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Apr 30
HealthEquity Q1 2026 Earnings Report
HealthEquity reported strong growth in Q1 FY26, achieving record revenue and improved profitability.
Key Takeaways
HealthEquity delivered a solid Q1 FY26 with 15% year-over-year revenue growth, improved margins, and significantly higher net income. The company saw gains across all revenue segments and continued to expand its HSA and CDB account base.
Revenue reached $330.8 million, up from $287.6 million a year earlier.
Net income increased to $53.9 million, an 87% rise from the prior year.
Adjusted EBITDA was $140.2 million, representing 42% of revenue.
HSA assets grew to $31.3 billion, driven by higher cash and investment balances.
HealthEquity
HealthEquity
HealthEquity Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.comCustodial Revenue
CapyFin.comInterchange Revenue
CapyFin.com Forward Guidance
HealthEquity expects continued growth in FY26, with guidance raised for revenue, net income, and adjusted EBITDA.
Positive Outlook
- FY26 revenue projected between $1.285B and $1.305B.
- Net income expected to range from $173M to $188M.
- Adjusted EBITDA guided between $530M and $550M.
- Non-GAAP EPS forecasted between $3.61 and $3.78.
- Total HSA assets expected to continue growing from a strong Q1 base.
Challenges Ahead
- Increased interest expense projected at $58M for FY26.
- Stock-based compensation to remain elevated at $77M.
- Ongoing costs related to merger integration and unused office space.
- Dependency on legislative and policy environment for HSA expansion.
- Potential macroeconomic risks could affect account and asset growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income