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MD vs. HQY: Which Stock Is the Better Value Option?
ZACKS· 2025-04-02 16:45
Investors interested in Medical Services stocks are likely familiar with Pediatrix Medical Group (MD) and HealthEquity (HQY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, whil ...
INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of HealthEquity, Inc. - HQY
Prnewswire· 2025-03-31 17:35
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fid ...
INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of HealthEquity, Inc. - HQY
GlobeNewswire News Room· 2025-03-26 12:00
NEW YORK, March 26, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  HealthEquity, Inc (“HealthEquity” or the “Company”) (NASDAQ: HQY).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether HealthEquity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On ...
Why HealthEquity Stock Was Sliding This Week
The Motley Fool· 2025-03-20 19:18
Over the past few days HealthEquity (HQY -0.10%) shares have been rather sickly. The health savings account (HSA) specialist's stock was rocked by a disappointing earnings report, and as a result its price was down by nearly 15% week to date as of mid-afternoon Thursday, according to data compiled by S&P Global Market Intelligence.A mixed fourth quarterHealthEquity divulged its fourth-quarter and full-year fiscal 2024 results just after market close on Tuesday. These showed that the company earned $311.8 mi ...
HealthEquity Stock Tumbles Despite the Launch of Assist Benefits Suite
ZACKS· 2025-03-20 18:31
HealthEquity, Inc. (HQY) recently introduced its new Assist suite, offering integrated solutions designed to simplify and personalize employee benefits. The suite combines human support with digital tools to improve benefits engagement, streamline decision-making, and lower healthcare costs.This initiative highlights HealthEquity’s focus on driving deeper participant engagement while delivering measurable savings for employers. By integrating various benefit offerings under one platform, HealthEquity aims t ...
HealthEquity's Long-Term Growth Intact Despite Short-Term Margin Pressures, Analyst Says
Benzinga· 2025-03-19 18:12
On Tuesday, HealthEquity, Inc. HQY reported fourth-quarter adjusted EPS of 69 cents, up from 63 cents a year ago, missing the consensus of 72 cents.Revenue increased 19% year over year to $311.8 million, beating the consensus of $306.05 million.The health savings account custodian reported adjusted EBITDA of $107.8 million, an increase of 9%.Health savings accounts (HSAs) as of January 31, 2025, were 9.9 million, an increase of 14% year over year, including 753,000 HSAs with investments, an increase of 23% ...
HQY Stock Falls as Q4 Earnings Miss Estimates, Revenues Up Y/Y
ZACKS· 2025-03-19 17:35
Core Viewpoint - HealthEquity, Inc. reported mixed financial results for the fourth quarter of fiscal 2025, with adjusted EPS missing estimates but showing year-over-year improvement, while revenues exceeded expectations and demonstrated significant growth [1][2][14]. Financial Performance - Adjusted EPS for Q4 fiscal 2025 was 69 cents, missing the Zacks Consensus Estimate by 2.82%, but improved by 9.5% year-over-year [1] - GAAP EPS was 30 cents, unchanged from the same quarter last year [1] - Revenues reached $311.8 million, beating the Zacks Consensus Estimate by 2.2% and increasing by 18.8% from the prior year [2] HSA Growth - Total Health Savings Accounts (HSAs) served as a non-bank custodian reached 9.9 million, up 14% year-over-year [3] - HSAs with investments totaled 753,000, reflecting a 23% year-over-year increase [3] - Total accounts, including HSAs and Consumer Direct Benefits (CDBs), reached 17 million, an 8.2% increase year-over-year [3] HSA Assets - Total HSA assets were $32.1 billion at the end of January 31, 2025, up 27% year-over-year [4] - HSA cash was $17.4 billion, a 16% increase year-over-year, while HSA investments were $14.7 billion, up 44.1% year-over-year [4] Revenue Sources - Service revenues totaled $124.2 million, up 4.6% year-over-year [6] - Custodial revenues reached $144.1 million, a 36.7% increase from the previous year [7] - Interchange revenues amounted to $43.5 million, up 13.3% year-over-year [7] Profitability Metrics - Gross profit increased by 15.6% to $189 million, but gross margin contracted by 160 basis points to 60.6% [8] - Operating profit was $42.2 million, an 8.4% improvement year-over-year, with operating margin contracting by 130 basis points to 13.5% [10] Financial Position - Cash and cash equivalents at the end of Q4 fiscal 2025 were $295.9 million, down from $322.2 million a year ago [11] - Total debt was $1.06 billion, slightly down from $1.08 billion at the end of the previous fiscal year [11] - Cumulative net cash provided by operating activities was $339.9 million, compared to $242.8 million a year ago [12] Future Guidance - For fiscal 2026, revenues are projected between $1.28 billion and $1.30 billion, with adjusted EPS expected in the range of $3.57-$3.74 [13]
HealthEquity: Selling Off On Uncertainties
Seeking Alpha· 2025-03-19 17:24
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HealthEquity(HQY) - 2025 Q4 - Earnings Call Transcript
2025-03-18 23:16
Financial Data and Key Metrics Changes - Revenue increased by 19% year-over-year in Q4, reaching $124.2 million, with full fiscal year revenue at $1.2 billion, up 20% year-over-year [10][22][26] - Adjusted EBITDA rose by 9% in Q4 to $107.8 million, with a full year adjusted EBITDA of $471.8 million, up 28% [10][25][26] - Net income for Q4 was $26.4 million or $0.30 per share on a GAAP basis, while non-GAAP net income was $61.3 million or $0.69 per share [25][28] - HSA assets increased by 27% year-over-year, totaling $32 billion, with HSA cash reaching $17.4 billion [10][11][22] Business Line Data and Key Metrics Changes - Total accounts grew by 9% year-over-year, with HSA accounts increasing by 14% and CDB accounts growing by 2% [10][12] - The number of HSA members who invest rose by 23% year-over-year, driving invested assets up 44% to $14.7 billion [10][11] - Custodial revenue grew by 37% to a record $144.1 million in Q4 [22] Market Data and Key Metrics Changes - The annualized yield on HSA cash was 3.23% for the quarter, with enhanced rate placements making up 49% of HSA cash placements [23][29] - Interchange revenue grew by 13% to $43.5 million, reflecting increased contributions and distributions [23] Company Strategy and Development Direction - The company is focusing on a member-first secure mobile experience, emphasizing seamless digital interactions for healthcare needs [14][15] - The Assist portfolio was introduced, which includes solutions like Analyzer and Navigator aimed at improving employer benefits offerings and employee healthcare decisions [16][17][58] - The company is consolidating platforms and moving to the cloud to enhance technological capabilities, including AI-driven solutions [15][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased cyber threats and fraud attacks, leading to higher service costs, but remains optimistic about reducing these costs in the future [13][24] - The company expects revenue for fiscal year 2026 to be between $1.28 billion and $1.305 billion, with GAAP net income projected between $164 million and $179 million [27][28] - Management is confident in the growth trajectory, driven by strong sales and technology investments [27][50] Other Important Information - The company repurchased $122 million of its outstanding shares during fiscal 2025, with $178 million remaining on the share repurchase authorization [26] - Cash on hand was $296 million as of year-end January 31, 2025, with $340 million generated from operations [26] Q&A Session Summary Question: Follow-up on incremental service costs - Management explained that the $17 million in Q4 service costs were due to fraud-related reimbursements and excess service costs, expecting these to continue into the first half of FY '26 [35][39][41] Question: Earnings guidance and potential risks - Management highlighted confidence in custodial revenue growth and operational efficiencies, while acknowledging potential risks from service costs and fraud [44][50] Question: Monetization of Assist initiative - The company clarified that the Assist initiative focuses on enhancing member engagement and benefits management, with products like Analyzer and Navigator being key components [56][58] Question: Technology investment and R&D - Management indicated no significant change in R&D spending percentage but emphasized prioritizing technology that enhances member experience [66][71] Question: HSA member growth and market share - Management noted that growth in HSA accounts is increasingly coming from small and medium-sized businesses, with a focus on leveraging technology for better engagement [75][80] Question: M&A strategy and capital allocation - The company maintains a high bar for M&A opportunities, focusing primarily on organic growth and execution within the industry [82][84] Question: Member and employer reactions to service issues - Management reported high client retention rates in the high-90s despite recent challenges, emphasizing commitment to service quality [100][103] Question: Update on fraud activity and security measures - Management clarified that the fraud incidents involved multiple bad actors, not a single entity, and outlined ongoing efforts to enhance security measures [120][123]
HealthEquity (HQY) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-03-18 22:31
For the quarter ended January 2025, HealthEquity (HQY) reported revenue of $311.82 million, up 18.8% over the same period last year. EPS came in at $0.69, compared to $0.63 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $305.1 million, representing a surprise of +2.20%. The company delivered an EPS surprise of -2.82%, with the consensus EPS estimate being $0.71.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...