HealthEquity (HQY) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue reached $1.2 billion, up 20% year-over-year; Q4 revenue was $311.8 million, up 19% year-over-year.

• Adjusted EBITDA for FY25 was $471.8 million, up 28% year-over-year; Q4 Adjusted EBITDA was $107.8 million, up 9%.

• Ended Q4 with 17 million total accounts, including 9.9 million HSAs (up 14%) and $32.1 billion in HSA assets (up 27%).

• Opened 1 million new HSAs from sales for the year, a company milestone; acquired BenefitWallet HSA portfolio, adding 616,000 HSAs and $2.7 billion in assets.

• Launched the Assist portfolio, a suite of technology-driven solutions to enhance benefits engagement and transparency.

Financial highlights

• FY25 service revenue was $478.3 million, custodial revenue $545.4 million, and interchange revenue $176.0 million.

• Gross profit for FY25 was $777.3 million (61% of revenue); Q4 gross profit was $189 million.

• Q4 GAAP net income was $26.4 million ($0.30 per share); FY25 net income was $96.7 million, up 74% year-over-year.

• Non-GAAP net income for FY25 was $277.3 million; Q4 non-GAAP net income was $61.3 million.

• Cash and cash equivalents at year-end were $295.9 million; outstanding debt was $1.06 billion.

Outlook and guidance

• FY26 revenue expected between $1.28 billion and $1.305 billion.

• GAAP net income guidance: $164–$179 million ($1.85–$2.01 per share); non-GAAP net income: $318–$333 million ($3.57–$3.74 per share).

• Adjusted EBITDA expected between $525 million and $545 million.

• Average yield on HSA cash projected at 3.45% for fiscal 2026.

• Guidance includes continued investments in technology, security, and share repurchases.