and benefits costs and a $0.8 million increase in software costs, partially offset by a decrease in employee stock compensation costs. Stock compensation incurred related to research and development expense was $3.6 million and $3.9 million for the three months ended April 30, 2024 and 2023, respectively.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 11 General & Administrative General and administrative expense decreased $0.8 million to $19.1 million for the three months ended April 30, 2024, as compared to $19.9 million for the three months ended April 30, 2023. The decrease was primarily related to a $1.0 million decrease in outside services costs and a $0.2 million decrease in employee salary and benefits costs, partially offset by a $0.3 million increase in employee stock compensation costs. Stock compensation incurred related to general and administrative expense was $6.2 million and $5.9 million for the three months ended April 30, 2024 and 2023, respectively. Operating Expense Trends Sales & Marketing $ / % of Rev Q1 FY22 31% $15 Q2 FY22 43% $22 Q3 FY22 57% $32 Q4 FY22 64% $37 Q1 FY23 63% $40 Q2 FY23 56% $38 Q3 FY23 50% $37 Q4 FY23 47% $36 Q1 FY24 45% $37 Q2 FY24 43% $37 Q3 FY24 40% $37 Q4 FY24 38% $36 Q1 FY25 32% $32 Research & Development $ / % of Rev Q1 FY22 17% $8 22% Q2 FY22 $11 27% Q3 FY22 $15 30% Q4 FY22 $17 33% Q1 FY23 $21 33% Q2 FY23 $23 31% Q3 FY23 $23 Q4 FY23 33% $25 Q1 FY24 32% $26 Q2 FY24 32% $27 Q3 FY24 31% $29 Q4 FY24 31% $30 Q1 FY25 29% $29 General & Administrative $ / % Rev Q1 FY22 26% $13 Q2 FY22 32% $16 Q3 FY22 32% $18 Q4 FY22 37% $22 Q1 FY23 33% $21 Q2 FY23 30% $20 Q3 FY23 27% $20 Q4 FY23 26% $20 Q1 FY24 24% $20 Q2 FY24 24% $21 Q3 FY24 22% $20 Q4 FY24 20% $19 Q1 FY25 19% $19 Payment processing expense2 % Rev Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 58% 59% 59% 61% 63% 64% 65% 65% 66% 67% 66% 67% 68% Q1 FY25 Subscription & Network Solutions1 Cost of Revenue % Rev 27% Q1 FY22 29% Q2 FY22 29% Q3 FY22 30% Q4 FY22 33% Q1 FY23 31% Q2 FY23 27% Q3 FY23 Q4 FY23 27% Q1 FY24 25% Q2 FY24 23% Q3 FY24 23% Q4 FY24 23% Q1 FY25 21% 1 Subscription & Network Solutions Cost of Revenue as a % of Revenue equals cost of revenue (excluding depreciation and amortization), divided by the sum of Subscription and related services revenues and Network solutions revenues. 2 Payment processing expense as a % of Revenue equals payment processing expense divided by Payment processing fees revenues.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 12 Cash Flow Statement, Balance Sheet and Liquidity We have made significant progress in improving our operating cash flow, presented as net cash used in operating activities. Our fiscal first quarter net cash used in operating activities improved by $12.9 million year-over-year. This improvement reflects strong revenue performance over the period as well as disciplined expense and cash collections management. We remain focused on driving strong conversions of revenue growth and operating leverage into improvements in operating cash flow and profitability1. As of April 30, 2024 and January 31, 2024, we had cash and cash equivalents of $79.5 million and $87.5 million, respectively. Cash and cash equivalents consist of money market funds and cash on deposit at various financial institutions. We believe that our current cash and cash equivalents balance, along with cash generated in the normal course of business, give us sufficient flexibility to reach our outlook for fiscal 2025 and to plan for continued profitable1 growth in fiscal 2026. ($ in thousands) Three months ended April 30, 2024 2023 Net cash used in operating activities $(721) $(13,659) Investing activities: Capitalized internal-use software (4,570) (4,732) Purchases of property and equipment (876) (1,347) Net cash used in investing activities $(5,446) $(6,079) Fiscal Year 2025 Outlook We are updating our revenue outlook for fiscal year 2025 to a range of $416 million to $426 million from a previous range of $424 million to $434 million. The updated revenue range incorporates the accelerated wind-down of our clearinghouse client relationship referred to in the Payment Processing section above. The revenue range provided for fiscal 2025 assumes no additional revenue from potential future acquisitions completed between now and January 31, 2025. We are also updating our Adjusted EBITDA outlook for fiscal year 2025 to a range of $21 million to $26 million from a previous range of $12 million to $20 million. Our outlook reflects the slight impact of the accelerated wind-down of our clearinghouse client relationship and our greater focus on growing profitably1 through a combination of growth and continued margin improvement. We believe we’re very well positioned to start generating free cash flow in the second half of fiscal year 2025.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 13 About Phreesia Phreesia is a trusted leader in patient activation, giving providers, life sciences companies, payers and other organizations tools to help patients take a more active role in their care. Founded in 2005, Phreesia enabled approximately 150 million patient visits in 2023—more than 1 in 10 visits across the U.S.—scale that we believe allows us to make meaningful impact. Offering patient-driven digital solutions for intake, outreach, education and more, Phreesia enhances the patient experience, drives efficiency and improves healthcare outcomes. INVESTOR CONTACT: Balaji Gandhi investors@phreesia.com MEDIA CONTACT: Nicole Gist nicole.gist@phreesia.com Non-GAAP Financial Measures This stakeholder letter and statements made during the webcast referenced below may include certain non-GAAP financial measures as defined by SEC rules. 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 define Adjusted EBITDA as net income or loss before interest income, net, provision for income taxes, depreciation and amortization, and before stock- based compensation expense and other expense, net. We have provided below a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. We have presented that we have achieved positive Adjusted EBITDA for the first quarter of fiscal 2025 in this stakeholder letter. We have also presented Adjusted EBITDA in the press release accompanying this letter and in our Quarterly Report on Form 10-Q to be filed after this letter 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.

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 14 We have not reconciled our Adjusted EBITDA outlook to GAAP Net income (loss) because we do not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other (income) expense, net and (Benefit from) provision for income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss). We have not reconciled our free cash flow outlook to GAAP Net cash provided by (used in) operating activities due to the uncertainty and potential variability of changes in operating assets and liabilities, and payments for income taxes, which cause our expectations for GAAP Net cash provided by (used in) operating activities to be uncertain. Because we cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows: • Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; • 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 • Other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure. 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 the period indicated: ($ in thousands) Three months ended April 30, 2024 Net loss $(19,722) Interest income, net (239) Provision for income taxes 510 Depreciation and amortization 6,673 Stock-based compensation expense 16,840 Other expense, net 31 Adjusted EBITDA $4,093

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 15 Forward-Looking Statements This stakeholder letter includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. These statements include, but are not limited to, statements regarding: our future financial and operational performance, including our revenue, margins, Adjusted EBITDA, cash flows and profitability1; our outlook for fiscal year 2025 (including with respect to Adjusted EBITDA) and our plans for continued profitable1 growth in fiscal 2026; our ability to start generating free cash flow in the second half of this fiscal year; the impacts of the Change Healthcare cyberattack and related accelerated wind-down of our relationship with a clearinghouse on our business; the impact of the ConnectOnCall cybersecurity incident on our business; our estimated total addressable market (including any components thereof) and our estimated addressable healthcare services clients; our expected increase in AHSCs during the second quarter of fiscal year 2025; our belief that shorter payback periods on investments drive greater value; our expectations regarding growth in Subscription and related services revenue per AHSC over the long-term; our expectations regarding total revenue per AHSC for the full fiscal year 2025; our ability to finance our plans to achieve our fiscal year outlook with our current cash balance along with cash generated in the normal course of business; our business strategy and operating plans; industry trends and predictions; our anticipated growth and operating leverage; the factors that drive our revenue growth; our expectations regarding solutions under development; and our expectations regarding the growth of our network of clients and partners. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward- looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks associated with: our ability to effectively manage our growth and meet our growth objectives; our focus on the long-term and our investments in growth; the competitive environment in which we operate; our ability to develop and release new products and services and successful enhancements, features and modifications to our existing products and services; changes in market conditions and receptivity to our products and services; our ability to maintain the security and availability of our platform; the impact of cyberattacks, security incidents or breaches impacting our business, such as the cyberattack affecting ConnectOnCall,

QUARTERLY STAKEHOLDER LETTER | FIRST QUARTER 2025 | 16 or the recent cyberattacks announced by Change Healthcare and Ascension Health; changes in laws and regulations applicable to our business model; our ability to make accurate predictions about our industry and addressable market; our ability to attract, retain and cross-sell to healthcare services clients; our ability to continue to operate effectively with a primarily remote workforce and attract and retain key talent; our ability to realize the intended benefits of our acquisitions and partnerships; difficulties in integrating our acquisitions and investments; and the recent high inflationary environment and other general market, political, economic and business conditions (including as a result of the warfare and/or political and economic instability in Ukraine, the Middle East or elsewhere). The forward-looking statements contained in this letter are also subject to other risks and uncertainties, including those listed or described in our filings with the Securities and Exchange Commission (the "SEC"), including in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024 that will be filed with the SEC after this letter. The forward-looking statements in this letter speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this letter to reflect events or circumstances after the date of this letter or to reflect new information or the occurrence of unanticipated events, except as required by law. This letter also includes statistical data, estimates and forecasts that are based on industry publications or other publicly available information, as well as other information based on our internal sources. This information may be based on many assumptions and limitations, and you are cautioned not to give undue weight to such information. We have not independently verified the accuracy or completeness of the information contained in these industry publications and other publicly available information. Conference Call Information We will hold a conference call on May 30, 2024 at 5:00 PM ET to review our 2025 fiscal first quarter financial results. To participate in our live conference call and webcast, please dial (888) 350-3437 (or (646) 960-0153 for international participants) using conference code number 4000153 or visit the “Events & Presentations” section of our Investor Relations website at ir.phreesia.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

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Entity Incorporation, State or Country Code	DE
Entity File Number	001-38977
Entity Tax Identification Number	20-2275479
Entity Address, Address Line One	1521 Concord Pike, Suite 301 PMB 221
Entity Address, City or Town	Wilmington
Entity Address, State or Province	DE
Entity Address, Postal Zip Code	19803
City Area Code	888
Local Phone Number	654-7473
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PHR
Security Exchange Name	NYSE
Entity Emerging Growth Company	false