Highlights of the first quarter include:
Net income increased 29% to $69.4 million, and net income margin increased to 20% from 16% last year.
Adjusted EBITDA increased 17% to $164.5 million, and Adjusted EBITDA margin increased to 46% from 42% last year.
Revenue increased 7% to $354.6 million.
Net income per diluted share rose 34% to $0.82 from $0.61 one year ago, and non-GAAP net income per diluted share increased 28% to $1.24.
Total HSA Assets grew 19% to $37.1 billion.
Returned $123.0 million to shareholders through stock repurchases.
DRAPER, Utah, May 28, 2026 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ:HQY) ("HealthEquity" or the "Company"), the largest independent health savings account ("HSA") custodian by account volume and a leader in consumer-directed benefits ("CDBs"), today announced financial results for its first quarter ended April 30, 2026.
"HealthEquity delivered strong first‑quarter results, with Adjusted EBITDA margin expanding to 46% and a raised fiscal 2027 outlook," said Scott Cutler, President and CEO of HealthEquity. "These results demonstrate that our flywheel is compounding through account and asset growth, deeper member engagement, technology‑enabled efficiency, and increasing operating leverage. As healthcare affordability structurally shifts more responsibility to consumers, demand for trusted healthcare financial solutions continues to expand. Our authorization of an additional $1 billion under our share repurchase program reflects our confidence in the durability and long-term cash-generating power of our model."
HealthEquity's growth model is built on two reinforcing drivers: growth in member accounts and their HSA Assets over time and expansion in the lifetime value of each member relationship as engagement and activity increase. As accounts mature, these dynamics can compound, supporting durable growth and margin expansion while reducing reliance on short-term employment trends and new account additions in any single period.
First quarter financial results
Revenue for the first quarter ended April 30, 2026 was $354.6 million, an increase of 7% compared to $330.8 million for the first quarter ended April 30, 2025. Revenue this quarter included: service revenue of $122.9 million, custodial revenue of $174.3 million, and interchange revenue of $57.4 million.
Net income was $69.4 million, or $0.82 per diluted share, for the first quarter ended April 30, 2026, compared to $53.9 million, or $0.61 per diluted share, for the first quarter ended April 30, 2025. Net income margin was 20% for the first quarter ended April 30, 2026, compared to 16% for the first quarter ended April 30, 2025.
Non-GAAP net income was $105.1 million, or $1.24 per diluted share, for the first quarter ended April 30, 2026, compared to $85.8 million, or $0.97 per diluted share, for the first quarter ended April 30, 2025.
Adjusted EBITDA was $164.5 million for the first quarter ended April 30, 2026, an increase of 17% compared to the first quarter ended April 30, 2025. Adjusted EBITDA was 46% of revenue, compared to 42% for the first quarter ended April 30, 2025.
Account and asset metrics
HSAs as of April 30, 2026 were 10.6 million, an increase of 8% year over year, including 909,000 HSAs with investments, an increase of 18% year over year. Total Accounts as of April 30, 2026 were 17.8 million, including 7.2 million complementary CDBs.
Total HSA Assets as of April 30, 2026 were $37.1 billion, an increase of 19% year over year. Total HSA Assets included $17.5 billion of HSA cash and $19.6 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 $1.0 billion as of April 30, 2026.
Stock repurchase program
The Company repurchased 1.5 million shares of its common stock for $123.0 million during the first quarter ended April 30, 2026. In May 2026, the Company's board of directors authorized an additional $1.0 billion of common stock repurchases under the program.
Business outlook
For the fiscal year ending January 31, 2027, management expects revenues of $1.410 billion to $1.420 billion. Its outlook for net income is between $242 million and $248 million, resulting in net income of $2.88 to $2.95 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $392 million and $398 million, resulting in non-GAAP net income per diluted share of $4.66 to $4.73 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $625 million to $633 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 Thursday, May 28, 2026 to discuss the fiscal 2027 first quarter financial 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 and subsequent periodic and current reports. 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 subsidiariesCondensed consolidated balance sheets
(in thousands, except par value)
April 30, 2026
January 31, 2026
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
265,369
$
318,927
Accounts receivable, net of allowance for doubtful accounts of $953 and $924 as of April 30, 2026 and January 31, 2026, respectively
122,003
123,696
Prepaid expenses and other current assets
79,156
69,658
Total current assets
466,528
512,281
Property and equipment, net
3,800
3,177
Operating lease right-of-use assets
34,578
36,310
Intangible assets, net
1,073,045
1,097,172
Goodwill
1,648,145
1,648,145
Other assets
80,090
83,247
Total assets
$
3,306,186
$
3,380,332
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$
14,219
$
12,159
Accrued compensation
26,664
60,392
Accrued liabilities
84,941
74,388
Operating lease liabilities
9,916
9,911
Total current liabilities
135,740
156,850
Long-term liabilities
Long-term debt, net of issuance costs
942,656
957,379
Operating lease liabilities, non-current
32,110
34,190
Other long-term liabilities
52,932
31,007
Deferred tax liability
95,353
93,710
Total long-term liabilities
1,123,051
1,116,286
Total liabilities
1,258,791
1,273,136
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively
—
—
Common stock, $0.0001 par value, 900,000 shares authorized, 83,927 and 85,007 shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively
8
8
Additional paid-in capital
1,901,935
1,916,989
Accumulated earnings
177,204
195,906
Accumulated other comprehensive loss
(31,752
)
(5,707
)
Total stockholders' equity
2,047,395
2,107,196
Total liabilities and stockholders' equity
$
3,306,186
$
3,380,332
HealthEquity, Inc. and subsidiariesCondensed consolidated statements of operations (unaudited)
Three months ended April 30,
(in thousands, except per share data)
2026
2025
Revenue
Service revenue
$
122,932
$
119,784
Custodial revenue
174,334
156,455
Interchange revenue
57,375
54,605
Total revenue
354,641
330,844
Cost of revenue
Service costs
78,326
88,005
Custodial costs
11,655
10,747
Interchange costs
8,348
7,781
Total cost of revenue
98,329
106,533
Gross profit
256,312
224,311
Operating expenses
Sales and marketing
26,833
25,984
Technology and development
67,767
61,436
General and administrative
31,131
25,536
Amortization of acquired intangible assets
26,515
27,002
Merger integration
1,113
