Financial Data and Key Metrics Changes - In Q4, revenue increased by 19% year over year, with adjusted EBITDA rising by 9% [9][15] - Total accounts reached 17 million, including 9.9 million HSAs, with HSA assets growing by 27% to $32 billion [9][10] - Net income for Q4 was $26.4 million, or $0.30 per share on a GAAP basis, while non-GAAP net income was $61.3 million, or $0.69 per share [18][19] Business Line Data and Key Metrics Changes - Service revenue grew by 19% year over year, reaching a record $124.2 million, while custodial revenue increased by 37% to $144.1 million [15][17] - Interchange revenue grew by 13% to $43.5 million, driven by increased contributions and member payments [17] - The number of HSA members who invest grew by 23% year over year, with invested assets up 44% to $14.7 billion [9][10] Market Data and Key Metrics Changes - The annualized yield on HSA cash was 3.23% for the quarter, with enhanced rate placements making up 49% of HSA cash placements [17] - The company achieved a milestone of opening 1 million new HSAs from sales for the year, with 471,000 new HSAs opened in Q4 alone [9][10] Company Strategy and Development Direction - The company is focusing on a member-first secure mobile experience, consolidating platforms, and enhancing technological capabilities in mobility and AI [11][12] - The newly announced Assist portfolio aims to help employers and employees maximize benefits offerings, with products like Analyzer and Navigator [13][14] - The company is committed to reducing service costs while enhancing customer experiences, despite facing increased cyber threats and fraud attacks [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth trajectory, with guidance for fiscal year 2026 revenue expected between $1.28 billion and $1.305 billion [19][20] - The company anticipates elevated service costs in the first half of the year due to fraud prevention efforts, with expectations for normalization in the latter half [21][22] - Management highlighted strong cash flows and the potential for portfolio acquisitions, maintaining a focus on organic growth [21][65] Other Important Information - The company repurchased $122 million of its outstanding shares during fiscal year 2025, with $178 million remaining under the share repurchase authorization [19] - The company is addressing legislative opportunities for HSA expansion, with ongoing discussions in Congress [85][86] Q&A Session Summary Question: Follow-up on incremental service costs - Management indicated that the $17 million in Q4 service costs was due to fraud-related reimbursements and excess contact center costs, expecting some continuation into the first half of fiscal year 2026 [25][27] Question: Earnings guidance and potential risks - Management noted that custodial line trends and service modernization efforts are expected to drive growth, with a focus on managing expenses to grow slower than revenue [32][36] Question: Monetization of Assist initiative - The Assist initiative focuses on enrollment and engagement, with products like Analyzer and Navigator aimed at helping clients manage healthcare costs [41][43] Question: HSA member growth from smaller employers - Management confirmed that growth in HSA accounts is increasingly coming from small and medium-sized businesses, with a focus on leveraging technology for better engagement [57][60] Question: Fraud activity resolution - Management clarified that the fraud incidents involved multiple bad actors and emphasized ongoing efforts to enhance security measures, including multi-factor authentication [92][96]