HealthEquity, Inc. is the largest health savings account (HSA) custodian in the United States based on the number of accounts managed. The company serves over 17 million accounts and provides administration of HSAs and other consumer-directed benefits through partnerships with employers and plan providers.

For the first quarter of fiscal 2026, HealthEquity reported strong year-over-year growth, indicating the company’s rise in performance metrics. Revenue reached $330.8 million, a 15% increase from $287.6 million in the same quarter of the previous fiscal year. Net income for the quarter was $53.9 million, a significant 87% rise year-over-year compared to $28.8 million. This resulted in a GAAP net income per diluted share of $0.61, up from $0.33, and non-GAAP net income of $85.8 million, a 22% increase from $70.3 million, translating to non-GAAP net income per diluted share of $0.97, compared to $0.80.

Adjusted EBITDA also saw improvement, reported at $140.2 million, a 19% increase from $117.4 million in the first quarter of the prior year. The adjusted EBITDA margin as a percentage of revenue stood at 42%, up from 41% in the previous year. The total number of HSAs grew by 9% year-over-year to 9.9 million, while total HSA Assets increased 15% to $31.3 billion. This total included $17.1 billion of HSA cash and $14.2 billion of investments, the latter representing a robust 24% year-over-year growth.

HealthEquity also reported total accounts grew by 7% to 17.1 million, which includes growth in consumer-directed benefits accounts (CDBs) of 4%. The firm opened 150,000 new HSAs in the quarter, although this marked a decline from 194,000 in the previous year, attributable to softer macroeconomic conditions. The company continued its share repurchase program, buying back approximately 0.7 million shares for $60.3 million during the quarter, with $117.5 million remaining under the current authorization.

Looking ahead, HealthEquity has raised its fiscal year 2026 guidance for revenue to a range between $1.285 billion and $1.305 billion. It expects net income within the range of $173 million to $188 million or $1.96 to $2.13 per diluted share, with non-GAAP net income projected between $320 million and $335 million, resulting in non-GAAP net income per diluted share of $3.61 to $3.78 based on approximately 89 million shares outstanding. Adjusted EBITDA guidance is set at $530 million to $550 million for the fiscal year.

The company’s ongoing investments in technology and security enhancements aim to support its growth and improve member experience while managing anticipated increases in interest rate volatility associated with custodial revenue.