NASDAQ$HQY

HealthEquity Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

HealthEquity's first quarter of fiscal year 2025 resulted in increased revenue, net income, and HSA growth, with the BenefitWallet HSA portfolio acquisition completed.

HealthEquity reported a strong first quarter with revenue of $287.6 million, an 18% increase year-over-year. Net income rose to $28.8 million, and the company completed the BenefitWallet HSA portfolio acquisition. The company is raising full year guidance.

  • Revenue increased by 18% to $287.6 million compared to the first quarter of fiscal year 2024.
  • Net income increased significantly to $28.8 million, compared to $4.1 million in the same period last year.
  • The company's HSA count grew by 13% year-over-year, reaching 9.1 million HSAs.
  • HealthEquity completed the acquisition of the BenefitWallet HSA portfolio on May 9, 2024.

Headline financials

Total Revenue

$288M

Previous: $244M+17.7%
EPS

$0.33

Previous: $0.50-34.0%
Total HSAs

9.1M

Previous: 8.0M+13.7%
HSAs with Investments

665.0K

Previous: 556.0K+19.6%
Total CDBs

6.9M

No prior period
Total Accounts

16.0M

Previous: 15.0M+6.7%
Average Total Accounts - QTD

15.9M

Previous: 15.0M+6.3%
New HSAs from Sales - QTD

194.0K

Previous: 134+144676.1%
Total HSA Assets

$27.3B

No prior period
Capital Expenditures

-$721K

Previous: -$132K-446.2%
Free Cash Flow

$28.1M

Previous: $3.96M+609.0%
Net Income

$28.8M

Previous: $4.09M+603.8%
Operating Income

$41.6M

Previous: $23.2M+79.6%
Gross Profit

$187M

Previous: $148M+26.6%
Cash & Equivalents

$251M

Previous: $226M+11.3%
Total Assets

$3.25B

Previous: $3.04B+7.0%
R&D Expense

$56.1M

No prior period
Stock-Based Comp

$32M

Previous: $18.2M+75.9%

Revenue & EPS history

HealthEquity · Revenue · Quarterly

$288M

Q1 2025+17.7%vs Q1 2024
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

HealthEquity · $249M total across 3 segments · Q3 2024

  • Service Revenue
    $108M-1.0%
  • Custodial Revenue
    $107M+42.8%
  • Interchange Revenue
    $35.1M+6.9%

Forward guidance

For the fiscal year ending January 31, 2025, HealthEquity anticipates revenue between $1.16 billion and $1.18 billion, net income between $90 million and $105 million, non-GAAP net income between $261 million and $276 million, and Adjusted EBITDA between $454 million and $474 million.

Tailwinds

  • Revenue is expected to be between $1.16 billion and $1.18 billion.
  • Net income is projected to be between $90 million and $105 million, resulting in net income of $1.01 to $1.18 per diluted share.
  • Non-GAAP net income is expected to range from $261 million to $276 million, or $2.93 to $3.10 per diluted share.
  • Adjusted EBITDA is anticipated to be between $454 million and $474 million.
  • The company's outlook reflects strong growth and profitability expectations for the fiscal year.

Headwinds

  • The forward-looking statements are subject to various risks and uncertainties.
  • The company's ability to achieve the expected results depends on various factors, including market conditions and operational execution.
  • Changes in healthcare programs and expenditures could impact the company's performance.
  • Cybersecurity breaches and data interruptions could negatively affect the company's business.
  • The company's reliance on third-party vendors and partners poses potential risks.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.4%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-1.1%

Avg return

30 days after

55%

29 / 53 earnings

Positive

+10.8%

Q1 2024

Best reaction

-22.2%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+0.7%+2.8%+8.4%
Q3 2026-2.9%-5.5%-7.7%
Q2 2026+7.6%+4.7%-0.3%
Q1 2026+9.1%+7.1%-1.5%
Q4 2025-17.1%-11.2%-16.9%
Q3 2025-4.8%-4.6%-0.5%
Q2 2025+3.9%-4.2%-1.7%
Q1 2025+2.1%+4.4%+2.3%
Q4 2024-1.9%-4.0%-3.7%
Q3 2024+0.4%-0.8%-0.7%
Q2 2024+4.4%+2.4%+9.4%
Q1 2024+10.8%+9.4%+6.1%
Q4 2023+0.8%-1.1%+0.7%
Q3 2023-2.3%-7.7%-9.8%
Q2 2023+0.1%+4.6%+5.5%
Q1 2023+2.0%-0.0%-4.8%
Q4 2022+2.4%+11.3%+20.3%
Q3 2022-21.3%-24.8%-14.4%
Q2 2022+1.2%-1.4%-0.8%
Q1 2022+0.4%-3.2%-1.6%
Q4 2021-5.9%-9.4%-11.8%
Q3 2021-3.7%-8.5%+8.1%
Q2 2021+5.4%-11.8%-6.2%
Q1 2021-6.6%+5.9%-5.6%
Q4 2020-22.2%-17.9%-15.1%
Q3 2020+2.9%+9.6%+17.4%
Q2 2020-6.1%-6.3%-8.1%
Q1 2020+1.7%+6.0%-0.4%
Q4 2019+2.9%-10.2%-23.8%
Q3 2019-17.5%-23.8%-38.8%
Q2 2019+2.9%+3.0%-3.9%
Q1 2019+4.8%+4.6%+1.1%
Q4 2018+8.7%+6.7%+11.3%
Q3 2018-5.8%-6.4%-1.7%
Q2 2018+7.3%+6.0%+23.1%
Q1 2018+8.8%+7.4%-0.2%
Q4 2017-4.6%-12.1%-0.9%
Q3 2017-1.1%-2.4%-2.8%
Q2 2017+3.0%-0.7%+13.1%
Q1 2017+7.9%+7.4%+11.7%
Q4 2016+5.2%
Q3 2016-4.6%
Q2 2016+6.5%
Q1 2015-0.1%
Q1 2016+3.2%
Q4 2013-0.1%
Q1 2014-0.1%
Q4 2015-1.0%
Q3 2014-8.0%
Q3 2015+0.7%
Q2 2015-0.3%
Q4 2014-0.3%
Q2 2014-0.3%

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