HealthEquity (HQY) 44th Annual J.P. Morgan Healthcare Conference summary

Business strategy and platform evolution

• Operates the leading HSA platform in the US with over 17 million accounts and $34.4 billion in assets, leveraging a network of 200+ integrated partners for distribution advantage.

• Focused on modernizing the platform into a true platform company, emphasizing disciplined execution, digital transformation, and engagement to create an enduring model.

• Engagement is central, with a flywheel model where saving, spending, and investing reinforce each other, driving both member and shareholder value.

• Platform enhancements include personalized women's health offerings, a new app with passkey security, and AI-powered claims processing and support.

• HSAs are positioned as critical financial infrastructure, with growing relevance as health care costs shift to individuals.

Market trends and growth drivers

• The US health care system is shifting more financial responsibility to individuals, increasing demand for scalable, effective tools like HSAs.

• Policy changes have expanded HSA eligibility, especially for Bronze and Catastrophic plan holders, telemedicine users, and direct primary care participants.

• Early signs show new eligible members are funding accounts, with ongoing efforts to streamline enrollment and drive further adoption.

• The marketplace offering is a new growth vector, connecting members to health-related products and services and generating recurring revenue.

• Legislative trends and expanded marketplace offerings support future growth.

Financial performance and outlook

• Fiscal Q3 2026 revenue grew 7% YoY to $322.2M, with 13% custodial revenue growth and 20% adjusted EBITDA growth.

• Fiscal 2026 revenue guidance is $1,302–$1,312M, with adjusted EBITDA of $555–$565M.

• Fiscal 2027 outlook projects revenue of $1,380–$1,410M and adjusted EBITDA margin of 43.8–44.3%.

• Adjusted EBITDA margin reached 44% and gross margin 71% in Q3 FY26.

• Net cash flows from operations were $340M in FY25 and $339M in the first nine months of FY26.