Healthequity Inc (NASDAQ:HQY), a leading administrator of health savings accounts (HSAs), stock fell 2.41% (As on December 4, 11:32:56 AM UTC-4, Source: Google Finance) after the company reported third quarter fiscal 2026 results that exceeded analyst expectations, driven by robust growth in adjusted earnings and HSA investments. HealthEquity’s adjusted EBITDA surged 20% to $141.8 million, representing 44% of revenue compared to 39% in the same period last year. Total HSA Assets grew 15% to $34.4 billion, with HSA investments showing particularly strong growth of 29% to $17.5 billion.  Total HSA Assets included $16.9 billion of HSA cash and $17.5 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 $0.8 billion as of October 31, 2025. The company delivered net income of $52 million, representing 20% growth. HealthEquity reported 10.1 million HSAs as of October 31, 2025, representing a 6% increase from the previous year, including 802,000 HSAs with investments, up 12% YoY. Total Accounts as of October 31, 2025 were 17.3 million, including 7.2 million complementary CDBs.

HQY in the third quarter of FY26 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 7 percent to $322.2 million in the third quarter of FY26, beating the analysts’ estimates for revenue of $320.92 million. Revenue this quarter included: service revenue of $120.3 million, custodial revenue of $159.1 million, and interchange revenue of $42.8 million. Adjusted EBITDA was $141.8 million for the third quarter ended October 31, 2025, an increase of 20% compared to the third quarter ended October 31, 2024. Adjusted EBITDA was 44% of revenue, compared to 39% for the third quarter ended October 31, 2024.

Additionally, the Company repurchased 1.0 million shares of its common stock for $93.7 million during the third quarter ended October 31, 2025. As of that date, $258.8 million of common stock remained authorized for repurchase under the Company’s stock repurchase program.

For fiscal 2026, HealthEquity reaffirmed its revenue guidance of $1.302-$1.312 billion, in line with analyst expectations of $1.31 billion. The company also projected full-year adjusted earnings of $3.87-$3.95 per share, compared to the consensus estimate of $3.89. Its outlook for non-GAAP net income is between $341 million and $348 million. Management expects Adjusted EBITDA of $555 million to $565 million.