Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year, with service revenue up 1% to $120.3 million and custodial revenue growing 13% to $159.1 million [19] - Net income surged by 806% year-over-year to $51.7 million, or $0.59 per share, while non-GAAP net income increased by 26% to $87.7 million [21] - Adjusted EBITDA rose by 20% to $141.8 million, with an adjusted EBITDA margin of 44%, up 460 basis points from the previous year [21][23] Business Line Data and Key Metrics Changes - Health Savings Accounts (HSAs) grew by 6%, with total accounts increasing by 5% and HSA assets up 15% to over $34 billion [5][10] - The number of HSA members who invest grew by 12%, and HSA invested assets increased by 29% to $17.5 billion [10] - The average HSA balance grew by 8% year-over-year, contributing to the 15% increase in HSA assets [8] Market Data and Key Metrics Changes - The annualized yield on HSA cash was 3.53% for the quarter, reflecting higher placement rates and increased balances [19] - Interchange revenue grew by 6% to $42.8 million, outpacing total account growth of 5% [19] Company Strategy and Development Direction - The company aims to help members save, spend, and invest for health, addressing the affordability challenge faced by American families and employers [6] - A new direct HSA enrollment platform was launched to facilitate HSA adoption, particularly for those choosing bronze plans on the ACA exchanges [8] - The company is focused on expanding the use of HSAs and enhancing consumer control, with ongoing efforts to educate policymakers about the benefits of HSAs [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new account growth in Q4, driven by partnerships with employers and plan design [8] - The company is well-prepared for the busy season with enhanced security features and a member-first mobile experience [10] - Management highlighted the importance of AI in improving service efficiency and personalizing member experiences [11] Other Important Information - The company repurchased approximately $94 million of its outstanding shares during the quarter, with $259 million remaining on the share purchase authorization [22][26] - Fraud costs were approximately $0.3 million, significantly below the target run rate [11] Q&A Session Summary Question: What are the marketing plans for the direct HSA enrollment platform? - The company aims for a seamless enrollment experience and will market through integrated plan partners, focusing on brand marketing and growth initiatives [31][32] Question: Will there be a material contribution from standalone HealthEquity versus integrated plan partners? - The majority of business comes through partners, and the company is investing in retail experience to attract new members [40][41] Question: Is there an opportunity to increase the minimum threshold before HSA consumers can invest? - The minimum threshold is typically set by enterprise clients, and there is a significant opportunity to drive engagement and education around HSAs [44][46] Question: Are employer sponsors moving towards HSAs at an accelerating rate for 2026? - There is a realization among employers about rising healthcare costs, and the company expects greater adoption this year compared to last [56][58] Question: Are there new custodial opportunities as markets develop? - The company is actively exploring new market opportunities, particularly in light of the affordability crisis and the need for HSAs [58][59]

Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year, with service revenue up 1% to $120.3 million and custodial revenue growing 13% to $159.1 million [19] - Net income surged by 806% year-over-year to $51.7 million, or $0.59 per share, while non-GAAP net income increased by 26% to $87.7 million [21] - Adjusted EBITDA rose by 20% to $141.8 million, with an adjusted EBITDA margin of 44%, up 460 basis points from the previous year [21][26] Business Line Data and Key Metrics Changes - Health Savings Accounts (HSAs) grew by 6%, with total accounts increasing by 5% and HSA assets up 15% to over $34 billion [5][10] - The number of HSA members who invest grew by 12%, and HSA invested assets increased by 29% to $17.5 billion [10] - The average HSA balance grew by 8% year-over-year, contributing to the overall increase in HSA assets [8] Market Data and Key Metrics Changes - The annualized yield on HSA cash was 3.53% for the quarter, reflecting higher placement rates and increased balances [19] - Interchange revenue grew by 6% to $42.8 million, outpacing total account growth of 5% [19] Company Strategy and Development Direction - The company aims to help members save, spend, and invest for health, addressing the affordability challenge faced by American families and employers [6] - A new direct HSA enrollment platform was launched to facilitate retail HSA openings, particularly for those choosing bronze plans on ACA exchanges [8] - The company is focused on expanding the use of HSAs and enhancing consumer control, with ongoing efforts to educate policymakers about the benefits of HSAs [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new account growth in Q4, driven by partnerships with employers and plan design support [8] - The company is well-prepared for the busy season with enhanced security features and a member-first mobile experience [10] - Management highlighted the importance of AI in improving service efficiency and personalizing member experiences [11] Other Important Information - The company repurchased approximately $94 million of its outstanding shares during the quarter, with $259 million remaining on the share purchase authorization [22][26] - Fraud costs were approximately $0.3 million, significantly below the target run rate [11] Q&A Session Summary Question: What are the marketing plans for the direct HSA enrollment platform? - The company aims for a seamless enrollment experience and will market through integrated plan partners, offering a $25 match for new accounts [31][32] Question: Will there be a material contribution from standalone HealthEquity versus integrated plan partners? - The majority of business comes through partners, and the company is focusing on educating the market about HSA eligibility [40][41] Question: Is there an opportunity to increase the minimum threshold before HSA consumers can invest? - The minimum threshold is typically set by enterprise clients, and there is a significant opportunity to drive engagement and education around HSAs [44][46] Question: Are employer sponsors moving towards HSAs at an accelerating rate for 2026? - There is a realization among employers about rising healthcare costs, and the company expects greater adoption of HSAs this year compared to last [56][58] Question: Are there opportunities for new markets similar to the Dell accounts? - The company is actively exploring new custodial opportunities and believes HSAs are gaining focus in the national healthcare discussion [58]

Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year, with net income up 806% year-over-year, driven by a significant reduction in service costs and improved margins [5][20][19] - Adjusted EBITDA rose by 20%, with an adjusted EBITDA margin of 44%, up from 39% in the same quarter last year [5][20] - Cash on hand was $309 million, with cash flows from operations amounting to $339 million in the first nine months of fiscal 2026 [20][21] Business Line Data and Key Metrics Changes - Service revenue increased by 1% year-over-year to $120.3 million, while custodial revenue grew by 13% to $159.1 million [18] - HSA accounts grew by 6%, with CDB accounts up 3%, leading to a total account growth of 5% [5][6] - HSA assets increased by 15%, with average HSA balances growing by 8% year-over-year [5][7] Market Data and Key Metrics Changes - The annualized yield on HSA cash was 3.53%, reflecting higher placement rates and increased balances [18] - Interchange revenue grew by 6% to $42.8 million, outpacing total account growth [18] Company Strategy and Development Direction - The company aims to address the affordability challenge in healthcare by promoting HSAs as a solution for consumers and employers [6][11] - A new direct HSA enrollment platform was launched to facilitate retail HSA openings, particularly for those choosing bronze plans on ACA exchanges [7][8] - The company is focusing on enhancing member experience through technology investments, including AI capabilities to improve service and security [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new account growth in Q4, supported by ongoing collaborations with employers and partners [7] - The regulatory environment is seen as favorable, with discussions in Washington about expanding HSA access to more Americans [13][16] - The company expects continued growth in HSA adoption as healthcare costs rise and employers seek cost-saving strategies [50][51] Other Important Information - Fraud costs were approximately $0.3 million, significantly below the target run rate, indicating effective fraud prevention measures [10][19] - The company repurchased approximately $94 million of its outstanding shares during the quarter, with $259 million remaining on the share purchase authorization [21][25] Q&A Session Summary Question: What are the marketing plans for the direct HSA enrollment platform? - The company plans to ensure a seamless enrollment experience and will market through integrated plan partners, emphasizing a $25 match for new accounts [28][30] Question: Are you seeing an acceleration in employer sponsors moving towards HSAs? - Management noted that rising healthcare costs are prompting employers to consider HSAs more seriously, with expectations for greater adoption in 2026 compared to 2025 [45][51] Question: Will there be more custodial opportunities as new markets develop? - The company is actively exploring new market opportunities and believes that the demand for HSAs will continue to grow as healthcare affordability becomes a pressing issue [45][52]