Impressive Financial Growth
Revenue increased by 7%, net income surged by 806%, and adjusted EBITDA rose by 20% year over year. Gross margin reached 71%, with an adjusted EBITDA margin of 40%.
HSA and Account Growth
HealthEquity ended Q3 with over 17 million total accounts, including more than 10 million HSAs. HSA balances grew 8%, contributing to a 15% increase in HSA assets.
Successful Launch of New Platforms
Launched a new direct HSA enrollment platform and expanded the HealthEquity Marketplace platform, providing access to affordable healthcare solutions.
Strong Balance Sheet and Cash Flow
Cash on hand was $309 million, with $339 million generated from operations in the first nine months of fiscal '26. The company repurchased $94 million of shares, with $259 million remaining on the repurchase authorization.
Positive Legislative Environment
Policymakers in Washington are considering options to expand HSA availability, aligning with HealthEquity's mission to empower healthcare consumers.
Investment in Security and AI
Investments in fraud prevention, AI service technologies, and secure mobile experiences resulted in fraud costs below targets and improved service margins.