HealthEquity's Q4 revenue rises, slightly beating estimates

HealthEquity

17/03/2026 20:12

Overview

U.S. HSA administrator's fiscal Q4 revenue rose 7%, slightly beating analyst expectations

Adjusted EBITDA for fiscal Q4 beat estimates, rising 23% year-over-year

Net income for fiscal Q4 missed analyst expectations

Outlook

HealthEquity sees fiscal 2027 revenue between $1.405 bln and $1.415 bln

Company expects fiscal 2027 net income of $239 mln to $246 mln

HealthEquity expects fiscal 2027 Adjusted EBITDA of $618 mln to $628 mln

Result Drivers

HSA GROWTH - Co said record new HSA sales and higher total HSA assets contributed to revenue growth

MARGIN EXPANSION - Adjusted EBITDA margin expanded more than 500 basis points to 40%, reflecting operating leverage, per CEO Scott Cutler

CUSTODIAL AND SERVICE REVENUE - Higher custodial and service revenue supported overall revenue increase

Company press release: ID:nGNX22SGVX

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$334.59 mln
$333.05 mln (14 Analysts)
Q4 EPS
$0.58
Q4 Net Income
Miss
$49.74 mln
$78.92 mln (11 Analysts)
Q4 Adjusted EBITDA
Beat
$132.90 mln
$130.55 mln (14 Analysts)
Q4 Pretax Profit
Miss
$60.90 mln
$106.12 mln (8 Analysts)
Q4 Gross Profit
$228.15 mln
Q4 Operating Expenses
$157.08 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Healthequity Inc is $123.50, about 57% above its March 16 closing price of $78.67

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 24 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)