Healthequity Inc ( (HQY) ) has released its Q3 earnings. Here is a breakdown of the information Healthequity Inc presented to its investors.
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HealthEquity, Inc. is the nation’s largest custodian of health savings accounts (HSAs), providing administration services for over 16 million accounts, including HSAs and other consumer-directed benefits (CDBs).
HealthEquity, Inc. announced its financial results for the third quarter ended October 31, 2024, showcasing significant growth in revenue and HSA assets. The company also highlighted strategic achievements, including share repurchases and increased guidance for the fiscal year.
During the third quarter, HealthEquity reported a revenue increase of 21% to $300.4 million, driven by growth in service, custodial, and interchange revenue. The company’s adjusted EBITDA rose by 24% to $118.2 million, reflecting enhanced operational efficiency. Despite a decline in net income to $5.7 million, non-GAAP net income grew by 33% to $69.4 million, indicating strong underlying performance.
The company achieved record levels in HSA metrics, with a 15% increase in total HSAs to 9.5 million and a 33% rise in total HSA assets to $30 billion. HealthEquity also repurchased 0.7 million shares for $60 million, reflecting confidence in its financial strength.
Looking ahead, HealthEquity’s management expects continued growth, forecasting revenue between $1.185 billion and $1.195 billion for the fiscal year ending January 31, 2025, and an optimistic outlook for fiscal year 2026. The company remains committed to enhancing its platform and delivering value to its shareholders.
