HealthEquity, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total revenue of $350.7 million for the three months ended July 31, 2026, an increase of 8% from $325.8 million in the same period last year. For the six months ended July 31, 2026, total revenue reached $705.4 million, up 7% from $656.7 million in the prior year. The company’s net income for the quarter was $65.6 million, or $0.78 per diluted share, compared to $59.9 million, or $0.68 per diluted share, in the same quarter of the previous year. For the six-month period, net income increased to $135.1 million from $113.8 million, reflecting a 19% year-over-year growth.
The company experienced notable growth in its service and custodial revenue streams. Service revenue rose by 6% to $124.4 million for the quarter, driven by increased marketplace revenue and a rise in total accounts. Custodial revenue also saw a significant increase of 10%, totaling $175.9 million, attributed to a higher average annualized yield on HSA cash and a slight increase in average daily HSA cash. Interchange revenue grew by 5% to $50.4 million, supported by an increase in total accounts and spending per account.
HealthEquity's operational metrics showed a positive trend, with the number of Health Savings Accounts (HSAs) administered increasing by 8% year-over-year to 10.7 million, while total accounts, including complementary consumer-directed benefits (CDBs), reached 17.8 million. The company reported HSA assets totaling $37.9 billion, a 14% increase from the previous year, driven by a substantial rise in HSA investments, which grew by 28%. However, the number of CDBs decreased slightly by 2% to 7.0 million.
In terms of strategic developments, HealthEquity continues to focus on enhancing its technology and service offerings, including the integration of artificial intelligence to improve customer engagement and operational efficiencies. The company has also been active in its stock repurchase program, utilizing $231.1 million for common stock repurchases during the six months ended July 31, 2026. Looking ahead, HealthEquity anticipates continued growth in service and custodial revenues, driven by an increase in marketplace revenue and the expansion of HSA-qualified health plans, although it remains cautious about potential impacts from changes in healthcare policy and tax law.
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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