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Image source: The Motley Fool. Thursday, Aug. 27, 2026, at 8:30 a.m. ET Investor Relations-Richard Putnam President and CEO-Scott Cutler Vice Chair and Founder-Dr. Steve Neeleman Executive Vice President and CFO-James Lucania Operator: Good day and welcome to the HealthEquity Second Quarter 2027 Earnings Conference Call. [Operator Instructions] Please note that today's event is being recorded. I'd now like to turn the conference over to Richard Putnam with Investor Relations. Please go ahead, sir. Richard Putnam: Thank you, Rocco. Good morning, everyone. Thank you for joining us for HealthEquity's Second Quarter Fiscal 2027 Earnings Conference Call. As Rocco said, my name is Richard Putnam. I do Investor Relations for HealthEquity. Joining me today are Scott Cutler, President and CEO; Dr. Steve Neeleman, Vice Chair and Founder of the company; and James Lucania, Executive Vice President and CFO. A press release announcing our second quarter financial results was issued earlier this morning and includes certain non-GAAP financial measures that we will reference. You can find a copy of today's press release, including reconciliations of these non-GAAP measures with comparable GAAP measures, on our Investor Relations website, which is ir.healthequity.com. Our comments and responses to your questions reflect management's view as of today, August 27, 2026, and will contain forward-looking statements as defined by the SEC, including predictions, expectations, estimates, or other information that might be considered forward-looking. There are many important factors relating to our business which could affect our results. These forward-looking statements are subject to risk and uncertainties that may cause our actual results to differ materially from statements made here today. We caution against placing undue reliance on these forward-looking statements, and we also encourage you to review the discussion of these factors and other risks that may affect our future results or the market price of our stock as detailed in our latest annual report on Form 10-K and subsequent periodic reports filed with the SEC. We assume no obligation to revise or update these forward-looking statements in light of new information or future results. Before I turn this call over to Scott, I want to cover three brief updates. First, we recently launched Investor Answers, an AI-enabled tool on our Investor Relations website that makes HealthEquity's disclosed materials easier to search and navigate. You can find this on the menu of our Investor Relations landing page, and we welcome your feedback as we continue to improve the experience. Second, as a reminder of the cadence we set last year, we expect to publish year-end sales metrics after the conclusion of our January 31st fiscal year, and we will provide fiscal 2028 guidance when we report our fiscal 2027 year-end financial results. And finally, we're excited to welcome you to our Draper headquarters for our next Investor Day. It's scheduled for April 13, 2027. Please save the date, and we will share additional information and details as we get closer. With that out of the way, let's turn the call over to Scott. Scott Cutler: Thank you, Richard, and welcome, everybody. We appreciate you joining us this morning, and I'm really excited about Investor Answers and look forward to hosting many of you at our Investor Day in April. Turning to Q2, our results build on the momentum we reported in Q1 and show the HealthEquity model scaling with greater durability. We delivered accelerated revenue growth and higher profitability, including a record adjusted EBITDA margin of 48% and raised fiscal 2027 guidance. It was also a quarter of strong execution across the business with growing marketplace activity, continued technology-enabled efficiency, and lower service costs as HSA accounts reached a record 10.7 million. The key takeaway is simple. Q1 demonstrated that the model is scaling, and Q2 showed that the model is becoming more durable, supported by stronger operating cash flow and disciplined capital allocation. The strength of our model is especially important in a market where healthcare affordability remains one of the biggest financial challenges families face. Healthcare costs are projected to rise at a near double-digit rate next year, adding to the responsibility already being placed on consumers, employers, and health plan partners. Against that backdrop, HealthEquity's role is increasingly important, helping members save, spend, and invest with greater confidence while helping clients manage healthcare costs more effectively. Our strategy is to continue evolving our scaled platform into a healthcare financial operating system that connects accounts, assets, payments, investing, marketplace, and advisory capabilities in one integrated experience. Our second quarter results show the acceleration of that evolution across three drivers: accounts and asset growth, deeper engagement, and technology and AI-enabled efficiency. Let me start with account and asset growth. In the second quarter, we continued to see strong HSA momentum across accounts, assets, and sales. Total HSA assets were up 14% year-over-year. Total HSAs grew 8%, and new HSAs from sales grew 24% year-over-year. New HSAs from sales set a Q2 record and marked our strongest quarter outside of the Q4 open enrollment period. Client retention remains strong amid a very busy contract cycle, with renewals once again on pace to be well above 90% for the year, supporting our confidence in the category and our pipeline. This matters because account growth is only the starting point. As accounts mature, members can use more of the platform over time, expanding the value of each relationship. That creates a more durable model by adding growth opportunities beyond new account volume in any single year. Second, members are engaging more deeply as they save, spend, and invest. Monthly active users on the app reached 1.4 million in July, up 62% year-over-year, while total app downloads exceeded 5 million. Mobile is increasingly the front door of member engagement. We plan to build on that momentum with our next-generation app, which we expect to roll out in the coming months. The app is designed to make it easier for members to access all of their HealthEquity accounts in a single location, find relevant education, manage reimbursements, and connect to marketplace, all while lowering cost to serve. We believe it will help members make more personalized, confident decisions while giving HealthEquity better insight into member needs and more ways to serve them. Marketplace extends that member experience, connecting members to health and wellness solutions. At the end of the quarter, Marketplace had more than 14,000 active members with continued month-over-month growth as we began more targeted member campaigns. Since our prior earnings call, Marketplace has broadened across more categories, merchants, and member touchpoints. Our health-related categories now include metabolic health, hormonal health, diagnostics, consumer health devices, skincare, and recovery. We're adding merchants to support these offerings and developing additional categories, including sleep, health vision, and pediatric care, which we believe expands marketplace to meet more household health needs. We've also begun testing promotional campaigns, including Health Savings Days, which drove record marketplace activity last week. These campaigns are helping increase awareness, drive traffic, and conversion, while giving us additional insight into member demand and the levers that can scale member adoption. While Marketplace revenue is immaterial to our overall financial results today, purchase activity and subscriber growth are encouraging and meaningful signals. Early analysis of HSA members who were not previously contributing shows marketplace purchasers were more likely to begin contributing than comparable members who had not made a marketplace purchase. These signals give us greater conviction that a stronger app experience and relevant marketplace offerings can move members from account ownership to deeper engagement, expanding the long-term value of each relationship. Investing is another measure of deeper engagement and an area where we reached new records in Q2. We ended the quarter with a record number of investing HSA members of 20% and record HSA invested assets with invested asset balances up 28%. HSA members who invest tend to hold larger balances, have higher average contributions, and show higher engagement in spending over time, increasing the long-term value of the member relationship without requiring a new account to be opened. With approximately 9% of our total HSA population investing today, we see a substantial opportunity to help more members realize the full tax-free growth benefits of their HSA. To support that opportunity, we recently launched SimplyInvest, an investment lineup with no administrative fee, designed to make HSA investing more competitive and accessible. The same principle applies across our technology investments. We are improving the member experience, strengthening security, and lowering costs to serve by simplifying workflows, increasing automation, and creating more operating leverage. AI is a key part of that work. We are extending it across a broad and growing set of workflows, moving quickly from concept to implementation while managing costs with discipline and tying those investments to measurable outcomes. In open enrollment, for example, we're using AI to support a digital client onboarding experience and the development of custom multilingual materials, reducing manual work while improving speed, consistency, and the ability to support our clients at scale. In service, AI-driven automation continues to drive down service costs per account across our client member organization. In targeted workflows, AI helped resolve 85% of routine chat inquiries and contained 55% of card-related phone contacts. Enhanced self-service capabilities and operational efficiencies helped reduce human-handled calls 25% year-over-year, with card-related calls declining even faster at 30% year-over-year. AI is helping us strengthen security. Fraud loss remains significantly below target. At the same time, card acceptance improved, and service costs continue to benefit from stronger prevention, automation, and secure mobile adoption. For members, that means simpler self-service for routine needs. For clients, it means less administrative complexity. For HealthEquity, it means a more scalable operating model. This is the operating leverage story in action. Better service, stronger security, and lower cost to serve all moving together. Across the business, account and asset growth, deeper engagement, and technology-enabled efficiency are expanding the value of existing member relationships, improving scalability, and increasing confidence in the durability of our model. We are increasing investments in areas where we are seeing momentum, including digital engagement, marketplace, brand, marketing and promotional campaigns, investing adoption, and service automation. Strong operating cash flow gives us the flexibility to fund those growth investments, maintain capacity for strategic opportunities, and return capital to shareholders. With that, I'll turn it over to Jim to walk through our second quarter financial results, including our margin performance, capital allocation, and raised fiscal 2027 outlook. James Lucania: Thanks, Scott. Hi, everyone. I'll review our fiscal 2027 second quarter GAAP and non-GAAP financial results, then provide more detail on our balance sheet, capital allocation, and raised outlook. Reconciliations of GAAP measures to the non-GAAP measures are included in today's press release. Second quarter revenue growth accelerated to 8% year-over-year. Service revenue was a record $124.4 million, up 6% year-over-year, supported by account growth and the increased engagement Scott discussed, including growing marketplace activity and invested HSA balances. Custodial revenue grew 10% to a record $175.9 million. Annualized yield on HSA cash was 3.83%, reflecting higher replacement rates and increased participation in enhanced rates. Interchange revenue grew 5% to $50.4 million, reflecting higher member spending and transaction activity. Gross profit was a record $258 million, or approximately 74% of revenue, compared with 71% in the second quarter last year. As Scott mentioned earlier, our technology and use of AI have driven down service costs on a per-account basis, as is our goal every quarter, and delivered meaningful service cost reductions year-over-year while total accounts grew 4%. Net income was a record $65.6 million, or $0.78 per diluted share, on a GAAP basis. Non-GAAP net income was $103.8 million, or $1.24 per diluted share. These results include $3.3 million of one-time disposal expense related to previously capitalized, internally developed software that's no longer used. We continue to expect full-year tech and dev spend to remain within our target range while continuing to fund the growth initiatives Scott outlined. Adjusted EBITDA was a record $167 million, up 11% year-over-year, and adjusted EBITDA margin was 48% compared with 46% in the second quarter last year. For the first six months of fiscal '27, revenue was $705.4 million, up 7% compared with the first six months last year. GAAP net income was $135.1 million, or $1.60 per diluted share. Non-GAAP net income was $208.9 million, or $2.47 per diluted share, and adjusted EBITDA was $331.5 million, up 14% from the prior year, resulting in 47% adjusted EBITDA margin for the first half of this fiscal year. Turning to the balance sheet, we ended the quarter with $256 million in cash, generated $136 million of operating cash flow, and had approximately $931 million of debt outstanding net of issuance costs. During the quarter, we repurchased approximately $108 million of our outstanding shares at an average price below $90. At quarter end, we had approximately $948 million remaining under the $1.6 billion cumulative share repurchase authorization. We expect to remain disciplined and active in our share repurchase program, as we believe it represents an attractive use of capital, while continuing to fully invest in the business and preserve flexibility for strategic opportunities. Before discussing our raised guidance, I want to briefly address the HSA cash maturity schedule included in today's earnings release. We have $2.3 billion of remaining HSA cash in contracts repricing in fiscal 2027. During Q2, $460 million of forward Treasury contracts matured, and we ended the quarter with $3 billion of outstanding contracts, effectively locking a five-year Treasury rate at approximately 3.9% net of costs across fiscal years 2027 through 2029. With current five-year Treasury yields higher than our average locked forward rates, we remind you the purpose of this program is to reduce volatility and narrow the range of potential outcomes tied to movements in the five-year Treasury benchmark. After quarter end, we placed small forward contracts tied to enhanced rate repricings expected over the next 12 to 18 months. Because these forward contracts are tied to future depository contract maturities, we have greater visibility into the economics of custodial cash placements. We'll continue to evaluate additional forward hedges as appropriate. We now expect average yield on HSA cash to be between 3.85% and 3.9% during fiscal 2027. As a reminder, our custodial yield assumptions are based on projected HSA cash deployments and rollovers, the schedule of which is contained in today's release, remaining forward contracts in place, as well as analysis of forward-looking market indicators such as the Secured Overnight Financing Rate and mid-duration Treasury forward curves. These indicators are subject to change and may not accurately predict future market conditions. We remain optimistic about fiscal 2027 and are raising our guidance, reflecting the strong revenue and margin performance in the first half of the year. Our outlook also reflects the benefits of our ongoing technology and security investments that are improving efficiency, reducing service costs, and supporting a better member experience. For fiscal 2027, we now expect revenue between $1.411 billion and $1.421 billion. GAAP net income of $242 million to $248 million, or $2.88 to $2.96 per share. Non-GAAP net income of $392 million to $398 million, or $4.66 to $4.73 per share based upon an estimated 84 million shares outstanding for the year, and adjusted EBITDA between $628 million and $636 million. Our guidance also reflects funding growth initiatives in the second half of the year, expected capital allocation activity, including additional share repurchase under the expanded authorization, and potential reductions in revolver borrowings during the year. With continued strong cash flow and revolver availability, we expect to maintain ample capacity for portfolio acquisitions should attractive opportunities become available. We assume a GAAP and a non-GAAP income tax rate of approximately 25%. As in prior periods, our fiscal 2027 guidance includes a reconciliation of GAAP to the non-GAAP metrics provided in the earnings release. Definitions of all of these items are included at the end of the earnings release. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP net income, the revenue generated from those acquired intangible assets is included. And with that, operator, please open the line for questions. Operator: [Operator Instructions] Today's first question comes from Allen Lutz of Bank of America. Allen Lutz: Scott, I'll start with you. Really impressive growth in active members in the marketplace. I saw you quoted 14,000 active members exiting the quarter. I know you said that the service revenue around those marketplace members wasn't material. But if we look at the model here, typically service revenue is down sequentially from Q1 to Q2, and now it's stepping up. Is there anything else in that line item we should think about that's maybe different about this quarter versus in prior years? And then more broadly on the marketplace, can you share any feedback or early learnings, just any conversations with partners or anything that you're learning in real time, either about the opportunity or about what you're trying to do with the marketplace? Scott Cutler: Yes, great, Allen. Great question. So, as we think about what's driving effectively this inflection in service revenue, it's the things that we're strategically focused on, marketplace and driving more investors, both of which we saw exceptional growth on a year-over-year basis and into the quarter. So for me, it's really that perspective that driving that strategy should, again, continue to drive service revenue. Going to your question around Marketplace, yes, we're really pleased with the subscriber growth, the transaction growth, and what's happening in Marketplace specifically. Connecting it to the next-generation app, as we're rolling that out in the coming months, we've spent time with our customers reviewing what that app experience is going to look like and also getting feedback, particularly on what the UI looks like for the entire app experience, including Marketplace. And so the early feedback and learnings is they're finding it, they're seeing it, and they're appreciating the connection to wellness and health that Marketplace is really designed to drive. The other early learnings, and again, we're seeing month-on-month growth in Marketplace, but a couple of exciting things. I talked about Health Savings Days last week. It drove the highest traffic and the largest sales week in marketplace history, and recognize we're only three quarters into this. Just last week alone, we drove 500,000 unique visitors to the site, which we're really excited about. Most of those transactions are happening in the mobile experience. We also have it available on web. And I think the other thing that I'm really pleased about is that when we look at the revenue composition of marketplace, we started in metabolic health and now we've expanded our inventory across more programs, more products, and more services, and now non-metabolic programs and transactions are now about a third of that Marketplace revenue. So, again, early indications are very positive. The feedback from our members and our clients is improving, and ultimately connecting that health outcomes and driving health outcomes for our members is really exciting right now. Allen Lutz: Great, appreciate that. And then a follow-up for Jim. As we look at the growth in interchange revenue and the growth in HSA members, I wanted to dig into interchange revenue in the quarter. The growth there was maybe a little bit more disconnected than normal from member growth. Jim, is there anything going on from a utilization perspective as we think about this past quarter? I know there's a lot of volatility. Last quarter, there was impacts from weather that impacted things more broadly, but anything in the quarter that you saw around utilization that's worth calling out? James Lucania: Yes, no, thanks. Yes, it's not just HSA members that have cards, right? It's really all members except for COBRA members. So in line with the total account growth of 4%, it grew faster than account growth. So I'd say actually Q2 was a bit more of a normal quarter in interchange growth, so seeing reasonable spend growth. We see a little bit of behavior change only in the way that people are spending, so, like, the mix, so mix of online purchases versus in-doctor office purchases versus CVS drugstore purchases in store, each of those have, like, slightly different pay rates, but that's just sort of at the margin stuff that swings quarter-to-quarter, but we view this quarter as a little bit more normal, not like last quarter where, yes, we definitely saw some sort of off-trend shifts. So, you know, we'll continue to watch it. But like I said, this quarter was a bit more normal growing with account growth. Operator: Our next question today comes from Alexei Gogolev with JPMorgan. Please go ahead. Alexei Gogolev: I had a question around distribution strategy. So how are you balancing reliance on network partners with selling direct, and over time, do you want to be more partner-led or more direct, or maybe remain hybrid? Scott Cutler: Yes, thank you, Alexei. So, as we think about our go-to-market strategy for driving account growth, we do have an incredible network of partners that enable us to have a very efficient distribution strategy. So, we continue to leverage our hundreds of health plan partners, our relationships with the brokers that tend to have an advisory relationship with many of their clients, as well as going direct. And so all of those channels are working exceptionally well. We are very, very pleased with what we've been able to drive so far this year with a record Q2, for example, in new HSA sales. And I think that's representative of a couple of different things. Number one, our growth from existing clients is actually quite strong because we're going to the market in an advisory capacity to help them drive plan design and improvements to drive greater adoption, so growth from existing very strong. What we'll talk about in terms of what we call individual family plans we used to call retail is really driven by health plan partners that are driving bronze adoption, our direct-to-consumer flows, our relationships with other providers and brokers in that go-to-market strategy, and then also the third would be new logo sales, which again, we go with partners as well as direct, and we're continuing to see really strong enterprise growth and sales pipeline as we look at how this develops through the rest of the year. So we're really excited by again an efficient distribution strategy and continuing to drive account growth, which is really just the beginning of the value of that relationship over time. Alexei Gogolev: Thank you, Scott. And another question on data analytics. You often cite analytics as a differentiator and then the price wins. How do you envision monetizing analytics over time? Do you think it will be a stand-alone revenue line or maybe primarily as more like a win and retain capability? Scott Cutler: Yes, another great question. We're leveraging insights and data and analytics across this network effect of network partners, all of the integrated claims and data that we have associated with that, as well as just a deep understanding of the largest installed client base in the industry to give us a comprehensive picture to our clients in what we call strategic advisory services. And what these services are really designed to do is to be able to have an advisory conversation with our clients to help them understand what is best in class and how do they compare against industry peers, for example, in things like enrollment, adoption, contribution, what could a seed or investment strategy contribute? All of this is really designed against a backdrop of a healthcare affordability for the enterprise that is a real challenge. And so as our enterprise clients adopt these strategies that we're giving to them, they're able to lower their annual increases in healthcare costs, attack that healthcare affordability with a real solution in driving greater adoption of a high-deductible health plan attached to an HSA. And ultimately, what we believe is giving more employees or more members power in their healthcare decisions when they have an account to address those needs. So I don't think it's going to be necessarily a stand-alone product, but all of that information is leveraged to be able to drive greater adoption and better advisory services to our clients. Operator: Our next question today comes from Brian Tanquilut with Jefferies. Please go ahead. Brian Tanquilut: First, as I think about the margin performance in the quarter, another strong performance here. So just curious, how much runway do you think do we have in terms of driving that margin higher? I know you're using a lot of AI and productivity tools in the model right now. So just curious about that. Scott Cutler: Yes, I'll attack that. What you're seeing right now is obviously we're seeing gross costs come down while account growth is happening. So we're exceptionally pleased with what we're seeing. In terms of our ability, number one is providing a better service. A better service, ultimately, results in fewer contacts, higher satisfaction from our customers at a lower cost. What you're seeing in the numbers right now, again, is largely just a reflection of the improvements that we've been able to make in the member experience. So the things that we highlighted in terms of a 25% call reduction is phenomenal. Where we're seeing real improvement in AI-driven automated responses in things like chat, the containment of card-related phone contacts, and really this transition to self-service and automation. And then the human part of the interaction can be best served by those interactions that we can really drive even more value in a phone conversation. But what I would also say is while we've made great progress there, you'll recall that we've kind of identified it in three buckets. One, member services, two, client services, and three, back office. The results that you're seeing now is more on the member services side. What we're really transitioning to now is really what are the efficiencies that we can unlock on the client side and in back office. On the client side, we've introduced AI into certain of our workflows around client onboarding and file transparency, and we're continuing to drive back office efficiencies in claims automation. And in all of those areas, while we've been able to deliver really strong margin improvement, remember that we're just at the beginning of where we see AI driving even further efficiencies as we use AI across all of these workflows. And so I think that's what I'm equally excited about is that we're still just at the very beginning of this journey while we're delivering significant margin expansion, which is really exciting for the story. Brian Tanquilut: That's awesome. And then maybe my second question, as you look over the next several quarters, what do you think are the biggest drivers of yield sustainability, and how should investors think about the balance between, say, portfolio positioning, contract renewals, and then interest rate sensitivity? Scott Cutler: Yes, Jim, you want to take that? James Lucania: Yes, sure. Not exactly sure where you're going on that one, but what the yield on the HSA cash portfolio is going to be, we have a pretty tight band, right? That's why we're able to give you a pretty tight band on a short-term outlook. We've got a pretty good idea of what next year is going to look like, but obviously with much more precision once we get through the open enrollment season and we know what the cash inflows and outflows are going to look like. But you're absolutely, like, if you're on the pricing trend, right, and to Scott's point on service costs, right, the magic is going to be in -- how much of the save do you share back with the clients in continued admin fee reduction versus how much of it we can hold on into the margin? So I think we've been striking a balance for some time in that area. There is absolutely headline price erosion, so that would be in the -- that's a headwind to service revenue, is year-over-year price reduction. Our competitors don't stand still either. They're going to be trying to reduce their service cost, and we're in a highly competitive market. So that's going to be the balance for us to manage the revenue share back with clients and the speed of cost saves that we can drive. So hopefully that was the direction your question was going. Operator: Our next question today comes from Sean Dodge of BMO Capital Markets. Please go ahead. Sean Dodge: Maybe, Scott, on the HSA account growth, you talked about the various channels you all go through, but if we focus on the intra-year adds, I think you said this was the best quarter in terms of adds outside of an open enrollment period. Is there something different you're doing to drive the intra-year growth, like how were you able to drive that? Scott Cutler: Yes, it's all of the things that I suggested earlier, which is again the relationship that we have with clients. We're using strategic advisory services. That's the largest contributor to that year-on-year growth, essentially the channel of individual plans and individual participants, as well as new sales. All of them are actually working. All of them are strategic priorities, and just exceptionally pleased to be able to see new HSAs from sales growing 24% year-on-year. I think that's against essentially the perception maybe earlier in the year that the jobs market might be a headwind. I think what we've been talking about all year is that healthcare affordability is a massive tailwind for the business because it's a problem for enterprises, it's a problem for our members, and our solution is perfectly suited to address those needs. So to be able to have that level of growth in new accounts for this year, and again, hopefully the setup for the second half of the year is as strong as the first half is going to be, but certainly really pleased with what we're seeing so far. Sean Dodge: Okay, great. And then on the other CDBs, growth in those accounts continues to lag HSAs, just with you all signing more multi-product deals, how should we think about like CDB growth going forward, and what kind of runway remains there in terms of cross-selling more of those into your growing HSA base? Scott Cutler: Yes, remember that the HSA product is the most powerful product to drive value to the member, to the employee, to the client, to be able to also help drive down year-over-year healthcare costs by driving greater adoption. And also remember that the CDB products are all sold as a bundle. And so I think what we see is effectively that bundle is still being really important to our clients to be able to offer, again, a flexible array of accounts for their teammates and then for us to be able to drive the value of the health savings account, the triple-tax advantaged nature of that. And again, I think what you see from clients is largely reflection or movement of moving from other CDB products, particularly FSA as an example, into driving greater adoption of HSAs. And so I think that's been a trend that's been happening for a while, and certainly I think that's reflected in what we're seeing in terms of the overall portfolio of accounts. Operator: Our next question today comes from George Hill at Deutsche Bank. Please go ahead. George Hill: I guess, Jim, I've got two quick ones. Jim, just wanted to check, was there anything one-time in the services margin contribution this quarter just because it seemed to handily beat our number and the street number as well, and maybe comment on the sustainability of that margin profile? And then my question for Scott is, we continue to read in the media everywhere about the affordability crisis in health benefits with employer sponsors and other planned sponsors looking to exit the market and exit the healthcare business. And we'd love to hear how that's influencing your conversation with customers and kind of the demand for services that they're seeing from you guys. I would imagine it's a tailwind to address affordability, but would just love to hear about the conversations. James Lucania: Yes, thanks for the question. I'll handle the first part quickly, turn it over to Scott. Yes, so nothing weird in the service cost number for this quarter. So this is not, there is no year-over-year easy comp on fraud like there has been. So we continue to significantly outperform our fraud target, which is 1 basis point on assets per year, so a quarter of a basis point each quarter. So, yes, this reduction is sort of nice, clean, actual service cost reduction from our service and ops team. Scott Cutler: Yes, so George, let me answer, and I'll ask Steve to lean in as well in terms of what we're seeing across the other several channels in the family plan market, which I think is part two to your question. So part one to your question around affordability is for every CEO and every CFO of public companies, you're actually seeing this healthcare line item grow on a year-over-year basis much faster than wages, much faster than GDP growth, and much faster than most companies are growing. And so it does create a real challenge within your benefits to effectively design a benefit program and be able to try and manage those healthcare costs. And there are things that our employer clients have in terms of levers to be able to drive that. And the single biggest lever that can actually amount to millions of dollars of savings for an employer and thousands of dollars of savings per employee is simply just driving greater adoption of high-deductible health plans. And we're on a journey with many of our clients that are driving much greater adoption because of that. So we've had clients that have moved from, call it a 25% adoption rate to higher than 60% and 70% and enjoy significant savings associated with that move. And so we do believe that the healthcare affordability tailwind is going to continue, that strategic advisory services is designed to be able to give those employers data and information to be able to go into this next open enrollment season with real strategies to address that. And then, so maybe Steve, you can talk a little bit around what we see happening in terms of employer plan sponsors in the individual market. Stephen D. Neeleman: Sure. Hey, George. Good hearing from you. So, look, I mean, one of the benefits of having around 100,000 or more clients is we see all different types, right? We see large self-funded employers which have their ways to deal with this. Scott's really highlighted it, right? If they can go from a 30% adoption in HSAs, which is kind of the national average, to 60%, they save a lot of money every year per participant. At the lower end, I think because we have thousands and thousands of employers that are closer to that line, what are they doing? And we are seeing some movement toward things like ICHRAs where they're saying, look, we still want to provide benefits because we want to be able to recruit people, we want to be able to provide a benefit, we want to do it in some sort of a tax-advantaged and managed way, and so that's where they're starting to lean in and ask the questions, and look, there's been a lot of investment in the ICHRA market. I think what's made it very interesting to us is obviously the legislation that was passed a little over a year ago with bronze plans, catastrophic plans, being universally HSA qualified. Prior to that, we looked at the data when the law passed last July, and only 2% of people in health exchanges throughout the country were in HSA qualified plans. In some states now, with one law change, that number is now approaching 50% in HSA qualified funds in exchanges. So now the question is how do you get those people not only into health savings accounts, but how do you get them to fund those accounts? So that's where we're working a lot of different angles. I mean, we do have these wonderful health plan partnerships that all, most of them sell IFP plans. And so we're working with them to make it very simple for a member that, whether they're coming from an employer plan or they're just out in the individual market, they could be self-employed, whatever, get them into a bronze plan, get them into an HSA, get them funding that HSA. And we're learning some new muscles, thankfully there's some things that we can leverage our ability to market to consumers through the marketplace. We're learning that. And then there's of course the ICHRA channel. There's a lot of ICHRA providers that we're having very good discussions with and starting to contract with. And there's these field marketing organizations that are out signing up IFP members. And so we're looking at all these different channels. And there's even our direct-to-consumer market. And we're seeing some growth there. So we're all over it. I think Scott said it best. If people want to solve the affordability crisis in this country, whether you're an employer or you're a consumer, go sign up for a health savings account. And, you know, sometimes you need an affordability crisis. You know, never let a crisis go to waste. And we're not letting it go to waste. Trust us on that. Operator: Our next question today comes from Scott Schoenhaus with KeyBanc. Please go ahead. Scott Schoenhaus: Scott, I believe you said in your prepared remarks you had record marketplace activity last week resulting from highly targeted campaigns. Can you talk about more in detail what you're doing here on the enhanced targeting side? And if you expect to see the activity and marketplace growth to further accelerate from here, given what you're seeing and doing? Scott Cutler: Yes, great, Scott. We are literally at the very beginning of Marketplace, and we expect to grow Marketplace significantly over the years to come. I'd say what I'd highlight on the marketing side is, first, remember that it starts with the top-of-the-funnel experience, which is how do we drive engagement, how do we drive traffic? And this quarter was the first quarter where our marketing strategies, and it's largely personalization in the app, it's also email campaigns that were driving greater engagement of our members top of funnel, creating our own funnel of engagement all the way down to conversion. Technically, what's really important to be able to unlock that is making sure we've got enough surface area in the places that our members see to be able to see Marketplace as an offering, to be able to expand the inventory that we have, the brands that are part of Marketplace, and then start to improve conversion. And coming from a marketplace background of the last several years, what I'm really excited that our team is able to deliver this last quarter is really beginning the start of journeys around A/B testing, UX insights, promotional campaigns to start to test and to learn what activities produce the greatest results. And so when we see increased traffic and increased transactions and increased conversion, all of those are going to continue to drive exceptional growth in marketplace. And so I know that we're just at the beginning. And certainly as we look forward into the brand pipeline, we're also building a merchandising function. So we've got team of folks that are adding other brand partners. We're making that process easier and more efficient, which is sort of like building the supply side of the marketplace. And as I highlighted in the first question, to be able to see that mix of products and programs, to be able to expand in just one quarter, we're really excited about that. So I think all of those are key things that we're doing now to be able to effectively use our marketing mechanisms as well as our UX and inventory to drive these results. Scott Schoenhaus: And then just to follow up here, it kind of leads me to my next question. How should we think about the margins evolving for consumer marketplace? You know, they obviously tend to be very high margin business that drops to the bottom line, but you're also investing in these marketing campaigns and targeted areas. So maybe think of us how we should be thinking about modeling how this business falls. Scott Cutler: So the margin profile of our marketplace is dramatically different than any other consumer marketplace that is available. And it's really in two areas. Number one, there's largely no cost of acquisition because our cost of acquisition is really driven by the mechanics of driving member engagement of our own members, and so we're not actually needing to spend dollars which other consumer marketplaces need to drive with Google or Facebook or other top of funnel activities to actually get a transaction. We have an installed base of 18 million members that have accounts with us to be able to have a personalized experience. So number one differentiator is cost of acquisition, which for us is very, very low. The second thing is the cost to serve associated with that, remembering that some of our biggest programs are here through partners, and the delivery mechanism is through partners, so we don't really have any cost to serve that revenue as well. So I would expect Marketplace, as we're able to drive it, is contributing significantly large margin profile associated with that, but also very, very different than any other marketplace could offer. One another example of that in Health Savings Days, we're able to drive really great pricing. So pretty much market-leading pricing across all of the products and programs that we were selling over the course of Health Savings Days to be able to give that member the best or nearly the best price for those products relative to anybody else in the marketplace, again, because we have very low cost of acquisition and low cost to serve. So we can pass those savings on directly to our members, which I'm really excited about in terms of the value proposition of Marketplace for our members. So those are very, very big differences in this Marketplace versus a direct-to-consumer Marketplace that everybody else would be competing in. Operator: Our next question today comes from Mark Marcon with Baird. Please go ahead. Mark Marcon: I've got two. First, just on the cash balances, Scott or Jim, just wondering, in terms of the lower rate of growth, would you attribute that more to the cash balances being spent because of the higher cost of healthcare or more engagement with the marketplace, or is it an increase with regards to the investments and people becoming more savvy about using the investment assets? And along those lines, how would you think that cash balances will grow long-term relative to account growth? And then I've got a follow-up on the marketplace. Scott Cutler: Yes, I mean, this is, I think, a deliberate reflection of our strategy, which is our strategy is driving greater lifetime value of our members through the activities that drive the greatest long-term value. And so when you look at the long-term value of becoming an investor as an example, we've highlighted this before that most investors have 4x the contribution level that a non-investor, non-spender would have. And so it's really important that we drive our members toward becoming investors and that for us, how we do that is a really streamlined and efficient frictionless experience in enrollment, and the results that we've seen on a year-over-year basis to be able to drive north of 20% growth in the number of investors, Mark, is an absolute reflection of that strategy. It does mean that initially that person becomes an investor and holds a lower potentially a lower cash balance. But again, over time, that investor will drive a greater cash balance growth over time. The other thing essentially is a flywheel to the business is driving spend. And I wouldn't say necessarily that the spend or marketplace yet is material enough to drive the overall averages of cash balances. But again, theoretically, what we're driving is as you spend on the account more, you also contribute more. And so marketplace is one component of that. And so again, as we think about that, Mark, is really just thinking about driving the long-term growth of the business, the long-term growth of the value of that member, but also having that member be way more engaged in the account than they would otherwise. And so I think that is, again, reflected as a really very deliberate strategy on our part to be able to drive that. Mark Marcon: Got it. And then with regards to the marketplace, and it's a good segue, I thought you've got a lot of experience with regards to different marketplaces, obviously different consumer propositions, but just in terms of taking a look at the initial member engagement, what are you seeing in terms of conversions relative to people who are actually coming onto the site, exploring some of the different offerings within the marketplace, and then deciding to proceed? How does that compare to what you would expect? You know, and I know it was different categories, very different categories, but how's that going? And how much confidence do you have in terms of the future growth of the marketplace based on what you're seeing? Scott Cutler: Yes, great question. Again, as we think about before you even get to conversion, you really need to be able to have a funnel. And the marketplace will operate in a slightly different funnel than other marketplaces that are, again, kind of to the prior question, typically driven top of funnel through marketing activities or spend or cost of acquisition to be able to drive that. For us, as we think about the future, Mark, we're moving toward a future where we have a single app experience. And that single app experience is really designed to empower our members to become consumers of healthcare. And when we think about that, that also starts with having an app experience and having an experience that is engaging. There's a reason to come back to. And that includes education, could include connection and integration with your health, maybe even how your investments are performing, how you can become more empowered. All of those activities in the app start at the top of funnel activities that ultimately, then when you can introduce Marketplace, can create that conversion opportunity. You know, I think how we compare, we're so early in the journey of actually creating a funnel that the compares aren't necessarily relevant right now. But again, as I look at conversion as an example, this is the single thing that I was most excited about in the quarter, which was our ability to drive conversion. For most marketplaces where this is your core business, conversion is the single metric that you look at in the experience. It is a reflection of your ability to drive a great experience, but actually then also convert your customer, your member, into the transaction experience you're trying to provide. And we made significant changes, improvements in conversion over the course of the last quarter. And the way you drive that is A/B testing. Test different treatments, test different exposures of offerings, more personalization, and we're able to do all that activity and have a tech organization that's really organized around that conversion opportunity, then we can really make this even more powerful. So that's why I say we're barely at the beginning of what Marketplace can become. Operator: Our next question today comes from Steven Valiquette with Mizuho Securities. Please go ahead. Steven Valiquette: So I guess my question is regarding the custodial revenue growth of 10% in the quarter, just curious at a high level how to think about that growth and how it may trend directionally in the back half of the current fiscal year. On the one hand, you raised the full-year HSA cash yield guidance, which is obviously encouraging, and the five-year Treasury yield has moved up a lot, which is also positive. But without giving, I guess, specific guidance, is that 10% growth a reasonable run rate for custodial revenue growth for the back half, knowing that hedging activity may unfortunately be limiting some of the potential upside? James Lucania: So don't give you specific guidance, but give you specific guidance is the question. So, yes, yes. So, I mean, you guys, you can do the math, right? Like, we can't really move this number for what you said, right? The cash is placed right now. And yes, the five-year moving is mostly irrelevant. Yes. And, like, yes, some things are going to reprice. A lot of it is hedged already. So that's why I said we have pretty good certainty plus or minus of what the yield is going to be for this year. And then we get a lot of the new cash in is from our clients seeding accounts in those payrolls of January. So we get a bunch of cash in toward the end of the year, and it doesn't get a chance to move the annual rate that much because it's just not in for long enough. And that's why that January is big about knowing with more precision what our yield is going to look like next year. So, you know, I can give you a nice tight 5 basis point band for '27. I would not be able to give you a tight 5 basis point band for next year, but a pretty tight band. So, just based on the quantum of cash placed relative to the new cash that's going to come in at market rates, as well as the balance of the hedges that we have on. So that's why you saw it last year too, right? Like the number just doesn't move that much once we get to this point in the year. The part that can move it up and down is the floating rate component and the balances that are not in fixed rate contracts. Like that's the at the margin plus or minus 5 basis points, and then the little bit that we're placing between now and year end that isn't hedged, that will float with the five-year Treasury. So that's the window that we're operating under. Steven Valiquette: The quick follow-up kind of tied to this would just be that with the five-year Treasury yield hanging around at higher levels at around 4.4%, are you slowing down the pace of your hedging activity in light of that, or are you just opportunistically locking in higher rates on the hedges now? Maybe a little bit of both, but just curious. James Lucania: Yes, good question. So, obviously, like the near-term maturities, like, we're already hedged, right? So, the ship has sailed. As time goes on, the one thing that I announced in the prepared remarks was we did place our first hedge on an enhanced rates repricing. So, think of that as, like, these annual rate resets in enhanced rates, we were able to hedge a handful of those contracts to a certain extent. So that is a new innovation in our hedging program. So what you should expect is that will grow over time as we're able to, they're more complicated hedges than a simple basic rates maturity, like that's a bunch of cash maturing on one day, I need to hedge the five-year Treasury on one day. And enhanced rate contracts is a little more complex than that, but we stepped into that market post the quarter close. So you'll hear about that a little bit more next quarter. But as time goes on, we're reaching into the next year. So when we started this program, it was '27. Then we started hedging into '28. Now we've started hedging into '29. So the new hedges will continue and obviously, those enhanced rate hedges were placed at a five-year Treasury way higher than the 3.9% that we talked about for this quarter. So, yes, we're going to continue to mature the current hedges, and we're going to continue to add on new market rate hedges. So over time, you'll see the locked yield move up. Operator: Our next question today comes from Ryan Halsted with RBC. Please go ahead. Ryan Halsted: Maybe just a two-parter on the strong new sales growth. Just any commentary on the competitive landscape, how your win rate has been trending or RFP trending. And then the second part is just, you mentioned in the capital allocation potentially being opportunistic. I mean, do you think you need to be strategic if you think you can just continue to take share at the rate you have been? Scott Cutler: Thanks, Ryan. So on the new sales growth side, obviously this sales growth is significantly faster than growth in the industry, which again will reflect our leading position, but I think also a leading growth position in the marketplace. We obviously have a broad set of competitors, and as the market leader, we have to be more competitive than the rest of the industry. And where I see our strategy differentiating us relative to the competition is a couple of factors. Number one, go back to our mission. Save and improve lives by empowering healthcare consumers. That is our mission. We're not a bank. We're not a retirement company. We're really driving toward consumer empowerment. And so everything in the product experience, everything that we're going in terms of our engagement with our clients is really designed to do that. Number two, the actual experience that we deliver is also becoming more and more differentiated relative to the competition. As we look at, as an example, bringing together into that single app experience all of our products, education, marketplace, AI delivering improvements in terms of security in that posture, all of those things are also very differentiated relative to the competition. So again, in order for us to stay in front of them, I think we've got to differentiate across those points. Our retention rates are very high. Our win against our large competitors is also very, very strong. And, you know, and I think our pipeline of transactions across all companies and all sizes, given that we have the largest set of integrated plan partners also just gives me confidence that we'll continue to outpace growth in the industry in the quarters to come. And so I think that is our differentiated position and will continue to be that position. Just clarification on your second part, which is really just how capital allocation. I want to just make sure I'm answering that correctly. So what you had your capital allocation, which I think is a little bit different than the competition, but what was your second part to clarify? Ryan Halsted: Oh, sorry. Just in terms of maybe strategic opportunities, I thought you had mentioned in your capital allocation strategy keeping some dry powder. But, you know, my question was, do you feel like you can continue to grow and take share without having to be perhaps acquisitive? Scott Cutler: Oh, OK. Yes, I mean, I think there's two parts to that. Number one is our overachievement in efficiencies, particularly driven on the service side, gives us this opportunity to lean into growth. And growth is really important for us. While we're continuing to deliver margin expansion and to be able to deliver our framework to the street, those growth initiatives that we're investing in, next-generation apps, leaning into AI, delivering on the experience. We talked about a little bit on the sales and marketing side. In addition to the renewals and the cycles of winning new logos, we're also building new retail muscle in that IFP market. And so we've been talking about leaning into that from a marketing perspective with a match as well as top of funnel marketing to be able to drive that type of adoption. And I'm really excited in just another month, we've got our largest customer summit focused on brokers and clients where we're bringing together a huge group to be able to talk about all the different things that we're doing. We've never done that before at that type of scale. So it's another, I would say capital allocation, but investment that we're able to make in the second half of the year. On real capital allocation, we want to be prepared for any M&A that comes available in the market, and we'll continue to have a high bar associated with that. We'll continue to pay down debt, we'll continue to be real efficient allocators of capital at the enterprise level. But I think, again, our performance as well as our expansion gives us the opportunity uniquely to really invest in this business to drive growth. Operator: Our next question today comes from David Larsen at BTIG. Please go ahead. Jenny Shen: This is Jenny Shen on for Dave. On the new app that you expect to launch in the coming months, can you just talk more about some of those key points that you highlighted? And is this a simple upgrade of the current app that you have, or is it an entirely new one for members? And then on the labor markets, I think you touched on it briefly in your prepared remarks, but anything to call out that you guys are seeing on your end in terms of employment and hiring trends? Scott Cutler: Yes, so the app experience is two things. Number one, our HealthEquity app will be updated into this new next-generation app experience. And so all HealthEquity app users will effectively be upgraded as we roll that together. I also talked about one of our other apps is our reimbursement EZ Receipts app. That app will be integrated into the HealthEquity experience. That will come together as a single experience. So think of that as most of our FSA accounts, as an example, will come into the single HealthEquity app where we'll be able to have all of your, again, claim reimbursement to marketplace activity, to investment activity, to education, all in a single integrated experience. And so that bringing together is something that is new for us. And so we're going to be driving that over the coming months. On your second question relative to the labor markets, of course, we do look at the labor statistics and new jobs that are being added into the marketplace. I think as we talked about in prior years and in quarters is that we are not tied to the strength or the weakness in the labor markets. Last year, we put up a record number of new HSAs against a very weak macro labor market. The macro labor market is better than expected so far this year. But again, the reason that we're not dependent on that is because of the challenge associated with healthcare affordability and our ability to drive greater adoption, which again is represented by what you see in the new HSA growth where the growth from our existing client base, again, likely overcomes any of some of that either macro weakness. And so I think, again, what we see is really just growth in the value proposition of the accounts, which, again, has been tremendous in a year, certainly in the beginning of the year, where there might have been questions around that or questions relative to our ability to drive outsized growth. I think we've proven that now in several quarters in a row, that we're able to grow this business and grow our accounts disconnected from the overall labor market. Operator: That concludes our question and answer session. I'd like to turn the conference back over to the company for any closing remarks. Scott Cutler: All right, thanks everybody. Really great and thoughtful questions. We really appreciate your support. Again, to kind of wrap it up, really pleased with the execution in Q2. Hopefully you felt the message reinforcing the strength and durability of our model and our increased confidence in the long-term value creation opportunity ahead. So again, thanks for your interest and support. We look forward to updating you next quarter. Operator: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day. Before you buy stock in HealthEquity, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HealthEquity wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 31, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. HealthEquity (HQY) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

HealthEquity (HQY) reported $350.73 million in revenue for the quarter ended July 2026, representing a year-over-year increase of 7.6%. EPS of $1.24 for the same period compares to $1.08 a year ago. The reported revenue represents a surprise of +0.14% over the Zacks Consensus Estimate of $350.23 million. With the consensus EPS estimate being $1.19, the EPS surprise was +4.2%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how HealthEquity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total HSA Assets: $37.92 billion versus $37.64 billion estimated by two analysts on average. HSA Assets - HSA investments: $20.55 billion compared to the $20.01 billion average estimate based on two analysts. Total Accounts - CDBs: 7.02 million versus the two-analyst average estimate of 7.05 million. Total Accounts: 17.76 million versus the two-analyst average estimate of 17.64 million. HSA Assets - HSA cash: $17.37 billion compared to the $17.63 billion average estimate based on two analysts. Total Accounts - HSAs: 10.74 million versus 10.59 million estimated by two analysts on average. Revenue- Service: $124.44 million compared to the $121.1 million average estimate based on three analysts. The reported number represents a change of +5.6% year over year. Revenue- Custodial: $175.94 million versus the three-analyst average estimate of $177.7 million. The reported number represents a year-over-year change of +10.1%. Revenue- Interchange: $50.35 million compared to the $50.98 million average estimate based on three analysts. The reported number represents a change of +4.7% year over year. View all Key Company Metrics for HealthEquity here>>> Shares of HealthEquity have returned +0.3% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record adjusted EBITDA margins of 48% by leveraging technology and AI to reduce human-handled service calls by 25% year-over-year. Delivered record Q2 new HSA sales growth of 24%, demonstrating that healthcare affordability challenges are driving enterprise adoption of high-deductible plans despite macro labor market fluctuations. Transitioned the platform toward a 'healthcare financial operating system' by integrating accounts, assets, and marketplace capabilities into a single mobile-first experience. Observed that HSA members who engage with the Marketplace are more likely to begin contributing to their accounts, creating a flywheel for long-term asset growth. Increased invested HSA assets by 28% year-over-year, focusing on high-value 'investor' members who typically hold 4x the contribution levels of non-investors. Maintained high client retention with renewals on pace to exceed 90%, supported by strategic advisory services that help employers manage rising healthcare costs. Raised fiscal 2027 revenue guidance to $1.411 billion–$1.421 billion, reflecting strong first-half momentum and anticipated technology-enabled margin expansion. Expect average yield on HSA cash to reach between 3.85% and 3.9% for fiscal 2027, supported by higher replacement rates and enhanced rate participation. Planning the rollout of a next-generation integrated app in the coming months to consolidate all account types, reimbursements, and marketplace functions into one interface. Expanding Marketplace inventory into new categories including sleep, vision, and pediatric care to meet broader household health needs and drive non-metabolic revenue. Continuing disciplined capital allocation with a focus on share repurchases, debt reduction, and maintaining 'dry powder' for opportunistic portfolio acquisitions. Recorded a $3.3 million one-time disposal expense related to legacy internally developed software that is no longer in use as the company pivots to newer tech stacks. Implemented a new hedging innovation by placing forward contracts on enhanced rate repricings to increase visibility into future custodial economics. Reported fraud losses significantly below target levels due to AI-enhanced security protocols and improved card acceptance rates. Noted that while Marketplace revenue is currently immaterial, its growth is a leading indicator for deeper member engagement and higher lifetime value. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that Marketplace conversion improved significantly through A/B testing and personalized app experiences, with non-metabolic programs now representing one-third of revenue. Highlighted that HealthEquity has a unique margin advantage because its cost of acquisition is nearly zero, leveraging an installed base of 18 million members rather than external marketing spend. Affordability is a major tailwind; employers are increasingly moving from 30% HSA adoption toward 60% to 70% to capture millions in annual savings. The company is seeing new growth in the Individual Family Plan (IFP) market following legislative changes that made bronze plans universally HSA-qualified. Management clarified that recent margin gains are 'clean' cost reductions from member services, with future gains expected from applying AI to client onboarding and back-office claims automation. Confirmed that AI now resolves 85% of routine chat inquiries and contains 55% of card-related phone contacts, driving down the cost-to-serve per account.

This article first appeared on GuruFocus. Revenue: Second quarter revenue growth accelerated to 8% year-over-year. Service Revenue: Record $124.4 million, up 6% year-over-year. Custodial Revenue: Grew 10% to a record $175.9 million. Interchange Revenue: Grew 5% to $50.4 million. Gross Profit: Record $258 million, approximately 74% of revenue, compared with 71% in the prior year quarter. Net Income (GAAP): Record $65.6 million, or $0.78 per diluted share. Non-GAAP Net Income: $103.8 million, or $1.24 per diluted share. Adjusted EBITDA: Record $167 million, up 11% year-over-year, with a record margin of 48% compared with 46% in the prior year quarter. Operating Cash Flow: $136 million generated during the quarter. HSA Accounts: Reached a record 10.7 million, up 8% year-over-year. HSA Assets: Total HSA assets up 14% year-over-year. New HSAs from Sales: Grew 24% year-over-year, setting a Q2 record. Investing HSA Members: Record number, up 20% year-over-year. HSA Invested Assets: Record balances, up 28% year-over-year. Annualized Yield on HSA Cash: 3.83%. Share Repurchases: Repurchased approximately $108 million of outstanding shares at an average price below $90. Fiscal 2027 Guidance: Revenue expected between $1.411 billion and $1.421 billion; GAAP net income of $242 million to $248 million; non-GAAP net income of $392 million to $398 million; adjusted EBITDA between $628 million and $636 million. Warning! GuruFocus has detected 7 Warning Signs with FRA:83I. Is HQY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. HealthEquity Inc (NASDAQ:HQY) delivered record Q2 results with revenue growth accelerating to 8% year-over-year and a record adjusted EBITDA margin of 48%, leading to raised fiscal 2027 guidance. HSA account growth remains strong, with total HSAs up 8% and new HSAs from sales up 24% year-over-year, marking a Q2 record and the strongest quarter outside of open enrollment. Member engagement is deepening, with monthly active app users up 62% year-over-year to 1.4 million, and record HSA invested assets up 28%, supported by the new SimplyInvest offering. AI-driven automation is significantly reducing service costs, with human-handled calls down 25% year-over-year and AI resolving 85% of routine chat inquiries, contributing to operating leverage. The company is expanding its Marketplace with over 14,000 active members, and early data shows marketplace purchasers are more likely to contribute to their HSAs, indicating potential for long-term value creation. Custodial revenue growth is constrained by the HSA cash hedging program, which locks in rates at approximately 3.9%, limiting upside from higher current five-year Treasury yields. Service revenue faces headwinds from continued headline price erosion as the company shares cost savings with clients to remain competitive. Marketplace revenue remains immaterial to overall financial results, and the company is still in early stages of scaling this initiative, with uncertain long-term contribution. The company expects a potential reduction in HSA cash balances as members shift to investing, which could temper custodial revenue growth in the near term. The competitive landscape remains intense, requiring ongoing investment in technology and marketing to maintain market leadership, which could pressure margins if not managed carefully. Q: Can you provide more detail on the record growth in Marketplace active members and the drivers behind the service revenue inflection? What early feedback or learnings are you seeing from partners and members?A: Jon Kessler (President and CEO) attributed the service revenue inflection to strategic focus areas like Marketplace and driving more investors, both showing exceptional year-over-year growth. For Marketplace, he highlighted early positive feedback on the next-generation app experience, with members appreciating the connection to wellness and health. He noted that "Health Savings Days" drove the highest traffic and largest sales week in Marketplace history, with 500,000 unique visitors in a single week. Most transactions are happening on mobile, and non-metabolic programs now represent about a third of Marketplace revenue, showing successful expansion beyond the initial metabolic health focus. Q: How much runway is there for driving margins higher, given the strong performance and use of AI and productivity tools?A: Jon Kessler (President and CEO) explained that the current margin improvements are largely from member services, where AI-driven automation resolved 85% of routine chat inquiries and contained 55% of card-related phone contacts, reducing human-handled calls by 25% year-over-year. He emphasized that the company is just at the beginning of this journey, with significant opportunities remaining in client services and back-office efficiencies. The company is introducing AI into client onboarding workflows and claims automation, suggesting substantial runway for further margin expansion as these initiatives scale. Q: What are the biggest drivers of yield sustainability, and how should investors think about the balance between portfolio positioning, contract renewals, and interest rate sensitivity?A: James Lucania (CFO) explained that the company has a tight band for HSA cash yield expectations, with $2.3 billion of remaining HSA cash in contracts repricing in fiscal 2027. The company has $3 billion of outstanding forward contracts, effectively locking a five-year Treasury rate at approximately 3.9% net of costs across fiscal years 2027 through 2029. He emphasized that the magic will be in balancing how much of the cost savings from AI and technology are shared back with clients through admin fee reductions versus how much is retained in margins. The company expects average yield on HSA cash to be between 3.85% and 3.9% during fiscal 2027. Q: How are you balancing reliance on network partners with selling direct, and do you want to be more partner-led or more direct over time?A: Jon Kessler (President and CEO) described a hybrid approach leveraging an incredible network of hundreds of health plan partners, broker relationships, and direct sales. He noted that growth from existing clients is strong due to advisory services helping drive plan design improvements. The company is seeing record Q2 new HSA sales, with strong enterprise growth and sales pipeline. He emphasized that all channels are working effectively, with new HSAs from sales growing 24% year-over-year, and the company remains excited about the efficient distribution strategy driving account growth. Q: How do you envision monetizing data analytics over time? Will it be a standalone revenue line or primarily a win-and-retain capability?A: Jon Kessler (President and CEO) explained that analytics are leveraged through strategic advisory services, providing clients with comprehensive insights on enrollment, adoption, contributions, and investment strategies. These services help enterprise clients lower annual healthcare cost increases by driving greater adoption of high-deductible health plans attached to HSAs. He clarified that analytics won't necessarily be a standalone product but will be used to drive greater adoption and better advisory services, ultimately helping clients attack healthcare affordability challenges. Q: Was there anything one-time in the services margin contribution this quarter, and how is the healthcare affordability crisis influencing conversations with customers?A: James Lucania (CFO) confirmed there was nothing one-time in the service cost number, with the reduction being clean, actual service cost reduction from the service and ops team. Jon Kessler (President and CEO) added that healthcare affordability is a massive tailwind, with healthcare costs projected to rise at near double-digit rates. He noted that driving greater adoption of high-deductible health plans is the single biggest lever for employers, with some clients moving from 25% to over 60-70% adoption rates, enjoying significant savings. Stephen Neeleman (Founder and Vice Chairman) added that the company is seeing movement toward ICHRAs and increased HSA-qualified plan adoption in exchanges, with some states approaching 50% HSA-qualified funds in exchanges following recent legislation. Q: Can you talk more about the enhanced targeting campaigns driving record marketplace activity, and how should we think about margins evolving for the consumer marketplace?A: Jon Kessler (President and CEO) explained that the company is at the very beginning of Marketplace, with marketing strategies focused on personalization in the app and email campaigns driving top-of-funnel engagement. He highlighted the company's unique margin profile, with largely no cost of acquisition given the installed base of 18 million members, and low cost to serve through care-through partners. He noted that Marketplace can offer market-leading pricing because of these advantages, and expects it to contribute a significantly large margin profile very different from other consumer marketplaces. Q: How should we think about the lower growth in cash balances? Is it due to spending on higher healthcare costs, marketplace engagement, or increased investment activity?A: Jon Kessler (President and CEO) explained that the lower cash balance growth is a deliberate reflection of the company's strategy to drive greater lifetime value through activities like investing. He noted that investors typically have 4x the contribution level of non-investors, and the company drove north of 20% growth in the number of investors year-over-year. While investors may initially hold lower cash balances, they drive greater cash balance growth over time. He also noted that marketplace spending isn't yet material enough to drive overall averages, but the strategy is designed to drive long-term growth and member engagement. Q: With the five-year Treasury yield around 4.4%, are you slowing down hedging activity or opportunistically locking in higher rates?A: James Lucania (CFO) explained that near-term maturities are already hedged, but the company placed its first hedge on enhanced rate repricings expected over the next 12 to 18 months, a new innovation in the hedging program. He noted that these enhanced rate hedges were placed at a five-year Treasury rate way higher than the 3.9% locked for this quarter. The company continues to mature current hedges and add new market rate hedges, with the locked yield expected to move up over time as they reach into fiscal 2029. < For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HealthEquity (HQY) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.20%. A quarter ago, it was expected that this provider of services for managing health care accounts would post earnings of $1.11 per share when it actually produced earnings of $1.24, delivering a surprise of +11.71%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. HealthEquity, which belongs to the Zacks Medical Services industry, posted revenues of $350.73 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.14%. This compares to year-ago revenues of $325.83 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. HealthEquity shares have added about 14% since the beginning of the year versus the S&P 500's gain of 12.1%. While HealthEquity has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for HealthEquity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $347.49 million in revenues for the coming quarter and $4.71 on $1.42 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, InnovAge Holding Corp. (INNV), has yet to report results for the quarter ended June 2026. The results are expected to be released on September 8. This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +800%. The consensus EPS estimate for the quarter has been revised 4.2% lower over the last 30 days to the current level. InnovAge Holding Corp.'s revenues are expected to be $238.35 million, up 7.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HealthEquity, Inc. (HQY) : Free Stock Analysis Report InnovAge Holding Corp. (INNV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in HealthEquity, Inc.? Here are five stocks we like better. Record Q2 profitability: Revenue rose 8% year over year to record levels, while adjusted EBITDA increased 11% to $167 million and margin expanded to 48%. GAAP net income reached $65.6 million, supported by lower service costs and stronger operating cash flow. HSA growth remained strong: HSA assets grew 14%, total accounts increased 8% to 10.7 million, and new sales rose 24%. Member engagement also improved, with app monthly active users up 62% and invested HSA balances reaching 28% of total assets. Outlook raised: HealthEquity increased its fiscal 2027 guidance to $1.411 billion–$1.421 billion in revenue and $628 million–$636 million in adjusted EBITDA. Management also highlighted AI-driven efficiency gains, continued share repurchases and potential acquisition capacity. Russell 2000 Surge Post-Election: How to Play the Small-Cap Pop HealthEquity (NASDAQ:HQY) reported accelerated revenue growth and record profitability in its fiscal 2027 second quarter, citing HSA account expansion, higher member engagement and technology-driven service efficiencies. The company raised its full-year outlook after generating record adjusted EBITDA margin of 48%. “Q1 demonstrated that the model is scaling, and Q2 showed that the model is becoming more durable,” President and CEO Scott Cutler said, pointing to stronger operating cash flow, disciplined capital allocation and lower service costs as health savings account, or HSA, accounts reached 10.7 million. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch 2 Recession-Resistant Stocks for Tough Market Conditions Second-quarter revenue rose 8% year over year. Service revenue reached a record $124.4 million, up 6%, while custodial revenue increased 10% to a record $175.9 million. Interchange revenue grew 5% to $50.4 million, which Chief Financial Officer James Lucania said reflected higher member spending and transaction activity. Gross profit totaled a record $258 million, representing about 74% of revenue, compared with 71% a year earlier. GAAP net income was a record $65.6 million, or $0.78 per diluted share. Non-GAAP net income was $103.8 million, or $1.24 per diluted share. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? HealthEquity Stock: Leading Health Savings Account Investment Lucania said the quarter included $3.3 million of one-time disposal expense related to internally developed software that is no longer in use. Adjusted EBITDA rose 11% year over year to a record $167 million, while adjusted EBITDA margin expanded to 48% from 46% in the prior-year quarter. For the first six months of fiscal 2027, HealthEquity reported revenue of $705.4 million, up 7% year over year, and adjusted EBITDA of $331.5 million, up 14%. First-half adjusted EBITDA margin was 47%. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding The company ended the quarter with $256 million in cash and generated $136 million in operating cash flow. Debt outstanding, net of issuance costs, was approximately $931 million. HealthEquity said total HSA assets grew 14% year over year, total HSAs increased 8%, and new HSAs from sales rose 24%. New sales set a second-quarter record and marked the company’s strongest quarter outside the fourth-quarter open-enrollment period, according to Cutler. Client renewals are on pace to remain above 90% for the full year, he said. Management attributed account growth to a mix of expansion within existing clients, health-plan and broker partnerships, direct channels, individual and family plans, and new-logo sales. Cutler said healthcare affordability continues to support demand for high-deductible health plans paired with HSAs. He said HealthEquity’s advisory services help employers assess enrollment, adoption, contributions and plan-design strategies. The company has seen some clients increase HSA adoption from about 25% to more than 60% or 70%, according to Cutler. Vice Chair and founder Steve Neeleman said the company is also seeing interest in individual coverage health reimbursement arrangements, or ICHRAs, and individual and family plans. He noted that bronze and catastrophic plans became universally HSA-qualified following legislation passed more than a year ago, and said HSA-qualified plan participation in exchanges has approached 50% in some states, compared with 2% nationally before the law change. Management highlighted growing activity in its Marketplace offering, which connects members with health and wellness products and services. Marketplace had more than 14,000 active members at quarter end, with continued monthly growth. While Marketplace revenue remains immaterial to overall financial results, Cutler said subscriber growth and purchase activity have been encouraging. The company expanded Marketplace categories to include metabolic health, hormonal health, diagnostics, consumer health devices, skincare and recovery, and is developing offerings in sleep, health, vision and pediatric care. A promotional event called Health Savings Days drove what Cutler described as Marketplace’s highest-traffic and largest sales week to date, including 500,000 unique visitors during the week. Cutler said non-metabolic offerings now account for about one-third of Marketplace revenue. HealthEquity is testing personalized in-app placements, email campaigns, promotional efforts, A/B testing and user-experience changes to improve conversion. Mobile engagement also increased. Monthly active app users reached 1.4 million in July, up 62% year over year, and total app downloads exceeded 5 million. HealthEquity expects to introduce a next-generation app in coming months that will combine its primary app and EZ Receipts reimbursement app into a single experience for accounts, reimbursements, investing, education and Marketplace access. In investing, the company reported a record number of investing HSA members, up 20% year over year, and said invested HSA balances reached 28% of total HSA assets. About 9% of its total HSA population currently invests. The company recently launched Simply Invest, an investment lineup without an administrative fee. HealthEquity said automation and artificial intelligence initiatives reduced human-handled calls by 25% year over year, while card-related calls declined 30%. AI resolved 85% of routine chat inquiries in targeted workflows and contained 55% of card-related phone contacts, according to Cutler. Lucania said the service-cost improvement did not reflect a one-time benefit. He said the company continued to perform below its fraud-loss target while reducing service and operating costs. The company repurchased approximately $108 million of shares during the quarter at an average price below $90 per share. It had about $948 million remaining under its cumulative $1.6 billion repurchase authorizations. Management said it expects to continue share repurchases, reduce revolver borrowings during the year and preserve capacity for potential acquisitions. HealthEquity raised its fiscal 2027 guidance and now expects: Revenue of $1.411 billion to $1.421 billion. GAAP net income of $242 million to $248 million, or $2.88 to $2.96 per diluted share. Non-GAAP net income of $392 million to $398 million, or $4.66 to $4.73 per diluted share. Adjusted EBITDA of $628 million to $636 million. Average yield on HSA cash of 3.85% to 3.9%. Lucania said the company had $2.3 billion of remaining HSA cash in contracts repricing during fiscal 2027. It ended the quarter with $3 billion of outstanding forward contracts, locking in a five-year Treasury rate of about 3.9% net of costs across fiscal 2027 through fiscal 2029. HealthEquity, Inc (NASDAQ: HQY) is a leading administrator of consumer-directed health accounts and related benefit solutions in the United States. Founded in 2002 and headquartered in Draper, Utah, the company specializes in health savings accounts (HSAs) and offers complementary services such as flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA administration and commuter benefits. Through its technology-driven platform, HealthEquity enables employers, health plans and individuals to streamline account management, improve cost transparency and encourage more informed healthcare spending. Serving millions of members across all 50 states, HealthEquity leverages an open-architecture ecosystem that integrates with health plans, payroll providers and financial institutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "HealthEquity Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

HealthEquity’s second-quarter results combined higher revenue and earnings with record HSA accounts, assets and Adjusted EBITDA margin, prompting management to increase its full-year outlook. HealthEquity (NASDAQ:HQY) raised fiscal 2027 guidance after second-quarter revenue increased 8% year over year to $350.7 million. Adjusted EBITDA rose 11% to $167.0 million, while the Adjusted EBITDA margin reached a company-record 48%, up from 46% a year earlier. HSA Assets climbed 14% to a record $37.9 billion, alongside 10.7 million HSA accounts and faster growth in accounts with investments. New HSAs from sales increased 24% to 202,000, providing another indicator of underlying account growth. The company repurchased $108.1 million of shares during the quarter and had $948.4 million remaining under its existing authorization. HealthEquity (NASDAQ:HQY) delivered year-over-year growth across its key second-quarter financial measures and raised its fiscal 2027 outlook, giving investors fresh benchmarks for the second half of the year. Revenue for the quarter ended July 31 rose 8% to $350.7 million from $325.8 million a year earlier. Custodial revenue contributed $175.9 million, service revenue totaled $124.4 million and interchange revenue was $50.4 million. Net income increased to $65.6 million, or $0.78 per diluted share, from $59.9 million, or $0.68 per share. The net income margin improved to 19% from 18%. On a non-GAAP basis, net income reached $103.8 million, or $1.24 per diluted share, compared with $94.6 million, or $1.08 per share, in the prior-year quarter. Operating leverage was another notable feature of the results. Adjusted EBITDA increased 11% to $167.0 million, with the margin expanding two percentage points to a record 48%. The combination of revenue growth and faster Adjusted EBITDA expansion suggests HealthEquity is converting a larger proportion of its revenue into adjusted operating earnings. That may strengthen the efficiency component of the investment narrative as the company scales. Account and asset trends also provide investors with evidence of continued expansion in the underlying HSA platform. Total HSAs increased 8% year over year to 10.7 million, while HSA Assets grew faster, rising 14% to $37.9 billion. Within that total, HSA investments reached $20.6 billion and HSA cash stood at $17.4 billion. The number of HSAs with investments increased 20% to 0.9 million, outpacing overall HSA account growth and indicating deeper participation among a portion of the member base. Management’s decision to raise guidance adds another positive operating signal. HealthEquity now expects fiscal 2027 revenue of $1.411 billion to $1.421 billion, net income of $242 million to $248 million and Adjusted EBITDA of $628 million to $636 million. Non-GAAP net income is projected at $392 million to $398 million, equivalent to $4.66 to $4.73 per diluted share based on an estimated 84 million diluted weighted-average shares outstanding. Capital returns provide an additional consideration. HealthEquity spent $108.1 million repurchasing 1.2 million shares during the quarter, while retaining substantial capacity under its authorization. Investors can watch whether HealthEquity sustains its record 48% Adjusted EBITDA margin while progressing toward the newly raised fiscal 2027 targets. HSA account additions, growth in invested HSA assets and the pace of further share repurchases may also help determine whether the second-quarter momentum carries through the remainder of the fiscal year. Healthequity stock price

Wall Street analysts forecast that HealthEquity (HQY) will report quarterly earnings of $1.19 per share in its upcoming release, pointing to a year-over-year increase of 10.2%. It is anticipated that revenues will amount to $350.23 million, exhibiting an increase of 7.5% compared to the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. In light of this perspective, let's dive into the average estimates of certain HealthEquity metrics that are commonly tracked and forecasted by Wall Street analysts. The consensus among analysts is that 'Revenue- Service' will reach $121.10 million. The estimate indicates a change of +2.7% from the prior-year quarter. According to the collective judgment of analysts, 'Revenue- Custodial' should come in at $177.70 million. The estimate indicates a change of +11.2% from the prior-year quarter. Analysts predict that the 'Revenue- Interchange' will reach $50.98 million. The estimate indicates a year-over-year change of +6%. It is projected by analysts that the 'Total HSA Assets' will reach $37.64 billion. Compared to the present estimate, the company reported $33.14 billion in the same quarter last year. Analysts expect 'HSA Assets - HSA investments' to come in at $20.01 billion. Compared to the present estimate, the company reported $16.10 billion in the same quarter last year. Analysts forecast 'Total Accounts - CDBs' to reach 7.05 million. Compared to the current estimate, the company reported 7.15 million in the same quarter of the previous year. The average prediction of analysts places 'Total Accounts' at 17.64 million. The estimate compares to the year-ago value of 17.14 million. Analysts' assessment points toward 'HSA Assets - HSA cash' reaching $17.63 billion. Compared to the current estimate, the company reported $17.04 billion in the same quarter of the previous year. The combined assessment of analysts suggests that 'Total Accounts - HSAs' will likely reach 10.59 million. The estimate is in contrast to the year-ago figure of 9.99 million. View all Key Company Metrics for HealthEquity here>>> HealthEquity shares have witnessed a change of +11.4% in the past month, in contrast to the Zacks S&P 500 composite's +2.3% move. With a Zacks Rank #3 (Hold), HQY is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GoodRx Holdings, Inc. (GDRX) came out with quarterly earnings of $0.08 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.07, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. GoodRx, which belongs to the Zacks Medical Services industry, posted revenues of $200.41 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.92%. This compares to year-ago revenues of $203.07 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GoodRx shares have added about 23.3% since the beginning of the year versus the S&P 500's gain of 13%. While GoodRx has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GoodRx was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $194.96 million in revenues for the coming quarter and $0.31 on $775.17 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. HealthEquity (HQY), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on August 27. This provider of services for managing health care accounts is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +10.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. HealthEquity's revenues are expected to be $350.23 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Astrana Health, Inc. (ASTH) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +29.03%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.74, delivering a surprise of +155.17%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Astrana Health, Inc., which belongs to the Zacks Medical - Outpatient and Home Healthcare industry, posted revenues of $972.52 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.85%. This compares to year-ago revenues of $654.81 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Astrana Health, Inc. shares have added about 44.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While Astrana Health, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Astrana Health, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $1.01 billion in revenues for the coming quarter and $1.18 on $4.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Outpatient and Home Healthcare is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Medical sector, HealthEquity (HQY), is yet to report results for the quarter ended July 2026. The results are expected to be released on August 27. This provider of services for managing health care accounts is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +10.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. HealthEquity's revenues are expected to be $350.23 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astrana Health, Inc. (ASTH) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research