Financial Performance - Net sales increased by approximately 18% to $35.3 million for the three months ended April 30, 2025, compared to $29.8 million for the same period in 2024[108]. - Costs of sales rose by approximately 17% to $26.1 million, representing 74% of net sales, compared to $22.4 million or 75% of net sales in the prior year[109]. - Gross profit margin improved to 26% for the three months ended April 30, 2025, up from 25% in the same period of 2024[110]. - Net income for the three months ended April 30, 2025, was approximately $1.2 million, compared to $0.6 million in the same period of 2024[107]. Operating Expenses - Operating expenses increased by approximately $916 thousand, primarily due to higher payroll, commissions, and advertising expenses[110]. Cash Flow and Working Capital - Working capital increased to approximately $5.5 million as of April 30, 2025, from approximately $4.9 million as of January 31, 2025[113]. - Net cash provided by operating activities was approximately $6.0 million for the three months ended April 30, 2025, compared to $3.6 million in the same period of 2024[116]. Debt and Financing - The company had no borrowings outstanding under its Credit Agreement and approximately $2.4 million outstanding under its Term Loan Agreement as of April 30, 2025[114]. - The company may require additional funding to finance growth or achieve strategic objectives, with no assurance that financing will be available on acceptable terms[120]. Commodity Price Impact - A 1.0% increase in commodity prices would negatively impact costs of sales by approximately $193 thousand on an annualized basis[125].

Financial Performance - Net sales increased by approximately 18% to $35.3 million for the three months ended April 30, 2025, compared to $29.8 million for the same period in 2024[108] - Gross profit margin improved to 26% for the three months ended April 30, 2025, up from 25% in the same period of 2024[110] - Net income for the three months ended April 30, 2025, was approximately $1.2 million, compared to $0.6 million for the same period in 2024[107] Operating Expenses - Operating expenses rose by approximately $916 thousand, primarily due to increased payroll, commissions, and advertising expenses[110] Working Capital and Cash Flow - Working capital increased to approximately $5.5 million as of April 30, 2025, from approximately $4.9 million as of January 31, 2025[113] - Net cash provided by operating activities was approximately $6.0 million for the three months ended April 30, 2025, compared to $3.6 million for the same period in 2024[115] - The company had no borrowings outstanding under its Credit Agreement and approximately $2.4 million outstanding under its Term Loan Agreement as of April 30, 2025[114] Market and Growth Outlook - The increase in net sales was primarily driven by volume gains from new products and successful trade and marketing promotions[108] - The company anticipates that its cash resources will be sufficient to meet its cash requirements through at least the next twelve months, but may require additional funding for growth[120] Commodity Price Impact - A 1% increase in commodity prices would negatively impact costs of sales by approximately $193 thousand on an annualized basis[125]

Revenue and Growth - Total revenue for Q1 FY2026 was $56.5 million, a 10% increase year-over-year, with subscription revenue at $54.8 million, up 12% year-over-year[4] - Annual recurring revenue (ARR) as of April 30, 2025, reached $252.1 million, reflecting a 21% year-over-year increase, or 20% on a constant currency basis[4] - Total revenue for the three months ended April 30, 2025, was $56.523 million, a 10.5% increase from $51.327 million in the same period of 2024[22] - Subscription revenue reached $54.843 million, up from $49.038 million year-over-year, representing an increase of 11.5%[22] - For Q2 FY2026, total revenue is expected to be between $54.4 million and $55.2 million, with total ARR projected between $255.8 million and $258.8 million[6] Profitability and Loss - Loss from operations was $18.8 million, an improvement from $22.5 million in Q1 FY2025, with a non-GAAP operating loss of $4.2 million, down from $6.7 million[4] - The net loss for the quarter was $17.679 million, compared to a net loss of $20.995 million in the prior year, reflecting a 15.5% improvement[22] - Non-GAAP net loss per share improved to $0.06 from $0.10 year-over-year, indicating a reduction in losses[29] - Non-GAAP operating loss guidance for FY2026 is between $15.5 million and $10.5 million[6] Cash Flow and Expenses - Cash flow used in operating activities was $6.8 million, compared to a cash flow of $1.6 million provided in Q1 FY2025, resulting in negative free cash flow of $8.6 million[4] - The company experienced a net cash used in operating activities of $6.783 million, a decline from a net cash provided of $1.559 million in the same quarter of 2024[29] - Total operating expenses for the quarter were $68.510 million, slightly up from $68.185 million in the same quarter of 2024[22] - The company reported a total stock-based compensation expense of $13.384 million, down from $14.627 million in the previous year[22] Margins and Performance Obligations - Gross margin for the quarter was 87.9%, down from 88.9% in Q1 FY2025, while non-GAAP gross margin was 88.7%, compared to 89.9% in the same period[4] - Remaining performance obligations (RPO) as of April 30, 2025, were $239.6 million, a 9% increase year-over-year[4] - The gross profit margin for the quarter was 87.9%, compared to 88.9% in the prior year[28] Product Development and Investment - The company launched Couchbase Edge Server, designed for low latency data access in resource-constrained environments[4] - Continued investment in AI capabilities, including a high-performance vector database for AI agent-based applications[4]

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 ...

HealthEquity Reports First Quarter Ended April 30, 2025 Financial Results Highlights of the first quarter include: HSAs as of April 30, 2025 were 9.9 million, an increase of 9% year over year, including 770,000 HSAs with investments, an increase of 16% year over year. Total Accounts as of April 30, 2025 were 17.1 million, including 7.2 million other consumer-directed benefits ("CDBs"). Total HSA Assets as of April 30, 2025 were $31.3 billion, an increase of 15% year over year. Total HSA Assets included $17. ...

Revenue Performance - Revenue for the three months ended April 30, 2025, was $85.9 million, representing a 57.6% increase compared to the same period in the prior fiscal year, driven by higher product unit shipments and increased sales of AI inference processors [84]. - Revenue for the three months ended April 30, 2025, was $85,872,000, representing a 57.6% increase from $54,473,000 in the same period of 2024 [106]. Operating Loss and Profitability - Operating loss for the same period was $25.9 million, an improvement from the $39.4 million loss in the prior year, attributed to higher revenue and gross profit, despite increased operating expenses [84]. - Net loss for the three months ended April 30, 2025, was $24,328,000, compared to a net loss of $37,932,000 in the same period of 2024 [106]. - Gross profit margin decreased to 60.0% in Q2 2025 from 60.9% in Q2 2024, primarily due to higher manufacturing costs [107]. Cash Flow and Financial Position - Cash flows from operating activities improved to $14.8 million for the three months ended April 30, 2025, compared to cash outflows of $15.0 million in the same period last year [84]. - Net cash provided by operating activities was $14,801,000 in Q2 2025, a significant improvement compared to a net cash used of $14,951,000 in Q2 2024 [115]. - Cash, cash equivalents, and marketable debt securities totaled approximately $259.4 million as of April 30, 2025 [114]. Share Repurchase and Obligations - The company repurchased 24,152 ordinary shares for approximately $1.0 million in cash, with $48.0 million available for further repurchases through June 30, 2025 [84]. - The Board of Directors approved an extension of the existing share repurchase program through June 30, 2026 [119]. - The company had purchase obligations with independent contract manufacturers amounting to $54.6 million as of April 2025 [121]. Research and Development - Research and development expenditures are anticipated to increase as the company targets innovative video and image processing solutions with enhanced AI capabilities [78]. - Research and development expenses increased by 8.6% to $58,819,000 in Q2 2025, driven by higher personnel costs and engineering-related expenses [108]. Market Strategy and Challenges - Future revenue growth is expected to depend significantly on the expansion within camera markets, particularly in IoT and emerging applications such as AI-enabled security cameras and advanced driver assistance systems (ADAS) [78]. - The company has historically concentrated revenue in a limited number of end markets, primarily IoT and automotive, and aims to diversify into new markets to facilitate revenue growth [90]. - Design wins are critical for revenue generation, but the actual revenue from these wins can vary significantly based on market demand and customer product success [86]. - The semiconductor industry has faced global supply chain challenges, which may impact the company's operations, although recent issues have largely subsided [93]. - The average selling price of solutions can vary by market and application, influenced by supply and demand dynamics and the introduction of new products [88]. Other Financial Information - Selling, general and administrative expenses increased marginally to $18,575,000 in Q2 2025, reflecting higher personnel costs [110]. - Other income, net, decreased by 4.2% to $2,175,000 in Q2 2025, primarily due to lower yields from cash deposits and debt security investments [111]. - No material changes to critical accounting policies and estimates compared to the Annual Report for the 2025 fiscal year [125]. - No material changes to market risk disclosures as described in the Annual Report for the 2025 fiscal year [126].

Financial Performance - Net sales for the three months ended April 30, 2025, were $940.1 million, a 1.3% increase from $927.9 million in the same period of 2024[106]. - Net sales for the nine months ended April 30, 2025, were $2,710.2 million, an increase of $59.3 million, or 2.2%, compared to $2,650.9 million for the same period in 2024[122]. - Net earnings for the three months ended April 30, 2025, were $57.8 million, a decrease of $55.7 million, or 49.1%, from $113.5 million in the same period of 2024[117]. - Net earnings for the nine months ended April 30, 2025, were $252.7 million, a decrease of $51.6 million, or 16.9%, compared to $304.3 million in 2024[130]. - Diluted earnings per share (EPS) decreased to $0.48 for the three months ended April 30, 2025, down from $0.92 in the prior year, a decline of 48.0%[117]. Segment Performance - The Industrial Solutions segment saw a sales increase of $14.2 million, or 5.3% growth, while the Mobile Solutions segment experienced a decline of $2.6 million, or 0.4%[108]. - The Mobile Solutions segment reported net sales of $1,702.6 million for the nine months ended April 30, 2025, an increase of $27.1 million, or 1.6%, compared to $1,675.5 million in 2024[140]. - Net sales for the Industrial Solutions segment for the three months ended April 30, 2025, were $283.3 million, an increase of $14.2 million, or 5.3%, compared to $269.1 million for the same period in 2024[146]. - Aerospace and Defense net sales increased by $11.0 million due to ongoing strength in the end markets, while Industrial Filtration Solutions (IFS) net sales increased by $3.2 million driven by replacement part sales[147]. - Net sales for the Life Sciences segment for the three months ended April 30, 2025, were $74.2 million, an increase of $0.6 million, or 0.7%, compared to $73.6 million for the same period in 2024[160]. Expenses and Costs - Gross margin as a percentage of net sales decreased to 34.2% for the three months ended April 30, 2025, down from 35.6% in the prior year, primarily due to higher manufacturing costs[109]. - Selling, general and administrative expenses decreased by $10.6 million, or 6.5%, to $151.1 million, representing 16.1% of net sales[110]. - Research and development expenses decreased by $3.4 million, or 14.0%, to $21.4 million, representing 2.3% of net sales[112]. - Selling, general and administrative expenses were $476.4 million, or 17.6% of net sales, for the nine months ended April 30, 2025, compared to $473.5 million, or 17.9% in 2024[124]. - Research and development expenses decreased by $2.9 million, or 4.4%, to $65.3 million, representing 2.4% of net sales for the nine months ended April 30, 2025[126]. Impairment and Tax - The company reported a loss on impairment of intangible assets of $62.0 million, or 6.6% of net sales, compared to no expense in the same period of 2024[111]. - Loss on impairment of intangible assets was $62.0 million, or 2.3% of net sales, for the nine months ended April 30, 2025, compared to no expense in 2024[125]. - The effective tax rate increased to 33.6% for the three months ended April 30, 2025, compared to 21.2% in the same period of 2024, primarily due to the impairment loss[115]. - The effective tax rate increased to 26.2% for the nine months ended April 30, 2025, compared to 23.1% in 2024, primarily due to the impairment loss[129]. Cash Flow and Debt - Cash provided by operating activities for the nine months ended April 30, 2025, was $251.0 million, a decrease of $115.5 million compared to $366.5 million for the same period in 2024[170]. - Cash used in investing activities for the nine months ended April 30, 2025, was $129.8 million, an increase of $62.0 million compared to $67.8 million for the same period in 2024[171]. - Total debt as of April 30, 2025, was $638.8 million, an increase of $130.4 million from $508.4 million as of July 31, 2024[177]. - Cash and cash equivalents as of April 30, 2025, were $178.5 million, down from $232.7 million as of July 31, 2024[174]. - Dividends paid for the nine months ended April 30, 2025, were $96.9 million, compared to $90.3 million for the same period in 2024[173]. Foreign Currency and Interest Rates - The estimated impact of foreign currency translation for the nine months ended April 30, 2025, resulted in a decrease in reported net sales of $10.1 million and a decrease in reported net earnings of $3.4 million[187]. - The overall stronger U.S. dollar negatively impacted the Company's international net sales and net earnings due to foreign-denominated revenues translating into less U.S. dollars[187]. - As of April 30, 2025, the total notional amount of foreign currency forward contracts designated as hedges was $32.4 million, while those not designated as hedges amounted to $194.3 million[189]. - The total notional amount of net investment hedges as of April 30, 2025, was €80 million, or $88.8 million, with maturity dates ranging from 2027 to 2029[190]. - Assuming a hypothetical 0.5 percentage point increase in short-term interest rates, interest expense would have increased approximately $1.7 million in the nine months ended April 30, 2025[192].

Sales Performance - Signet's total sales increased by 2.0% year over year to $1.54 billion in the first quarter of Fiscal 2026[118] - Same store sales rose by 2.5%, compared to a decrease of 8.9% in the prior year quarter, driven by improved merchandise assortment and increased average unit retail (AUR)[111] - North America total sales increased by 2.1% to $1.45 billion, with same store sales up 2.3% compared to a decrease of 9.2% in the prior year[121] - International sales rose 3.8% to $80.1 million, with same store sales increasing 4.5% compared to a decrease of 3.2% in the prior year[122] - E-commerce sales in Q1 Fiscal 2026 were $338.7 million, a slight increase of 0.2% from $337.9 million in the prior year[119] Financial Metrics - Gross margin improved to 38.8% in the first quarter of Fiscal 2026, compared to 37.9% in the prior year[117] - Net income for the first quarter of Fiscal 2026 was $33.5 million, a decrease from $52.1 million in the same period last year[117] - Operating income decreased slightly to $48.1 million in the first quarter of Fiscal 2026 from $49.8 million in the prior year[117] - Adjusted operating income for Q1 was $70.3 million, with an adjusted operating margin of 4.6% compared to 3.8% in the prior year[142] - Free cash flow for the 13 weeks ended May 3, 2025, was $(211.9) million, compared to $(181.5) million in the prior year[138] - Adjusted diluted EPS for the 13 weeks ended May 3, 2025, was $1.18, compared to $1.11 for the same period in the prior year, while diluted EPS was $0.78, up from $(0.90)[145] Expenses and Charges - SG&A expenses were $526.0 million, maintaining 34.1% of sales, driven by increased store payroll and marketing expenses[124] - The company incurred restructuring charges of $19.0 million and asset impairments of $3.0 million during the 13 weeks ended May 3, 2025, primarily due to the Grow Brand Love strategy initiatives[167] - Net interest income fell to $0.8 million from $8.6 million in the prior year due to lower cash balances[130] - Income tax expense was $12.1 million with an effective tax rate of 26.5%, significantly higher than the prior year’s $6.5 million and 11.1%[131] Strategic Initiatives - The Company launched its Grow Brand Love strategy in Fiscal 2026, focusing on sustainable growth and brand loyalty[110] - The company plans to invest up to $160 million in capital expenditures for Fiscal 2026, focusing on new stores, renovations, and digital advancements, following a $153.0 million investment in Fiscal 2025[149] - The company opened 5 new stores and closed 14 during the 13 weeks ended May 3, 2025, resulting in a total of 2,633 stores[160] Cash and Debt Management - As of May 3, 2025, the company had $264.1 million in cash and cash equivalents and no outstanding borrowings on its asset-based revolving credit facility (ABL), which had an available borrowing capacity of $1.1 billion[147][165] - The company repurchased $117.4 million of common shares during the 13 weeks ended May 3, 2025, with $605.6 million remaining authorized for repurchase[154] - The company maintained a 1.1x adjusted leverage ratio as of the end of Fiscal 2025, reflecting its conservative balance sheet strategy after retiring all funded debt[153] Market Risks - The company is closely monitoring macroeconomic factors such as tariffs and inflation, which may impact future performance[115] - Signet is exposed to market risk from fluctuations in foreign currency exchange rates, interest rates, and precious metal prices, which could affect its financial position and cash flows[174] - The company manages its market risk through regular operating and financing activities and the use of derivative financial instruments[174] - Signet enters into forward foreign currency exchange contracts and swaps to manage exposure to the US dollar and currency fluctuations associated with Canadian operations[175] - The interest rates earned on cash and cash equivalents will fluctuate in line with short-term interest rates[176] Dividend Information - The quarterly common dividend was increased from $0.29 per share in Fiscal 2025 to $0.32 per share beginning in Fiscal 2026, marking the fourth consecutive year of dividend growth[154] Impairment and Fair Value - The fair value of the Diamonds Direct reporting unit exceeded its carrying value of $251.2 million by approximately 11%[171] - The carrying values of the Digital brands goodwill and the trade names for Blue Nile, James Allen, and Diamonds Direct approximate their estimated fair values of $53.6 million, $19.0 million, $15.0 million, and $112.0 million, respectively[171] - An increase in the discount rate of 0.5% could result in additional impairment charges of approximately $8 million for the impaired trade names and reporting unit[172] - The company continues to monitor events that could trigger the need for an interim impairment test, with estimates and assumptions being subject to change[173]

Financial Results - Quantum Corporation provided preliminary financial results for its fiscal fourth quarter ended March 31, 2025[5] - The press release detailing these results was issued on May 6, 2025[5] - The financial results will not be deemed filed under the Securities Exchange Act of 1934[6] Report Details - The report includes a cover page interactive data file embedded within the Inline XBRL document[7]

Financial Performance - First quarter 2025 net sales are expected to be approximately $1.35 billion, exceeding the prior guidance range of $1.30 billion to $1.33 billion[7] - Adjusted operating income for the first quarter 2025 is projected to be $32 million, surpassing the previous guidance of $10 million to $30 million[7] - Adjusted diluted earnings per share for the first quarter 2025 is anticipated to be $0.09, compared to the prior guidance range of ($0.10) to $0.10[7] - Adjusted financial measures are used to evaluate performance internally, providing additional insights for investors[14] Security Incident - The company experienced a security incident on May 24, 2025, which led to temporary shutdowns of corporate systems and the e-commerce website[2][3] - The security incident did not materially disrupt financial results for the first quarter of fiscal 2025, but may incur future expenses impacting second quarter results[5] - The company is currently assessing the full scope and impact of the security incident under the oversight of the Audit Committee[5] Business Operations - Victoria's Secret & Co. operates approximately 1,380 retail stores in nearly 70 countries, employing over 30,000 associates[8] - The company is committed to integrating artificial intelligence into its business operations while managing associated risks[10] - The company plans to announce a new date for the first quarter 2025 earnings release and earnings call webcast in due course[4]