HealthEquity (HQY) investor relations material

Executive summary

• Achieved record-setting second quarter with revenue up 8% to $350.7 million, net income up 10% to $65.6 million, and Adjusted EBITDA up 11% to $167.0 million, raising full-year fiscal 2027 guidance.

• HSA accounts reached a record 10.7 million (up 8% YoY), with HSA assets at $37.9 billion (up 14% YoY), and robust Marketplace activity.

• Enhanced digital engagement, technology-enabled efficiency, and disciplined capital allocation supported model durability.

• Returned $108.1 million to shareholders via stock repurchases in the quarter.

Financial highlights

• Service revenue was $124.4 million (up 6% YoY), custodial revenue $175.9 million (up 10% YoY), and interchange revenue $50.4 million (up 5% YoY).

• Gross profit for the quarter was $258 million (74% of revenue, up from 71% last year).

• Net income was $65.6 million GAAP ($0.78/share); non-GAAP net income $103.8 million ($1.24/share).

• Adjusted EBITDA was $167 million (up 11% YoY), with a margin of 48%.

• Cash and cash equivalents stood at $256 million as of July 31, 2026.

Outlook and guidance

• Fiscal 2027 revenue expected between $1.411 billion and $1.421 billion.

• GAAP net income forecasted at $242–$248 million ($2.88–$2.96/share); non-GAAP net income $392–$398 million ($4.66–$4.73/share).

• Adjusted EBITDA guidance raised to $628–$636 million.

• Guidance reflects ongoing tech investments, growth initiatives, share repurchases, and potential debt reduction.