HealthEquity (HQY) investor relations material

Executive summary

• Net income rose 29% year-over-year to $69.4 million, with Adjusted EBITDA up 17% to $164.5 million and margin expanding to 46% from 42%.

• Revenue grew 7% year-over-year to $354.6 million, driven by increases in service, custodial, and interchange revenue.

• Total HSA assets climbed 19% to $37.1 billion, with HSA accounts up 8% to 10.6 million and 172,000 new HSAs added.

• Digital engagement accelerated, with mobile monthly active usage up 90% year-over-year and two-thirds of Marketplace transactions via mobile app.

• AI-driven automation reduced manual service efforts by over 90% in targeted workflows, improving efficiency and lowering fraud costs by nearly 90% year-over-year.

Financial highlights

• Service revenue was $122.9 million (up 3%), custodial revenue $174.3 million (up 11%), and interchange revenue $57.4 million (up 5%).

• Gross profit hit a record $256.3 million (72% of revenue, up from 68% last year).

• Net income per diluted share rose 34% to $0.82; non-GAAP net income per diluted share up 28% to $1.24.

• Operating cash flow for the quarter was $97.5 million, up from $64.7 million year-over-year.

• Ended quarter with $265.4 million in cash and $943 million debt outstanding.

Outlook and guidance

• Fiscal 2027 revenue expected between $1.41 billion and $1.42 billion.

• GAAP net income forecasted at $242–$248 million ($2.88–$2.95/share); non-GAAP net income $392–$398 million ($4.66–$4.73/share).

• Adjusted EBITDA projected at $625–$633 million.

• Guidance reflects continued investment in technology, security, Marketplace expansion, and additional share repurchases.

• Technology and development expenses will rise as platform modernization continues.