HealthEquity Q2 2025 Filing: Financial Performance Update

TL;DR

**HealthEquity files 10-Q for Q2 2025, showing latest financials.**

AI Summary

HealthEquity, Inc. filed its 10-Q for the period ending July 31, 2024. The company reported financial results for the second quarter and the first six months of fiscal year 2025. Specific financial figures for revenue, net income, and cash flow are detailed within the filing, reflecting the company's performance in its health savings account and related services business.

Why It Matters

This filing provides investors with the latest financial performance data for HealthEquity, Inc., crucial for understanding the company's operational health and future prospects in the health savings account market.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, which, while informative, also highlights the inherent risks and uncertainties associated with the company's business operations and the broader economic environment.

Key Numbers

• 20240731 — End of Fiscal Period (This date marks the conclusion of the reporting period for the 10-Q filing.)
• 20240903 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• HEALTHEQUITY, INC. (company) — Filer of the 10-Q
• 20240731 (date) — End of the reporting period
• 20240903 (date) — Filing date
• 0001428336 (company) — Central Index Key for HealthEquity, Inc.

FAQ

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share HQY The NASDAQ Global Select

Filing Documents

• hqy-20240731.htm (10-Q) — 1077KB
• combinedexhibit102.htm (EX-10.2) — 250KB
• exhibit311-ceo302xfy25q2.htm (EX-31.1) — 11KB
• exhibit312-cfo302xfy25q2.htm (EX-31.2) — 11KB
• exhibit321-ceo906xfy25q2.htm (EX-32.1) — 6KB
• exhibit322-cfo906xfy25q2.htm (EX-32.2) — 6KB
• image_0.jpg (GRAPHIC) — 0KB
• 0001428336-24-000102.txt ( ) — 5949KB
• hqy-20240731.xsd (EX-101.SCH) — 36KB
• hqy-20240731_cal.xml (EX-101.CAL) — 58KB
• hqy-20240731_def.xml (EX-101.DEF) — 179KB
• hqy-20240731_lab.xml (EX-101.LAB) — 543KB
• hqy-20240731_pre.xml (EX-101.PRE) — 366KB
• hqy-20240731_htm.xml (XML) — 680KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial statements

Item 1. Financial statements Condensed consolidated balance sheets as of July 31, 2024 (unaudited) and January 31, 2024 3 Condensed consolidated statements of operations and comprehensive income for the three and six months ended July 31, 2024 and 2023 (unaudited) 4 Condensed consolidated statements of stockholders' equity for the three and six months ended July 31, 2024 and 2023 (unaudited) 5 Condensed consolidated statements of cash flows for the six months ended July 31, 2024 and 2023 (unaudited) 6 Notes to condensed consolidated financial statements (unaudited) 8

Management's discussion and analysis of financial condition and results of operations

Item 2. Management's discussion and analysis of financial condition and results of operations 19

Quantitative and qualitative disclosures about market risk

Item 3. Quantitative and qualitative disclosures about market risk 35

Controls and procedures

Item 4. Controls and procedures 36

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal proceedings

Item 1. Legal proceedings 38

Risk factors

Item 1A. Risk factors 38

Other information

Item 5. Other information 39

Exhibits

Item 6. Exhibits 40

Signatures

Signatures 41 -2-

Financial information

Part I. Financial information

Financial statements

Item 1. Financial statements HealthEquity, Inc. and subsidiaries Condensed consolidated balance sheets (in thousands, except par value) July 31, 2024 January 31, 2024 (unaudited) Assets Current assets Cash and cash equivalents $ 326,893 $ 403,979 Accounts receivable, net of allowance for doubtful accounts of $ 2,831 and $ 3,947 as of July 31, 2024 and January 31, 2024, respectively 108,454 104,893 Other current assets 60,280 48,564 Total current assets 495,627 557,436 Property and equipment, net 4,592 6,013 Operating lease right-of-use assets 46,484 48,380 Intangible assets, net 1,254,210 835,948 Goodwill 1,648,145 1,648,145 Other assets 65,408 67,868 Total assets $ 3,514,466 $ 3,163,790 Liabilities and stockholders' equity Current liabilities Accounts payable $ 10,562 $ 12,041 Accrued compensation 37,072 49,608 Accrued liabilities 63,379 46,038 Operating lease liabilities 9,895 9,404 Total current liabilities 120,908 117,091 Long-term liabilities Long-term debt, net of issuance costs 1,101,400 874,972 Operating lease liabilities, non-current 46,158 48,766 Other long-term liabilities 25,497 19,270 Deferred tax liability 63,466 68,670 Total long-term liabilities 1,236,521 1,011,678 Total liabilities 1,357,429 1,128,769 Commitments and contingencies (see Note 5) Stockholders' equity Preferred stock, $ 0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively — — Common stock, $ 0.0001 par value, 900,000 shares authorized, 87,324 and 86,127 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively 9 9 Additional paid-in capital 1,886,765 1,829,384 Accumulated earnings 270,263 205,628 Total stockholders' equity 2,157,037 2,035,021 Total liabilities and stockholders' equity $ 3,514,466 $ 3,163,790 See accompanying notes to condensed consolidated financial statements. -3- HealthEquity, Inc. and subsidiaries Condensed consol

Business

Business HealthEquity, Inc. ("HealthEquity" or the "Company") was incorporated in the state of Delaware on September 18, 2002. HealthEquity is a leader in administering health savings accounts ("HSAs") and complementary consumer-directed benefits ("CDBs"), which empower consumers to access tax-advantaged healthcare savings while also providing corporate tax advantages for employers. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications relate primarily to recordkeeping and advisory fees associated with HSA investments, which were reclassified from custodial revenue to service revenue to better align the Company's financial statement presentation with the underlying drivers of the Company's revenue streams. The Company also reclassified certain immaterial personnel-related costs from custodial costs to service costs or general and administrative costs. The reclassifications had no impact on the Company's total revenue, income from operations, net income, cash flows, or stockholders' equity. The following table presents the impact of the reclassifications: Three months ended July 31, 2023 Six months ended July 31, 2023 (in thousands) Prior presentation Reclassifications Current presentation Prior presentation Reclassifications Current presentation Service revenue $ 105,719 $ 6,241 $ 111,960 $ 210,831 $ 12,202 $ 223,033 Custodial revenue 98,917 ( 6,241 ) 92,676 193,358 ( 12,202 ) 181,156 Interchange revenue 38,913 — 38,913 83,792 — 83,792 Total revenue 243,549 — 243,549 487,981 — 487,981 Total cost of revenue 92,619 ( 735 ) 91,884 189,225 ( 1,379 ) 187,846 Gross profit 150,930 735 151,665 298,756 1,379 300,135 Total operating expenses 126,190 735 126,925 250,835 1,379 252,214 Total other expense ( 10,516 ) — ( 10,516 ) ( 23,685 ) — ( 23,685 ) Income tax provision 3,643 — 3,643 9,561 — 9,561 Net income $ 10,581 $ — $ 10,581 $ 14,675 $ — $ 14,675 Principles of

View Full Filing

View this 10-Q filing on SEC EDGAR