NASDAQ$HQY

HealthEquity Inc · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$300M

Previous: $249M+20.5%
EPS

$0.06

Previous: $0.60-90.0%
Total HSAs

9.5M

Previous: 8.3M+14.6%
HSAs with Investments

717.0K

Previous: 592.0K+21.1%
Total CDBs

7.0M

No prior period
Total Accounts

16.5M

Previous: 15.3M+7.6%
Average Total Accounts - QTD

16.4M

No prior period
New HSAs from Sales - QTD

186.0K

No prior period
Total HSA Assets

$30B

No prior period
Average Daily HSA Cash - QTD

$16.4B

No prior period
Client-held Funds

$748M

No prior period
Capital Expenditures

-$1.76M

Previous: -$1.13M-54.9%
Free Cash Flow

$3.95M

Previous: $13.5M-70.8%
Net Income

$5.7M

Previous: $14.7M-61.1%
Operating Income

$19.6M

Previous: $30.9M-36.5%
Gross Profit

$197M

Previous: $158M+24.4%
Cash & Equivalents

$322M

Previous: $334M-3.6%
Total Assets

$3.49B

Previous: $3.09B+12.8%
R&D Expense

$60.2M

Previous: $55.6M+8.2%
Stock-Based Comp

$21.1M

Previous: $21.7M-2.5%

Revenue & EPS history

HealthEquity · Revenue · Quarterly

$300M

Q3 2025+20.5%vs Q3 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 $1.185 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.

Tailwinds

  • 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.

Headwinds

  • 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

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 Q3 2025

Historical avgQ3 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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