DRAPER, Utah, Dec. 3, 2025 — HealthEquity, Inc. (NASDAQ: HQY), the nation's leading health savings account (HSA) administrator, today reported financial results for its fiscal third quarter ended October 31, 2025.
Highlights of the third quarter include:
- Revenue increased 7% to $322.2 million.
- Net income per diluted share rose to $0.59 from $0.06 one year ago, and non-GAAP net income per diluted share increased 9% to $0.78.
- Total accounts reached 16.8 million, up 4% year over year.
- HSAs reached 9.4 million, up 8% year over year, including 120 thousand net new HSAs opened during the quarter.
- Total HSA assets reached $30.0 billion, up 23% year over year.
Third quarter financial results
Revenue for the third quarter of fiscal year 2026 was $322.2 million, an increase of 7% compared to the third quarter of fiscal year 2025. Service revenue was $112.1 million, an increase of 1% compared to the prior year period. Custodial revenue was $162.3 million, an increase of 10% compared to the prior year period. Interchange revenue was $47.8 million, an increase of 12% compared to the prior year period.
Gross profit for the quarter was $176.3 million, an increase of 9% compared to the prior year period. Net income was $51.1 million, or $0.59 per diluted share, compared to net income of $5.1 million, or $0.06 per diluted share, in the prior year period.
Adjusted EBITDA was $129.9 million, an increase of 9% compared to the prior year period. Non-GAAP net income was $67.5 million, or $0.78 per diluted share, compared to $62.2 million, or $0.72 per diluted share, in the prior year period.
Account and asset metrics
As of October 31, 2025, total accounts were 16.8 million, an increase of 4% compared to October 31, 2024. HSAs were 9.4 million, an increase of 8% compared to October 31, 2024, including 120 thousand net new HSAs during the quarter. Total HSA assets were $30.0 billion, an increase of 23% year over year. HSA cash assets were $12.3 billion, and HSA investment assets were $17.7 billion.
Stock repurchase program
During the third quarter, the Company repurchased approximately 291 thousand shares of its common stock at an average price of $86.20 per share, for approximately $25.1 million. As of October 31, 2025, the Company had approximately $275 million of remaining authorization under its share repurchase program.
Business outlook
For fiscal year 2026, HealthEquity now expects revenue of $1.215 billion to $1.235 billion, adjusted EBITDA of $505 million to $520 million, and non-GAAP net income per diluted share of $2.88 to $2.98.
Conference call
HealthEquity will host a conference call to discuss its third quarter results today at 4:30 p.m. ET. The conference call can be accessed by dialing (844) 481-2749 (domestic) or (412) 317-0671 (international). A replay of the call will be available beginning at 7:30 p.m. ET through December 17, 2025.
Non-GAAP financial information
To supplement HealthEquity's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), the Company uses certain non-GAAP financial measures, as described below, to understand and evaluate its core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
About HealthEquity
HealthEquity, Inc. (NASDAQ: HQY) helps members build health savings by providing a remarkable experience for the 16 million accounts we administer. Our platform offers a comprehensive suite of health savings accounts (HSAs), flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA, commuter, and other benefit solutions. HealthEquity's wholly-owned subsidiary, HealthEquity Advisors, LLC, is an SEC-registered investment adviser providing investment advisory services. Learn more at www.healthequity.com.
Forward-looking statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management's beliefs and assumptions and on information currently available. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could" or the negative of these terms or similar expressions.