HQY Earnings Prediction
The chart below shows how HQY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HQY sees a +0.31% change in stock price 10 days leading up to the earnings, and a +0.29% change 10 days following the report. On the earnings day itself, the stock moves by -0.15%. This data can give you a slight idea of what to expect for the next quarter's release.
HQY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
300.43M
20.55%
0.17%
Gross Margin
56.14%
3.48%
-2.70%
Operating Margin
17.99%
33.66%
-11.12%
Net Margin
1.90%
-67.74%
-84.09%
EPS
0.06
-64.71%
-85.00%
No Data Available
HQY Earnings Analysis
HealthEquity, Inc Corporation (HQY.O) Earnings Conference Call
Positive
Strong Year-Over-Year Growth: In Q3, the team again delivered double-digit year-over-year growth across most key metrics, including revenue, which was plus 21%, adjusted EBITDA plus 24% and HSA assets plus 33%.
HSA Membership Growth: HSA members grew 15%, driving total accounts up 8%.
Total Accounts and HSA Assets: Health Equity ended Q3 with 16.5 million total accounts, including 9.5 million HSAs, holding $30 billion in HSA assets, which is a lot.
HSA Asset Growth: In fact, HSA assets increased $7.4 billion year-over-year and we grew the number of our HSA members who invest by 21% year-over-year, helping to drive invested assets up 58% to $13.6 billion.
HSA Growth Surge: Team Purple opened 186,000 new HSAs organically in the quarter and that's 14% more than Q3 last year.
Negative
Revenue Growth Slowdown: Revenue growth was only 21% year-over-year, indicating a slowdown compared to previous quarters.
Net Income Decline: Operating expenses increased significantly, leading to a reduction in net income to $5.7 million, or $0.06 per share, compared to $6.0 million last year.
Fraud-Related Service Costs: The company faced excess service costs of approximately $8 million due to fraud activities, impacting overall profitability.
HSA Cash Yield Decline: The annualized yield on HSA cash was only 3.17% for the quarter, reflecting lower returns compared to previous periods.
Revenue Decline Outlook: The guidance for fiscal year 2026 suggests a potential decline in revenue growth, with expectations set between $1.275 billion and $1.295 billion, indicating a cautious outlook.
HQY FAQs
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HQY Earning Call Sentiment
HealthEquity, Inc. (HQY) Q3 2025 Earnings Call Transcript
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00:00
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HQY.O
-1.65%Positive
The earnings call reveals strong financial performance with significant revenue and profit growth, a robust share repurchase program, and optimistic guidance. The Q&A section highlights positive trends in HSA growth and market potential, although some management responses were vague. Despite high debt levels, the company's strategic initiatives and capital allocation plans suggest a positive outlook. These factors collectively indicate a likely positive stock price movement in the short term.