Healthequity Shares Jump 7.53% on Strong Earnings and HSA Expansion $330M Volume Ranks 311st in Market

On September 3, 2025, Healthequity (HQY) surged 7.53% to a trading volume of $0.33 billion, a 30.95% increase from the prior day. The stock ranked 311st in market volume, reflecting heightened investor activity. This performance followed the company’s Q2 2026 earnings release, which highlighted robust financial results and strategic progress.

The company reported a 9% year-over-year revenue increase to $325.9 million, driven by a 15% rise in custodial revenue to $159.9 million and a 71% gross margin, a record high. Net income surged 67% to $59.9 million, while adjusted EBITDA rose 18% to $151.1 million, with a 46% margin. HSA accounts grew 6% to over 17 million, and HSA assets increased 12% to $33 billion. The company also repurchased $66 million of shares during the quarter.

Legislative developments further bolstered the stock. Recent regulatory changes expanded HSA eligibility, potentially enabling 3–4 million additional American families to access HSAs. Management emphasized these reforms as the largest HSA expansion in two decades, with a focus on integrating AI-driven tools to enhance security and operational efficiency. The company also locked in a 4% rate on $1.2 billion of HSA cash placements through Treasury forward contracts, mitigating interest rate volatility risks.

Despite macroeconomic challenges, including slower labor market growth, Healthequity maintained a disciplined cost structure, reducing service costs and fraud expenses. CEO Scott Cutler highlighted the company’s ability to leverage its sales pipeline and client relationships to outpace market growth. However, the firm acknowledged ongoing risks, including potential interest rate declines and the need for sustained investment in fraud prevention and technology.

Full-year guidance was raised to revenue between $1.29 billion and $1.31 billion, with adjusted EBITDA projected at $540 million to $560 million. The company’s share repurchase program and debt reduction efforts further reinforced its capital allocation strategy, positioning it for long-term value creation amid a competitive HSA landscape.

Backtest results for Healthequity (HQY) indicate a 7.53% price increase on September 3, 2025, with a trading volume of $0.33 billion, reflecting strong short-term momentum following earnings and strategic updates.