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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.

Total Revenue
$331M
Previous year: $288M
+15.0%
EPS
$0.97
Previous year: $0.8
+21.2%
Total HSAs
9.89M
Previous year: 9.1M
+8.7%
HSAs with Investments
770K
Previous year: 665K
+15.8%
Total CDBs
7.17M
Previous year: 6.91M
+3.8%
Gross Profit
$224M
Previous year: $162M
+38.8%
Cash and Equivalents
$288M
Previous year: $251M
+14.6%
Free Cash Flow
$64.7M
Previous year: $64.7M
+0.0%
Total Assets
$3.42B
Previous year: $3.25B
+5.2%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

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