HealthEquity (HQY) Q3 2026 earnings summary

Executive summary

• Achieved strong year-over-year growth in Q3 fiscal 2026: revenue up 7% to $322.2M, net income up 806% to $51.7M, adjusted EBITDA up 20% to $141.8M, and gross margin up to 71%.

• Administered 10.1 million HSAs with $34.4 billion in assets and 7.2 million complementary CDBs as of October 31, 2025, totaling 17.3 million accounts, a 5% year-over-year increase.

• Launched a new direct HSA enrollment platform targeting ACA bronze plan participants, enhancing digital experience and expanding market reach.

• Early adoption of the HealthEquity Marketplace platform, including GLP-1 weight loss support, shows positive member engagement and retention.

• Acquired the BenefitWallet HSA portfolio, adding 616,000 HSAs and $2.7 billion in assets.

Financial highlights

• Q3 revenue rose 7% year-over-year to $322.2M; service revenue $120.3M, custodial revenue $159.1M, interchange revenue $42.8M.

• Gross profit for Q3 was $228.1M with a 71% gross margin, up from 66% last year.

• Net income for Q3 was $51.7M ($0.59/share), up 806% year-over-year due to a prior-year legal settlement; non-GAAP net income up 26% to $87.7M ($1.01/share).

• Adjusted EBITDA was $141.8M (44% margin), up 20% year-over-year.

• Nine-month revenue was $978.8M (up 10%), GAAP net income $165.5M ($1.88/share), non-GAAP net income $268.1M ($3.05/share), and adjusted EBITDA $433.1M (44% margin).

Outlook and guidance

• Fiscal 2026 revenue expected between $1.302B and $1.312B.

• GAAP net income projected at $197M–$205M ($2.24–$2.33/share); non-GAAP net income $341M–$348M ($3.87–$3.95/share).

• Adjusted EBITDA guidance raised to $555M–$565M.

• Service, custodial, and interchange revenue expected to grow with account and HSA investment increases.

• Corporate income tax payments for fiscal 2026 and 2027 expected to be significantly reduced due to new tax legislation.