Healthequity Inc (NASDAQ:HQY), the nation’s largest health savings account (“HSA”) custodian by number of accounts, stock rose 8.91% (As on June 4, 11:25:20 AM UTC-4, Source: Google Finance) after the company reported better-than-expected first quarter results. HealthEquity reported non-GAAP net income of $85.8 million for the first quarter ended April 30, 2025 compared to non-GAAP net income of $70.3 million for the first quarter ended April 30, 2024. Adjusted EBITDA was $140.2 million for the first quarter ended April 30, 2025, an increase of 19% compared to the first quarter ended April 30, 2024. Adjusted EBITDA was 42% of revenue, compared to 41% for the first quarter ended April 30, 2024.

Moreover, HSAs as of April 30, 2025 were 9.9 million, an increase of 9% year over year, including 770,000 HSAs with investments, an increase of 16% year over year. Total Accounts as of April 30, 2025 were 17.1 million, including 7.2 million other consumer-directed benefits (“CDBs”). Total HSA Assets as of April 30, 2025 were $31.3 billion, an increase of 15% year over year. Total HSA Assets included $17.1 billion of HSA cash and $14.2 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.9 billion as of April 30, 2025.

HQY in the first quarter of FY26 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 82 cents. The company had reported the adjusted revenue growth of 15 percent to $330.8 million in the first quarter of FY26, beating the analysts’ estimates for revenue of $322.58 million. Revenue this quarter included: service revenue of $119.8 million, custodial revenue of $156.5 million, and interchange revenue of $54.6 million.

Additionally, the Company repurchased 0.7 million shares of its common stock for $60.3 million during the first quarter ended April 30, 2025. As of April 30, 2025, $117.5 million of common stock remained authorized for repurchase under the Company’s stock repurchase program.

For fiscal 2026, HealthEquity expects adjusted earnings of $3.61 to $3.78 per share on revenue of $1.285 billion to $1.305 billion. The midpoint of the new EPS guidance range is above the consensus estimate of $3.62. Management expects Adjusted EBITDA of $530 million to $550 million and net income to be between $173 million and $188 million.