HealthEquity (HQY) delivered a solid Q4 FY2025, highlighted by strong revenue growth, expanding HSA assets, and continued momentum across core metrics. Revenue rose 19% year over year to $311.8 million, with Adjusted EBITDA up 9% to $107.8 million and gross margin stable around 61%. The company ended the year with 17 million total accounts and 9.9 million HSAs holding $32 billion in HSA assets, underscoring its leadership in the US HSA market. However, the quarter included approximately $17 million of event-driven service costs tied to fraud mitigation and card processor consolidation, which management expects to be partially temporary and to normalize through FY2026. Management’s FY2026 guidance implies continued top-line growth and margin progression as Invested in fraud prevention and platform modernization yield operating efficiencies, albeit with higher near-term costs. The strategic deployment of the Assist portfolio (Analyzer, Navigator, Momentum) and ongoing cloud/mobility initiatives are positioned to support longer-term revenue growth, client engagement, and cost-to-serve improvements. Investors should weigh the durable HSA growth and cash flow strength against the near-term headwinds from elevated service costs and cyber/fraud-related investments.