HealthEquity, Inc. (NASDAQ: HQY) provides health savings accounts (HSAs) and consumer-directed benefits for clients across the U.S. The company reported its fourth quarter and fiscal year 2025 financial results for the period ending January 31, 2025, and demonstrated a consistent upward trajectory, marking a notable rise in key metrics.

In the fourth quarter, HealthEquity’s revenue rose by 19% to $311.8 million, up from $262.4 million in the same quarter a year earlier. For the entire fiscal year, revenue increased by 20% to $1.20 billion, compared to $999.6 million in fiscal year 2024. The company’s service revenue was $124.2 million for Q4 and $478.3 million for fiscal year 2025, demonstrating year-over-year growth of 5% and 5% respectively.

Net income for Q4 remained stable at $26.4 million, with net income per diluted share of $0.30. For the full year, net income increased by 74% to $96.7 million, resulting in an annual net income of $1.09 per diluted share, compared to $0.64 per share in fiscal 2024. Non-GAAP net income for Q4 was $61.3 million, compared to $55.0 million in Q4 FY24, while annual non-GAAP net income increased to $277.3 million from $195.5 million in FY24.

Adjusted EBITDA for the fourth quarter was $107.8 million, marking a 9% increase from Q4 FY24’s $98.8 million. For the full fiscal year, adjusted EBITDA also showed a robust increase of 28% to reach $471.8 million, yielding an adjusted EBITDA margin of 39%, up from 37% in FY24.

Total HSAs reached 9.9 million by the end of Q4, reflecting a 14% increase year-over-year. HealthEquity managed a total of 17 million accounts, which includes other consumer-directed benefits accounts, witnessing an increase of 9%. Total HSA assets amounted to $32.1 billion, a 27% rise compared to the prior fiscal year, with HSA cash increasing 16% to $17.4 billion and HSA investments soaring by 44% to $14.7 billion.

In terms of future guidance, HealthEquity projects a revenue range of $1.280 billion to $1.305 billion for fiscal year 2026. Net income is forecasted between $164 million and $179 million, translating to net income per diluted share of $1.85 to $2.01. Adjusted EBITDA is estimated to be in the range of $525 million to $545 million. The company expects the average yield on HSA cash to be approximately 3.45% during fiscal 2026.

HealthEquity has indicated continued focus on technology and security investments, acknowledging elevated service costs due to fraud-related activities that impacted Q4’s margins. Nonetheless, these costs are anticipated to normalize as operational efficiencies improve throughout the fiscal year. The company maintains a share repurchase authorization with $178 million remaining.

Overall, HealthEquity has demonstrated solid growth and financial stability, positioning itself for further advancement in the upcoming fiscal year.