HealthEquity (HQY) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue reached $1.20 billion, up 20% year-over-year; Q4 revenue up 19%, adjusted EBITDA up 9%, HSAs grew 14%, and HSA assets up 27%.

• Ended Q4 with 17 million total accounts, including 9.9 million HSAs and $32.1 billion in HSA assets.

• Opened 1 million new HSAs from sales for the year, a company record.

• Launched the Assist portfolio, a suite of technology-driven solutions to enhance benefits engagement and transparency.

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

Financial highlights

• Q4 service revenue increased 19% year-over-year to $124.2 million; custodial revenue grew 37% to $144.1 million.

• FY25 service revenue was $478.3 million, custodial revenue $545.4 million, and interchange revenue $176.0 million.

• Gross profit for FY25 was $777.3 million, up from $622.6 million in FY24.

• Q4 GAAP net income was $26.4 million ($0.30 per share); non-GAAP net income was $61.3 million ($0.69 per share).

• Adjusted EBITDA for FY25 was $471.8 million (39% margin); Q4 Adjusted EBITDA was $107.8 million (35% margin).

Outlook and guidance

• FY26 revenue expected between $1.28 billion and $1.305 billion.

• GAAP net income guidance: $164–$179 million ($1.85–$2.01 per share); non-GAAP net income: $318–$333 million ($3.57–$3.74 per share).

• Adjusted EBITDA expected between $525 million and $545 million.

• Average yield on HSA cash projected at 3.45% for fiscal 2026.

• Guidance includes continued investments in technology, security, and share repurchases.