HealthEquity (HQY) 3 Jun 242025 Q1 Earnings call transcript

Good afternoon, and welcome to the HealthEquity First Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Richard Putnam. Please go ahead.

Thank you, Gary. job. fine Very welcome XXXX and First of Quarter Hello, call. to Year conference Fiscal everyone, HealthEquity's My Putnam is HealthEquity. name Richard Relations for Investor I [indiscernible]

me company; and CEO Lucania, Executive President Vice Joining and and James Jon CFO. President Steve Chair the Dr. Neeleman, and of Founder Vice is today and Kessler,

call John, we turn I do. Before usually couple a the I have over to as of reminders

close first this press subsidiary announcing administer. These wholly after the quarter our of release for issued our fiscal a included First, the and results results market afternoon. financial from they the was XXXX financial an contributions account [indiscernible]

press The today. definitions ] financial non-GAAP measures certain that release [ discuss includes we will of

including reconciliations these with find and recording GAAP measures on the of measures Investor comparable can this is a ir.healthequity.com. our website release, webcast copy that of website non-GAAP You press Relations of today's

you it's no We statements or these June SEC. There or in that other in discussion update of report of our forward-looking our might forward-looking. to and are to will responses view of or Out reliance way, on Second, and be latest information may comments reports forward-looking is market as defined results on your over information questions management's risks important filed Form estimates X, periodic the considered uncertainties or our XXXX, predictions, relating revise reflect encourage future differ to other many the Jon [indiscernible] statements, with as detailed against placing expectations, the on our the obligation which expense. made to review also stock today. may our looking these as Kessler. could we that the These statements the today annual factors forward-looking affect by business, factors the light of ward here of statements today, actual and subject that are to contain [indiscernible], results forward-looking today. SEC. and Precautions the cause statements affect future the to to risks made assume statements materially and undue the subsequent price

for Hi, this start That time. us joining thank everybody, to and fiscal picture a you healthy was XXXX. for

your discuss and may our on I QX not and day Steve for Jim key and job. fiscal raised today. metrics quit will progress strategy. guidance will 'XX, to want results against detail here our is You for touch

plus across HSA EBITDA, XX%, the we HealthEquity's much. assets, which here growth and which And will was XX% in QX, detail HSA which were plus team sales [ from grew members moment. that's double-digit plus So key each of Including the strong was wow, which which as I wallet, XX% nearly was in a benefit ], delivered Xx Strong of adjusted HSA and [indiscernible] billion $X.X go, overall -- billion XX%, again matrics. investors revenue, more all year-over-year of HSA in [ HSA XX total total including how HealthEquity ] up drive saves HSA translate increased assets up accounts, to our assets assets. growth in including helping quarter, organic going billion of to [indiscernible] $X.X drove it's assets accounts X worry to invested about million X%. overall HSA ended HSA growth, XX%. the holding plus QX data XX% with $XX million year-over-year

trading more or with QX our quarter HSA off year quarter, XX% started the growth. the of to access to Returning Pearl stocks investors new this HSAs, Team HSA brokerage way, year. by And than gained last XX,XXX and a individual to XXX,XXX $X record selling

now X joined MAPA continued are and and positive than of years a ago ] year the years with plan health in So X employers time trend course mostly that accounts midsized logos even to further we more boost QX, driven small during the particular, this [ than be what the from clients over In First, from at from nice, accustomed happened? fiscal a grew accounts 'XX. partner partners more SEBI ago. existing that new got us. Blues little so very saw banner of and the HealthEquity more from we

'XX. AGA, over that to QX. but [indiscernible] you timely has completing guys transitioned tranches IMO HealthEquity's assets. the occurred tiny Beyond years national decreased X HSA year, last portfolio yield billion for in And was as X notable. of by of to in last the wallet the CDB of the the last what of organic wallet emergency Low XXX,XXX compared $X.X the might FY X% custodial of QX, results, our our for deployments HSAs win beginning opportunity and transfer to is HSA benefit, fiscal ending anchor an at the adding actual approximately QX month come accounts which team into thank The on preceding to benefit account name is largest run opened word and later knowledge, benefit raised XXX visibility to year. has transfer And 'XX off and up CDD the laid and for cross-sales May

CDB Excluding that year-over-year. factor, we again growth delivered positive

longer-term key that the which team advanced The our and about, strategy multiyear call X we you've heard [ and deals support strategy, metrics which ].

iOS pretty We members Day. mobile our Investor automation points that year-over-year. plastic Android AI-driven to member fell saw you expanded virtualizing without wallets, more as health a for and costs for QX service, reduce to service sacrificing experience remarkable cloud-based of select platform at basis enterprise delivering delay. stacked claims is deal HealthEquity's XXX cool. order our service clients saw digitizing deployed accounts tech. and also our on first in card percentage expense service HSA We The paper revenue We launched account

of Day, new rate these XX% partners than benefit partnerships capacity and program sacrificing ADIs on we in the discussed insurer deepening margins. that at the to as members sales partnership that And addition the -- of ecosystem also category, to is without adoption deal continued in greater-than-expected [indiscernible] second wallet in we the across grow The backbone work Investor more in technology continued accommodated added rates. enhanced

act. The new third services outcomes give driving is to that engage partners member data-driven insight and clients members through and

Thank gained sessions and we other you our on partner who in feedback. and partners client QX, in new clients and live account important services During copayment analyzer, development. these transparency, participated to

adds growth Jim to top enough. this -- added for of and the a quarter now robust cash of the up margin up can or detail. operations line of which investment All future present flow and Jim? from be in will the envelope

our highlight quarter briefly year GAAP financial and results. will fiscal I John, non-GAAP first

As always, a to measures provide press GAAP release. of we reconciliation today's measures in non-GAAP

reflect fiscal 'XX year our both our for XXXX for 'XX reminder, of year here XX-K, a the described comparison. income in and presented results the reclassifications As statement fiscal we

X% investment invested revenue assets. $XXX.X of the Service in year-over-year. number Utility revenue basis. subsequent. quarter Partially runoff be X% year-over-year, up for or first year. from million. share not year, that Net emergency fees revenue as the by in $XXX.X $XX.X yield the million million, was the Interchange quarter quarter first revenue of quarter also GAAP ] rate activity. revenue was XX% quarter. [ reflecting grew profit in percent offset Service $XX.X benefited XX% X.XX% the income per accrual First The first XX% will increased the higher on HSAs was annualized CDB of repeated grew revenue quarter on Gross the $X.XX EPS a catch-up for this and a cash recordkeeping first in interest quarter. of $X.X million million last to a national was HSA from up a HSA in to XX%

the the per versus million was non-GAAP stock granted $X.XX net income impact up $X.XX compared compared adjusted of was the EBITDA timing expense of the reflect to QX units Adjusted EBITDA a results those share quarter same year. difference compensation XXX last quarter a revenue or $XX.X million, basis in prior was from granted as XX% share and during a last $XXX.X in per improvement years. the point stock year. XX%, GAAP percentage Our last to for performance quarter year, over of

Turning balance sheet. to the

end, flow million. we $XX $XXX quarter used XXXX, cash million, operations of April and $XXX was the hand XX, of cash from on as generated million As

the in wallet with debt BenefitWallet net on HSA closings company drawn quarter. million acquisition. The portfolio the $XXX issuance of had connection $XX in million the our credit As of costs, including outstanding of line

final carryforward efficiencies of the tranche drop funded the on was line an sales to with guidance $XXX strong credit resulting XXXX BenefitWallet million of additional higher third technology reflects subsequent and fiscal our our the expected operational and quarter revenue The investments. trajectory, end. Today's custodial from

net $X.XX per expect and billion, income share. in $X.XX or between $X.XX We $X.XX $XXX to million of GAAP million a range to $XX a in revenue range billion

XX Or for non-GAAP million $XXX We $X.XX income expect outstanding and million be shares an based and between $XXX year. the upon to estimated million. $X.XX per share net

$XXX cash between X% raising $XXX be an placement cash we're the guidance our as BenefitWallet expect Finally, The between EBITDA X.XX% to we XXXX. adjusted HSA yield average and million. for HSA fiscal on for million complete, and of

a custodial change of assumptions These overnight deployment and subject treasury to release predictors the and future projected of market we on market rollovers, financing a As stay indicators and rate guidance such of reminder, in curves. cash embedded of today's not based is a and as in analysis course, which contained forward are, schedule yield mid-duration forward-looking secured perfect conditions.

due revenue drawdown along higher the year. now safe of with the acquisition. and outstanding earnings, of to fund increase an of to on fiscal cash expense the debt net also Lalit guidance remainder our includes corporate acquisition portfolio Our in variable benefit completed expected amount the higher interest of impact including the and rate

guidance, rate XXXX income and tax over of share cash equivalents. now expect rate well. XX% about a including pay for tax assume variable We on several count next this a year project operations current as $XX approximately from GAAP debt We our rate quarters. common full Based share with non-GAAP a to fiscal diluted of down at million the we XX%

a of the reporting XXXX periods, As items fiscal GAAP full the earnings our includes definition metrics the in release. done non-GAAP provided previous earnings of to at and in such all we've reconciliation is release the end a included of guidance

the the assets those . assets of a net is acquired being acquired number [indiscernible] amortization of while intangible intangible generated you addition, from that, from have is With we non-GAAP In excluded income, know revenue questions.

right let's to operator for So go our Q&A.

from Our Glen Santangelo [Operator today Jefferies. question first is with Instructions]

the But Based that a the Jon, rates we're and or make oriented. question. to the top that reported back up the on they obviously push line were EBITDA metrics or and results case contributed some and all better I acquisition-driven beat. more feedback would the high-level more have maybe getting

about the down so near is rates message to of coming you are that concerned And investors to guess organic concern question may be level maybe the in growth term. I and the that to intermediate what's the

year? take get think and that the how high-level on come Just later to your risk you growth about the would this rates love down organic

Who quickly. these so it at get are people? they do How

I can won't. [indiscernible] I

they if wonder interest. a I rating might have

Let's see.

say, me everyone. can't Let beat first you

all Second want we -- the delve say, second others believe, in and first we And benefit and end transaction of about April others that. we versus details already of respectfully, tranche included to then, done guidance. by expected I into was really had We of guided at stock the -- have the But can wallet talk March. if X. the prior the our tranche on

somehow So we to expecting. that it would be we were than different hard to some results take view a came

of the and relevant to sort As my bandwidth the is receive is sensitivity of performance, that way that we'll the from at what view question to answer accounts custodial right look is, that corpus broader the rate is, the long-term assets. in a of growing of question our

have the I you bounds what like X over higher has that These few will, not something as the the ago. that. yet we whatever, or those I medium it more we forecasts, know said many peak the Jim years, number the which, the was have less X irrespective And times suggests in in in any a the of is yet is near next, years call and from rate, say least, we current -- term -- answer define any -- And next and would years, market provide people very think that comes don't maybe place reached lot at the schedules much within But the current, we case, the of what than think thought is evidence a as. it, that the [indiscernible]. noncyclical what forecast not course, -- support, will I to it's any -- as fair let's lag within of that rate

characterize last model over that would the to to or complete And guess so who who I investors geared I of as a understanding years. several have works and perhaps again, work how how broadly now we've others it this

would Jim, response. that's add of kind -- So you anything my to that?

over. placements that, updating So Yes. the in wouldn't mid-X% Q, repricing, as we're add repricing where we've couple this next Like treasury. is basic said, rate fiscal is the keep in X% which we I right? mix, years based enhanced right, where compute we'll anything earning Jon just right? of No, to for can we over think we're after that you And this be guided range the to in spread

So from at of least reasonable of yes, neutral, as current might still what said, ranges ways be. Jon bounds away we're neutral in

is from question Bank next The Lutz of Allen with America.

you're the I seeing think in you XXXX? quickly talk out to if as turn X growing we calendar then those tranches. And the the the this Afternoon, market grew of Can is you kind any X.X% quarter last? versus tranches, we back feedback about wallet that of year of accounts kind changes how

to you're over that we do but going the that if exclude those to whatever have accounts that tranches, think I dedupe with that right calculation, term were is. also -- you Lutz, or came

the a like last at So is X% the on something About I growing estimate X%, [ that the is than that. is market X%. up. higher number If as little around account X think side years whole, look I the to a market

] say this. we're going a doing that. better on to obviously, little to I Steve than invite would So I'm comment and

maybe, the accounts our things could from if lot the that part and a around sales get that comment Steve, plans. in . [indiscernible] early what of you you small bit accounts we -- the we're the here little and a a new like of about is One we of the you group see seeing season From And health [indiscernible] think the maybe can energy

what a plan is mean have those companies bottom on finance but of it the broadly years of fully with think dollar I embraced a span penetrated just the at you that people we've these And haven't option in over that the accounts. department me the kind if always not typically immediately, every for line we at Thanks their market longer tax deeply. people and core takes more combination have spending you Sure. addressable of question. speaking, savings them. an health offered if base the into plans, little to I I it to is understand the it's impressive look an just regulator XX% out of health you it's with that. something like look very lots out this of we HSA, kind that pockets we opportunity of savings goes that account or the constantly partners, XX% health than get like to of our more for is bit power are paying . benefits to mean

buy you check get by a or having And so it that. and inflation, you you with inflation benefits power. think can more spending tax back dollar, we Medicare along. seeing keep again, And just I I and every you're inflation medical of because taking out of great mean, spend when have because when couple of to bite

just on how that's you to different and And is that you kind we to probably we've whether XX% message these partnered that think loud that clear. or the with just lot XX% sell what can adoption, think only denominator. on the a of studies grow. and plans We most look market through ones we a of coming at depends team health fantastic I we're use been average, have received understand call amazing, at been all And it of room the got a you ones working with just added and our team we've of that's years. them we the the then few is didn't And mean further deal, team, on a opportunity. just sorry, -- we and I came additional team call that if years, take new tremendous over the transaction. we for had just that further I

they most the realize win year. of our consultants so plan just blueplanet the day the taking plants, the are then of what throughout can executives in on after front health and solution of brokers, and getting partnership, that with the plans and to up is out we're think showed account they And key having health the them, they I plan doing then out doing and HealthEquity, sales we business, wonderful have more great retain fairly our partner meetings the be our just we'll business. more by a recent a and where can And non-value course some day,

see need coverage tremendous left then working the how lots much benefits. we plans. have a priced so And meat with reasonably interesting And of to they really tax but it with is with to when bone it the on and employers opportunity, working comes these great opportunity

The next Greg from with Raymond James. Peters is question

my updated least curious our about ahead the only will the question focus the which quite adjusted And of margin estimates. there quarters I on EBITDA of margins improvement, given quarter any that X I'm I'll is because your guidance, sort through was the first remaining strong? we about as was what guess at seasonality think flow

sure. for Yes, Yes.

few I you interchange year. of start line line, the revenue that's had normal obviously the service true-up of obviously off seasonal not to think We know the that I to So occur. that mentioned moving the deadline. the trends going on strong course, in seeing tech think like is And to open great We'd roles. especially you're in and progress costs, but things, what a is that, got faster I it on some a be

normalize you'll So throughout the that line year. see

I only that are we mention call this think have a a normalized accounting and bit that high commented I'd you what I we've million. item is seeing . And it's versus did mean, the -- thing we of a So QX. number $X.X maybe

as billion the math $X about So revenue roughly becomes Nice thing at easy.

XX-point XX points guide, something role in guiding we does we're So to -- play is a delivered XX. and where it midpoint a

see -- from seasonal this you would trying maybe the that perspective year and keep of of that pumped our expect in make mind, bit to fourth technology version quarter that a little we we've broad there's expense I on benefits of flatten little lower. the opportunity a of do we're a substantially and I we'll as So out some bit what is said, But also One pattern to upside will there. progress be where a in think

I done. answers X . Well X to got question.

guys. it, Got

Shack Missed last Greg. Shake you at night,

Yes.

I honor. visited in your

Hill question from with George is next Deutsche The Bank.

XX% I to benefit on have to to enhanced I product. had the and your wanted first dollars just I follow-up? guess guys acquisition And a ask guess Yes. about I rates you into is, from get goal the of then that wallet a progress quick

follow-up. Wait we're to going Greg, And have go to Sure. to back Greg.

taking I'm Greg's a follow-up.

that So around XX% not that and to but I It's And it's things, helpful. XX%, number also we up a X% our is relative did benefit the XX it's we what's scheme view helpful, grand but enabling huge on on things. X points. think in commented, as look, of is end wallet basis it's in

so the did after and -- it of name so stable with both they them, feeling I diverse The in -- do to like portfolio live the you read [indiscernible]. was you to market first we program a the of of then don't they you but trying in is are banks, that had can what articulating can partner have the where nice to and people so Steve who a forth. you team strength think work, know do trick to terms I And we really the get the open got And what the to so the recruiters a explain don't think this relate that second we're I is that days set. nice this of forth. is done one, program that and well early regard then

guys get revenue kind I'm on it did utilization the of follow-up muddy stuff whole seeing in line, growth. Okay. And revenue. acquisition? interchange increasingly of this question benefit we're wave impact is business up And of been your here should -- keeping And on be little of organic at hit is all meaningful the like are a buying quick kind thing And utilization though trying acquisition quarter to show that team is HSA care track which which book you could a I'm what in backwards of health in this looks my to trying would interchange land. to the having for people have is, the interchange

to don't I thing, to and bit of things be and beginning. think the a is other short a fact your reasons particularly HSA sort is go look you unit Yes, basis, maybe lower And think FSA hypothesis bit on the this if I going might spend a a huge impact related end buying, could seeing know, in spend the back question actually, factoring HRA there's let in even I that, answer we -- We're be -- on quarter runouts people quarter spend GLP-Xs into this and to expected. around to not have actually the HSA so than high me of the there's get having a higher was some that for seasonality after spend or was forth.

So don't need we asked Richard kind it get version it something GLP-X this anything. some I And -- gets expert. of -- question, becoming a of doesn't often we of asked because just

thesis, just but is, why find think this and underperformed support evidence a if So was HSA had and provide any or does didn't first I part thesis. it. so sort answer But address with little a explain that's people to question, either which I see a I this the how time just access for have it. a period accounts to where I I may quarter the in you that seriousness, solution. is guess that regard [indiscernible], And little of don't know can't would of I of bit, all to mean, think kill I the then question forth. bit. his But anything their know don't And little. I this the

with Berenshteyn The next Stan from is Fargo question Securities. Wells

I whether had driving digital the of you team in of Maybe you of on a if it have was type just could digital the you adoption wallets, us spent member wallet and time about they obviously any if rollout capabilities for the any Day, sense I had at give talking the wondering a conversions? may. impact lot reception and Investor client the whether help a terms of Jon,

particular, we're X conversions doing we certainly right? early of And very at is Client various into for it's working the consolidating wallet. this still processor things kind way was digital one. is The have once. is helpful. that Stan, we're the agreements in one

So a or that's for million million those card are that's XX-odd our who cardholders, members of conversion. XX members

are little not in Our bit more we've -- turns added particularly out with at there pharmacy. at big park which conversions how a deal standard complicated, world, actually level chip, the because the a deal X things. logic world, point. chip, for at to deal our more banking this no In is Two, it little merchant normal big

we so would have And to we good that something last do about a talked overcome is and quarter job.

And all then card lastly, stacked mobile, of mobile. putting on including that,

pull. this I to is help us the will way think ultimately,

anyone and the year. of we in we're wallet. I at need side on by stack to and associated year our And there. a and suffice do we I benefit the driven an one produce discussed -- client that enrollment experience HSA we're so ultimately, that's that primary And want the I way to have second it and cars, about so it report far forcing are and FSA open get can to talk where well it with don't moment, conversions still We're we've going them so all client is helps say of FSA member so think doing expense on people but I innovation guess sales forth. be lot -- don't we But its it's of these FSA out is which an new I particularly we figures, top think is, expenses -- is report both on the it. And sales mobile clear, this can First there not into pipeline this to anything. is

lot will handle that will like And mobile is will at busy more we be [indiscernible]. busy week than -- point, and default. wallet to season a the busy eventually, But busy week become easier

a Got Maybe just follow-up. it. Very helpful. quick

opening spending you're on And maybe lots have considered? into digital is that's expand are talking something the a wallet I'm on? about mobile just does curious, So up this usability these there obviously, this lifestyle flexibility, that of you side.

have and lifestyle okay. product a We today, does it

a there is to accounts, that there's product. is little -- fine, probably think wallet. but say more the the than on it's It buyer that is lifestyle we on it's bit of smoke I stackable safe have and something does

reasons. I are for want is health for So way those around certainly care. the focus the around company a for folks is card of is don't focus huge lifestyle said, a not us. and who our consumers category regard lifestyle having broadly some really folks, for use my number But to works growing people really That in it and the helping answer there LSA empowering care. sure. been a some of But this guess short is health And there's significant between overlap in

stuff I Thanksgiving quite table. there, Thanksgiving needle. think view -- Just some it's the enough fill dinner. not it's not our it And move doesn't is the there's . to but

next David with from BTIG. is Larsen question The

then sort on of you I category. thought your assets. like like of little a your lower was have you that, enhanced I sort take or that you your your yield quarter. accounts. And have think on a rate you I Can And yield Congratulations and of invested of talk legacy investment specific, totally great what don't rates about have cash, as buy but sort get bit want if too to investment understand you

would your yield or And color any be So fine, your as more money potentially seems products, not? there goes that into rates could the yield but just enhanced very helpful? pressure

take of kind pieces. that I'll Yes. in

custodial the So from the thing Like investments revenue that we no shifted. anymore. the there's that's

of And custodial on rates. obviously, or sort rates. placement. cash of basic T average, we're the on plus, line enhanced the treasury time X-year basic And on So talked is doing and plus about, so is X-year it, the call at XX rates we've on the blend and treasury rates the yield XX of enhanced

you're mix going So have to there. big a

right? investment side, of headline bps earning We're XX invested. course, on the about on rate On yes,

the That think to And it I It's service cash question, account, revenue and matter of to think basis take a move not tend to so. right? of members we points out line. XX you going I blend the the that it freeze don't the right? -- of are our I into their or all not is in way investment

it's a coupled a brokerage cash with account. a It's account,

And higher continue members investors. save to become so they as our balances,

It's right, yes, not they to it's one right? like grow cash clients that's to and that's markets, moves we point. become investors. account. on maturity, earned actively dollar. its And that other. long investors. do dollar, leveraged to they that the next hopefully, investment that one balance. managed that along become help not member It in account help we thing over for them not grow how can U.S. grow they and as And member in the a as line -- But it's like being they're become And right well, other, we Right? I or or on the term, considerably the So the member then investment at But the less marginal the the and balance

with Davis Stephanie from is question Barclays. next The SPX

mobile have Congrats ask on to Jon, whole out. the quarter this wallet I call

Does I I how wallet it subway. -- take You done? the Apple use actually I'm way this hole taking were card up hate sinework on my mean much know if just

complexity belongs New from for product. of this through was MTA way in where in underestimate you and Yes. folks, to went some we taking they're what there this [indiscernible] normally MTA. subway. York programming the all really It's And system just the in York But their a doing way And their a easy will I to whole thing we the that City that nonstandard of here New say with to contractors expect appreciate hotel, my do don't great did their I not job because getting I I'm that in think thank back sub

Okay.

in put this So let's framework mind.

am Or from cards Are whole a expense ahead Chip so overall, issue. opt can talked question and you getting You going users X your your chip out I you rid and get card of about my the find of to of way of that cards algorithm? answers. to early cost skis? have

I is yes. think the answer

emit the about I what We be you our and like that's in talk as enrollment or Jon, hard who open do that would will commentary, think. people we ultimate ultimately, when aim my said this,

think -- You can look particularly we that's the it, mean right look get answer, casein. you I But at people complex. have actually we that imagine at when are that, families

it while the you made anyway. going get those to the when that rolls mobile and your are easier somehow might cost the I of view our update the an from member. the it the incur not to to that there's do card darn process to There's of good kid that. point ultimately, that we past free, is that there's lease. -- closing a not through comes in you're due ultimately, Oli bigger but that's said, -- the advertisement on goes So why the just from time. we member packaging the over Christmas a and your May an from over years the ships process. be where be we but think car going that be printing, open And that think clients is earlier. that going But biggest Stephanie, the not plastic couple the translating is another default, roughly of means the way, the to to which, of December sort to card going to and I date. by January, amortize idea card step processing this us true That going data just that stuff to beginning but one you're . It to to is It's comes card hassles December -- scalable their to our of a vendor that's that's incur that has It's processing issuance, is its be it the their -- of beginning not when that to is client get a over. the piece been members where from -- enrollment that -- stuff -- going decision they're to open But enrollment lot

think a at is sense trying have to of the said, that. we're as that I bump way that at So we of you rid the the help get And get that of to look that I end that will year.

magnitude. in kind down. that February in we bump if and of first the go sense you or in quarter fourth we less can away of we gives quarter the a sorry, typically of wind January that as And good -- And that lumpy, and -- make or thing, be order have

leads my That into follow-up. kind of

remarks. prepared opportunities these talking the AI You're in about

I is Like opportunity. You've issuance getting got cost map a helps obvious what it, your that pretty China, you Chelsea savings leverage what like and see card beyond is that the road rates? your from the margins statementing keep

lot. And Jim I X months. this had is a like a asked He question

things now So at -- throw just I can

I that thing the that we're same right? out There's to a Jon, not to parse say going So. is like line. long The list,

Jon that? You tell

bucket reissue there. tell large if be has move yes, to talking remember, trend completely eliminate we do card and down and to for changed, just progress of course, look you results accounts every and that line the the like We're big to about that's guys it's forgot You to right? Yes, our because dress because drive envelopes us the postage service removed total and the is by cost the can divide at all it same and can and And things Will looking in of right? there's service as month our math objective paper going places. trend that and you they of a because, can of will is it exactly sure unit that's cost side one -- same their leaders is work. the what in process continuous not line to financing, right? to the I school, And long-term they're tools, new that in drive and watch teams investments serve the Yes, well, service single old quarter, every making at our think our right? improvement, it's So are cost there. and of a part Like costs the of service continuing efficiency, come efficiency Sigma objective it not, this delivery drive improvement this opportunities of is that LenSx objective accounts. of the printing a team on number year Yes. their

Thanks, Stephanie.

The next Baird. Marcon question Mark is with from

I had to similar If of you to costs, quarter for congratulations stages kind ago. of that were just little disaggregate versus early benefit reducing margin we one question. with is speaking talk happened when scale it's you because than like My gross fair it And say ended terms margin. roughly think regards costs. that bit regards but the with on gross -- of gross in the one reducing margins what questions terrific, to follow-up up to about still regards -- unit unit getting in the year at really we're a about that the the with That's can was -- the then softer specifically profit terms chain

So just fully to trying understand.

start I'll start I'll Yes, that. with

That's good a call really out.

Yes, good very very yes, call. Yes. good

So of talked about commentary. Intertractually, Jon that the in sort

the that both of mentioned single processor. a and process a You Yes, we're in to card new moving

that related service hits the and multiple you're seeing that we have so interchange the not And line. now a processors, there but on processors development shift cost operating multiple costs to we're just card some of bit of

what that's you're or... being or seeing So

with be will August. We'll -- in to going said done at this before. done that's be transition this And

bit you're -- same to third the we're to at. basically similar where second quarter, see a going the see bit X thought, thing And quarter and you're the going that paying in a So processors that. of of little the first

-- it's end, continuous a the side Yes. there's start there's that in point Yes, yes, a the improvement. then right? service of on the of Like our continuous think not is like And but improvement I side cost other

there's where a you're say, I not So well day guys, like done, done.

efficient. to more to be have don't try You

has helps efficient course, their of But cost. deliver the of and -- become Of those just we So the that, growing helps driving accounts part sales down more and to work hand-in-hand. the right? not house side retention

So related I trying improvements. and walk of calls self-service, continuing call do through this to hand-in-hand. out to We're automation, right? much is is these that both It's more say center, driving work say related from can't that the more much we to our versus this things, those grow to

I is to driving think conference Mark tomorrow? his

That we're see? going to

-- turn? are -- New from York from driving you higher on the you Are

I'm No, right I'm looking York in to see New now. forward you.

-- that here. doing got like nondenial we the you're not that's No, how

I flew this morning. . Thank you.

We do have plans.

question Jack next is Guggenheim. from with Wallace The

the like the fared, transfer. the like efficient better accounts trying slightly just coming pretty for time back metrics, benefit to to manner? cash transfer, in was was a the this just circle the into then just say, So done the retention across tell looked And quarter. just this on how your to wanted me, but AUM sounded most a to get it you expectations relative again, wallet it of retained account cost and and feel this

in data days, it. the we mean in part That's part the I it and take from doing like Yes. had of virtue of the March of we'd I'll kind of forecast. yes. done had that a guiding We're that if side. and already we couple other

it's get into so that's say you here, some whether affects that the the the right? that much I'd as think attrition I mindful attrition of not thing that think transaction, was would very expect account -- we assume It's always we probably don't the it case after like year some these be But going see we transactions, the WageWorks you of now, in to in nature thing So one already rest years fair. that to is post the states -- want be the of incremental assets the attrition. was it's time the because I in by already wage right? it X larger to work

I in which at calculate XX% quarter, over get the remainder better of highlighted that But doing last my of the XX% about really delta we minimize think just that the item where as assumed and I short conventional one pretty expected up something to the one the Here, into we is rate guess it's our But look, ] the Jan is penetration, guide more -- say, answer particularly quarter. December enhanced [ ended commentary, you stuff. than got we on well. year, that acquisition, portfolio can XX is really which one I we can the as about transaction the the really had

there. double click the to attrition, just into your then And helpful. That's comment

assume bucket, something we that about so Or or that, attrition accounts is So the come is to in transfer up? over the will to first line didn't -- hit XX,XXX by fair within my it math, just had that there quarter? that

good out call will here, that So crossed before we some the we that we of No, we Yes. from there. when announced, attrition right? assume. But yes, had benefit Yes, sort right, it. originally it benefit acquired

like of or the There and the that also are have ago, health they Yes. the any others we a that claims were didn't accounts don't like or long -- data like.

me really way, on there in no those about. talking we're ] there over, And So in -- wallet right. real not in that's any already we Yes, benefit That it those are about -- in bringing accounts $XXX,XXX talking side right? way, was over came in like right? member. bulk let where There [ a than say of this about we're that accounts of the HealthEquity of so were actually the we're The were just account those cases that point the that's what -- was quarter, they're closed XX% the number the more are XX,XXX that

we them. so merged And

try Yes. We don't . Yes.

they account. like looks already our "Oh, numbers, closed purge the are accounts the no, assets in them platform. accounts. we merged and the But actually didn't we existed closed higher, acquire might because brought the didn't they're HealthEquity like, existing into the in We on and not amount say, like just So it you full net

It's a one other robably thing mention also good place to here.

going You be to . it's know

No,

over in our business next any the rings thing, event, health leaving so quarter, SAM the we're -- don't which Maybe us. plans. that of getting cooperation platform, But know also SAM, what called a is It's we're I know. the lord And is for of ready I don't in moving in is. Sam further with it's the wave

-- same sense the of some for And this on of platform point. some so a are little accounts for that we this the bring reasons, -- did we make cleanup to same also at doesn't of over that

maintenance And churn there more than because around. actually original few was -- a accounts little more so our a that a elevated

X further we balance accounts closed. XX,XXX

that, of was quarter. And outside it normal a

for on bargained You than you that. more got

from is question next Constantine The Davides with JMP.

referenced a you on to they're partners comments more a contributing And that. could Good of Good also color I accounts. little small terms momentum if on and part think bit skewed of I'm year? you is start terms and new market this how HSA more wondering I'm Just the midsized a of expand new the that little just then a to year accounts. just Blues couple of wondering in your composition year? Thanks. afternoon. in recent some around the more pipeline the if more this

just Yes. tried to we about broadly the don't and strategy to I'll lose Steve do choice. other the very about we've like what hit very our the make in But clear to maybe and guide talk we then to the of the on abstract. that pipeline the while part invite question, and commitment we than just pipelines, don't to and to other second dynamic, pipelines our talk test tend don't than the commitment

are and new say sales it's to for think clear. for enterprise if segment both our -- for at And look logos your and to remainder it, these fair of the are both you -- pipeline be SMB and that the I you now, year.

Our where -- of we year a were at or ahead ago.

they're ago. actually think I both where year we of slightly were ahead a

only from logos that's to give if want of in relevant Again, rest a existing. any bit growth And you make terms here. whole our so Steve, talk stress and we take little are new I But the a of approach The way how given pipeline. in come Blues about that's new of accounts. a new And that's where we logos. quarter or year, up in

Absolutely. Thanks, Yes. Constantine.

meaning can able the -- folks, have plans non being mean, refer you anything a suite easy in are these costly company platform plan a loved to somebody deductible think, to a most the be when I would use we it general, there or what I road would that to decides that to blue of and they've of CDB bring So a in just these plan. that imagine needs platform, qualified come down allow lot integrated like products large higher for-profit is HealthEquity this an that idea our Blue for just profit, consumer the to of -- go of But as is that always, certainly says they of these.

plans and of by investments seamless. to to national enrollment integrated some solution. the integrated integrated the and invest and just been And to in compete claims different needs then money able it so of these all And allows doing then against be big market. more historically have we that, them that it brought solutions ultimately to And

not out And take start also so salespeople are can and didn't they was together, making that that it it only time experience, things experience just you compete but carriers and on on takes well. there, imagine order really pipes in happened when then the a named to more integrated, it to integrated that's trust. little some can an takes to one training And the going head-to-head when go of this some with this market unintegrated of historically comes to create is why it the and that or not it work so

of opinion, bank somebody "You with was line competitors, of plan So to inclined their end our go with HSA-qualified know if kind local to sometimes say, local kind of less noise. see it's or their I'll their those account credit managers more to ends they in up then union just an like and one were or it they up what,

introducing maybe also because them little in a they've have less does what disadvantage. found put integrated out sales -- department a they're in But on an see process it contain strategic that is not noise HealthEquity, the

time so our so spend what that's we And on. --

people about all in And the talked basically way we've the lot West have from Coast throughout these We I partnerships. ]. it mean working the whole East abluzumab country, Coast. the goes across [

the We strong sectors a for the always up in the of we the made [ different has country, have of in states and the us kind Northwest. Manic in ] been that representation the Northeast and Sunbelt role strides great Southeast, the great

equity, seamless been and going could magic integrated we not. for doing we've going we over is figured And are was types believe I arrangements so for that at which people back the now experience -- providing code some years XXX. of to XX the what it's into wish and best it's then It's XX/X, like I it service just is customer these what -- out, secret but having best say

is it -- and We I when say, to the network myself, plans, for nice then plan, integrated non-Blues do plans. when sell actually they this so and the in and And a we Blue's loose taking "Boy, it vertically experience their case, also that provide actually out they're clients. start thing -- go to go to can employees. when and willing to in out

into all And -- of with of every had to in coming make take our these I'm then to platform because WageWorks months, all acquisition you to getting more that Jon, taken and a else years has another on fifth followed think on and it would X going I it I integrated be we're so plans dedicate of we're is a bit actually while but that day. up so few in that sure that with want now little there little I mean, resources the single time a it, more anything we did will covering... year further add?

made have could I that think don't I better. one No,

to This Jon for turn would concludes closing remarks. our question-and-answer session. conference I back any like the Kessler to over

at at are a of I Those are time Yes. are there a entering to there very [ of butts days super working this time busyin bit where now. And I we're was a our that clients of be year. year -- lot productive a And partners a going. It's of ] -- mean, used think, long their lull a right little -- of HealthEquity it's way. the people our There at I business.

I'm long-term your able in and that few glad do a been analysts shareholders to we appreciate since the It's I've to been that long-term for also able thank and that. it our very And analysts But shareholders quarters you genuinely so this call, I'm and I'm our very appreciate here. long-term but time have say and our confident to much support.

way to guess So that's close. I great a

to So it's at close. my . way least

conference today's now concluded. has you attending for The Thank presentation.

may You disconnect. now