On this page of StockholderLetter.com we present the latest annual shareholder letter from HEALTHEQUITY, INC. — ticker symbol HQY. Reading current and past HQY letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
TO O U R S H A R E H O L D E R S Fiscal year 2025 was a momentous year for HealthEquity. We continued driving progress toward our mission: to save and improve lives by empowering healthcare consumers. For the first time in our history, we opened more than 1 million new Health Savings Accounts (HSAs) from sales in a single year that s a million American families connected to the value of building health savings and investing in their medical and financial wellbeing. Shy M. HealthEquity set new records across our business this fiscal year, as we grew revenue by 20% to a record $1.2 billion, net income by 74% to a record $97 million, and adjusted EBITDA by 28% to a record $472 million. Strong cash flow from operations of more than $340 million allowed us to further drive momentum by fully funding our technology platform advancements, reducing debt and returning capital to shareholders under the authorized $300 million share repurchase plan. These milestones have us thinking about the physics of momentum that Sir Isaac Newton described mathematically as the product of mass multiplied by velocity. We ve certainly built the mass. Today, we serve nearly 10 million HSA members who have built more than $32 billion in HSA assets. Including individuals to whom we provide consumer-directed benefits (CDB), we support more than 17 million benefit accounts. That s a record high for HealthEquity, and we continue to serve more HSA accounts than any other provider. As to velocity, Fiscal 2025 was a year of innovation. We ve made major strides in consolidating platforms from recent acquisitions and advancing our technology infrastructure, including a shift to the cloud. These investments have positioned us to make greater advancements in mobile usage and AI, while continuing to deliver on our member-first, secure experience. 2 That includes delivering the following major enhancements: A new mobile app experience, downloaded by over 1 million members. Called HealthEquity Mobile, the new app is stable, responsive, and fast and redesigned to better highlight members HSA assets, including available funds and investments. Members can also activate their account for the first time on mobile instead of on a browser. The mobile app allows us to more fully rely on passkeys and biometric safeguards that better protect member information. We also partnered with an award winning third party provider to deploy mobile app defense which protects members from fraud and gives our team visibility and insight into potential security threats. Expedited Claims, leveraging AI to streamline reimbursements for 7,000+ clients and 1 million members. This feature allows members enrolled in healthcare and Limited Purpose Flexible Saving Accounts (LPFSA) and Health Reimbursement Accounts (HRAs) to upload receipts through the member portal for a seamless and claims submission experience, completed in minutes. A chip-enabled stacked card for healthcare and commuter benefits, paving the way for our upcoming digital wallet. The card is now compatible with major digital wallet providers like Apple Wallet, Google Wallet, and Samsung Wallet. Copyright 2025 HealthEquity, Inc. All rights reserved.
HealthEquity teammates Damien R., Feagaimaleata H., Cameron L. We also started offering a new Health Payment Account (HPA) benefit, a low-cost alternative for clients to help members pay for healthcare. Through our partnership with our third-party partner, HPA clients can offer members a small amount of credit they can use to pay for eligible out-of-pocket healthcare expenses for their whole family. Perhaps most exciting was the launch of our HealthEquity Assist portfolio. Assist is a suite of technologically innovative solutions designed to improve healthcare transparency, affordability, and engagement, including: HealthEquity Analyzer , offering real-time data and analytics to help employers optimize benefits programs with HSA insights, performance benchmarks, and targeted recommendations. HealthEquity Navigator , guiding employees toward smarter healthcare decisions and potential cost savings through industry-leading price transparency tools and incentive programs. And coming in fiscal year 2026, we plan to introduce the third Assist solution: HealthEquity Momentum . With a name reflecting the remarkable drive and energy we ve cultivated at HealthEquity, this AI-powered tool will deliver personalized nudges to help employees maximize the value they get from their benefits. Momentum meets employees where they re at in their physical and financial journey to drive healthier behaviors and reduce overall healthcare costs boosting ROI for employers and improving outcomes for their teams. These innovations are developed alongside forwardthinking clients who share our vision: empowering people with transparency, actionable insights, and tools to make the most of their benefits. 3 As we look ahead, we also pause to remember those that have helped build the momentum we have today. We would like to take a moment to particularly thank Jon Kessler for his 15 years of dedicated service as our President and CEO. Jon joined us in our very early days and helped build the team and deliver value and remarkable performance over his years of service that helped make HealthEquity what it is today. We now look forward to building and adding to our momentum measured by the mass of our growing market footprint, multiplied by the velocity of speed to market innovations. We ll keep working to be the premier partner of HSAs and CDBs, delivering exceptional value to our clients, members, partners and shareholders. Thank you for your continued support as we grow, innovate, and make a lasting impact. Scott Cutler President, Chief Executive Officer and Director Stephen D. Neeleman, M.D. Founder and Vice Chairman Copyright 2025 HealthEquity, Inc. All rights reserved.
(millions) (millions) Revenue Adjusted EBITDA (millions) (thousands) HSAs HSA Assets 200+ Network Partners #1 Provider of HSAs1 (thousands) 4 Total Accounts Copyright 2025 HealthEquity, Inc. All rights reserved. 1 HealthEquity is ranked as #1 by number of HSAs in the Devenir 2024 Year-End HSA Market Statistics & Trends Report dated April 2, 2025.
 • shareholder letter icon 5/13/2025 Letter Continued (Full PDF)
 • stockholder letter icon 5/12/2023 HQY Stockholder Letter
 • stockholder letter icon 5/17/2024 HQY Stockholder Letter
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HQY Shareholder/Stockholder Letter Transcript:

2025 Annual Report

TO O U R S H A R E H O L D E R S
Fiscal year 2025 was a momentous
year for HealthEquity.
We continued driving progress toward
our mission: to save and improve lives by
empowering healthcare consumers. For the
first time in our history, we opened more
than 1 million new Health Savings Accounts
(HSAs) from sales in a single year   that   s a
million American families connected to the
value of building health savings and investing
in their medical and financial wellbeing.
Shy M.
HealthEquity set new records across our business this
fiscal year, as we grew revenue by 20% to a record
$1.2 billion, net income by 74% to a record $97 million,
and adjusted EBITDA by 28% to a record $472 million.
Strong cash flow from operations of more than $340
million allowed us to further drive momentum by fully
funding our technology platform advancements, reducing
debt and returning capital to shareholders under the
authorized $300 million share repurchase plan.
These milestones have us thinking about the
physics of momentum that Sir Isaac Newton described
mathematically as the product of mass multiplied
by velocity.
We   ve certainly built the mass. Today, we serve nearly
10 million HSA members who have built more than
$32 billion in HSA assets. Including individuals to whom
we provide consumer-directed benefits (CDB), we support
more than 17 million benefit accounts. That   s a record
high for HealthEquity, and we continue to serve more HSA
accounts than any other provider.
As to velocity, Fiscal 2025 was a year of innovation.
We   ve made major strides in consolidating platforms
from recent acquisitions and advancing our technology
infrastructure, including a shift to the cloud. These
investments have positioned us to make greater
advancements in mobile usage and AI, while continuing to
deliver on our member-first, secure experience.
2
That includes delivering the following
major enhancements:
    A new mobile app experience, downloaded by over
1 million members. Called HealthEquity Mobile, the
new app is stable, responsive, and fast   and redesigned
to better highlight members    HSA assets, including
available funds and investments. Members can also
activate their account for the first time on mobile
instead of on a browser. The mobile app allows us to
more fully rely on passkeys and biometric safeguards
that better protect member information. We also
partnered with an award winning third party provider to
deploy mobile app defense which protects members
from fraud and gives our team visibility and insight into
potential security threats.
    Expedited Claims, leveraging AI to streamline
reimbursements for 7,000+ clients and 1 million
members. This feature allows members enrolled
in healthcare and Limited Purpose Flexible Saving
Accounts (LPFSA) and Health Reimbursement
Accounts (HRAs) to upload receipts through the
member portal for a seamless and claims submission
experience, completed in minutes.
    A chip-enabled stacked card for healthcare and
commuter benefits, paving the way for our upcoming
digital wallet. The card is now compatible with major
digital wallet providers like Apple Wallet, Google Wallet,
and Samsung Wallet.
Copyright   2025 HealthEquity, Inc. All rights reserved.

HealthEquity teammates
Damien R., Feagaimaleata H., Cameron L.
We also started offering a new Health Payment Account
(HPA) benefit, a low-cost alternative for clients to help
members pay for healthcare. Through our partnership with
our third-party partner, HPA clients can offer members a
small amount of credit they can use to pay for eligible
out-of-pocket healthcare expenses for their whole family.
Perhaps most exciting was the launch of our HealthEquity
Assist    portfolio. Assist is a suite of technologically
innovative solutions designed to improve healthcare
transparency, affordability, and engagement, including:
    HealthEquity Analyzer   , offering real-time data and
analytics to help employers optimize benefits programs
with HSA insights, performance benchmarks,
and targeted recommendations.
    HealthEquity Navigator   , guiding employees toward
smarter healthcare decisions and potential cost savings
through industry-leading price transparency tools
and incentive programs.
And coming in fiscal year 2026, we plan to introduce the
third Assist solution: HealthEquity Momentum   . With a
name reflecting the remarkable drive and energy we   ve
cultivated at HealthEquity, this AI-powered tool will deliver
personalized nudges to help employees maximize the
value they get from their benefits. Momentum meets
employees where they   re at in their physical and financial
journey to drive healthier behaviors and reduce overall
healthcare costs   boosting ROI for employers and
improving outcomes for their teams.
These innovations are developed alongside forwardthinking clients who share our vision: empowering people
with transparency, actionable insights, and tools to make
the most of their benefits.
3
As we look ahead, we also pause to remember those that
have helped build the momentum we have today. We would
like to take a moment to particularly thank Jon Kessler
for his 15 years of dedicated service as our President and
CEO. Jon joined us in our very early days and helped build
the team and deliver value and remarkable performance
over his years of service that helped make HealthEquity
what it is today.
We now look forward to building and adding to our
momentum measured by the mass of our growing market
footprint, multiplied by the velocity of speed to market
innovations. We   ll keep working to be the premier partner
of HSAs and CDBs, delivering exceptional value to our
clients, members, partners and shareholders.
Thank you for your continued support as we grow,
innovate, and make a lasting impact.
Scott Cutler
President, Chief Executive Officer and Director
Stephen D. Neeleman, M.D.
Founder and Vice Chairman
Copyright   2025 HealthEquity, Inc. All rights reserved.

(millions)
(millions)
Revenue
Adjusted EBITDA
(millions)
(thousands)
HSAs
HSA Assets
200+
Network Partners
#1
Provider of HSAs1
(thousands)
4
Total Accounts
Copyright   2025 HealthEquity, Inc. All rights reserved.
1
HealthEquity is ranked as #1 by number of HSAs in the Devenir 2024 Year-End HSA Market Statistics & Trends Report dated April 2, 2025.



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