Financial Data and Key Metrics Changes - Revenue increased by 15% year over year, with adjusted EBITDA up 19% [7][19] - Total accounts reached over 17 million, with HSA assets growing by 15% to over $31 billion [7][8] - Net income for Q1 was $53.9 million or $0.61 per share on a GAAP basis, while non-GAAP net income was $85.8 million or $0.97 per share [21][24] Business Line Data and Key Metrics Changes - Service revenue was a record $119.8 million, up 1% year over year, while custodial revenue grew 29% to a record $156.5 million [19][20] - HSA members who invest grew by 16% year over year, driving invested assets up 24% to $14.2 billion [8][20] - Interchange revenue increased by 14% to $54.6 million, reflecting higher member contributions and distributions [20] Market Data and Key Metrics Changes - The company serves nearly a quarter of all HSAs in the USA, indicating significant market share growth [9] - The proposed budget bill includes provisions that could expand HSA access to an additional 20 million families, potentially increasing the addressable market [16][17] Company Strategy and Development Direction - The company is focusing on optimizing plan design and employee engagement to help employers manage rising healthcare costs [9] - Investments in AI technology are being leveraged to enhance claims processing and member satisfaction while reducing costs [10][11] - The company aims to drive growth through existing client bases and new client acquisitions, particularly during uncertain economic times [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current enterprise pipeline and the potential for growth despite macroeconomic challenges [30][31] - The company is cautious about the overall macro impact on job creation and GDP growth, which may affect new account sales [31] - Management is confident in the effectiveness of their fraud prevention measures and expects to normalize service costs in the second half of the fiscal year [21][24] Other Important Information - The company has repurchased approximately $60 million of its outstanding shares during the quarter [22][24] - Enhanced rates on HSA cash are expected to stabilize at approximately 3.5% during fiscal year 2026 [24] Q&A Session Summary Question: What is the outlook on HSA selling conditions? - Management noted that new HSA sales were lower than last year but still higher than the previous fiscal year, expressing optimism about the current pipeline [28][30] Question: What is the duration of the locked-in rates? - The company has entered into forward treasury contracts for five-year treasury rates, locking in the base rate for upcoming maturities [32] Question: How much of the fraud costs are included in the guidance? - Management indicated that they are targeting a one basis point exit rate for fraud costs and have not changed their outlook based on the current quarter's performance [36][38] Question: Can you clarify the addressable market increase from the proposed legislation? - The net increase in the addressable market is estimated at 20 million, considering both Medicare Part A individuals and those on exchanges [40][41] Question: How is the company tracking app downloads and security measures? - The company has seen an increase in app downloads, with a focus on enhancing security through mobile authentication methods [44][46] Question: What is the impact of fraud on enterprise customer retention? - Management reported no negative impact from fraud on enterprise retention rates, which remain high [52] Question: How does the growth of custodial cash compare to HSA investment cash? - Investment cash is growing faster than custodial cash, with different member behaviors influencing these trends [76][78] Question: What is the status of the CHIP-enabled stacked card and related products? - The new stacked card has been rolled out for new members, with plans to integrate it into a digital wallet [107][108]

Financial Data and Key Metrics Changes - Revenue increased by 15% year over year, reaching $119.8 million for the first quarter [19] - Adjusted EBITDA rose by 19% to $140.2 million, with adjusted EBITDA as a percentage of revenue at 42% compared to 41% in the previous year [21] - Net income for the first quarter was $53.9 million or $0.61 per share on a GAAP basis, while non-GAAP net income was $85.8 million or $0.97 per share [21] - Custodial revenue grew by 29% to a record $156.5 million [20] - Fraud reimbursements decreased significantly from $11 million in Q4 to $3 million in Q1 [20][21] Business Line Data and Key Metrics Changes - Health Savings Accounts (HSAs) grew by 9%, with total accounts increasing by 7% [6] - Cash and Depository (CDB) accounts grew by 4%, with net CDB account growth of 260,000 year over year [6] - HSA assets increased by $4 billion year over year, totaling over $31 billion [6][7] - The number of HSA members who invest grew by 16%, driving invested assets up by 24% to $14.2 billion [7] Market Data and Key Metrics Changes - HealthEquity serves nearly a quarter of all HSAs in the USA, reflecting market share growth [8] - The average balances of HSA members grew by 6% this year [7] - The annualized yield on HSA cash was 3.5% for the quarter [20] Company Strategy and Development Direction - The company is focusing on expanding its Member First secure mobile experience and leveraging AI technology to enhance claims processing and member satisfaction [9][10] - HealthEquity is advocating for legislative changes to expand HSA access, particularly for working seniors eligible for Medicare [15][18] - The company aims to help employers reduce healthcare costs while empowering employees to build health security [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the enterprise pipeline and selling season despite softer macroeconomic conditions [7][30] - The company is cautious about the macro impact on job creation and slower GDP growth affecting new account sales [31] - Management believes that the proposed budget bill could significantly expand the addressable market for HSAs, potentially allowing 20 million more families access [16][18] Other Important Information - The company repurchased approximately $60 million of its outstanding shares during the quarter [22] - HealthEquity is committed to reducing fraud costs to one basis point of total HSA assets per year [21][26] Q&A Session Summary Question: What is the reason for the slowdown in HSA selling conditions? - Management noted that the current sales are lower than last year but still higher than two years ago, expressing optimism about the enterprise pipeline and the potential for growth despite macroeconomic challenges [30] Question: What is the duration of the locked-in rates from forward treasury contracts? - The company locked in rates for five-year treasury contracts to enhance rate migration [33] Question: How much of the fraud costs above the one basis point are included in the guidance? - Management indicated that they are not changing their outlook based on the current quarter's fraud costs, which were in line with expectations [39] Question: Can you clarify the net increase in the addressable market due to proposed legislation? - Management clarified that the net increase is 20 million, considering both Medicare Part A individuals and those on exchanges [42] Question: How is the company tracking towards app downloads and security measures? - The company reported 1.2 million app downloads and is focused on enhancing security through mobile authentication methods [49] Question: Has there been any fallout from elevated fraud levels on enterprise retention? - Management confirmed that there has been no fallout from fraud, with retention rates higher than in previous years [54] Question: Is the AI technology already impacting service costs? - Management stated that while they do not break out exact costs, AI is expected to help reduce service costs over time by automating interactions [100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-36568 HEALTHEQUITY, INC. (Exact name of registrant as specified in its charter) Delaware 52-2383166 (State or other jurisdiction of incorporation or organization) (I.R.S. E ...

Financial Performance - Revenue for Q1 FY2026 was $330.8 million, a 15% increase from $287.6 million in Q1 FY2025[4] - Net income for Q1 FY2026 was $53.9 million, an 87% increase compared to $28.8 million in Q1 FY2025, with non-GAAP net income of $85.8 million, a 22% increase from $70.3 million[5] - Adjusted EBITDA for Q1 FY2026 was $140.2 million, a 19% increase from $117.4 million in Q1 FY2025, representing 42% of revenue[6] - Total revenue for the three months ended April 30, 2025, was $330,844,000, representing a 15% increase from $287,597,000 in the same period of 2024[25] - Net income for the same period was $53,915,000, an 87% increase compared to $28,813,000 in 2024, resulting in a net income margin of 16%[36] - Adjusted EBITDA for the three months ended April 30, 2025, was $140,208,000, a 19% increase from $117,435,000 in 2024, equating to 42% of total revenue[37] - Net income for the three months ended April 30, 2025, was $53,915,000, a 87.2% increase from $28,813,000 in 2024[39] - Non-GAAP net income for the same period was $85,814,000, up 22.1% from $70,303,000 in 2024[39] - GAAP net income per diluted share increased to $0.61 from $0.33, representing an 84.8% growth[39] - Non-GAAP net income per diluted share rose to $0.97, compared to $0.80, a 21.3% increase[39] HSA Growth and Assets - Total HSA Assets as of April 30, 2025, were $31.3 billion, a 15% increase year over year[8] - The number of HSAs increased to 9.9 million, a 9% year-over-year growth, including 770,000 HSAs with investments, up 16% year over year[7] - Total accounts as of April 30, 2025, reached 17.1 million, a 7% increase compared to Q1 FY2025[10] - The company enhanced its mobile experience to secure $31 billion of HSA assets and reduce costs[3] - Total HSA assets reached $31,271,000,000 as of April 30, 2025, reflecting a 15% increase from $27,277,000,000 in 2024[32] Shareholder Actions - The company repurchased 0.7 million shares for $60.3 million during Q1 FY2026, with $117.5 million remaining authorized for repurchase[9] - The company repurchased $59,065,000 worth of common stock during the quarter, indicating a strategic move to enhance shareholder value[27] Future Projections - Management expects revenues for FY2026 to be between $1.285 billion and $1.305 billion, with net income projected between $173 million and $188 million[12] - The outlook for net income for the year ending January 31, 2026, is projected to be between $173,000,000 and $188,000,000[38] - Non-GAAP net income outlook for the same period is estimated to be between $320 million and $335 million[40] - Total adjustments to income before income taxes - GAAP for the year ending January 31, 2026, are expected to be $195 million[40] - The normalized non-GAAP tax rate applied was 25%, which may be adjusted based on significant events[40] - Income before income taxes - Non-GAAP is projected to be between $426 million and $446 million for the year ending January 31, 2026[40] - Diluted weighted-average shares for the outlook period are estimated at 89 million[40] Cash Flow - Cash flows from operating activities for the three months ended April 30, 2025, were $64,738,000, slightly down from $65,429,000 in 2024[27] Compensation - The company reported a total stock-based compensation expense of $14,336,000 for the quarter, significantly down from $32,020,000 in the same period last year[30]

Highlights of the first quarter include: Revenue of $330.8 million, an increase of 15% compared to $287.6 million in Q1 FY25.Net income of $53.9 million, an increase of 87% compared to $28.8 million in Q1 FY25, with non-GAAP net income of $85.8 million, an increase of 22% compared to $70.3 million in Q1 FY25.Net income per diluted share of $0.61, an increase of 85% compared to $0.33 in Q1 FY25, with non-GAAP net income per diluted share of $0.97, an increase of 21% compared to $0.80 in Q1 FY25.Adjusted EBIT ...

POLAND - 2025/02/14: In this photo illustration, the HealthEquity Inc company logo is seen displayed ... More on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesHealthEquity (NASDAQ:HQY), a custodian for health savings accounts, is set to announce its earnings on Tuesday, June 3, 2025. Historically, the stock has demonstrated a strong likelihood of positive returns following its earnings announcements. Over the last five ...

Wall Street analysts expect HealthEquity (HQY) to post quarterly earnings of $0.81 per share in its upcoming report, which indicates a year-over-year increase of 1.3%. Revenues are expected to be $321.13 million, up 11.7% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company reveal ...

From food banks to crisis shelters, 14 nonprofits recognized for tackling urgent community needsDRAPER, Utah, May 29, 2025 (GLOBE NEWSWIRE) -- The HealthEquity Community Foundation™ today announced the recipients of its second round of community grants, awarding $35,000 across 14 nonprofit organizations. Each selected organization will receive a $2,500 grant to support critical work in one or more of the Foundation’s core areas: health and medicine, financial education and literacy, mental health and crisis ...

The market expects HealthEquity (HQY) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on June 3, 2025, might help the stock move higher if these key numbers are bet ...

Core Viewpoint - HealthEquity, Inc. is set to release its first quarter fiscal 2026 financial results on June 3, 2025, followed by a conference call for investors to discuss the results [1] Financial Results Announcement - The financial results will be announced after the close of regular stock market trading hours on June 3, 2025 [1] - A conference call will be held at 4:30 p.m. Eastern Time on the same day to review the results [1][2] Upcoming Investor Conferences - HealthEquity management will present at several upcoming investor conferences: - BofA Securities 2025 Health Care Conference on May 14, 2025, at 1:40 p.m. Pacific Time in Las Vegas [3] - RBC Global Healthcare Conference on May 20, 2025, at 8:30 a.m. Eastern Time in New York [4] - Goldman Sachs 46th Annual Global Healthcare Conference on June 9, 2025, at 1:20 p.m. Eastern Time in Miami [5] - RBC Financial Technology Conference on June 10, 2025, at 3:20 p.m. Eastern Time in New York [6] Company Overview - HealthEquity administers health savings accounts (HSAs) and other consumer-directed benefits for over 17 million accounts [7] - The company collaborates with employers, benefits advisors, and health and retirement plan providers to enhance healthcare consumer empowerment [7]