HealthEquity Lifts Outlook on Q1 Growth
HealthEquity (NASDAQ:HQY) reported fiscal 2026 first quarter (ended April 30, 2025) earnings on June 3, 2025, delivering 15% year-over-year revenue growth and raising full-year guidance. Key milestones included a 19% increase in adjusted EBITDA to $140.2 million, sharp reductions in quarterly fraud costs, and notable progress advancing both AI-enabled member experiences and regulatory engagement for expanded Health Savings Account (HSA) usage.Fraud losses in fiscal 2025's Q4 were $11 million, while in Q1 FY2026, this figure dropped by over 70% to $3 million, demonstrating significant improvement in the company’s risk posture. The launch and adoption of the Member First secure mobile experience and enhanced multi-factor authentication methods, along with concentrated investments in fraud prevention technology and personnel, have reduced fraud losses. However, the company is still working toward its targeted fraud loss run rate of one basis point of total HSA assets per year.This accelerated reduction in fraud supports future margin expansion, bolstering institutional client trust and lowers acute operational risk, addressing a key prior overhang for long-term investors.Continue reading
HealthEquity (NASDAQ:HQY) reported fiscal 2026 first quarter (ended April 30, 2025) earnings on June 3, 2025, delivering 15% year-over-year revenue growth and raising full-year guidance. Key milestones included a 19% increase in adjusted EBITDA to $140.2 million, sharp reductions in quarterly fraud costs, and notable progress advancing both AI-enabled member experiences and regulatory engagement for expanded Health Savings Account (HSA) usage.
Fraud losses in fiscal 2025's Q4 were $11 million, while in Q1 FY2026, this figure dropped by over 70% to $3 million, demonstrating significant improvement in the company’s risk posture. The launch and adoption of the Member First secure mobile experience and enhanced multi-factor authentication methods, along with concentrated investments in fraud prevention technology and personnel, have reduced fraud losses. However, the company is still working toward its targeted fraud loss run rate of one basis point of total HSA assets per year.
This accelerated reduction in fraud supports future margin expansion, bolstering institutional client trust and lowers acute operational risk, addressing a key prior overhang for long-term investors.
