HealthEquity Inc
HQY
$94.51 -1.21%
Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Healthcare Information Services
Q3 2025
Published: Dec 9, 2024

Earnings Highlights

  • Revenue of $300.43M up 20.6% year-over-year
  • EPS of $0.06 decreased by 61.5% from previous year
  • Gross margin of 65.6%
  • Net income of 5.70M
  • "“The underlying trend of service cost reduction through remarkable digital experience continues with AI transforming more member contacts and claims interactions and mobile wallet integration supplanting more plastic.”" - James Lucania
HQY
Company HQY

Executive Summary

HealthEquity reported a solid QQ3 2025 (fiscal year 2025) with double‑digit top‑line growth and meaningful margin expansion, led by continued outperformance in HSA assets and interchange revenue. Revenue rose 21% YoY to $300.4 million, while non‑GAAP net income reached $69.4 million and adjusted EBITDA climbed 24% to $118.2 million. The company ended the quarter with $322 million in cash and cash equivalents and total debt of about $1.135 billion, leaving net debt in a negative position of approximately $268 million. HSA assets reached $30.0 billion with 16.5 million total accounts, including 9.5 million HSAs, and HSA invested assets jumped 58% YoY to $13.6 billion, underscoring a shift toward higher‑margin investment activity. Management signaled ongoing operating discipline, a favorable mix shift toward higher‑margin HSAs, and a strategic focus on technology enablement to drive efficiencies (AI, mobile wallet adoption). The guidance framework underscores a constructive outlook: FY2025 revenue guidance of $1.185–1.195 billion and Adjusted EBITDA of $470–480 million, with FY2026 revenue guidance of $1.275–1.295 billion and EBITDA margins expanding to roughly 41.5%–42.5% of revenue, anchored by a 3.4%–3.5% HSA cash yield. The QQ3 results and guidance reflect both the earnings cadence and the growth runway from expanding HSAs, stronger monetization, and ongoing investments in technology and scale. The company also highlighted regulatory tailwinds via HOPE Act debates, with a potential TAM expansion that could meaningfully widen the addressable market for HQY’s platform, albeit with regulatory risk and execution uncertainty. A leadership transition is underway, with Scott Cutler assuming the President & CEO role in January 2025, signaling a technology‑driven growth agenda in HealthEquity’s core value proposition for members, employers, and health plans.

Key Performance Indicators

Revenue
Increasing
300.43M
QoQ: 0.17% | YoY: 20.55%
Gross Profit
Increasing
197.03M
65.58% margin
QoQ: 13.84% | YoY: 24.38%
Operating Income
Decreasing
19.63M
QoQ: -67.67% | YoY: -36.47%
Net Income
Decreasing
5.70M
QoQ: -84.08% | YoY: -61.13%
EPS
Decreasing
0.07
QoQ: -84.05% | YoY: -61.53%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 325.84 0.68 +8.6% View
Q1 2026 330.84 0.61 +15.0% View
Q4 2025 311.82 0.30 +18.8% View
Q3 2025 300.43 0.06 +20.6% View
Q2 2025 299.93 0.40 +23.2% View