HealthEquity Reports First Quarter Ended April 30, 2025 Financial Results

Core Insights - HealthEquity, Inc. reported a strong first quarter for fiscal 2026, achieving record quarterly revenue and Adjusted EBITDA, along with increased guidance for the year [3][4][12] Financial Performance - Revenue for the first quarter ended April 30, 2025, was $330.8 million, a 15% increase from $287.6 million in the same quarter of the previous year [4][11] - Net income reached $53.9 million, or $0.61 per diluted share, marking an 87% increase compared to $28.8 million, or $0.33 per diluted share, in the prior year [5][11] - Non-GAAP net income was $85.8 million, or $0.97 per diluted share, up 22% from $70.3 million, or $0.80 per diluted share, year-over-year [5][11] - Adjusted EBITDA was $140.2 million, a 19% increase from $117.4 million in the same quarter last year, representing 42% of revenue [6][11] Account and Asset Metrics - As of April 30, 2025, HealthEquity managed 9.9 million HSAs, a 9% increase year-over-year, including 770,000 HSAs with investments, which is a 16% increase [7][31] - Total HSA Assets amounted to $31.3 billion, reflecting a 15% increase from the previous year, with $17.1 billion in HSA cash and $14.2 billion in HSA investments [8][32] - Total Accounts reached 17.1 million, including 7.2 million other consumer-directed benefits (CDBs), a 7% increase compared to the same quarter last year [7][11] Stock Repurchase Program - The company repurchased 0.7 million shares of its common stock for $60.3 million during the first quarter, with $117.5 million remaining authorized for future repurchases [9][11] Business Outlook - For the fiscal year ending January 31, 2026, management expects revenues between $1.285 billion and $1.305 billion, with net income projected between $173 million and $188 million [12][39] - Non-GAAP net income is anticipated to be between $320 million and $335 million, resulting in non-GAAP net income per diluted share of $3.61 to $3.78 [12][40]