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- **Revenue & Profit Surge**: 7% revenue growth, 806% net income increase, and 44% adjusted EBITDA margin highlight operational excellence.
- **HSA Expansion**: Direct enrollment platform for Bronze plan participants with $25 match targets 2M-3M new accounts, supported by 15% HSA asset growth to $34B.
- **AI & Security Leap**: Fraud costs at 0.03% of assets, AI-driven claims processing cuts service costs by $10M YoY, and passkey tech boosts app downloads (400K+ in October).
- ** Legislative Tailwind**: Bipartisan support for HSA use in premiums and employer cost savings (thousands per employee) drive adoption across 10M+ HSAs.

**【CEO Summary Section】**
- **Revenue Growth**: 7% year-over-year, driven by 6% growth in HSAs and 3% in CDB accounts. Total HSA assets reached $34 billion, up 15% YoY.
- **Profit Surge**: Net income jumped 806% YoY to $51.7 million, while non-GAAP EPS rose 29% to $1.01. Adjusted EBITDA margin expanded to 44%, up 460 basis points YoY.
- **HSA Expansion**: Launched direct enrollment platform for Bronze plan participants, offering a $25 match to attract new accounts. Early adopters contributed an average of $1,550, above industry norms.
- **AI Integration**: Rolled out AI-driven claims processing and virtual assistant (HealthEquity Assist) to reduce costs and improve member experience.
- **Security Enhancements**: Fraud costs at $0.3 million, below 1 basis point of total assets, supported by passkey technology and advanced detection systems.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Service revenue ($120.3M) +1%, custodial revenue ($159.1M) +13%, interchange ($42.8M) +6%. Gross margin improved to 71% vs. 66% YoY.
- **Guidance Update**: Raised FY26 revenue to $1.302B-$1.312B, GAAP net income to $197M-$205M, and non-GAAP EPS to $3.87-$3.90.
- **Interest Rate Strategy**: Hedged $2.3B in future cash deployments at 3.94% blended rate, targeting 3.54% annual yield for FY26.
- **Share Repurchases**: $94M executed in Q3, with $259M remaining under authorization.

**【Q&A Highlights】**
- **Bronze Plan Adoption**: Targeting 2M-3M new HSA accounts from 7M Bronze plan enrollees, leveraging direct platform and $25 match offer.
- **AI Efficiency**: Early AI adoption reduced service costs by $10M YoY, with potential for further automation in claims, password resets, and customer support.
- **Legislative Momentum**: Advocating for HSA expansion, including using HSA funds for premiums, with bipartisan support in Washington.
- **Margin Outlook**: Service cost per account down 15% YoY, targeting continued efficiency gains through digital adoption (400K+ app downloads in October).

HealthEquity, Inc. (HQY) Q3 2026 Earnings Call Transcript

- **Record Financials**: Q2 revenue up 9%, EBITDA margin 46%, and $151 million EBITDA, reflecting strong cost control and margin expansion.
- **HSA Expansion Wins**: Legislative changes add 3-4 million new eligible households, targeting ACA bronze plan enrollees and DPC telehealth users.
- **AI-Driven Efficiency**: Fraud costs reduced 90% YoY, with AI claims automation and secure mobile app adoption driving service cost savings.
- **Investment Growth**: Invested assets up 23% YoY to $16.1 billion, reflecting higher member engagement and tax benefits.
- **Hedging Strategy**: Locked in $1.2 billion in forward contracts at 4% yield, mitigating interest rate risk and supporting custodial revenue stability.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue increased 9% YoY, driven by service and custodial revenue growth. Adjusted EBITDA reached $151.1 million, up 18% YoY, with a 46% EBITDA margin, near an all-time high.
- **HSA Expansion**: 163,000 new HSAs opened in Q2, despite slower macroeconomic job growth. HSA assets grew 12% YoY to $33 billion, with 10% growth in invested assets to $16.1 billion.
- **AI and Mobile Initiatives**: Launched AI-driven claims automation, reducing processing costs and improving member satisfaction. Rolled out passkey authentication for secure mobile logins, reducing fraud costs to 1 basis point of total assets.
- **Legislative Wins**: Budget bill expanded HSA eligibility for bronze ACA plans, DPC arrangements, and telehealth services, targeting 3-4 million new eligible households.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $59.9 million ($0.68 EPS) and non-GAAP EPS of $1.08, exceeding expectations. Cash flow from operations was $200 million in the first half.
- **Interest Rate Hedging**: Entered $1.2 billion in treasury bond forward contracts to lock in yields, averaging 4% on 5-year treasuries. Projected 2026 HSA cash yield of 3.5%.
- **Share Repurchases**: Repurchased $66 million in Q2, with $352 million remaining under authorization.
- **Fraud Reduction**: Reduced fraud costs to $1.2 million in Q2, down 90% YoY, targeting 1 basis point of total assets by year-end.

**【Q&A Highlights】**
- **Fraud Progress**: Sequential fraud decline each month in 2026, driven by secure mobile app adoption and AI automation. Targeting 1 basis point of total assets in fraud costs.
- **ACA Expansion**: 7 million bronze plan enrollees now eligible for HSAs, with HealthEquity redesigning enrollment flows for this new demographic.
- **Interest Rate Impact**: Hedged $4.75 billion of maturing contracts to mitigate rate volatility, but custodial yield assumptions remain subject to market conditions.
- **Market Growth**: 6% HSA account growth YoY, outpacing macroeconomic employment trends. Focus on engagement metrics (e.g., 8% of members as investors) to drive long-term growth.


HealthEquity (HQY)-2 Sep 25-2026 Q2 Earnings call transcript

- **Revenue Growth**: 15% YoY to $276.3M, HSA assets hit $31B.
- **AI Success**: Fraud costs drop 73% QoQ to $3M, targeting 1 basis point of assets.
- **Legislative Win**: 20M+ new HSA-eligible families via Medicare Part A rule.
- **Mobile Expansion**: 1.2M app downloads Q1, 70%+ interactions now mobile.
- **Financial Strength**: Non-GAAP EPS up 14% to $0.97, $65M cash flow in Q1.


**【CEO Opening Remarks】**
- Q1 2026 revenue grew 15% YoY to $276.3M, driven by 9% HSA account growth and 4% CDB account expansion.
- Adjusted EBITDA rose 19% to $140.2M, with HSA assets reaching $31B (+15% YoY).
- Launched AI-powered claims processing, reducing fraud costs from $11M in Q4 to $3M in Q1, targeting 1 basis point of total assets by end of FY26.
- Mobile app adoption surged, with 1.2M downloads in Q1, enabling secure multi-factor authentication.

**【Steve Neeleman - HSA Legislative Update】**
- House-passed budget bill includes:
  - Medicare Part A eligibility for HSA contributions (20% of workforce aged 65+).
  - Expanded HSA use for gym memberships, on-site clinics, and catch-up contributions.
  - Doubling contribution limits for low-income earners ($7.5K individual/$15K family).
- Potential to add 20M new HSA-eligible families, expanding market share.

**【CFO Financial Highlights】**
- Service revenue: $119.8M (+1% YoY), Custodial revenue: $156.5M (+29% YoY).
- Gross profit margin improved to 68% vs. 65% last year, driven by higher custodial yields (3.5% Q1).
- Non-GAAP EPS: $0.97 (vs. $0.85 prior guidance), with $85M net income.
- Cash flow: $65M in Q1, $288M on hand, $118M remaining on $300M share buyback.
- FY26 guidance: Revenue $1.285B-$1.305B, Non-GAAP EPS $3.61-$3.78.

**【Key Q&A Takeaways】**
- **Fraud Progress**: Sequential fraud reduction from $11M Q4 to $3M Q1, on track for 1 basis point target.
- **Legislative Impact**: 20M+ new HSA-eligible families could boost asset growth, especially among Medicare Part A retirees.
- **Mobile Strategy**: 70%+ of interactions now via mobile, with multi-factor auth required by Q4.
- **Interest Rate Hedging**: Locked in 4% forward treasury rates on $500M of maturing contracts to stabilize custodial yields.


HealthEquity, Inc. (HQY) Q1 2026 Earnings Call Transcript

- **Record Growth**: 19% YoY revenue growth, 1 million new HSAs sold annually, $32B HSA assets.
- **Assist Portfolio Launch**: Analyzer, Navigator, Momentum aim to enhance healthcare decision-making with AI.
- **FY 2026 Guidance**: Revenue $1.28-1.305B, non-GAAP EPS $3.57-3.74, adj. EBITDA $525-545M.
- **Fraud Costs**: $17M Q4 2025, elevated Q1/Q2 2026, normalizing in H2.
- **Tech Investment**: Cloud migration, AI tools (e.g., Expedited Claims), and mobile app adoption driving efficiency.


**【CEO Opening Remarks】**
- Q4 2025 revenue grew 19% YoY, driven by 1 million new HSAs sold annually (record high), 14% HSA account growth, and 27% HSA asset growth to $32B.
- Key metrics: 17M total accounts, 9.9M HSAs, $14.7B invested assets (44% YoY growth), and 23% increase in HSA members who invest.
- Launched Assist portfolio (Analyzer, Navigator, Momentum) to enhance employer healthcare decision-making and member engagement via AI-driven nudges.
- Invested in fraud prevention, modernizing platforms to cloud, and rolling out AI tools like Expedited Claims (serving 1M+ members).

**【CFO Financial Highlights】**
- Q4 2025: Service revenue $124.2M (+19% YoY), custodial revenue $144.1M (+37% YoY), gross profit $189M (61% of revenue).
- FY 2025: Revenue $1.2B (+20% YoY), adj. EBITDA $471.8M (+28%), adj. EBITDA margin 39%.
- FY 2026 guidance: Revenue $1.28-1.305B, non-GAAP EPS $3.57-3.74, adj. EBITDA $525-545M.
- FY 2026 custodial yield expected 3.45%, with 49% of HSA cash in enhanced rates (target 60% by 2027).
- FY 2025 share buybacks: $122M (leaving $178M remaining under $300M authorization).

**【Q&A Key Takeaways】**
1. **Fraud Costs**: Q4 2025 incurred $17M in incremental service costs to combat sophisticated fraud. Expect continued elevated costs in Q1/Q2 2026, normalizing in H2.
2. **Assist Portfolio**: Analyzer and Navigator launched, Momentum in development. No direct monetization disclosed, focus on driving employer engagement and member adoption.
3. **M&A Strategy**: High bar for acquisitions, prioritizing organic growth via tech investments (e.g., mobile app, AI tools) and sales pipeline expansion.
4. **Margins**: Service cost per account reduction target via automation, app adoption, and fraud prevention. Gross margin expansion driven by custodial/yield growth.
5. **Regulatory Outlook**: HOPE Act and HSA modernization efforts ongoing in Congress, potential bipartisan support for expanding health savings tools.


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