HealthEquity(HQY) - 2026 Q1 - Quarterly Results

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]