HealthEquity Inc. reported adjusted earnings of $0.95 per share for its fiscal fourth quarter, beating the consensus estimate of $0.90 and delivering a $0.05 per share beat. Revenue reached $334.6 million, up 7% year‑over‑year and surpassing the $332.85 million consensus estimate. Adjusted EBITDA margin expanded to 40%, a 500‑basis‑point lift from the prior year, and the company raised its fiscal 2027 revenue guidance to $1.405 billion–$1.415 billion from the previous $1.380 billion–$1.410 billion range.
The earnings beat was driven by disciplined cost control and operating leverage. HealthEquity’s management highlighted that the company’s mix shift toward higher‑margin service and custodial revenue, combined with reduced fraud costs, allowed it to maintain profitability even as overall revenue grew modestly. The company’s focus on technology‑enabled efficiencies further amplified margin expansion.
Revenue growth was supported by strong demand for HealthEquity’s HSA platform, fueled in part by the expanded eligibility provisions of the SECURE 2.0 Act, which the article refers to as the “One Big Beautiful Bill Act.” The company added one million new HSA accounts from sales in the quarter, the second consecutive year of record additions, and ended the year with 17.8 million total accounts and $36.5 billion in assets, underscoring the continued uptake of its core product.
Margin expansion reflected a combination of higher‑margin mix, cost discipline, and scale. The company’s adjusted EBITDA margin rose to 40% from 35% in the prior year, a 500‑basis‑point improvement that the company attributes to meaningful operating leverage and the successful execution of its technology‑driven margin recovery strategy.
The raised FY2027 guidance signals management’s confidence in sustained growth and margin expansion, even as the company faces increasing competition in the benefits‑administration space. The guidance lift, coupled with record HSA additions and a robust asset base, positions HealthEquity to capitalize on the tailwinds created by expanded HSA eligibility while navigating competitive pressures.
"We are raising our fiscal 2027 guidance after delivering record new HSAs from sales and significant margin expansion," said Scott Cutler, President and CEO. "Adjusted EBITDA increased 23% in the fourth quarter with Adjusted EBITDA margin expanding more than 500 basis points to 40%, reflecting meaningful operating leverage. We added one million new HSAs from sales for the second consecutive year and ended fiscal 2026 with 17.8 million total accounts and over $36 billion in HSA assets, positioning us for continued growth."
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