HealthEquity Files Q3 FY25 10-Q

TL;DR

**HealthEquity (HQY) filed its Q3 FY25 10-Q. Expect updates on HSA growth and revenue.**

AI Summary

HealthEquity, Inc. filed its 10-Q for the period ending October 31, 2024. The filing covers the third quarter and the first nine months of fiscal year 2025. Key financial details and operational updates for this period are presented, reflecting the company's performance in its health savings account and related financial services.

Why It Matters

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

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and market conditions discussed can introduce medium-level investment risk.

Key Numbers

• FY25 — Fiscal Year (Reporting period is Q3 of fiscal year 2025.)
• Q3 — Quarter (The filing specifically covers the third quarter of the fiscal year.)

Key Players & Entities

• HEALTHEQUITY, INC. (company) — Filer
• 20241031 (date) — Period of Report
• 20241209 (date) — Filed as of Date
• 001-36568 (other) — SEC File Number
• 801-3727-1000 (phone_number) — Business Phone

FAQ

Key Financial Figures

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

Filing Documents

• hqy-20241031.htm (10-Q) — 1096KB
• exhibit311-ceo302xfy25q3.htm (EX-31.1) — 11KB
• exhibit312-cfo302xfy25q3.htm (EX-31.2) — 11KB
• exhibit321-ceo906xfy25q3.htm (EX-32.1) — 6KB
• exhibit322-cfo906xfy25q3.htm (EX-32.2) — 6KB
• 0001428336-24-000110.txt ( ) — 5710KB
• hqy-20241031.xsd (EX-101.SCH) — 36KB
• hqy-20241031_cal.xml (EX-101.CAL) — 59KB
• hqy-20241031_def.xml (EX-101.DEF) — 168KB
• hqy-20241031_lab.xml (EX-101.LAB) — 543KB
• hqy-20241031_pre.xml (EX-101.PRE) — 365KB
• hqy-20241031_htm.xml (XML) — 693KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial statements

Item 1. Financial statements Condensed consolidated balance sheets as of October 31, 2024 (unaudited) and January 31, 2024 3 Condensed consolidated statements of operations and comprehensive income for the three and nine months ended October 31, 2024 and 2023 (unaudited) 4 Condensed consolidated statements of stockholders' equity for the three and nine months ended October 31, 2024 and 2023 (unaudited) 5 Condensed consolidated statements of cash flows for the nine months ended October 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 37

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) October 31, 2024 January 31, 2024 (unaudited) Assets Current assets Cash and cash equivalents $ 322,163 $ 403,979 Accounts receivable, net of allowance for doubtful accounts of $ 2,516 and $ 3,947 as of October 31, 2024 and January 31, 2024, respectively 106,712 104,893 Other current assets 66,371 48,564 Total current assets 495,246 557,436 Property and equipment, net 3,890 6,013 Operating lease right-of-use assets 44,845 48,380 Intangible assets, net 1,228,476 835,948 Goodwill 1,648,145 1,648,145 Other assets 67,745 67,868 Total assets $ 3,488,347 $ 3,163,790 Liabilities and stockholders' equity Current liabilities Accounts payable $ 10,352 $ 12,041 Accrued compensation 47,514 49,608 Accrued liabilities 86,725 46,038 Operating lease liabilities 9,948 9,404 Total current liabilities 154,539 117,091 Long-term liabilities Long-term debt, net of issuance costs 1,081,039 874,972 Operating lease liabilities, non-current 44,202 48,766 Other long-term liabilities 25,275 19,270 Deferred tax liability 58,605 68,670 Total long-term liabilities 1,209,121 1,011,678 Total liabilities 1,363,660 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 October 31, 2024 and January 31, 2024, respectively — — Common stock, $ 0.0001 par value, 900,000 shares authorized, 86,823 and 86,127 shares issued and outstanding as of October 31, 2024 and January 31, 2024, respectively 9 9 Additional paid-in capital 1,893,088 1,829,384 Accumulated earnings 231,590 205,628 Total stockholders' equity 2,124,687 2,035,021 Total liabilities and stockholders' equity $ 3,488,347 $ 3,163,790 See accompanying notes to condensed consolidated financial statements. -3- HealthEquity, Inc. and subsidiaries Cond

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 October 31, 2023 Nine months ended October 31, 2023 (in thousands) Prior presentation Reclassifications Current presentation Prior presentation Reclassifications Current presentation Service revenue $ 107,512 $ 6,570 $ 114,082 $ 318,343 $ 18,772 $ 337,115 Custodial revenue 106,575 ( 6,570 ) 100,005 299,933 ( 18,772 ) 281,161 Interchange revenue 35,132 — 35,132 118,924 — 118,924 Total revenue 249,219 — 249,219 737,200 — 737,200 Total cost of revenue 90,811 ( 774 ) 90,037 280,036 ( 2,153 ) 277,883 Gross profit 158,408 774 159,182 457,164 2,153 459,317 Total operating expenses 127,517 774 128,291 378,352 2,153 380,505 Total other expense ( 9,804 ) — ( 9,804 ) ( 33,489 ) — ( 33,489 ) Income tax provision 6,414 — 6,414 15,975 — 15,975 Net income $ 14,673 $ — $ 14,673 $ 29,348 $ — $ 29,348 Pri

View Full Filing

View this 10-Q filing on SEC EDGAR