HealthEquity Beats Q2 Estimates, Raises Full-Year Outlook by Investing.com

DRAPER, Utah – HealthEquity Inc. (NASDAQ:HQY) reported better-than-expected second-quarter results and raised its full-year guidance as the health savings account provider posted strong growth in accounts and assets under management.

Shares of HQY traded marginally higher in the Tuesday session following the announcement.

The company reported adjusted earnings of $0.86 per share for the quarter ended July 31, beating analysts’ estimates of $0.70 per share. Revenue rose 23% from last year to $299.9 million, also beating expectations of $285.13 million.

“Team Purple delivered an outstanding second quarter, growing HSA and HSA Assets by 15% and 27%, respectively,” said Jon Kessler, President and CEO of HealthEquity.

Total health savings accounts grew to 9.4 million, up 15% from a year ago. Total HSA assets reached $29.5 billion, a 27% increase over last year. The company added 187,000 new HSAs during the quarter.

For fiscal 2025, HealthEquity now expects adjusted earnings of $2.98 to $3.14 per share, up from its previous outlook of $2.48 to $2.66. It also raised its revenue estimate to a range of $1.165 billion to $1.185 billion, compared with $1.14 billion to $1.16 billion previously.

The improved outlook reflects “momentum in both top-line growth and margin expansion,” according to Kessler. The company plans to use the stronger performance to accelerate investments in the platform and launch new products.

HealthEquity also announced a $300 million share buyback program, signaling confidence in its financial position and growth prospects.

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