Workflow
Health Savings Accounts (HSAs)
icon
Search documents
Reasons to Add HealthEquity Stock to Your Portfolio for Now
ZACKS· 2025-10-16 18:16
Core Insights - HealthEquity, Inc. (HQY) is experiencing growth driven by its business model and strategy, particularly in Health Savings Accounts (HSAs), following a strong second-quarter fiscal 2026 performance [1][7] - The company's shares have increased by 9.5% over the past six months, outperforming the industry growth of 3.8% and the S&P 500's increase of 28.3% [1] Company Performance - HealthEquity has a market capitalization of $8.1 billion and projects a 21.7% growth over the next five years [2] - The company has surpassed earnings estimates in three of the last four quarters, with an average surprise of 11.1% [2] - In Q2 fiscal 2026, HealthEquity reported solid top-line and bottom-line growth, with total HSA assets rising 12% year over year to $33.1 billion [7][9] Health Savings Accounts (HSAs) Growth - As of July 31, 2025, HealthEquity managed 10 million HSAs, a 6% increase year over year, with 782,000 HSAs having investments, up 10% year over year [4] - Total HSA assets reached $33.1 billion, including $17 billion in cash and $16.1 billion in investments [5] Technological Advancements - The company is advancing in AI and mobile-first transformation, enhancing efficiency and customer satisfaction through AI-powered claims adjudication and cloud migration [6][8] - HealthEquity's secure mobile app features multifactor authentication and digital wallet integration, which are expected to deepen member engagement and increase transaction volumes [8] Financial Estimates - The Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has increased by 13 cents to $3.86, with Q3 fiscal 2026 revenue estimates at $319.9 million, reflecting a 6.5% year-over-year rise [12]
Supporting Financial Wellbeing is Critical to Recruitment and Retention
Prnewswire· 2025-10-15 13:00
Financial Wellbeing as a Strategic Imperative Financial wellbeing has become a top priority for employees navigating rising economic pressures. Nearly half of employers (47%) report an increased focus on financial wellbeing this year, second only to emotional wellbeing (56%). This shift has led to a two-point increase in the number of employers offering at least one financial wellbeing initiative. Accessibility StatementSkip Navigation ROLLING MEADOWS, Ill., Oct. 15, 2025 /PRNewswire/ -- Amid inflation, esc ...
HealthEquity Introduces GLP-1 Telehealth and Direct HSA Enrollment Platforms
Globenewswire· 2025-10-14 12:00
Core Insights - HealthEquity, Inc. has launched two initiatives aimed at expanding access to affordable healthcare solutions for American families during the open enrollment season [1][10] - The initiatives include a curated platform for GLP-1 weight management medications and a direct HSA enrollment platform [1][7] HSA Growth and Market Context - Health Savings Accounts (HSAs) are experiencing significant growth, with assets reaching nearly $147 billion across over 39 million accounts by the end of 2024 [2] - HSA members spent $42 billion on medical expenses in 2024, marking a 10% increase from 2023 [2] - 44% of adults are struggling to afford healthcare, highlighting the need for affordable solutions [2] New Offerings - The GLP-1 telehealth offering connects HSA members with affordable weight management solutions, addressing a rapidly growing cost category in healthcare [4][5] - GLP-1 medications account for 6.7% of total drug costs, with five GLP-1 drugs representing 21% of overall prescription costs [5] - The offering includes physician consultations, prescription management, and care coordination, all payable through HSA funds [6] Direct HSA Enrollment Platform - The direct HSA enrollment platform allows individuals to open and fund HSAs directly through HealthEquity's mobile and web platforms [7] - Recent ACA regulatory changes will make Bronze plans HSA-qualified starting in 2026, potentially making over 7 million Americans eligible for HSAs [8] - This demographic, earning between $75,000 and $120,000 annually, faces financial pressure while managing healthcare costs [8] Strategic Focus - The initiatives align with HealthEquity's mission to help individuals save, spend, and invest for health [10] - The company emphasizes the importance of integrating solutions into existing platforms to enhance accessibility and cost-saving opportunities [3][9]
How To Reduce Your Social Security Taxes, According to Fidelity
Yahoo Finance· 2025-09-27 11:10
Core Insights - The recent passage of the One, Big, Beautiful Bill Act includes a temporary tax deduction aimed at reducing taxation on Social Security benefits for individuals over 65, with a deduction of $6,000 for individuals and $12,000 for couples [1] Taxation of Social Security Benefits - Up to 85% of Social Security benefits can be taxed based on household income, with thresholds set at $34,000 for individuals and $44,000 for couples for maximum taxation [3] - Income levels between $25,000 and $34,000 for individuals or $32,000 and $44,000 for couples result in up to 50% of benefits being taxable, while incomes below $25,000 for individuals or $34,000 for couples are not taxed [3] Other Tax Considerations in Retirement - Withdrawals from traditional IRAs and 401(k) accounts are taxable as regular income, which should be included when calculating total income for tax bracket determination [4] - Distributions from Roth IRAs, 401(k)s, and health savings accounts (HSAs) are not taxed, as these accounts are funded with after-tax money [5] Strategies to Reduce Tax Liability - Contributing to a Roth IRA or 401(k) can help reduce future tax liabilities on Social Security benefits, as these accounts allow for tax-free withdrawals [7] - Converting traditional IRA or 401(k) savings to a Roth account incurs taxes at the time of conversion but can lower taxable income in the future, potentially reducing the taxable portion of Social Security benefits [7]
HealthEquity Strengthens Executive Leadership Team with Strategic Appointments to Drive Growth and Innovation
Globenewswire· 2025-09-25 13:00
Core Insights - HealthEquity, Inc. has appointed Mukund Ramachandran as Chief Marketing Officer and Garett Kitch as Senior Vice President of Client Sales & Relationship Management to enhance its strategic vision and leverage market opportunities [1][2][9] Company Developments - The appointments come as HealthEquity is experiencing record financial performance and is positioned to benefit from the largest HSA eligibility expansion in 20 years due to recent federal legislation [2][3] - The new legislation allows Direct Primary Care arrangements, low-cost telehealth services, and individual Bronze and Catastrophic ACA plans to be paired with HSAs starting January 1, 2026, creating significant market expansion opportunities [3] Executive Profiles - Mukund Ramachandran has over 25 years of experience in B2B marketing and communications, previously serving as SVP at Mastercard, where he drove global messaging and sales enablement [4][5] - Garett Kitch brings two decades of experience in sales leadership, having served as Chief Sales Officer at EverQuote and held significant roles at eHealth, Inc. and Vivint [6][7] Strategic Focus - Ramachandran will develop and execute HealthEquity's marketing strategy, focusing on product marketing and brand engagement across B2B and B2C audiences [5] - Kitch will implement a multi-year sales strategy aimed at organic growth and new client acquisition, while fostering relationships with key clients and partners [7] Technological Innovation - HealthEquity is committed to leveraging technology to enhance member and client experiences, including AI-powered solutions for claims processing and a mobile experience with 1.7 million downloads [8] - The new leadership is expected to drive the company's vision of helping Americans save, spend, and invest for health, particularly in light of the HSA expansion [9][10]
HealthEquity Stock Gains as Q2 Earnings Beat Estimates, Revenues Up Y/Y
ZACKS· 2025-09-03 18:26
Core Insights - HealthEquity, Inc. (HQY) reported adjusted earnings per share (EPS) of $1.08 for the second quarter of fiscal 2026, exceeding the Zacks Consensus Estimate by 17.4% and showing a year-over-year improvement of 25.6% [1][9] - The company generated revenues of $325.8 million in the fiscal second quarter, beating the Zacks Consensus Estimate by 2.2% and reflecting an 8.6% increase from the prior-year quarter [2][9] - Total Health Savings Account (HSA) assets reached $33.1 billion at the end of July 31, 2025, marking a 12% year-over-year increase [4][9] Revenue Performance - Service revenues amounted to $117.9 million, up 0.9% year over year, driven by a higher number of HSAs and invested HSA assets [6] - Custodial revenues totaled $159.9 million, reflecting a 15.3% increase from the previous year [7] - Interchange revenues reached $48.1 million, up 8% year over year [7] HSA Growth Metrics - As of July 31, 2025, HealthEquity served as a non-bank custodian for 10 million HSAs, a 6% increase year over year [3] - The number of HSAs with investments rose to 782,000, up 10% year over year [3] - Total accounts, including HSAs and Consumer Direct Benefits (CDBs), reached 17.1 million [3] Margin and Profitability - Gross profit increased by 13.9% year over year to $232.6 million, with a gross margin expansion of 340 basis points to 71.4% [8] - Operating profit totaled $89.6 million, a significant increase of 52.1% from the prior-year quarter, with an operating margin expansion of 790 basis points to 27.5% [11] Financial Position - At the end of the second quarter of fiscal 2026, the company had cash and cash equivalents of $304.5 million, up from $287.9 million at the end of the first quarter [12] - Total debt at the end of the second quarter was $1.01 billion, down from $1.06 billion at the end of the first quarter [12] - Cumulative net cash provided by operating activities reached $200.6 million, compared to $173.6 million a year ago [13] Future Guidance - HealthEquity updated its revenue projections for fiscal 2026 to a range of $1.290 billion to $1.310 billion, with adjusted EPS expected to be between $3.74 and $3.91 [14]
HealthEquity Stock Climbs After Q2 Earnings Report: Here's Why
Benzinga· 2025-09-02 20:41
Core Insights - HealthEquity reported adjusted earnings of $1.08 per share, exceeding the Street estimate of 92 cents [1] - Quarterly revenue reached $325.83 million, surpassing the analyst estimate of $320.82 million [1] - The company experienced a 9% revenue growth, a record gross margin of 71%, and a record adjusted EBITDA of $151 million [2] Outlook and Guidance - HealthEquity raised its fiscal 2026 adjusted EPS guidance to a range of $3.74 to $3.91, compared to the previous estimate of $3.72 [3] - The fiscal 2026 revenue guidance was also increased to between $1.29 billion and $1.31 billion, against the prior estimate of $1.3 billion [3] Key Metrics - The company reported 10.0 million Health Savings Accounts (HSAs), a 6% increase compared to the second quarter of FY25 [5] - Total HSA assets amounted to $33.1 billion, reflecting a 12% increase from the second quarter of FY25 [5] - The total number of accounts, including HSAs and complementary Consumer Directed Benefits (CDBs), reached 17.1 million, a 5% increase compared to the second quarter of FY25 [5]
Reasons to Hold HealthEquity Stock in Your Portfolio for Now
ZACKS· 2025-08-14 16:06
Core Insights - HealthEquity, Inc. (HQY) is experiencing growth driven by its business model and strategy, particularly in Health Savings Accounts (HSAs), despite facing data security threats [1][8] - The company's shares have declined 7% year-to-date, underperforming the industry and contrasting with a 9.5% increase in the S&P 500 [1] Company Performance - HealthEquity has a market capitalization of $8.04 billion and projects a 20.8% growth over the next five years [2] - The company has surpassed earnings estimates in three of the last four quarters, with an average surprise of 12.41% [2] HSA Growth - As of April 30, 2025, HealthEquity managed 9.9 million HSAs, a 9% increase year-over-year, with 770,000 HSAs having investments, up 16% [3] - Total HSA assets reached $31.3 billion, reflecting a 15% year-over-year increase, including $17.1 billion in HSA cash (up 7.5%) and $14.2 billion in HSA investments (up 24.6%) [4] Technological Advancements - The company's focus on AI and mobile-first strategies is enhancing efficiency and engagement, with over 1.2 million app downloads and a shift to secure app-based access [5] - AI-driven systems are improving claims processing and reducing call volumes, contributing to member satisfaction and operational efficiency [5] Recent Financial Results - HealthEquity reported strong first-quarter fiscal 2026 results, with significant growth in both top and bottom lines, and a reduction in fraud-related costs from $11 million to $3 million [6][7] - The company added 150,000 new HSA accounts in the first quarter, contributing to the overall growth in total HSA assets [6] Estimate Trends - There has been a positive revision trend for fiscal 2026 earnings estimates, with the Zacks Consensus Estimate for EPS increasing by 3 cents to $3.73 [9] - The consensus estimate for second-quarter fiscal 2026 revenues is $318.8 million, indicating a 6.3% rise year-over-year, while EPS is expected to improve by 6.9% [9]
HealthEquity Announces Dates to Report Second Quarter Earnings and Presentations at Investor Conferences
Globenewswire· 2025-08-06 13:00
Core Viewpoint - HealthEquity, Inc. plans to release its second quarter fiscal 2026 financial results on September 2, 2025, followed by a conference call for investors to discuss the results [1] Financial Results Announcement - The financial results will be released after the close of regular stock market trading hours on September 2, 2025 [1] - A conference call will be held at 4:30 p.m. Eastern Time on the same day to review the financial results [2] Upcoming Investor Conferences - HealthEquity management will present and meet with investors at several upcoming conferences: - Wells Fargo 2025 Healthcare Conference on September 3, 2025, at 8:00 a.m. Eastern Time [3] - Jefferies 2025 Fintech Conference on September 4, 2025, at 10:40 a.m. Eastern Time [4] - Morgan Stanley 23 Annual Global Healthcare Conference on September 8, 2025, at 10:45 a.m. Eastern Time [5] - Baird 2025 Global Healthcare Conference on September 9, 2025, at 2:00 p.m. Eastern Time [6] - Deutsche Bank's 2025 Healthcare Summit on September 10, 2025, with one-on-one meetings scheduled [7][8] Company Overview - HealthEquity administers health savings accounts (HSAs) and other consumer-directed benefits for over 17 million accounts [8] - The company collaborates with employers, benefits advisors, and health and retirement plan providers to empower healthcare consumers [8]
HealthEquity Stock Gains as Q1 Earnings Beat Estimates, Revenues Up Y/Y
ZACKS· 2025-06-04 17:31
Core Insights - HealthEquity, Inc. (HQY) reported adjusted earnings per share (EPS) of 97 cents for the first quarter of fiscal 2026, exceeding the Zacks Consensus Estimate by 19.8% and showing a year-over-year improvement of 21.3% [2][10] - The company generated revenues of $330.8 million in the fiscal first quarter, surpassing the Zacks Consensus Estimate by 3% and reflecting a 15% increase from the prior-year quarter [3][10] - HealthEquity's total number of Health Savings Accounts (HSAs) reached 9.9 million, a 9% year-over-year increase, with total HSA assets amounting to $31.3 billion, up 15% year over year [4][5] Revenue Breakdown - Service revenues for the quarter totaled $119.8 million, up 1.3% year over year, driven by an increase in HSAs and invested HSA assets [7] - Custodial revenues reached $156.5 million, marking a 28.6% increase from the previous year, while interchange revenues totaled $54.6 million, up 14.4% year over year [8][10] Margin and Profitability - HealthEquity's gross profit rose 19.9% to $224.3 million, with the gross margin expanding by 270 basis points to 67.8% [11][10] - Operating profit improved significantly by 99.6% to $83.1 million, with the operating margin expanding by 1060 basis points to 25.1% [13][10] Financial Position - At the end of the first quarter of fiscal 2026, HealthEquity had cash and cash equivalents of $287.9 million and total debt of $1.06 billion, unchanged from the previous quarter [14] - Net cash provided by operating activities was $64.7 million, slightly down from $65.4 million a year ago [14] Guidance and Future Outlook - HealthEquity has reiterated its revenue guidance for fiscal 2026, projecting revenues between $1.285 billion and $1.305 billion, with adjusted EPS expected in the range of $3.61-$3.78 [15] - The company added 150,000 new HSAs during the quarter and reported a significant reduction in fraud-related costs, which dropped from $11 million to $3 million, enhancing margins and member trust [17][18]