HealthEquity, Inc. (NASDAQ: HQY) Surpasses Earnings and Revenue Estimates

• Earnings Per Share (EPS) of $0.97, beating the estimated $0.81 and marking a 19.75% earnings surprise.
• Revenue Growth: Reported revenues of $330.8 million, a 15% increase from the previous year, exceeding Zacks Consensus Estimate by 3.03%.
• Operational Performance: Adjusted EBITDA of $140.2 million, up 19% from the previous year, indicating strong operational efficiency.

HealthEquity, Inc. (NASDAQ: HQY) is a prominent player in the Zacks Medical Services industry, specializing in providing services related to Health Savings Accounts (HSAs) and Consumer-Directed Benefits (CDBs). The company has shown consistent growth, as evidenced by its recent financial performance. HealthEquity competes with other firms in the healthcare financial services sector, striving to offer innovative solutions to its clients.

On June 3, 2025, HealthEquity reported earnings per share (EPS) of $0.97, surpassing the estimated $0.81. This represents a significant improvement from the $0.80 EPS reported a year ago, marking a 19.75% earnings surprise. Over the past four quarters, HealthEquity has exceeded consensus EPS estimates three times, showcasing its ability to outperform market expectations.

In addition to strong earnings, HealthEquity reported revenues of $330.8 million for the quarter ending April 2025, exceeding the Zacks Consensus Estimate by 3.03%. This marks a 15% increase from the $287.6 million reported in the same quarter last year. The company has consistently surpassed consensus revenue estimates in the last four quarters, highlighting its robust revenue growth.

HealthEquity's net income saw a significant rise of 87%, reaching $53.9 million compared to $28.8 million in Q1 FY25. On a non-GAAP basis, net income was $85.8 million, up 22% from the prior year. The company's adjusted EBITDA was $140.2 million, reflecting a 19% increase from $117.4 million in Q1 FY25, indicating strong operational performance.

The company also reported growth in its Health Savings Accounts (HSAs), with 9.9 million accounts, a 9% increase from the previous year. Total HSA assets reached $31.3 billion, up 15%. Additionally, HealthEquity repurchased 0.7 million shares of its common stock for $60.3 million, demonstrating confidence in its financial health and future prospects.