HealthEquity (HQY) investor relations material

Executive summary

• Fiscal 2026 delivered record revenue and earnings, significant margin expansion, and robust HSA growth, with over 1 million new HSAs added for the second consecutive year, totaling 17.8 million accounts and HSA assets surpassing $36.5 billion.

• Revenue grew 7% year-over-year in Q4, net income rose 89% to $49.7 million, and non-GAAP net income per diluted share increased 38%.

• Over $300 million was returned to shareholders via share repurchases, reducing diluted shares outstanding by 3%.

• The platform expanded digital engagement, launched a new Marketplace, and deepened AI integration to drive operational efficiency and member experience.

Financial highlights

• Full-year revenue: $1.313 billion (+9.5%); Q4 revenue: $334.6 million (+7%); service revenue: $485.0 million; custodial revenue: $636.8 million; interchange revenue: $191.6 million.

• Gross profit: $228.1 million; gross margin: 68% (up from 61% last year); net income: $49.7 million (15% margin).

• Non-GAAP net income: $81.8 million (+33%); non-GAAP EPS: $4.00 for the year (+28%); adjusted EBITDA: $566 million (+20%), margin 43%.

• Net income for the year increased 123% to $215.2 million; net income margin improved to 16% from 8% last year.

Outlook and guidance

• Fiscal 2027 revenue guidance: $1.405–$1.415 billion.

• GAAP net income expected: $239–$246 million ($2.78–$2.85 per share); non-GAAP net income: $392–$400 million ($4.56–$4.65 per share).

• Adjusted EBITDA guidance: $618–$628 million; continued capital return and share repurchases planned.

• Average yield on HSA cash expected to be ~3.8% for fiscal 2027, with forward rate hedges in place.