HealthEquity, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $322.2 million for the three months ended October 31, 2025, a 7% increase from $300.4 million in the same period last year. The company's net income surged to $51.7 million, or $0.59 per diluted share, compared to $5.7 million, or $0.06 per diluted share, in the prior year, marking an increase of 806%. For the nine months ending October 31, 2025, total revenue was $978.8 million, up 10% from $888.0 million, while net income rose to $165.5 million from $70.3 million, reflecting a 135% increase.
The company attributed its financial growth to a combination of increased custodial revenue, which rose by 13% to $159.1 million, and interchange revenue, which increased by 6% to $42.8 million. Service revenue remained relatively stable, with a slight increase of 1% to $120.3 million. Notably, the decrease in operating expenses, which fell by 16% to $149.4 million, was driven by a significant reduction in merger integration costs and a one-time lease settlement expense incurred in the previous year.
HealthEquity's operational metrics also showed positive trends, with the total number of health savings accounts (HSAs) administered increasing by 6% to 10.1 million, alongside a 3% rise in complementary consumer-directed benefits (CDBs) to 7.2 million. The company reported total accounts of 17.3 million, reflecting a 5% increase year-over-year. The total HSA assets grew by 15% to $34.4 billion, driven by both net contributions and market performance.
Strategically, HealthEquity completed the acquisition of the BenefitWallet HSA portfolio, adding approximately 616,000 HSAs and $2.7 billion in HSA assets, which was financed through a combination of cash and borrowings. The company continues to focus on integrating acquired businesses and enhancing its technology infrastructure to support growth. Looking ahead, HealthEquity anticipates continued revenue growth driven by increased participation in HSA-qualified health plans and the expansion of its service offerings, while also managing costs effectively to maintain profitability.
About HEALTHEQUITY, INC.
HealthEquity, Inc. is a leading provider of technology-enabled services managing health savings accounts (HSAs) and consumer-directed benefits (CDBs). The company offers tax-advantaged savings, payment processing, investment advice, and benefits administration for employers and consumers. Its proprietary cloud platform, extensive partner network, and focus on consumer experience position it as a market leader in the U.S. healthcare savings ecosystem.
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