HealthEquity beats Q2 estimates, raises full-year outlook

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

HQY shares were trading marginally higher in Tuesday's aftermarket session following the announcement.

The company reported adjusted earnings of $0.86 per share for the quarter ended July 31, exceeding analyst estimates of $0.70 per share. Revenue rose 23% YoY to $299.9 million, also topping expectations of $285.13 million.

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

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

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

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

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

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Source: Investing.com