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HealthEquity
🇺🇸 NASDAQ:HQY
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•
Oct 31, 2024

HealthEquity Q3 2025 Earnings Report

HealthEquity's third quarter performance in fiscal year 2025 showed strong growth in revenue, HSAs, and total accounts, driven by Team Purple's efforts and strategic investments.

Key Takeaways

HealthEquity reported a 21% increase in revenue to $300.4 million, with net income at $5.7 million and non-GAAP net income at $69.4 million. The company saw growth in HSAs to 9.5 million and total accounts to 16.5 million. They repurchased 0.7 million shares for $60 million and raised fiscal year 2025 guidance.

Revenue increased by 21% to $300.4 million compared to Q3 FY24.

HSAs grew to 9.5 million, a 15% increase year-over-year.

Total accounts, including HSAs and CDBs, reached 16.5 million, up 8% from Q3 FY24.

The company repurchased 0.7 million shares of its common stock for $60.0 million.

Total Revenue
$300M
Previous year: $249M
+20.5%
EPS
$0.78
Previous year: $0.6
+30.0%
Total HSAs
9.5M
Previous year: 8.3M
+14.5%
HSAs with investments
717K
Previous year: 592K
+21.1%
Total Accounts
16.5M
Previous year: 15.3M
+7.8%
Gross Profit
$197M
Previous year: $158M
+24.4%
Cash and Equivalents
$322M
Previous year: $334M
-3.6%
Free Cash Flow
$90.3M
Previous year: $56.6M
+59.6%
Total Assets
$3.49B
Previous year: $3.09B
+12.8%

HealthEquity

HealthEquity

HealthEquity Revenue by Segment

Forward Guidance

For the fiscal year ending January 31, 2025, HealthEquity anticipates revenue between $1.185 billion and $1.195 billion, net income of $88 million to $96 million ($0.99 to $1.08 per diluted share), non-GAAP net income of $274 million to $281 million ($3.08 to $3.16 per diluted share), and Adjusted EBITDA of $470 million to $480 million. For fiscal year 2026, they expect revenue of approximately $1.275 billion to $1.295 billion and Adjusted EBITDA of approximately 41.5% to 42.5% of revenue.

Positive Outlook

  • Revenue is expected to be between $1.185 billion and $1.195 billion.
  • Net income is projected to be between $88 million and $96 million.
  • Non-GAAP net income is anticipated to be between $274 million and $281 million.
  • Adjusted EBITDA is expected to range from $470 million to $480 million.
  • For fiscal year 2026, revenue is projected to be between $1.275 billion and $1.295 billion.

Challenges Ahead

  • Net income per diluted share is expected to be between $0.99 and $1.08.
  • Non-GAAP net income per diluted share is projected to be between $3.08 and $3.16.
  • Assumes an average annualized yield on HSA cash of approximately 3.4% to 3.5%.
  • The net income outlook for fiscal year ending January 31, 2026 is not available without unreasonable efforts.
  • Future cybersecurity breaches of technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View HealthEquity