HealthEquity Reports Second Quarter Ended July 31, 2025 Financial Results

Core Insights - HealthEquity, Inc. reported a strong second quarter with a 9% revenue growth, reaching $325.8 million, and a record gross margin of 71% [3][4][11] - The company achieved a net income of $59.9 million, a 67% increase year-over-year, with non-GAAP net income of $94.6 million, up 24% [5][11] - Adjusted EBITDA for the quarter was $151.1 million, reflecting an 18% increase compared to the previous year, representing 46% of revenue [6][11] Financial Performance - Revenue for Q2 FY25 was $325.8 million, up from $299.9 million in Q2 FY24, with service revenue at $117.9 million, custodial revenue at $159.9 million, and interchange revenue at $48.1 million [4][11] - Net income was $59.9 million, or $0.68 per diluted share, compared to $35.8 million, or $0.40 per diluted share, in the same quarter last year [5][11] - Non-GAAP net income was $94.6 million, or $1.08 per diluted share, compared to $76.3 million, or $0.86 per diluted share, in Q2 FY24 [5][11] Account and Asset Metrics - As of July 31, 2025, HealthEquity managed 10.0 million HSAs, a 6% increase year-over-year, with 782,000 HSAs having investments, a 10% increase [7][11] - Total HSA assets reached $33.1 billion, a 12% increase from the previous year, including $17.0 billion in HSA cash and $16.1 billion in HSA investments [8][11] - Total accounts managed by the company were 17.1 million, including 7.2 million other consumer-directed benefits, marking a 5% increase year-over-year [7][11] Stock Repurchase Program - The company repurchased 0.7 million shares of its common stock for $66.0 million during the second quarter, with $351.8 million remaining authorized for repurchase [9][11] Business Outlook - For the fiscal year ending January 31, 2026, management expects revenues between $1.290 billion and $1.310 billion, with net income projected between $185 million and $200 million [12][11]