Revenue increased 9% to $1.31 billion.
Net income increased 123% to $215.2 million, and net income margin increased to 16% from 8% last year.
Net income per diluted share rose to $2.46 from $1.09 one year ago, and non-GAAP net income per diluted share increased 28% to $4.00.
Adjusted EBITDA increased 20% to $566.0 million, and Adjusted EBITDA margin increased to 43% from 39% last year.
Total HSA Assets grew 14% to $36.5 billion.
Returned $301.7 million to shareholders through stock repurchases.
Further reduced HSA cash repricing risk with a cumulative $2.35 billion 5-year Treasury bond hedge at 3.92%.
Highlights of the fourth quarter include:
Revenue increased 7% to $334.6 million.
Net income increased 89% to $49.7 million, and net income margin increased to 15% from 8% last year.
Net income per diluted share rose to $0.58 from $0.30 one year ago, and non-GAAP net income per diluted share increased 38% to $0.95.
Adjusted EBITDA increased 23% to $132.9 million, and Adjusted EBITDA margin increased to 40% from 35% last year.
Returned $81.7 million to shareholders through stock repurchases.
DRAPER, Utah, March 17, 2026 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ:HQY) ("HealthEquity" or the "Company"), a leader in administering health savings accounts ("HSAs") and complementary consumer-directed benefits ("CDBs"), today announced financial results for its fiscal year and fourth quarter ended January 31, 2026.
"We are raising our fiscal 2027 guidance after delivering record new HSAs from sales and significant margin expansion," said Scott Cutler, President and CEO of HealthEquity. "Adjusted EBITDA increased 23% in the fourth quarter with Adjusted EBITDA margin expanding more than 500 basis points to 40%, reflecting meaningful operating leverage. We added one million new HSAs from sales for the second consecutive year and ended fiscal 2026 with 17.8 million total accounts and over $36 billion in HSA assets, positioning us for continued growth."
Fiscal year financial results
Revenue for the fiscal year ended January 31, 2026 was $1.31 billion, an increase of 9% compared to $1.20 billion for the fiscal year ended January 31, 2025. Revenue this year included: service revenue of $485.0 million, custodial revenue of $636.8 million, and interchange revenue of $191.6 million.
HealthEquity reported net income of $215.2 million, or $2.46 per diluted share, and non-GAAP net income of $349.8 million, or $4.00 per diluted share, for the fiscal year ended January 31, 2026. The Company reported net income of $96.7 million, or $1.09 per diluted share, and non-GAAP net income of $277.3 million, or $3.12 per diluted share, for the fiscal year ended January 31, 2025.
Adjusted EBITDA was $566.0 million for the fiscal year ended January 31, 2026, an increase of 20% compared to $471.8 million for the fiscal year ended January 31, 2025. Adjusted EBITDA was 43% of revenue, compared to 39% for the fiscal year ended January 31, 2025.
As of January 31, 2026, HealthEquity had $318.9 million of cash and cash equivalents and $957.4 million of outstanding debt, net of issuance costs. This compares to $295.9 million in cash and cash equivalents and $1.06 billion of outstanding debt as of January 31, 2025.
Fourth quarter financial results
Revenue for the fourth quarter ended January 31, 2026 was $334.6 million, an increase of 7% compared to $311.8 million for the fourth quarter ended January 31, 2025. Revenue this quarter included: service revenue of $127.1 million, custodial revenue of $161.4 million, and interchange revenue of $46.1 million.
HealthEquity reported net income of $49.7 million, or $0.58 per diluted share, and non-GAAP net income of $81.8 million, or $0.95 per diluted share, for the fourth quarter ended January 31, 2026. The Company reported net income of $26.4 million, or $0.30 per diluted share, and non-GAAP net income of $61.3 million, or $0.69 per diluted share, for the fourth quarter ended January 31, 2025.
Adjusted EBITDA was $132.9 million for the fourth quarter ended January 31, 2026, an increase of 23% compared to $107.8 million for the fourth quarter ended January 31, 2025. Adjusted EBITDA was 40% of revenue, compared to 35% for the fourth quarter ended January 31, 2025.
Account and asset metrics
HSAs as of January 31, 2026 were 10.6 million, an increase of 7% year over year, including 832,000 HSAs with investments, an increase of 10% year over year. Total Accounts as of January 31, 2026 were 17.8 million, including 7.2 million complementary CDBs.
Total HSA Assets as of January 31, 2026 were $36.5 billion, an increase of 14% year over year. Total HSA Assets included $18.0 billion of HSA cash and $18.5 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $1.1 billion as of January 31, 2026.
Stock repurchase program
The Company repurchased 3.3 million shares of its common stock for $301.7 million during the fiscal year ended January 31, 2026, including 0.9 million shares for $81.7 million during the fourth quarter ended January 31, 2026. As of January 31, 2026, $177.7 million of common stock remained authorized for repurchase under the Company's stock repurchase program.
Business outlook
For the fiscal year ending January 31, 2027, management expects revenues of $1.405 billion to $1.415 billion. Its outlook for net income is between $239 million and $246 million, resulting in net income of $2.78 to $2.85 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $392 million and $400 million, resulting in non-GAAP net income per diluted share of $4.56 to $4.65 (based on an estimated 86 million weighted-average shares outstanding). Management expects Adjusted EBITDA of $618 million to $628 million.
See "Non-GAAP financial information" below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.
Conference call
HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Tuesday, March 17, 2026 to discuss the fiscal 2026 fourth quarter and year-end results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.
Non-GAAP financial information
To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.
Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP financial measures, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.
About HealthEquity
HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for more than 17 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers. For more information, visit www.healthequity.com.
Forward-looking statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words "may," "believes," "intends," "seeks," "aims," "anticipates," "plans," "estimates," "expects," "should," "assumes," "continues," "could," "will," "future" and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:
our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;
our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;
the impact of fraudulent account activity involving our member accounts or our third-party service providers on our reputation and financial results;
our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
the significant competition we face and may face in the future, including from those with greater resources than us;
our reliance on the availability and performance of our technology and communications systems;
potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
our reliance on partners and third-party vendors for distribution and important services;
our ability to develop and implement updated features for our technology platforms and communications systems; and
our reliance on our management team and key team members.
For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Investor Relations ContactRichard Putnam801-727-1000[email protected]
HealthEquity, Inc. and subsidiariesConsolidated balance sheets (unaudited)
(in thousands, except par value)
January 31, 2026
January 31, 2025
Assets
Current assets
Cash and cash equivalents
$
318,927
$
295,948
Accounts receivable, net of allowance for doubtful accounts of $924 and $2,070 as of January 31, 2026 and 2025, respectively
123,696
118,006
Prepaid expenses and other current assets
69,658
63,795
Total current assets
512,281
477,749
Property and equipment, net
3,177
3,239
Operating lease right-of-use assets
36,310
43,185
Intangible assets, net
1,097,172
1,204,658
Goodwill
1,648,145
1,648,145
Other assets
83,247
71,574
Total assets
$
3,380,332
$
3,448,550
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$
12,159
$
14,361
Accrued compensation
60,392
69,330
Accrued liabilities
74,388
62,631
Operating lease liabilities
9,911
10,001
Total current liabilities
156,850
156,323
Long-term liabilities
Long-term debt, net of issuance costs
957,379
1,056,301
Operating lease liabilities, non-current
34,190
42,219
Other long-term liabilities
31,007
22,962
Deferred tax liability
93,710
55,834
Total long-term liabilities
1,116,286
1,177,316
Total liabilities
1,273,136
1,333,639
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of January 31, 2026 and 2025
—
—
Common stock, $0.0001 par value, 900,000 shares authorized, 85,007 and 86,536 shares issued and outstanding as of January 31, 2026 and 2025, respectively
8
9
Additional paid-in capital
1,916,989
1,905,628
Accumulated earnings
195,906
209,274
Accumulated other comprehensive loss
(5,707
)
—
Total stockholders' equity
2,107,196
2,114,911
Total liabilities and stockholders' equity
$
3,380,332
$
3,448,550
HealthEquity, Inc. and subsidiariesConsolidated statements of operations (unaudited)
Three months ended January 31,
Year ended January 31,
(in thousands, except per share data)
2026
2025
2026
2025
Revenue
Service revenue
$
127,079
$
124,209
$
485,022
$
478,317
Custodial revenue
161,402
144,133
636,800
545,414
Interchange revenue
46,105
43,475
191,607
176,043
Total revenue
334,586
311,817
1,313,429
1,199,774
Cost of revenue
Service costs
88,457
105,466
328,507
351,588
Custodial costs
11,058
10,269
43,821
39,675
Interchange costs
6,924
7,039
27,985
31,252
Total cost of revenue
106,439
122,774
400,313
422,515
Gross profit
228,147
189,043
913,116
777,259
Operating expenses
Sales and marketing
24,923
23,084
95,240
90,739
Technology and development
70,354
64,654
262,510
239,513
General and administrative
33,527
29,975
119,933
132,260
Amortization of acquired intangible assets
26,948
27,002
107,953
111,878
Merger integration
1,324
2,178
