Healthequity Inc (NASDAQ:HQY) stock rose 3.77% (As on September 3, 11:22:07 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 25. HealthEquity reported non-GAAP net income of $94.6 million for the second quarter ended July 31, 2025 compared to the non-GAAP net income of $76.3 million for the second quarter ended July 31, 2024. Adjusted EBITDA was $151.1 million for the second quarter ended July 31, 2025, an increase of 18% compared to the second quarter ended July 31, 2024. Adjusted EBITDA was 46% of revenue, compared to 43% for the second quarter ended July 31, 2024. HSAs as of July 31, 2025 were 10.0 million, an increase of 6% year over year, including 782,000 HSAs with investments, an increase of 10% year over year. Total Accounts as of July 31, 2025 were 17.1 million, including 7.2 million other consumer-directed benefits (“CDBs”). Total HSA Assets as of July 31, 2025 were $33.1 billion, an increase of 12% year over year. Total HSA Assets included $17.0 billion of HSA cash and $16.1 billion of HSA investments.
HQY in the second quarter of FY 25 has reported the adjusted earnings per share of $1.08, beating the analysts’ estimates for the adjusted earnings per share of $0.92. The company had reported the adjusted revenue growth of 9 percent to $325.8 million in the second quarter of FY 25, beating the analysts’ estimates for revenue of $320.74 million. Revenue this quarter included: service revenue of $117.9 million, custodial revenue of $159.9 million, and interchange revenue of $48.1 million.17.1 million Total Accounts, including both HSAs and complementary CDBs, an increase of 5% compared to Q2 FY25. This underperformance is significant as it may indicate challenges in maintaining growth momentum in the competitive healthcare services industry. The shortfall in earnings and revenue could be attributed to various operational challenges or market conditions that the company is currently facing.

Additionally, the Company repurchased 0.7 million shares of its common stock for $66.0 million during the second quarter ended July 31, 2025. As of July 31, 2025, $351.8 million of common stock remained authorized for repurchase under the Company’s stock repurchase programs.
Healthequity Inc sees FY 2026 EPS of $3.74-$3.91 versus the analyst consensus of $3.73. Healthequity Inc sees FY 2026 revenue of $1.29B-$1.31B versus the analyst consensus of $1.31B. Its outlook for non-GAAP net income is between $329 million and $344 million. Management expects Adjusted EBITDA of $540 million to $560 million.