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HealthEquity Inc. (HQY-5.94%) has submitted its Form 10-K filing for the fiscal year ended January 31, 2025.
The filing includes financial statements for the year, showing total revenue of $1,199,774,000, an increase from $999,587,000 in the previous year. This growth was driven by increases in custodial, service, and interchange revenues.
Custodial revenue rose by 41% to $545,414,000, primarily due to an increase in average annualized yield on HSA cash and a rise in the average daily balance of HSA cash.
Service revenue increased by 5% to $478,317,000, attributed to growth in the number of HSAs and HSA investments.
Interchange revenue grew by 12% to $176,043,000, as a result of an increase in Total Accounts and higher spend per account using payment cards.
Operating expenses totaled $614,925,000, up from $504,938,000 in the previous year, with increases in sales and marketing, technology and development, and general and administrative expenses.
Net income for the year was $96,703,000, compared to $55,712,000 in the previous year, reflecting a 74% increase.
Adjusted EBITDA, a non-GAAP measure, was $471,751,000, up from $369,173,000 in the previous year, driven by increased revenue.
The company reported a working capital of $477,749,000 as of January 31, 2025, with cash and cash equivalents totaling $295,948,000.
HealthEquity completed the acquisition of the BenefitWallet HSA portfolio, adding approximately 616,000 HSAs and $2.7 billion in HSA Assets at a purchase price of $425 million.
The company continues to focus on expanding its market share in the HSA industry, leveraging its technology platforms and service-driven culture.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HealthEquity Inc. annual 10-K report dated March 18, 2025. To report an error, please email earnings@qz.com.