HealthEquity's Record Growth Fails to Impress Investors as Shares Slip 7%

HealthEquity (NASDAQ:HQY) delivered a strong performance in its third quarter, beating analyst expectations for both earnings and revenue. Despite the beat, the company’s shares dropped nearly 7% in after-hours trading yesterday.

For the quarter, HealthEquity reported adjusted earnings of $0.78 per share, exceeding the Street consensus estimate of $0.72. Revenue climbed 21% year-over-year to $300.4 million, surpassing projections of $289.92 million. The company also set quarterly records for health savings accounts (HSAs), HSA assets, total accounts, and revenue.

The number of HSAs reached 9.5 million by the end of the quarter, representing a 15% increase from the previous year. Total HSA assets experienced even stronger growth, rising 33% year-over-year to $30 billion.

Looking ahead, HealthEquity projected fiscal 2025 revenue in the range of $1.185 billion to $1.195 billion, with adjusted earnings per share estimated between $3.08 and $3.16. The company also issued an early outlook for fiscal 2026, forecasting revenue between $1.275 billion and $1.295 billion.