Healthequity Inc (NASDAQ:HQY) posted better-than-expected earnings for the fourth quarter on Tuesday.The company posted adjusted earnings of 95 cents per share, beating market estimates of 90 cents per share. The company's sales came in at $334.586 million versus expectations of $333.046 million.HealthEquity said it sees FY2027 adjusted EPS of $4.56-$4.65, versus market estimates of $4.54. The company raised its FY2027 sales guidance from $1.380 billion-$1.410 billion to $1.405 billion-$1.415 billion.Health ...

Achieved record HSA sales of over 1,000,000 new accounts in fiscal 2026, significantly outpacing national job growth and demonstrating strong demand for consumer-directed healthcare. Realized over 500 basis points of adjusted EBITDA margin expansion driven by platform automation, increased asset scale, and a sharp reduction in fraud costs to 1.1 basis points. Advanced the 'save, spend, invest' flywheel, noting that while 90% of members have not yet invested, asset growth continues to outpace account g ...

Core Viewpoint - HealthEquity (HQY) shares have underperformed over the past year, losing approximately 20% of their value despite solid financial results [1] Financial Performance - The company has reported strong financial results, but its stock valuation has negatively impacted share performance [1] Market Factors - The failure to extend Obamacare has contributed to the challenges faced by the company [1]

We caution against placing undue reliance on these forward-looking statements, and we encourage you to review the discussion of these factors and other risks that may affect our future results or the market price of our stock as detailed in our latest annual report on Form 10-K, which was filed just today, and subsequent periodic reports filed with the SEC. We assume no obligation to revise or update these forward-looking statements in light of new information or future events. With that out of the way, let ...

For the quarter ended January 2026, HealthEquity (HQY) reported revenue of $334.59 million, up 7.3% over the same period last year. EPS came in at $0.95, compared to $0.69 in the year-ago quarter.The reported revenue represents a surprise of +0.52% over the Zacks Consensus Estimate of $332.85 million. With the consensus EPS estimate being $0.89, the EPS surprise was +7.09%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

HealthEquity (HQY) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +7.09%. A quarter ago, it was expected that this provider of services for managing health care accounts would post earnings of $0.9 per share when it actually produced earnings of $1.01, delivering a surprise of +12.22 ...

Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year to $334.6 million in Q4, with service revenue growing by 2% to $127.1 million and custodial revenue increasing by 12% to $161.4 million [22][24] - Net income rose by 89% to $49.7 million, with non-GAAP net income increasing by 33% to $81.8 million [8][24] - Adjusted EBITDA grew by 23% to $132.9 million, with an adjusted EBITDA margin expanding over 500 basis points to 40% in Q4 [24] Business Line Data and Key Metrics Changes - Total HSA assets increased by 14% to over $36 billion, with a record addition of 550,000 HSAs in Q4, bringing total accounts to 17.8 million [7][9] - Interchange revenue grew by 6% to $46.1 million, outpacing total account growth of 4% [22] - The annualized yield on HSA cash was 3.57% for the quarter, reflecting a shift towards enhanced rates [22] Market Data and Key Metrics Changes - The U.S. economy added only 181,000 jobs, yet the company added over 1 million new HSAs, indicating strong demand for HSAs [10] - The policy environment for HSAs is the most favorable it has been in two decades, with new legislation expanding HSA eligibility [19][20] Company Strategy and Development Direction - The company is focused on a flywheel strategy that enhances member engagement through saving, spending, and investing for healthcare [8][19] - Expansion into retail healthcare channels and direct HSA enrollment platforms is a key strategic initiative [11][19] - The company is investing in AI to improve member experience, operational efficiency, and personalization at scale [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that healthcare affordability pressures are driving the adoption of consumer-directed healthcare, which is expected to continue [19][65] - The company anticipates continued revenue growth and margin expansion in fiscal 2027, with raised guidance reflecting strong execution [29][30] Other Important Information - The company returned over $300 million to shareholders through share repurchase programs, reducing diluted shares outstanding by approximately 3% [8][25] - Fraud reimbursements were significantly reduced, with a run rate of 0.1 basis points for the quarter, well below the target of 1 basis point [12][23] Q&A Session Summary Question: Comments on gross margin expansion and future potential - Management highlighted significant gross margin expansion driven by reduced fraud costs and operational efficiencies through technology and AI [32][36] Question: Engagement with early users of Marketplace offerings - Early engagement metrics are positive, with strong retention rates among members participating in initial programs [38][41] Question: Conversion from ACA cohort and market opportunities - Management noted that the ACA cohort represents a 10% market expansion, with early signs of account growth beginning in January [46][50] Question: Plans for reinvestment in the business - The capital allocation philosophy remains consistent, focusing on organic growth, share repurchases, and debt reduction [52][53] Question: Trends in reallocating HSA dollars toward Marketplace offerings - Early trends show positive engagement with Marketplace offerings, which are expected to become a material part of revenue over time [57][59] Question: Impact of macroeconomic trends on guidance - Management indicated that healthcare affordability challenges are driving growth, counteracting macroeconomic headwinds [62][65]

Financial Data and Key Metrics Changes - Revenue grew 7% year-over-year to $334.6 million in Q4 fiscal 2026, with net income increasing 89% to $49.7 million [21][7] - Non-GAAP net income rose 33% to $81.8 million, and non-GAAP net income per diluted share grew 38% to $0.95 [23][7] - Adjusted EBITDA increased 23% to $132.9 million, with an adjusted EBITDA margin expansion of over 500 basis points to 40% [23][6] Business Line Data and Key Metrics Changes - Service revenue grew 2% year-over-year to $127.1 million, while custodial revenue increased 12% to $161.4 million [21] - Interchange revenue grew 6% to $46.1 million, outpacing total account growth of 4% [21] - Total HSA assets increased 14% to over $36 billion, with a record addition of 550,000 HSAs in Q4 [8][6] Market Data and Key Metrics Changes - The company added over 1 million new HSAs in a year when the U.S. economy added just 181,000 jobs, indicating strong demand for HSAs [9][10] - The policy environment for HSAs is the most favorable it has been in two decades, with significant legislative changes expanding HSA eligibility [17][18] Company Strategy and Development Direction - The company is focused on a flywheel strategy that enhances member engagement through saving, spending, and investing for healthcare [7][10] - Expansion into retail healthcare channels and direct HSA enrollment platforms is a key strategic initiative [10][11] - The company is investing in AI to enhance member experience, operational efficiency, and personalization at scale [14][13] Management's Comments on Operating Environment and Future Outlook - Management highlighted that healthcare affordability pressures are driving the adoption of consumer-directed healthcare, which is expected to continue [11][62] - The company anticipates continued revenue growth and margin expansion in fiscal 2027, raising guidance based on strong execution and visibility [29][30] Other Important Information - The company returned over $300 million to shareholders through share repurchase programs in fiscal 2026, reducing diluted shares outstanding by approximately 3% [7][24] - The company has approximately $178 million remaining on its share purchase authorization [24] Q&A Session Summary Question: Comments on gross margin expansion and future potential - Management expressed pride in gross margin expansion driven by reduced fraud costs and operational efficiencies, with a focus on AI to enhance service delivery [32][36] Question: Engagement with early users of Marketplace offerings - Early engagement metrics are positive, with strong retention rates among members participating in initial Marketplace programs [38][41] Question: Conversion from ACA cohort and market expansion - Management noted that the ACA expansion represents a 10% market increase, with early signs of account growth starting in January [46][47] Question: Plans for reinvestment in the business - The capital allocation strategy remains focused on organic growth, share repurchases, and debt reduction, with no significant changes anticipated [51][52] Question: Trends in member spending on Marketplace offerings - Early trends indicate positive engagement with Marketplace offerings, which are expected to contribute to revenue growth over time [56][58] Question: Impact of macroeconomic trends on guidance - Management acknowledged macroeconomic challenges but emphasized that healthcare affordability is driving HSA adoption, which supports growth [60][62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (I.R.S. Employer Identification Number) 15 West Scenic Pointe Drive Suite 100 Draper, Utah 84020 (801) 727-1000 (Address, including Zip Code, and Telephone Number, including Area Code, of Registrant's Principal Executive Offices) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

Core Insights - HealthEquity, Inc. reported strong financial results for the fiscal year and fourth quarter ended January 31, 2026, with significant growth in revenue, net income, and adjusted EBITDA, leading to an optimistic outlook for fiscal 2027 [3][4][16]. Fiscal Year Financial Results - Revenue for the fiscal year was $1.31 billion, a 9% increase from $1.20 billion in the previous year [5]. - Net income rose 123% to $215.2 million, with net income per diluted share increasing to $2.46 from $1.09 [6][10]. - Adjusted EBITDA reached $566.0 million, up 20% from $471.8 million, with an adjusted EBITDA margin of 43% compared to 39% the previous year [7][10]. - Total HSA assets grew 14% to $36.5 billion, including $18.0 billion in HSA cash and $18.5 billion in HSA investments [14][10]. Fourth Quarter Financial Results - Revenue for the fourth quarter was $334.6 million, a 7% increase from $311.8 million in the same quarter last year [9]. - Net income increased 89% to $49.7 million, with net income per diluted share rising to $0.58 from $0.30 [11][10]. - Adjusted EBITDA for the fourth quarter was $132.9 million, a 23% increase from $107.8 million, with an adjusted EBITDA margin of 40% compared to 35% last year [12][10]. Account and Asset Metrics - As of January 31, 2026, HealthEquity had 10.6 million HSAs, a 7% year-over-year increase, and 17.8 million total accounts, including 7.2 million complementary consumer-directed benefits [13][36]. - Total HSA assets included $1.1 billion in client-held funds, which increased by 22% year-over-year [14][39]. Stock Repurchase Program - The company repurchased 3.3 million shares for $301.7 million during the fiscal year, with $177.7 million remaining authorized for repurchase [15]. Business Outlook - For the fiscal year ending January 31, 2027, management expects revenues between $1.405 billion and $1.415 billion, with net income projected between $239 million and $246 million [16].