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HealthEquity Reports First Quarter Ended April30, 2025 Financial Results

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HealthEquity (HQY) reported strong Q1 FY26 financial results with revenue reaching $330.8M, up 15% YoY. Net income surged 87% to $53.9M ($0.61 per share), while non-GAAP net income grew 22% to $85.8M ($0.97 per share). The company demonstrated robust operational metrics with 9.9M HSAs (up 9% YoY) and Total HSA Assets of $31.3B (up 15% YoY). During Q1, HQY repurchased 0.7M shares for $60.3M. For FY26, management raised guidance, projecting revenue of $1.285-1.305B and Adjusted EBITDA of $530-550M. The company enhanced its mobile experience for member security and resource access while managing $31B in HSA assets.
HealthEquity (HQY) ha riportato solidi risultati finanziari nel primo trimestre dell'anno fiscale 26, con un fatturato di 330,8 milioni di dollari, in crescita del 15% su base annua. L'utile netto è aumentato dell'87%, raggiungendo 53,9 milioni di dollari (0,61 dollari per azione), mentre l'utile netto non-GAAP è cresciuto del 22%, arrivando a 85,8 milioni di dollari (0,97 dollari per azione). L'azienda ha mostrato metriche operative robuste con 9,9 milioni di HSAs (in aumento del 9% rispetto all'anno precedente) e un totale di attività HSA pari a 31,3 miliardi di dollari (in crescita del 15% su base annua). Nel primo trimestre, HQY ha riacquistato 0,7 milioni di azioni per 60,3 milioni di dollari. Per l'anno fiscale 26, la direzione ha rivisto al rialzo le previsioni, prevedendo un fatturato compreso tra 1,285 e 1,305 miliardi di dollari e un EBITDA rettificato tra 530 e 550 milioni di dollari. L'azienda ha migliorato l'esperienza mobile per garantire la sicurezza dei membri e l'accesso alle risorse, gestendo al contempo 31 miliardi di dollari in attività HSA.
HealthEquity (HQY) reportó sólidos resultados financieros en el primer trimestre del año fiscal 26, con ingresos que alcanzaron los 330,8 millones de dólares, un aumento del 15% interanual. La utilidad neta se disparó un 87%, llegando a 53,9 millones de dólares (0,61 dólares por acción), mientras que la utilidad neta no-GAAP creció un 22% hasta 85,8 millones de dólares (0,97 dólares por acción). La compañía mostró métricas operativas robustas con 9,9 millones de HSAs (un 9% más que el año anterior) y un total de activos HSA de 31,3 mil millones de dólares (un 15% más interanual). Durante el primer trimestre, HQY recompró 0,7 millones de acciones por 60,3 millones de dólares. Para el año fiscal 26, la dirección elevó sus previsiones, proyectando ingresos de 1.285 a 1.305 mil millones de dólares y un EBITDA ajustado de 530 a 550 millones de dólares. La empresa mejoró la experiencia móvil para la seguridad de los miembros y el acceso a recursos, mientras gestiona 31 mil millones de dólares en activos HSA.
HealthEquity(HQY)� 26회계연도 1분기 강력� 재무 실적� 보고했습니다. 매출은 3� 3,080� 달러� 전년 대� 15% 증가했습니다. 순이익은 8,700� 달러(주당 0.61달러)� 87% 급증했으�, �-GAAP 순이익은 8,580� 달러(주당 0.97달러)� 22% 성장했습니다. 회사� 990� 개의 HSA(전년 대� 9% 증가)와 � HSA 자산 313� 달러(전년 대� 15% 증가)라는 견고� 운영 지표를 보여주었습니�. 1분기 동안 HQY� 60.3백만 달러� 70� 주를 자사� 매입했습니다. 26회계연도� 대� 경영진은 매출� 12� 8,500만~13� 500� 달러, 조정 EBITDA� 5� 3,000만~5� 5,000� 달러� 상향 조정했습니다. 회사� 회원 보안 � 리소� 접근성을 위해 모바� 경험� 개선했으� 310� 달러� HSA 자산� 관리하� 있습니다.
HealthEquity (HQY) a annoncé de solides résultats financiers pour le premier trimestre de l'exercice 26, avec un chiffre d'affaires atteignant 330,8 millions de dollars, en hausse de 15 % en glissement annuel. Le bénéfice net a bondi de 87 % pour atteindre 53,9 millions de dollars (0,61 dollar par action), tandis que le bénéfice net non-GAAP a augmenté de 22 % pour atteindre 85,8 millions de dollars (0,97 dollar par action). L'entreprise a démontré des indicateurs opérationnels solides avec 9,9 millions de HSAs (en hausse de 9 % en glissement annuel) et un total d'actifs HSA de 31,3 milliards de dollars (en hausse de 15 % en glissement annuel). Au cours du premier trimestre, HQY a racheté 0,7 million d'actions pour 60,3 millions de dollars. Pour l'exercice 26, la direction a relevé ses prévisions, prévoyant un chiffre d'affaires compris entre 1,285 et 1,305 milliard de dollars et un EBITDA ajusté entre 530 et 550 millions de dollars. L'entreprise a amélioré son expérience mobile pour la sécurité des membres et l'accès aux ressources, tout en gérant 31 milliards de dollars d'actifs HSA.
HealthEquity (HQY) meldete starke Finanzergebnisse für das erste Quartal des Geschäftsjahres 26 mit einem Umsatz von 330,8 Mio. USD, was einem Anstieg von 15 % gegenüber dem Vorjahr entspricht. Der Nettogewinn stieg um 87 % auf 53,9 Mio. USD (0,61 USD je Aktie), während der Non-GAAP-Nettogewinn um 22 % auf 85,8 Mio. USD (0,97 USD je Aktie) zunahm. Das Unternehmen zeigte robuste operative Kennzahlen mit 9,9 Mio. HSAs (plus 9 % gegenüber dem Vorjahr) und einem Gesamtvermögen an HSA von 31,3 Mrd. USD (plus 15 % gegenüber dem Vorjahr). Im ersten Quartal kaufte HQY 0,7 Mio. Aktien für 60,3 Mio. USD zurück. Für das Geschäftsjahr 26 hob das Management die Prognose an und erwartet einen Umsatz von 1,285 bis 1,305 Mrd. USD sowie ein bereinigtes EBITDA von 530 bis 550 Mio. USD. Das Unternehmen verbesserte das mobile Erlebnis zur Sicherheit der Mitglieder und zum Zugriff auf Ressourcen, während es 31 Mrd. USD an HSA-Vermögen verwaltet.
Positive
  • Revenue increased 15% YoY to $330.8M, reaching a record quarterly level
  • Net income surged 87% YoY to $53.9M with EPS growth of 85%
  • Strong HSA metrics with 9.9M accounts (up 9%) and $31.3B in assets (up 15%)
  • Adjusted EBITDA margin improved to 42% from 41% YoY
  • Management raised guidance for FY26
  • Active share repurchase program with $60.3M executed in Q1
Negative
  • None.

Insights

HealthEquity delivered impressive Q1 results with double-digit growth across revenue, earnings, and HSA metrics, raising FY26 guidance.

HealthEquity has delivered a stellar first quarter with revenue climbing 15% year-over-year to $330.8 million, significantly outpacing industry averages for the HSA administration sector. The company's net income surged an impressive 87% to $53.9 million, demonstrating substantial operating leverage in their business model.

The financial performance shows notable strength across all three revenue streams: service revenue ($119.8 million), custodial revenue ($156.5 million), and interchange revenue ($54.6 million). Particularly impressive is the company's improved profitability metrics, with Adjusted EBITDA increasing 19% to $140.2 million and Adjusted EBITDA margin expanding to 42% from 41% in the prior year.

The underlying operational metrics reinforce this financial momentum. HSA accounts grew 9% to 9.9 million, while HSAs with investments - their most profitable account type - increased 16% to 770,000. Total HSA assets reached $31.3 billion, up 15%, with $14.2 billion in HSA investments representing a higher-margin asset class than cash deposits.

Management's confidence is evident in both their share repurchase activity ($60.3 million during the quarter) and raised full-year guidance, now projecting revenue of $1.285-1.305 billion and Adjusted EBITDA of $530-550 million. This upward revision suggests their HSA growth trajectory and operating efficiency improvements are exceeding initial expectations.

HealthEquity's position as the largest HSA custodian by number of accounts creates significant competitive advantages through scale efficiencies and network effects that smaller competitors struggle to match. Their focus on enhancing mobile experiences addresses both security concerns and cost reduction opportunities, critical for protecting their $31 billion asset base while maintaining profitability.

Highlights of the first quarter include:

  • Revenue of $330.8Dz, an increase of 15% compared to $287.6Dz in Q1 FY25.
  • Net income of $53.9Dz, an increase of 87% compared to $28.8Dz in Q1 FY25, with non-GAAP net income of $85.8Dz, an increase of 22% compared to $70.3Dz in Q1 FY25.
  • Net income per diluted share of $0.61, an increase of 85% compared to $0.33 in Q1 FY25, with non-GAAP net income per diluted share of $0.97, an increase of 21% compared to $0.80 in Q1 FY25.
  • Adjusted EBITDA of $140.2Dz, an increase of 19% compared to $117.4Dz in Q1 FY25.
  • 9.9million HSAs, an increase of 9% compared to Q1 FY25.
  • Total HSA Assets of $31.3Dz, an increase of 15% compared to Q1 FY25.
  • 17.1million Total Accounts, including both HSAs and complementary CDBs, an increase of 7% compared to Q1 FY25.
  • The Company repurchased 0.7 million shares of its common stock for $60.3Dz.

DRAPER, Utah, June 03, 2025 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the nation's largest health savings account ("HSA") custodian by number of accounts, today announced financial results for its first quarter ended April30, 2025.

"The HealthEquity team started fiscal 2026 with a strong first quarter that included record quarterly revenue, record Adjusted EBITDA, and increased guidance for the year,� said Scott Cutler, President and CEO of HealthEquity. “We enhanced our member-first secure mobile experience to strengthen the security of our members� $31 billion of HSA Assets, increase member resources, and reduce costs. We also applaud and support the efforts of our nation’s leaders to improve and empower healthcare consumers by expanding the benefits of HSAs, as well as extending eligibility to more American families."

First quarter financial results

Revenue for the first quarter ended April30, 2025 was $330.8Dz, an increase of 15% compared to $287.6Dz for the first quarter ended April30, 2024. Revenue this quarter included: service revenue of $119.8Dz, custodial revenue of $156.5Dz, and interchange revenue of $54.6Dz.

HealthEquity reported net income of $53.9Dz, or $0.61 per diluted share, and non-GAAP net income of $85.8Dz, or $0.97 per diluted share, for the first quarter ended April30, 2025. The Company reported net income of $28.8Dz, or $0.33 per diluted share, and non-GAAP net income of $70.3Dz, or $0.80 per diluted share, for the first quarter ended April30, 2024.

Adjusted EBITDA was $140.2Dz for the first quarter ended April30, 2025, an increase of 19% compared to the first quarter ended April30, 2024. Adjusted EBITDA was 42% of revenue, compared to 41% for the first quarter ended April30, 2024.

Account and asset metrics

HSAs as of April30, 2025 were 9.9million, an increase of 9% year over year, including 770,000 HSAs with investments, an increase of 16% year over year. Total Accounts as of April30, 2025 were 17.1million, including 7.2million other consumer-directed benefits ("CDBs").

Total HSA Assets as of April30, 2025 were $31.3Dz, an increase of 15% year over year. Total HSA Assets included $17.1Dz of HSA cash and $14.2Dz of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.9Dz as of April30, 2025.

Stock repurchase program

The Company repurchased 0.7 million shares of its common stock for $60.3Dz during the first quarter ended April30, 2025. As of April30, 2025, $117.5Dz of common stock remained authorized for repurchase under the Company's stock repurchase program.

Business outlook

For the fiscal year ending January31, 2026, management expects revenues of $1.285 billion to $1.305 billion. Its outlook for net income is between $173 million and $188 million, resulting in net income of $1.96 to $2.13 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $320 million and $335 million, resulting in non-GAAP net income per diluted share of $3.61 to $3.78 (based on an estimated 89 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $530 million to $550 million.

See “Non-GAAP financial information� below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Conference call

HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Tuesday, June3, 2025 to discuss the fiscal 2026 first quarter financial results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.

Non-GAAP financial information

To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.

  • Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
  • Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
  • Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.

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HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for more than 17million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers. For more information, visit www.healthequity.com.

Forward-looking statements

This press release contains “forward-looking statements� within the meaning of the “safe harbor� provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,� “believes,� “intends,� “seeks,� “aims,� “anticipates,� “plans,� “estimates,� “expects,� “should,� “assumes,� “continues,� “could,� “will,� “future� and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:

  • our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;
  • our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
  • our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;
  • risks relating to our recent CEO transition;
  • the impact of increased fraudulent account activity involving our member accounts or our third-party service providers on our reputation and financial results;
  • our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
  • the significant competition we face and may face in the future, including from those with greater resources than us;
  • our reliance on the availability and performance of our technology and communications systems;
  • recent and potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
  • the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
  • potential regulatory changes and changes in the enforcement environment under the new U.S. administration;
  • our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
  • our reliance on partners and third-party vendors for distribution and important services;
  • our ability to develop and implement updated features for our technology platforms and communications systems; and
  • our reliance on our management team and key team members.

For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investor Relations Contact
Richard Putnam
801-727-1000
[email protected]

HealthEquity, Inc. and subsidiaries
Condensed consolidated balance sheets

(in thousands, except par value)April 30, 2025January 31, 2025
(unaudited)
Assets
Current assets
Cash and cash equivalents$287,894$295,948
Accounts receivable, net of allowance for doubtful accounts of $1,041 and $2,070 as of April30, 2025 and January31, 2025, respectively116,256118,006
Prepaid expenses and other current assets68,64663,795
Total current assets472,796477,749
Property and equipment, net3,1733,239
Operating lease right-of-use assets41,44643,185
Intangible assets, net1,179,4301,204,658
Goodwill1,648,1451,648,145
Other assets71,28371,574
Total assets$3,416,273$3,448,550
Liabilities and stockholders� equity
Current liabilities
Accounts payable$13,496$14,361
Accrued compensation24,43369,330
Accrued liabilities68,44462,631
Operating lease liabilities9,96910,001
Total current liabilities116,342156,323
Long-term liabilities
Long-term debt, net of issuance costs1,056,5661,056,301
Operating lease liabilities, non-current40,22342,219
Other long-term liabilities22,17822,962
Deferred tax liability57,15855,834
Total long-term liabilities1,176,1251,177,316
Total liabilities1,292,4671,333,639
Commitments and contingencies
Stockholders� equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of April30, 2025 and January31, 2025, respectively
Common stock, $0.0001 par value, 900,000 shares authorized, 86,714 and 86,536 shares issued and outstanding as of April30, 2025 and January31, 2025, respectively99
Additional paid-in capital1,905,4441,905,628
Accumulated earnings218,353209,274
Total stockholders� equity2,123,8062,114,911
Total liabilities and stockholders� equity$3,416,273$3,448,550

HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of operations and comprehensive income (unaudited)

Three months ended April 30,
(in thousands, except per share data)2025
2024
Revenue
Service revenue$119,784$118,214
Custodial revenue156,455121,644
Interchange revenue54,60547,739
Total revenue330,844287,597
Cost of revenue
Service costs88,00582,347
Custodial costs10,7479,057
Interchange costs7,7819,055
Total cost of revenue106,533100,459
Gross profit224,311187,138
Operating expenses
Sales and marketing25,98423,494
Technology and development61,43656,090
General and administrative25,53638,236
Amortization of acquired intangible assets27,00225,545
Merger integration1,2752,143
Total operating expenses141,233145,508
Income from operations83,07841,630
Other expense
Interest expense(14,858)(11,795)
Other income, net2,7333,404
Total other expense(12,125)(8,391)
Income before income taxes70,95333,239
Income tax provision17,0384,426
Net income and comprehensive income$53,915$28,813
Net income per share:
Basic$0.62$0.33
Diluted$0.61$0.33
Weighted-average number of shares used in computing net income per share:
Basic86,65586,472
Diluted88,41588,324

HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of cash flows (unaudited)

Three months ended April 30,
(in thousands)20252024
Cash flows from operating activities:
Net income$53,915$28,813
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization38,74138,938
Stock-based compensation14,33632,020
Amortization of debt discount and issuance costs265703
Deferred taxes1,324(5,388)
Changes in operating assets and liabilities:
Accounts receivable, net1,750(1,325)
Other assets(5,702)(227)
Operating lease right-of-use assets1,6491,741
Accrued compensation(42,210)(25,757)
Accounts payable, accrued liabilities, and other current liabilities3,422(2,347)
Operating lease liabilities, non-current(1,968)(1,745)
Other long-term liabilities(784)3
Net cash provided by operating activities64,73865,429
Cash flows from investing activities:
Purchases of software and capitalized software development costs(16,057)(13,106)
Purchases of property and equipment(86)(721)
Acquisitions of HSA portfolios(256,123)
Net cash used in investing activities(16,143)(269,950)
Cash flows from financing activities:
Repurchases of common stock(59,065)
Proceeds from long-term debt50,000
Settlement of client-held funds obligation, net1,451(546)
Proceeds from exercise of common stock options9652,317
Net cash provided by (used in) financing activities(56,649)51,771
Decrease in cash and cash equivalents(8,054)(152,750)
Beginning cash and cash equivalents295,948403,979
Ending cash and cash equivalents$287,894$251,229

HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of cash flows (unaudited) (continued)

Three months ended April 30,
(in thousands)20252024
Supplemental cash flow data:
Interest expense paid in cash$20,809$18,850
Income tax payments (refunds), net(46)277
Supplemental disclosures of non-cash investing and financing activities:
Purchases of software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation2,7742,404
Purchases of property and equipment included in accounts payable or accrued liabilities54632
Repurchases of common stock included in accrued liabilities2,000
Exercise of common stock options receivable42

Stock-based compensation expense (unaudited)

Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income is as follows:

Three months ended April 30,
(in thousands)2025
2024
Cost of revenue$3,387$4,525
Sales and marketing4,8704,323
Technology and development5,9205,940
General and administrative15917,232
Total stock-based compensation expense$14,336$32,020

Total Accounts (unaudited)

(in thousands, except percentages)April 30, 2025April 30, 2024% ChangeJanuary 31, 2025
HSAs9,8869,0979%9,889
New HSAs from sales - Quarter-to-date150194(23)%471
New HSAs from sales - Year-to-date150194(23)%1,040
New HSAs from acquisitions - Year-to-date400*616
HSAs with investments77066516%753
CDBs7,1746,9134%7,144
Total Accounts17,06016,0107%17,033
Average Total Accounts - Quarter-to-date17,12215,9198%16,677
Average Total Accounts - Year-to-date17,12215,9198%16,302

* Not meaningful

HSA Assets (unaudited)

(in millions, except percentages)April 30, 2025April 30, 2024% ChangeJanuary 31, 2025
HSA cash$17,066$15,8508%$17,435
HSA investments14,20511,42724%14,676
Total HSA Assets31,27127,27715%32,111
Average daily HSA cash - Quarter-to-date17,28115,38812%16,634
Average daily HSA cash - Year-to-date17,28115,38812%16,206

The following table summarizes the amount of HSA cash held by our depository partners and insurance company partners that is expected to reprice by fiscal year and the respective average annualized yield currently earned on that HSA cash as of April30, 2025:

Year ending January 31, (in billions, except percentages)HSA cash expected to
reprice
Average annualized
yield
Remainder of 2026$1.72.4%
20274.01.9%
20282.24.0%
20291.53.7%
Thereafter7.04.4%
Total (1)$16.43.5%
  1. Excludes $0.7 billion of HSA cash held in floating-rate contracts as of April30, 2025.

Client-held funds (unaudited)

(in millions, except percentages)April 30, 2025April 30, 2024% ChangeJanuary 31, 2025
Client-held funds$925$8588%$896
Average daily Client-held funds - Quarter-to-date9028407%798
Average daily Client-held funds - Year-to-date9028407%817

Reconciliation of net income to Adjusted EBITDA (unaudited)

Three months ended April 30,
(in thousands)20252024
Net income$53,915$28,813
Interest income(2,733)(3,881)
Interest expense14,85811,795
Income tax provision17,0384,426
Depreciation and amortization11,73913,393
Amortization of acquired intangible assets27,00225,545
Stock-based compensation expense14,33632,020
Merger integration expenses1,2752,143
Amortization of incremental costs to obtain a contract1,9261,632
Costs associated with unused office space852790
Other759
Adjusted EBITDA$140,208$117,435

Net income as a percentage of revenue (unaudited)

Three months ended April 30,
(in thousands, except percentages)2025
2024
$Change%Change
Net income$53,915$28,813$25,10287%
As a percentage of revenue16%10%

Adjusted EBITDA as a percentage of revenue (unaudited)

Three months ended April 30,
(in thousands, except percentages)2025
2024
$Change%Change
Adjusted EBITDA$140,208$117,435$22,77319%
As a percentage of revenue42%41%

Reconciliation of net income outlook to Adjusted EBITDA outlook (unaudited)

Outlook for the year ending
(in millions)January 31, 2026
Net income$173 - 188
Interest income(9)
Interest expense58
Income tax provision58 - 63
Depreciation and amortization47
Amortization of acquired intangible assets108
Stock-based compensation expense77
Merger integration expenses7
Amortization of incremental costs to obtain a contract8
Costs associated with unused office space3
Adjusted EBITDA$530 - 550

Reconciliation of net income to non-GAAP net income (unaudited)

Three months ended April 30,
(in thousands, except per share data)2025
2024
Net income$53,915$28,813
Income tax provision17,0384,426
Income before income taxes - GAAP70,95333,239
Non-GAAP adjustments:
Amortization of acquired intangible assets27,00225,545
Stock-based compensation expense14,33632,020
Merger integration expenses1,2752,143
Costs associated with unused office space852790
Total adjustments to income before income taxes - GAAP43,46560,498
Income before income taxes - Non-GAAP114,41893,737
Income tax provision - Non-GAAP (1)28,60423,434
Non-GAAP net income85,81470,303
Diluted weighted-average shares88,41588,324
GAAP net income per diluted share$0.61$0.33
Non-GAAP net income per diluted share$0.97$0.80
  1. The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

Reconciliation of net income outlook to non-GAAP net income outlook (unaudited)

Outlook for the year ending
(in millions, except per share data)January 31, 2026
Net income$173 - 188
Income tax provision58 - 63
Income before income taxes - GAAP231 - 251
Non-GAAP adjustments:
Amortization of acquired intangible assets108
Stock-based compensation expense77
Merger integration expenses7
Costs associated with unused office space3
Total adjustments to income before income taxes - GAAP195
Income before income taxes - Non-GAAP426 - 446
Income tax provision - Non-GAAP (1)106 - 111
Non-GAAP net income$320 - 335
Diluted weighted-average shares89
GAAP net income per diluted share (2)$1.96 - 2.13
Non-GAAP net income per diluted share (2)$3.61 - 3.78
  1. The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
  2. GAAP and non-GAAP net income per diluted share may not calculate due to rounding.

Certain terms

TermDefinition
HSAHealth Savings Account, which is a financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDBConsumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs� and “HRAs�), Consolidated Omnibus Budget Reconciliation Act (“COBRA�) administration, commuter and other benefits.
HSA memberConsumers with HSAs that we serve.
Total HSA AssetsHSA members� custodial cash assets held by our federally insured depository partners and our insurance company partners. Total HSA Assets also includes HSA members' investments held by our custodial investment fund partner.
ClientOur employer clients.
Total AccountsThe sum of HSAs and CDBs on our platforms.
Client-held fundsDeposits held on behalf of our Clients to facilitate administration of our CDBs.
Network PartnerOur health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDAEarnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
Non-GAAP net incomeCalculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted shareCalculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

FAQ

What were HealthEquity's (HQY) key financial results for Q1 2025?

HealthEquity reported Q1 revenue of $330.8M (up 15% YoY), net income of $53.9M (up 87%), and Adjusted EBITDA of $140.2M (up 19%). EPS grew to $0.61 from $0.33 year-over-year.

How many HSA accounts does HealthEquity (HQY) manage and what are their total assets?

HealthEquity manages 9.9 million HSAs (up 9% YoY) with total HSA assets of $31.3 billion (up 15% YoY), including $17.1B in HSA cash and $14.2B in HSA investments.

What is HealthEquity's (HQY) financial guidance for fiscal year 2026?

HealthEquity expects FY26 revenue of $1.285-1.305B, net income of $173-188M ($1.96-2.13 per share), and Adjusted EBITDA of $530-550M.

How much stock did HealthEquity (HQY) repurchase in Q1 2025?

HealthEquity repurchased 0.7 million shares for $60.3M during Q1, with $117.5M remaining authorized under their repurchase program.

What was HealthEquity's (HQY) revenue breakdown for Q1 2025?

Revenue breakdown: service revenue of $119.8M, custodial revenue of $156.5M, and interchange revenue of $54.6M, totaling $330.8M.
Healthequity Inc

NASDAQ:HQY

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HQY Stock Data

8.05B
84.52M
2.19%
108.34%
6.28%
Health Information Services
Services-business Services, Nec
United States
DRAPER