Core Insights - HealthEquity (HQY) is expected to report quarterly earnings of $0.92 per share, reflecting a year-over-year increase of 7% [1] - Revenue is anticipated to reach $318.81 million, which is a 6.3% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - 'Revenue- Service' is projected to be $116.04 million, indicating a year-over-year decrease of 0.6% [4] - 'Revenue- Custodial' is expected to be $155.15 million, reflecting an increase of 11.9% year over year [4] - 'Revenue- Interchange' is estimated to reach $46.74 million, showing a 5% increase from the prior-year quarter [4] HSA Metrics - 'Total HSA Assets' are likely to reach $32.48 billion, up from $29.47 billion in the same quarter last year [5] - 'Total HSA investments' are estimated at $14.78 billion, compared to $13.10 billion a year ago [5] - 'CDBs Accounts' are projected to be 6.88 million, slightly down from 6.90 million in the previous year [6] Account Projections - 'Total Accounts' are expected to reach 16.97 million, an increase from 16.28 million year over year [6] - 'Total HSA cash' is projected to be $17.70 billion, up from $16.37 billion in the same quarter last year [6] - 'HSAs Accounts' are estimated at 10.10 million, compared to 9.38 million a year ago [7] Stock Performance - Over the past month, shares of HealthEquity have returned -6.7%, while the Zacks S&P 500 composite has increased by 1.3% [7] - Currently, HQY holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

Financial Data and Key Metrics Changes - Revenue increased by 15% year over year, with adjusted EBITDA up 19% [7][19] - Total accounts reached over 17 million, with HSA assets growing by 15% to over $31 billion [7][8] - Net income for Q1 was $53.9 million or $0.61 per share on a GAAP basis, while non-GAAP net income was $85.8 million or $0.97 per share [21][24] Business Line Data and Key Metrics Changes - Service revenue was a record $119.8 million, up 1% year over year, while custodial revenue grew 29% to a record $156.5 million [19][20] - HSA members who invest grew by 16% year over year, driving invested assets up 24% to $14.2 billion [8][20] - Interchange revenue increased by 14% to $54.6 million, reflecting higher member contributions and distributions [20] Market Data and Key Metrics Changes - The company serves nearly a quarter of all HSAs in the USA, indicating significant market share growth [9] - The proposed budget bill includes provisions that could expand HSA access to an additional 20 million families, potentially increasing the addressable market [16][17] Company Strategy and Development Direction - The company is focusing on optimizing plan design and employee engagement to help employers manage rising healthcare costs [9] - Investments in AI technology are being leveraged to enhance claims processing and member satisfaction while reducing costs [10][11] - The company aims to drive growth through existing client bases and new client acquisitions, particularly during uncertain economic times [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current enterprise pipeline and the potential for growth despite macroeconomic challenges [30][31] - The company is cautious about the overall macro impact on job creation and GDP growth, which may affect new account sales [31] - Management is confident in the effectiveness of their fraud prevention measures and expects to normalize service costs in the second half of the fiscal year [21][24] Other Important Information - The company has repurchased approximately $60 million of its outstanding shares during the quarter [22][24] - Enhanced rates on HSA cash are expected to stabilize at approximately 3.5% during fiscal year 2026 [24] Q&A Session Summary Question: What is the outlook on HSA selling conditions? - Management noted that new HSA sales were lower than last year but still higher than the previous fiscal year, expressing optimism about the current pipeline [28][30] Question: What is the duration of the locked-in rates? - The company has entered into forward treasury contracts for five-year treasury rates, locking in the base rate for upcoming maturities [32] Question: How much of the fraud costs are included in the guidance? - Management indicated that they are targeting a one basis point exit rate for fraud costs and have not changed their outlook based on the current quarter's performance [36][38] Question: Can you clarify the addressable market increase from the proposed legislation? - The net increase in the addressable market is estimated at 20 million, considering both Medicare Part A individuals and those on exchanges [40][41] Question: How is the company tracking app downloads and security measures? - The company has seen an increase in app downloads, with a focus on enhancing security through mobile authentication methods [44][46] Question: What is the impact of fraud on enterprise customer retention? - Management reported no negative impact from fraud on enterprise retention rates, which remain high [52] Question: How does the growth of custodial cash compare to HSA investment cash? - Investment cash is growing faster than custodial cash, with different member behaviors influencing these trends [76][78] Question: What is the status of the CHIP-enabled stacked card and related products? - The new stacked card has been rolled out for new members, with plans to integrate it into a digital wallet [107][108]

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]

Core Viewpoint - Analysts expect HealthEquity (HQY) to report quarterly earnings of $0.81 per share, reflecting a year-over-year increase of 1.3%, with revenues projected at $321.13 million, up 11.7% from the previous year [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] Revenue Estimates - Analysts estimate 'Revenue- Service' to reach $119.18 million, indicating a year-over-year change of +0.8% [4] - 'Revenue- Custodial' is projected at $151.45 million, reflecting a year-over-year increase of +24.5% [4] - 'Revenue- Interchange' is expected to be $49.71 million, showing a change of +4.1% from the year-ago quarter [4] HSA Metrics - Total HSA Assets are projected to reach $32.13 billion, up from $27.28 billion in the same quarter last year [5] - Total HSA investments are expected to be $14.46 billion, compared to $11.43 billion a year ago [5] Account Estimates - Analysts estimate 'CDBs Accounts' at 6.86 million, slightly down from 6.91 million reported last year [6] - The consensus for 'Total Accounts' stands at 16.92 million, up from 16.01 million in the same quarter of the previous year [6] Cash and Account Projections - Total HSA cash is expected to reach $17.67 billion, compared to $15.85 billion reported last year [7] - HSAs Accounts are projected to be 10.05 million, up from 9.1 million in the same quarter last year [7] Stock Performance - Over the past month, HealthEquity shares have returned +18.4%, outperforming the Zacks S&P 500 composite's +6.7% change, with a Zacks Rank 2 (Buy) indicating potential outperformance in the near future [7]

Core Insights - HealthEquity, Inc. has been recognized as a USA Today Top Workplace for 2025, ranking 23rd among companies with over 2,500 employees, marking its fourth consecutive year on the list [1][7] - The company is the only representative from the healthcare benefits industry in the Top 25 [1] Group 1: Company Culture and Employee Benefits - HealthEquity's remote-first approach allows over 90% of employees to work primarily from home, promoting work-life balance and productivity [3][4] - The company emphasizes a culture of belonging and offers various benefits, including adventure accounts, mental health support, wellness programs, parental leave, tuition reimbursement, and an unlimited PTO program called "MyTime" [5][6] - Feedback from employees is crucial for the Top Workplaces recognition, with the 2025 survey including responses from 2,251 companies [7] Group 2: Leadership and Employee Sentiment - HealthEquity's President and CEO, Scott Cutler, highlighted the importance of a thriving culture built on trust and inclusion, regardless of physical location [2] - Employees have expressed appreciation for the mental health resources provided by the company, which have positively impacted their well-being [6]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of HealthEquity, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased HealthEquity securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to HealthEquity [2]. Group 2: Company Performance and Market Reaction - HealthEquity's stock price fell by 17% on March 19, 2025, following an article that reported the company's missed profit estimates and weak guidance due to increased criminal activity targeting the firm [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [4]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of HealthEquity, Inc. due to allegations of materially misleading business information issued by the company [1] Group 1: Investigation and Legal Action - Rosen Law Firm is preparing a class action to seek recovery of investor losses for those who purchased HealthEquity securities [2] - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] Group 2: Company Performance and Market Reaction - HealthEquity's shares fell 17% on March 19, 2025, after an article reported that the company missed profit estimates and provided weak guidance due to increased criminal activity targeting the firm [3] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm has been ranked in the top 4 for securities class action settlements since 2013 and recovered over $438 million for investors in 2019 alone [4]