HealthEquity (HQY) came out with quarterly earnings of $0.69 per share, missing the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.82%. A quarter ago, it was expected that this provider of services for managing health care accounts would post earnings of $0.71 per share when it actually produced earnings of $0.78, delivering a surprise of 9.86% ...

Financial Data and Key Metrics Changes - In Q4, revenue increased by 19% year over year, with adjusted EBITDA rising by 9% [9][15] - Total accounts reached 17 million, including 9.9 million HSAs, with HSA assets growing by 27% to $32 billion [9][10] - 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 [18][19] Business Line Data and Key Metrics Changes - Service revenue grew by 19% year over year, reaching a record $124.2 million, while custodial revenue increased by 37% to $144.1 million [15][17] - Interchange revenue grew by 13% to $43.5 million, driven by increased contributions and member payments [17] - The number of HSA members who invest grew by 23% year over year, with invested assets up 44% to $14.7 billion [9][10] 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 [17] - The company achieved a milestone of opening 1 million new HSAs from sales for the year, with 471,000 new HSAs opened in Q4 alone [9][10] Company Strategy and Development Direction - The company is focusing on a member-first secure mobile experience, consolidating platforms, and enhancing technological capabilities in mobility and AI [11][12] - The newly announced Assist portfolio aims to help employers and employees maximize benefits offerings, with products like Analyzer and Navigator [13][14] - The company is committed to reducing service costs while enhancing customer experiences, despite facing increased cyber threats and fraud attacks [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth trajectory, with guidance for fiscal year 2026 revenue expected between $1.28 billion and $1.305 billion [19][20] - The company anticipates elevated service costs in the first half of the year due to fraud prevention efforts, with expectations for normalization in the latter half [21][22] - Management highlighted strong cash flows and the potential for portfolio acquisitions, maintaining a focus on organic growth [21][65] Other Important Information - The company repurchased $122 million of its outstanding shares during fiscal year 2025, with $178 million remaining under the share repurchase authorization [19] - The company is addressing legislative opportunities for HSA expansion, with ongoing discussions in Congress [85][86] Q&A Session Summary Question: Follow-up on incremental service costs - Management indicated that the $17 million in Q4 service costs was due to fraud-related reimbursements and excess contact center costs, expecting some continuation into the first half of fiscal year 2026 [25][27] Question: Earnings guidance and potential risks - Management noted that custodial line trends and service modernization efforts are expected to drive growth, with a focus on managing expenses to grow slower than revenue [32][36] Question: Monetization of Assist initiative - The Assist initiative focuses on enrollment and engagement, with products like Analyzer and Navigator aimed at helping clients manage healthcare costs [41][43] Question: HSA member growth from smaller employers - Management confirmed that growth in HSA accounts is increasingly coming from small and medium-sized businesses, with a focus on leveraging technology for better engagement [57][60] Question: Fraud activity resolution - Management clarified that the fraud incidents involved multiple bad actors and emphasized ongoing efforts to enhance security measures, including multi-factor authentication [92][96]

Financial Data and Key Metrics Changes - In Q4, revenue increased by 19% year over year, with adjusted EBITDA rising by 9% [9][19] - Total accounts reached 17 million, including 9.9 million HSAs, with HSA assets growing by 27% to $32 billion [9][19] - 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 [19][20] Business Line Data and Key Metrics Changes - Service revenue grew by 19% year over year, reaching a record $124.2 million, while custodial revenue increased by 37% to $144.1 million [15][17] - Interchange revenue grew by 13% to $43.5 million, driven by increased contributions and payments on the platform [17][18] - The number of HSA members who invest grew by 23% year over year, with invested assets up 44% to $14.7 billion [9][19] 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 [17][21] - The company expects average yield on HSA cash to be approximately 3.45% during fiscal year 2026 [21] Company Strategy and Development Direction - The company is focusing on a member-first secure mobile experience, consolidating platforms, and moving to the cloud [11][12] - The Assist portfolio was introduced to enhance employer and employee benefits engagement, with offerings like Analyzer and Navigator aimed at improving healthcare decisions [13][14] - The company is committed to reducing service costs while enhancing customer experiences through technology investments [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased cyber threats and fraud attacks, leading to higher service costs, but expects normalization in the latter half of FY 2026 [10][22] - The company anticipates revenue for FY 2026 to be between $1.28 billion and $1.305 billion, with adjusted EBITDA expected to be between $525 million and $545 million [20][21] - Management remains optimistic about growth driven by enhanced rates and operational efficiencies [38][66] Other Important Information - The company repurchased $122 million of its outstanding shares during FY 2025, with $178 million remaining on the share repurchase authorization [20] - The company is prioritizing investments in fraud prevention and detection capabilities [18][75] Q&A Session Summary Question: Follow-up on incremental service costs - Management explained that the $17 million in Q4 was due to costs associated with fraud activity and excess service expenses [26][28] Question: Earnings guidance and potential risks - Management highlighted tailwinds from custodial revenue and operational efficiencies, while acknowledging potential risks from service costs [33][39] Question: Monetization of Assist initiative - Management clarified that the Assist initiative focuses on enhancing member engagement and does not have direct monetization yet [43][46] Question: HSA member growth and market share - Management noted that growth is coming from small and medium-sized businesses, with a focus on leveraging technology for better engagement [59][61] Question: M&A strategy versus organic growth - Management indicated a high bar for M&A opportunities, focusing primarily on organic growth and execution [65][66] Question: Member and employer reactions to recent issues - Management reported high client retention rates in the high 90s despite challenges faced [80] Question: Update on fraud activity and security measures - Management clarified that the fraud incidents were not due to a cybersecurity breach but rather account takeovers, and they are enhancing security measures [99][100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Delaware 52-2383166 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 15 West Scenic Pointe Drive ...

HSA Growth - The total number of HSAs as of January 31, 2025, was 9.9 million, an increase of 14% from 8.7 million as of January 31, 2024[2] - New HSAs from sales year-to-date reached 1,040, an increase of 10% compared to 949 in the previous year[3] - The Company closed fiscal year 2025 with 17.0 million Total Accounts, a 9% increase from 15.7 million as of January 31, 2024[2] - The Company added 616 new HSAs from acquisitions year-to-date, indicating growth through strategic acquisitions[3] HSA Assets and Investments - HSA Assets grew to $32.1 billion as of January 31, 2025, representing a 27% increase from $25.2 billion a year earlier[2] - HSA investments increased by 44% to $14.7 billion as of January 31, 2025, up from $10.2 billion a year earlier[4] - The average daily HSA cash for the year-to-date was $16.2 billion, a 15% increase from $14.1 billion in the previous year[4] Financial Outlook - The Company affirmed its guidance for fiscal years 2025 and 2026, maintaining a positive business outlook[5] - HSA cash expected to reprice in fiscal year 2026 is projected at $2.3 billion with an average annualized yield of 2.5%[4] Upcoming Events - Upcoming events include the fourth quarter and fiscal year 2025 results conference call scheduled for March 18, 2025[6]

Highlights of the fiscal year include: Revenue of $1.20 billion, an increase of 20% compared to $999.6 million in FY24.Net income of $96.7 million, an increase of 74% compared to $55.7 million in FY24, with non-GAAP net income of $277.3 million, an increase of 42% compared to $195.5 million in FY24.Net income per diluted share of $1.09, an increase of 70% compared to $0.64 in FY24, with non-GAAP net income per diluted share of $3.12, an increase of 39% compared to $2.25 in FY24.Adjusted EBITDA of $471.8 mil ...

Core Insights - HealthEquity, the largest Health Savings Account (HSA) administrator in the U.S., launched HealthEquity Assist™, a suite of tools designed to help employers manage healthcare costs and enhance employee engagement [1][5] - The tools aim to address rising healthcare costs, projected to increase by 9% in 2025, and the complexities of navigating benefits [2][3] Product Offerings - HealthEquity Assist includes three main tools: HealthEquity Analyzer™, HealthEquity Navigator™, and HealthEquity Momentum™ [3][10] - HealthEquity Analyzer™ provides employers with near real-time data on inefficiencies and trends, enabling smarter decision-making [10][11] - HealthEquity Navigator™ simplifies healthcare spending decisions for employees by offering guidance on provider selection and cost-saving opportunities [10] - HealthEquity Momentum™ encourages proactive health and expense planning, increasing employee engagement with benefits programs through personalized rewards [10] Market Context - The benefits industry faces challenges related to cost and complexity, impacting both employers and employees [3] - HealthEquity's initiatives are positioned to reshape the future of benefits technology, aiming for a seamless and intuitive experience for members [5][7]

Financial Results - HealthEquity, Inc. is set to release its fourth-quarter financial results on March 18, with expected earnings of 72 cents per share, an increase from 63 cents per share in the previous year [1] - The company projects quarterly revenue of $305.82 million, compared to $262.39 million a year earlier [1] Stock Performance - HealthEquity shares increased by 3.4%, closing at $100.72 [2] Analyst Ratings - Barrington Research analyst Alexander Paris maintained an Outperform rating with a price target of $112 [4] - Raymond James analyst C. Gregory Peters raised the price target from $105 to $120 while maintaining an Outperform rating [4] - Mizuho analyst Steven Valiquette initiated coverage with an Outperform rating and a price target of $126 [4] - B of A Securities analyst Allen Lutz raised the price target from $100 to $120 while maintaining a Buy rating [4] - Deutsche Bank analyst George Hill increased the price target from $102 to $103 while maintaining a Buy rating [4]

Investors with an interest in Medical Services stocks have likely encountered both Pediatrix Medical Group (MD) and HealthEquity (HQY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with p ...

Group 1 - HealthEquity (NASDAQ: HQY) has experienced a decline of almost 15.00% over the past month, indicating a potential buying opportunity for investors [1] - The company is viewed as heavily undervalued, suggesting significant upside potential for long-term growth dividend investors [1] - The focus is on long-term compounding through investments in undervalued companies, aligning with the strategy of value dividend investing [1]