HealthEquity (HQY) 9 Dec 242025 Q3 Earnings call transcript

Good afternoon, and welcome to the HealthEquity Third Quarter 2025 Earnings Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Richard Putnam. Please go ahead.

Thank you, Nick. Hello, everyone. Quarter Year Third Call. Earnings HealthEquity's to of XXXX Fiscal Conference Welcome name Relations Investor Richard HealthEquity. My Putnam, for is And joining me CEO; and today is Jon Kessler, President Dr. Lucania, President and Chair the beginning in CFO; Vice Founder CEO Cutler, Executive James Scott successor Neeleman, and Vice appointed Steve recently January. President and company; of

have I Before I the reminders. of over call couple turn John, to a

afternoon. include issued First, we here today. of ] fiscal quarter contributions a our after market wholly and for the third owned press results measures definitions reference release Press accounts results announcing certain These closed our of they that this and non-GAAP [ financial the release the was financial of financial subsidiaries will XXXX, includes administer.

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

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

to Now over Mr. John Kessler.

as stars. well briefly done key of then Richard, a paths discuss got to who'll cavalcade in account post-election and we've describe you, expansion. metrics, happy Thank I Steve, Hi, and always. QX's will health holidays. momentum everybody,

to team going that. metrics, You're growth HSA with plus assets double-digit you're XX% grew Jim total including detail XX% FY HealthEquity 'XX, guidance hear know us preview across again including raised ended HSA want delivered financial and XX%, plus introduction. In FY privileged members adjusted few will which to year-over-year of Cutler billion going that. [indiscernible] results, about million about HSAs to HSA to in key X.X most the XX.X here words and $XX QX total with QX, accounts a Scott then, have plus assets, hear we're up was I accounts, And 'XX X%. driving revenue, QX is with XX%, and million which a EBITDA lot.

in HSAs that. what sure with cylinders, wanted firing XXX,XXX say a but I'm I even not case, new year. XX% year-over-year, increased any you our we that's and if XX% by billion. the and there in all invested cash on quarter, reached opened member to that $XX.X to last problem that say organically didn't that, members billion helping billion. the grew assets know so more And HSA Team $XX.X With HSA like number Purple the million, who $XX XX% of fact, problem education was lawyer I than In sales the subtract drive HSA up from $X.X assets invest you year-over-year. action, in was to QX lawyer And digital

quarter lighter in decline assets added a billion typically Our QX, $X.X compared to billion a $X.X members which organically. in HSA is

were which In balance our year say for comp an our because million those digits members HSA Net call, grown which team's has 'XX we it faced HSAs, awesome the in last and double over CBs monster. last on This first clearly I my though the comps, monster good fact, only the incredible. QX. of the of is a break for quarters have national had because the $X.X that, will wrong HSA XX a of not emergency It's year-over-year thing, sales a accounts. performance mission. which past earnings gives average record of impact CDB be full three But runoff awesome year. time meaning would fiscal is up year-over-year over CDB incredible by reminder it's quarter-over-quarter, months, comps comps. We new QX to flat of the be last lapping new for but to the a really chance are We will

fraud led completing teams and sorry, kinds QX, client final processor sophisticated underway. a persistent both in excess new operations Our also busy were top expense, enrollment season, open very successful of activities, actor. implementations testing spend and is detail consolidation for excess to activities broad single will for of seasonal hiring now Jim a and These the very which a service onetime led to much partner which and and I'm training wave while battling these of of card

member plastic. mobile digital underlying through experience more remarkable should confident transforming with trend planting claims that integration and service wallet feel more of AI the so interactions cost contacts You reduction continues though and

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are election supporting busy, expand health advocacy access now Steve efforts and to American's accounts. team us, personal to the portable behind Speaking multiple it's day of

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the employers to of that Hope Democrats XX three largest personal by Republicans. largest We're income the Thank the has to middle three formerly Council, organizations XXX all Chamber The including diverse Benefits to bipartisan of you, few HR endorsed members problem and of three labor medical by always, expenses been caucus, Medicare encourages and Act Act, for as employers, qualified which in to class with known bipartisan XXXX isn't would HOPE health country's Commerce, the the These Jon, including contribute HSA-compatible, Americans as Republicans. endorsement all health business it. solvers and savings recipients accounts. expanding invest The XX administration. tax-free also save kickoff now has new and access Anyway, which include legislation, include the miss it to House low by August HOPE the the American budget enable then. majority is Democrats approaches and interests, by and includes and fantastic insurance employees. Introduced ACA the a of nation's see whose going portable U.S. a we now Republican organization. reconciliation rulemaking to

would bipartisan the expansion, it is to and path Means reconciliation. reconciliation beneficiaries bills to pass FSAs HSA because spending HSA Improvement to health two House limits within Act also by has raise and service both bills seniors and HSA passed would to were with provide access coverage, would Congress unspent attach it which recent spending the as Medicare. examples to funding majority to the HRAs, Another not Indian been years, likely filibuster, to the more HSA expand majorities multiple existing in wide-ranging Act, produce rule-making would flexible of This HSA bills. Also, can also These the are current used is the law on annual and and to access Americans next working consumer-friendly. as from Committee tax include budget can HSAs subject Democratic administration It by and is and well expand and HSA Modernization for bill. Republican HSA the Congress VA reconciliation incoming authority a from in Ways contribution finally, accounts. making its the And expansion use

outside all wellness by that. For ACA example, the expenses. and value Advantage. HSAs recognizing HSA-compatible of actual These in expanding also that plans can care plan that and the insurer fitness deductible may the expand approving on preventative of administration to wellness or they offered with HSA's cover designs required Medicare further plans the contributions and exchanges ways to eligibility also are HSA-compatible The do may

have behaviors and of health costs. that popular more portable access investable among HSAs health make exhibit more healthy owned and with young reduce personally widely Moreover, are care affordable conservative. Americans accounts health the that and Finally, and care liberal old,

guidance. legislative optimistic to and credible regulatory and and and expand Jim, to it support for the results take action we Jim away. to about continue quite expert advocacy, are access time turn over will research. I'll So our advice through now

Thanks, Thanks, non-GAAP and financial third will our Yes. fiscal Steve. I quarter briefly results. GAAP highlight John.

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

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

revenue profit to $XXX shift year-over-year, $XXX headline distributions and lower HSAs. platform on of third annualized the $XXX.X Third X% in year-over-year. and shift result million payments quarter again, growth total third unit assets growth year, off reflecting versus HealthEquity's year. was Service notably as card in cash continued investor HSA was quarter Custodial and to quarter XX% in Gross third HSA million, revenue revenue from million, increased revenue requesting accounts, in rates. up as XX% invested more grew contributions cash and toward than for made product to reimbursement higher $XX.X XX% increased was for accounts conducted grew last rates as to X.XX% yield faster million and XX% enhance quarter revenue of a payments fee was the lower Interchange and up members platform. of quarter. The account mix mix the replacement this on revenue the XX% continues service average

during sophisticated the consolidation. seasonal excess activity million during members and in was and and our of processor costs mentioned, the Jon final incurred phase by to fraud from to largest reimburse gross factors, those impacted $X of members As assist protect to by card approximately addition reduced service profit quarter

impacted these was $X.XX XX% and GAAP the versus year, $X.X seasonal last the the as settlement X-K per per million EBITDA revenue only million on continues million the was we are I of share income on of compared up we was excludes for income year, a the termination us a in the XX% was that adjusted behind success into EBITDA last While lawsuits disclosed the costs course, year. basis share net from earlier. $XXX.X or million, $X.XX to Non-GAAP event-driven cost. Adjusted quarter which by referenced last quarter was percentage share of per but XX%, costs expect that sales service third Form as the discussed, Jon EPS and $XX.X onetime result QX November. up believe and event-driven in carryover for quarter WageWorks onetime $XX or QX. Net largely ramp-up third of included as modest $X.XX lease a

Turning to the balance sheet.

also quarter its $XX The As $XXX repaid fiscal repurchased nine was of million 'XX. we and XXXX, during $XXX from leaving of XX, forward resulting million billion million the of curves. $XXX previously outstanding leaving the hand 'XX costs. months on October company cash reflects operational as technology current rate our $XX year debt generated quarter, issuance The million operations of company our flow quarter of from trajectory, of interest $X.X Cash announced fiscal during under first investments end, of shares the net approximately million revolver remaining. Today's borrowings carryforward million of in strong $XXX sales efficiencies the outstanding guidance the authorization,

of net in or and to per earlier. We range $XX $XX a mentioned range income share and expect billion. GAAP includes $X.XXX in million million the settlement million $X.XX revenue billion $X.XXX $X.XX the $XX between to

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

between Finally, adjusted fiscal to the $XXX now for will $XXX EBITDA We HSA we cash yield approximately average be on and million. expect X.X% be expect million 'XX.

based not custodial and usually treasury our mid-duration of cost are, of forward-looking in market projected quarter the overnight year change cash is are in yield quarter and subject as and today's highest as season on of indicators onboarding curves. future financing rollovers, guidance we rate predictors embedded market busy as is deployments reminder, fourth which schedule course, conditions. release of a perfect assumptions service Seasonally, of our a well secured the such peaks. These forward to contained analysis As HSA as

additional expected under repurchases the million authorization. Our guidance includes repurchase $XXX also share

fiscal continued our including common for capital to a on the XX%. guidance, both in for available and tax they revolver reduce year. remaining a revolver, non-GAAP GAAP the count of $XX at will We return current XX% equivalents. capacity should With about quarter become Based approximately expect income year to now rate our share flows rate of borrowings we assume shareholders and portfolio full diluted a tax million, of We cash acquisitions and 'XX share available. project maintain fiscal we strong on ample borrowings

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

intangible amortization net In acquired fiscal the from of guidance assets included. generated the addition, also providing while from non-GAAP intangible initial the income, revenue acquired being is those for assets is We're following year XXXX. excluded

to $X.XXX billion. $X.XXX between be and We billion expect revenue

the without that available income we're or EBITDA for our ending to fiscal as non-GAAP on year is shift not our adjusted margins included the income curves EBITDA unable for interest ahead items growing basic will benefit. rates. from revenue provision income, an net expand rates expect A We guidance and range directly mix significant HSA excluded rate basic the net current this to outlook yield of This because to ultimate adjusted rates these outlook our not continued XX.X% efforts of January outlook average interest reconciliation cash rate XX.X% compensation in outcome of certain period based for forward on with and to GAAP future is XXXX measure X.X% approximately from tax the predict stock-based fiscal to year XXXX. comparable of Based its enhanced most is measures, for expense X.X%. conditions, XX, of initial unreasonable such to

this ever Like all us -- other the are people closest to is any introductions get to people want hosting the who to of these going Oscars.

you CEO Cutler, genuinely you so So we pleasure know, thanks, as will as January introduce whom, to did know, X. -- Jim. on Scott who, and me It's my who, to succeed me now that or know, as as you President

he still office are joining super the we is Scott? Scott grateful you. managing is smooth a that Given himself saddle introduce in the to work call that at StockX, at transition in today's to

Thanks, pun about big transition, everybody. Team Jon Great intended, joining honored this at things Jon. Purple thrilled am filling right now. joining in join be certainly sneakers Thanks, HealthEquity excited Jon, to Team this from humbled, to in time, three Purple. I some I'm

process. fulfilling I'm into empowering health inspired this First, mission by conversation and throughout I to lives Steve am alongside which save infused the every of Mission. work improve company, to the by this consumers. excited was care

Second, and deliver be this I'm leading excited joining the the to in in company outperformance space to continuing to market. strive

and joining stage I'm Purple across by is time service the for assets XD and experiences. Third, various while in education digitize so continuing holds that our information. chapter opportunity This much journey. remarkable HealthEquity technology to transformation forward remarkable be excited growth members' to career our industry next the innovation. tech-enabled a and science drive and journey next the been in I'm and team first, My using looking delivering be to digital in at technology data future of strategy. securing tech defined has will the to industries, this when

our want deepening to decisions. I technologies advanced competitive advantage to health you driving our is financial members integrated our intelligent support the reporting objectives. forward to members and each outcomes Team outlined of And in network with and partners. progress member meeting investors, of many connect our and deliver combining Jon, team me conferences you. and towards upcoming using really and commitments their our I welcoming science technology, ecosystem to process. partners, our for Second look clients proprietary data I'm on make empower to to of and by Steve and you transition integrated to to to partnerships to more in working the Purple be extend third, better excited this partnerships with thank to

Thanks, the puns, may Scott, continue. the and nice a well company on start done,

Q&A. to go Let's Operator?

Thank you.

Peters come with now today will from We will question-and-answer Gregory question The first session. [Operator begin the Raymond James. Instructions]

everyone. good Well, afternoon,

afternoon. Good

have it. Let's

Let man. on. us have it, Come

have of one sell-side the number me a an Well, have with, give time that big Jon, the hour. I other along question sure, the opportunity remainder If X Let it. Scott. are guidance will mistaken, it's hard revenue of give analysts in high to for I'm you several you the one is question the on little a consensus, I'm not in year-over-year picture My reflects aboard, 'XX. fiscal single-digit Welcome parts bit year is probably growth. below parts.

comprising guidance. maybe the color fiscal parts you some the several So XXXX that could are give us year on

one this want to you take Do first?

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refresh cash schedule. the have maturity HSA You of our

maturing. what's see You

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call next you're So replaced the sort is numbers those $X being pickup of roughly year average billion rate. off and assets at roughly round rolling big, so maturing not as on the rates X.X% today's it in for

range that other get I service interchange in Big think significantly main think the step-up we are in there. And right? that do outperforming the that consider we can revenue. math and comfortably inside Remember like you line. per I spend our on as So account, line,

account outperforming to growth this we're it have expect year, which But COBRA a You'd that. [ really card. ], doesn't ex grow normally with

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into come normalized I of back expected something you guided to close So those drivers think growth, out bringing all to. we to what they'll just

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and think I but particularly year that's is messed you this what I'm checks saying. going And so I up I'm metaphor what know around that the to going Jim I'm cash be true -- not with, because to I to deal write not that can't

you're And it, terms -- to and so result And year. look have you and the goes in in of you're leaves, going Right the is wobbled Jim pretty walk that understand that certainly I'll and when you if to can compute is about actual first the yield. cash versus flow item excess we're to market. third. at our of you maybe which it. That my difficult we the earlier ask the And going year, it, last been our in in of wants an going I of more we've range highlighted investments that to has to right? course a cash, if that, Over you're two amount given we a well. now, a not. the expectations, is this on was relative the based math, think, forecast, some really you true yield about But into mind, that, variables and it is bit add that that through get learn We've QX -- someone can the do to data if really average rip

late think last us to in that's quarter. something a I less maybe little very the But nonetheless, that's so for forecast. hard

time how things quarter But is of we'd on the least worked let's we at -- mentioned And this. so part can, we'd our Jim an quarters good before are, we is, can't let's the what will of and But this a lot And goes that things. function as the year it we team has little guidance. And as rather and little interchange. had that fourth a team first see many really ultimately, it's give give And opportunity whatnot, of interchange do January is three let's second on -- true rather a see up tremendous the a give and thing through to we what and refine. year.

two all I I think you account throw assessments. total if those growth in things, make of on top can where your just

to the for part one you fiscal I be reasonable totally feel place the multi you get think 'XX. that that Or should of to a able multi part. Was part? is was that

was that the -- think multipart. I

with Next question Stan will come from Berenshteyn today Wells Fargo.

course, follow-up the actually insights do Jon, just [ discussed. and best I missed. relates will to you calls on have you Well, as ] flare of your it Jovial to questions to wishing be the brought that the retirement. earnings just in want two I first, custodial Jim revenue. say what

interchange there. increase right And the in As about sequential year decrease throw points. we work this what in wasn't some quarter-on-quarter, year, drove you up, it I'll for And any of just to different surprising in see, follow-up just Can than it assets assets revenue, the think line? seen gross margin fiscal is, but wage now. there we I think the is the curious, pacing went significant we've basis what revenue, XXX year? the if think, talk on over in that, believe gross just touched it guess, The past about about margin I a XX% reset follow-up is I'm I way is 'XX just next

Obviously, big we wall the assets typical works a or Yes, wage benefit [ -- in Okay. were a And slug a middle me -- of take 'XX, had first the came are obviously, of like in. in that of more first. some middle than will of be let there cash of year. 'XX ] the more replaced that placed well, yes, wage part

But like quite normal either. year seeing that the years. advantage will definitely of couple of are next in billion -- is those a thing of we not one So of placements taking big slugs I maturities is this

pull We have the will forward taken of repricings. to those some take the opportunity opportunity and

so hedge all market having of hedge houses. of of from banking side your without a purchase us opportunity, all when that of we And treat your to the that like the gives sort as a --

advantage we and market taken that, So if have the of of us take continue will we advantage to that opportunity. gives that

expect forward So see maturity than therefore, date. some reinvested pulled to maturities of those and the earlier

known, invested. the well yield that's any The And be a -- point have right? I those pretty derisks that So don't but months over many It's I think XX to like next the if largest treasury large as talked what move out, the [indiscernible]. corpus very times, is we've of about slugs hard on like that on risks. this market clue two that time, that going But is maturing one $X X-year billion to it's in in be. that's years the is our not can I -- fiscal

the clue, have You in the Scooby but last first Doo not a it's the clue like one.

definitely All the is curve that going be, or clue. rate It's that wrong. forecast be the forward forecast to to I it's know whatever rate be last to I not

yet. we'll over rates to transition finish keep that to forward pushing some we're possible. and pull forward I'd get -- to to But time. of can But do that. like line enhance extent to as fast So going we that, Like as the that

second the take to part? want You me

the gross margin. sure, Yes,

Yes.

and is quite while. And is been HSAs mean, that aggregate that shift we've fundamentally. the I true it's and to thing margin the fundamentally, mix in driving quite for gross the while, been higher a a for So saying

us there some a also bit. there. I focus many guide think in is why us of we we've kind this guide the only we way That's quarter, one on times, text, that tail there's both as -- things caught the if I on are in the little commented of as said because

fundamentally, happening So that simultaneously. but is happening things -- -- -- are what's two

It's function HSA You've a outgrowing rest enhanced that's function COVID a the the HSAs more got And of of of Command valuable, coming the rates. cetera. out are period, business. period. becoming et is the of

And ways so -- process and a has go. that still to

that we on into that early fiscal implies and said we [ 'XX exactly we XXs bring that. margins the ] would EBITDA So died thought

next question your from Santangelo Jefferies. come will And with Glen

think taking for TAM mean, And Jon, how a is sense today? good and Steve question about understanding your TAM for the ask then, you HSA Steve, my how anyone you don't the how Hope retirement. in to essentially, then, luck of give this did I I I accounts much XXXX. or play don't you've to in the you And likelihood handicap moving the for could if new of out you Jon, this know any sort maybe based Thanks on in sort of that want with this conversations know had Act. Hope hill. expands. forward you on big and I of how us administration Act, the expect

one? you on don't why this get Steve, started

Yes. Glen. Thanks, Sure.

employer-sponsored So XX XXX around retirement a where the we headed. of on we have over this million, pretty market handle watched accounts last good look, TAM, think there's XX United million the we've million But of a we the States, XX that And maturity always said see is it for I as It's mean, years, going, of range will same that you in in million XXX land. kind households. households be accounts. HSA

And it's out went kind have to him and in private job they that buddy us they're sector could used who -- military, personal really plan. either government you after of fly good the it, HSA Hawk that at ridiculous. helicopters. first and took came a offered in benefit couldn't XX of And XX years age and Black accounts have because say can't and to a mine so tried he portable dig from in we've I

he because -- coverage. to because was so access military And he has disqualified

there because about talk XX services, in just as hope HSA, some TRICARE, do And million with even sure high things for because HSAs and have not we up any this offer we that can slight we HSA. by think there's households an to are of differences, TAM any in the I there's from HSA plans TAM and Exchanges, these, an some if have to that well, the to like is which can XX the exchanges keep that, increase increase really into that so with an think But on Medicare, which where into but a then least people much way a this legislators bunch will be going high-deductible is that even are of coverage et of growing And the what lot [indiscernible] whereas union ACA million you HSAs go a an account, there's we it Act, the would too, differences they that I'm on plan. as HOPE can't plans exchange, think credible of not could have deductible have be exciting think health people set cetera. plans. jump the and Medicaid the proposed

anything? did you there else, little So kind of it that's talk think portable to We $XX but TAM the investable on total addressable owned the going that's can to $XXX want that from accounts picture. personally million. Jon, takes market out $XX seeing, we add over kind and a of million the the you add about from something want did these bit to of big sausage-making we're accounts million,

Well Go you ahead. on comment why don't that?

Yes.

middle country covered out-of-pocket So in the industry for deductible talking real in couple the is certainly more get look, for sorry, median $X,XXX. $X,XXX. The deductible average of household a thrilled I an they've together years. the is money lot to to recess PPO is and working someone can $XX,XXX. about do been of this It's August legislators median real. the and is people not about The They of because deductible income in Qualified in a a family -- It's saying, HSA the a plan qualified expenses a and bill, we on family, to what Glen, I'm high HSA that American it introduced mean, an $X,XXX. money, are came about when plan were we were the for average plan, they

it's people. still for $X,XXX, but lot money $X,XXX a of So higher

how They that. know legislators to very, so expenses very And are know costly. pocket

do for to different looking this. so And they've ways been

to talk other of they They colleagues together, And the talk side aisle. their people Congress. so in they to on came the

introduced August, then been And the of pretty neat more see back added. And house pleased. and to more introduced, have house kind members so when the were in we bill these it's

you middle see in Congress, I think when the And there if Republicans weighed this and in. solvers bipartisan group. the are numbers And can legislators. that that are they groups a I few at thing. legislators That Benefits and and Democrats XX that XX-XX it's a Council right think come there's then actually with idea. that they of right did a a remarks, and coming problem a legislators again, I vote given down about some It's like in, XX XX very pretty that, ] get labor we're over the saying, are my bipartisan which supporting waiting coccus up middle, that you now [ get of American count groups other we're split. basically in in done. They're even this things have to kind great appointed their middle folks in that and the the look starting in is of when want means then we to like of a see stuff lot as seats. to It's "Hey, prepared mean, in mentioned get block encouraging. some And

and finalize and gives HSA a Jon, and expansion be was But making account. in the tens that that the the budget, find process be nature ask there's to that through And not can question or of see we've where factory. help a you scoring lower stuff seen that to a done? that's will young that. act go little Congress bit because just certainly score we Obviously, take should that need how HOPE a and But with millions is, this break that do since I fit Americans the the I of can in stuff the you refer hopefully Jon an new of of can happy think question -- HOPE other the of you you type that bill. still it's in They graduate. sausage middle think January. where moving. another the well, So hopefully some going to bill you There's you've need been sausages. start to then of the what of get will momentum, to overview than And then of

to. any me but want doesn't talk going to more about this, Richard I'm

[indiscernible].

I going different, am. this selling is right, totally something through say to want But you're I played. -- I'm But okay? [indiscernible]. Well, the

et much that has, federal by taxes, has, inverse Medicare or they et every out-of-pockets happens these the that's Same, security access you the commercial state have is not have the which somebody dollar have access well to out using to the we -- seems of be more social cetera, a to cetera, payroll just The these when earn pain Something the this to out-of-pocket of accounts. so it. and said people one right? every you're that don't with take disproportionate of right, through one plan because in of which the right? And bite. do you States without it's the taxes, crazy to paying right? pocket, expenses, giving what of that reasons United so Steve actually It's taxes, Uncle the answer what without would earn almost And get to you to just accounts kinds the time When taxes, access, tax it. for of is do

I me even of of led so. tactical quarter this so if visceral very think, It's do this last quarter, kind believe make, this, gotten sort positive thing very plus do into I we emotional And right, really which tactical, it? that about to this what of more kind don't comments Steve's the we he's do how that pretty

today with question next come Allen of your will America. Lutz Bank from And

liners. the Jon, I'm going one miss to

for on congrats retirement. Steve. the One So question

potential HealthEquity? Going to to relative same us exposure population How access have as how Medicare your expansion. could understand populations plan to you as the to that Can theoretically the to current Medicare. to is for of different this Medicare exposure that type or health remind Trying well work think back to just with how process populations employers your about selling your customer the we should base?

Great Allen. question. Thanks,

Part needed to turns that So that need making their and questions contributions out our A maintain they're or Medicare we so an it ineligible. they're we in because doing rates, didn't every about them now told to but service to, HSA Medicare they and she Medicare day get enrolled they're really inadvertently center into in needed XX-year-old role, the

are say, would it those an even be true to working -- could there'll that bill with the be get the I Ways would and passed HSA to those the and a was Means Committee. can could into that let's really, to say, so that [indiscernible] That through rectify mean, next House or efforts HOPE we immediate And Means Committee expansion pass that the And in in help House ] hey, we able Medicare. seniors [ dollars remain was that included situation. look, year, savings account Ways

So in we either of we pretty take care those quickly folks. one confident could of to feel up ramp avenues, those

of the these of pretty are plan group do As broader United lot partners, most about Blues Association health as populations. far of and are past, very we're States. and In HealthEquity system the to folks these a many, as in blessed significant Most our Medicare plans of systems and Medicare -- largest hospital partners these. distribution, and -- were talked the these partners some know, many populations, we owned We've lucky the have nonprofits. closest hospital you have health

health book the them, if would the top that tell fastest-growing them ask one like. in be of MA medicare, you of of couple at I what fact, would is you In business, our least plans, most your and

which And would we them mentioned, we've the sell and -- that got after go so expanded to now accounts the would to equation HOPE and Medicare look, We same built is And say, we fantastic. distribution of chassis now or HSAs use this. a great are products. let's part we've channel, our go think more we've commercial

a leader, about it people I that about mean, And so our thinks are as day. company every this thought thinking

to passed, thinking a but I spending until be about tell it. can very you, lot that have about of there's sure. money That's We thoughtful for legislation's this

today question Anne with will come from Your Samuel next JPMorgan.

know speak I'm hoping could guidance maybe year you anything you're to point, I versus wrapped season was how there just -- hoping different years? And at notably you're qualitatively but providing selling this prior was not this up?

Yes.

So the these one to of don't [ I completely And one [indiscernible] feel. is about that made will [indiscernible] me the that it say, a ]. those we I've does comment think of repeat observers in just things we of view number. first I first word? sweet did time I I'm know, careful note a did those. ever of reflect as it. that words that the future this is all, let sales I XX-plus right

in position of felt did. perhaps from the comp, it beginning If you and at year, you did sales us maybe at beginning, comp. the how a But at was very the pretty be to about was had year-on-year the beat we beat And to was ago it somebody two good. record it asked a asked ] [ the we well, us Mark the or years said on tough beginning who

of if look a I I couple things I out. sales, are would there within think point at

growth. with we us. so about And are who in kind of market margin that in brokers that we success biggest I particularly opportunity asked some about the talked starting it market related was our traction, on be felt partners to well particularly it's frankly, and been just great with distribution been aggressive to we increasing like that but and this get pricing not the are and it's the have kind starting could the middle was is And question of that's having in -- the kind enterprise, goes that HSA forth. of like and the and upper saw to -- back about the be who've we of an we've to that products think now was the earlier year as value as real at there. HSA. that given

have -- we were. which prices. line. know, we of our the cases, is and in some held CDB products, where so increase And Conversely, right, lower and, some you we as margins,

And so the I think that's answer. right

our long for that's good time. we be forth the good for mission to want what a we think period and company, to is -- so for of you're durable If going sell business

the And a so those we And most of first lot is more the -- that's saw important we that trend result activity. and probably that saw.

it's soft because year, stand-alone as good. there trying middle again, I may market of us to as a last [indiscernible] hold we're saw sense activity. are kind as as of probably was the little You enterprise and think quite doesn't competitive line upper business And We for And of for us. areas everyone to make more bit where in a they market, that's be strong where Enterprise well. land. lot is can kind kind middle going that middle recall not last market is year a

as product So were talking picture really -- as I'll the well our pipeline. adjusting other what to could our start clients happy and, and clients with to here again, that thing we big where showing a say we're incenting our cases, position new is I is clients and in on our pricing be our in of profitability. The selling increasingly think some we but last aspects offering compare

us fiscal has so in in sales cycle place And -- think, the only will But that goal a talk about not I difference a to. if but, someone where to we're a I this starting mean wants call [indiscernible] for implies get and to that made little you is a had get sure account next as not pretty pilot Pilot. actually good doesn't sound little as really that good a year stuff some it people from Look, clients. [indiscernible] money. revenue this where like we I'm is, good more

Yes.

That's not good.

adopters. Early

there you for last for me you we've X, at here least go thank the adopters, always and Early X been quarters. for

and even that's, be look, we'll year. think us next . think, is I so valuable year, really for And so this but useful more I

George Deutsche Bank. with will from Your come next today question Hill

you He's this. to this on watch Mix operator. it. like and out talk, got You that's

out come doesn't -- out apparently. you it at coming the ain't beginning, if So

but core music for to Like question, Jon, a did the you But change the Yes. thing? call thought [indiscernible] my like used waiting hold not do sounded guitar, the you guys guys it music? really Spanish that's I

is And one you I oftentimes quarter. them, a long that for Snoopy that lobbied that for now name is Snoopy we affiliated won't get next there's interesting partners. have a rates maybe I of enhanced because for time. It's with And personally can but this company, mentioned our

all, you well. [ welcome I'll you ] hope I aboard. an question. I call and with this of that the Scott, of the pepper might SDN first same, flavor And keep size. ] you Well, And again. door, say, and I there's its around, I'm of dunks a nine the strange love pair call Two laying on if half. a Every and stock questions. a X your [ way out quick wish

X.X. down, George that writing He's

as it relates I it, you to I like X.X. like $X impact the impact. fraud Jim, to said, cited the million that related

you effectively as the a that the on their reading the basically at numbers business Jon then lot just when numbers about you business I guys right MA cards. of the financials own the not expansion I Medicare guys one offer kind in And absorbed about would guys the those talking is, so quarter, that reported space been am think So have that gross and I into Medicare are lot and Steve, higher. profit A+B the a of of I look assume traditional of things space,

that those as benefits is an see tend opportunity do portable would something be, would year-end? right going question to you supplemental? expire do? there. I'll that the at to the will So it enhanced this to there And it be Is looks in addition carriers something work on know that you sure I what's with to depending guys legislation provide because I'm something that better drop than Or

the and first take the you one, one. second don't Jim, I'll take Why

done questions in two there. well sneaking Yes,

was costs So ahead on expectations. sort of just the into across million, of let so service our that the excess -- Yes, it was $X the the mobile as that board, not. our me absorbed anticipated but clarify to perhaps noise mentioned, that, would a cards wallet that also of was normal incremental that this that many related not sort big volume of fraud mediums. We but the some that just member But mentioned, but a card number. of of to the operational Jon also should the chip project of some as that put contacts, just related is elevated of way like we have activity our some fraud, Yes, big into come of we to, migration. many, course, And new of cards, ready related we wave so largest did

I the both just So to pieces there, service just of want costs to those $X related that's items. two highlight that, excess of million

your question, kind is distribution. the on little this, I of bit back go which of you're think to getting and question Yes. front -- to about second And a it does the

product assistance, with now one card account, an be right? infrastructure or that $XXX if it's we now of of just of put having entirely let's it is of what have alongside right? say alongside my we values place -- it put stack $XXX of Because view kind had could a hoped, can comes that a in out-of-pocket MA in if is, that might anything Well, So into of the the you money $XXX case we the for HOPE be HOPE contributed thing. account the not were that it

Medicare to as So infrastructure support both these kind I and think -- for products. that to there's opportunity the those MA in It's as opportunities. well of in position trying we're conventional

Your next question today will Mark with come Marcon Baird. from

worked Jon, that heard about going welcome we're colleagues with you best absolutely have retirement. you aboard, past. you everybody. Scott, the that from I the great afternoon, with in Good things in miss work wishes to

the or a about that that sounds like into guidance. It And 'XX discuss are could went guidance expectations growth? go there things looking your well. Question bit account changing? the little to like So working Jon, what forward regards really Jim season with to you. the relates are specifically, any you selling with are to

staying been provide there I'm growth to for there there HSA is year? Has trajectory? And fraud next color change -- you client the what been activity? negative any any regards in that Has could that strong? what drives could so potentially with wondering of retention impact terms Any

Yes.

We just we're about real There's going let's -- where that 'XX are shoe with good retention. not start here. a fiscal not a feel nothing there's here. -- we from HSA So into dropping

fiscal some of incremental to that is what CDB I the I through now price work flip 'XX, as side, of churn. the sort increases the CEOs always side this case, healthy the it's system in On said healthy. see there's some that's could this had And we and virtually think say Anytime I of of we through go true. ability think There, churn, have earlier.

sort counterfactual to EBITDA you're mean I I they see sales in And think there's that, of some at And there you -- of of that the of any think there's why don't I much at our the I from point, mean big here, gist trailing year. -- have of cycle, impacted look drop middle gets of don't shoe is to the so. so costs there's front nothing your in one way I incidents it's kind think of that's margin your don't the the I question there? I but nor a seen that then, think have it's in we've looking the margins, -- reasons healthier guess, if of I -- range and is, substantially a don't really we next XX% me. although

on our 'XX, simply into coming totals things some the attrition we And I account the feel lookout -- been that them. where on impact hoping has good But CDB the cases -- -- we see sure there know are some little off. will price. you'll think in raised probably their I about for so had they've that because I'm these either have They've is certainly you think on an think bit team. impact -- I'm some but forecast I I when a So -- sales. had retention be butt looking or an side our have worked you'll

will with Goldman come next And question David today Roman from your Sachs.

of forward about are about of gotten you transition both detail opportunity is stock your you bit should going questions but maybe you I talk a to internal following external forward maybe Jon, think with more seeing have guidance forward to whatever roll to through And just the all there appreciate here. I as here. allocation, an I'm won't sorry, look we work but and kind and could speed do here know I capital we've and as little as you it help more, lot 'XX I the a up next. how

You've that benefits like over obviously have done others paid X the a and WageWorks the acquisitions time to some here company. few

You've sales increases as expenses seen here in marketing. a across development of well and operating big technology year and as

into rates So we resource about out your for here the should 'XX think growth prioritization of fits and how beyond? kind and laid you've how that

that stressed, Jim, ball, first fiscal say just how we small could have assume your activity doesn't does to I'll mean something it, whatever not won't of ball, isn't then because our try. we question and is ball, we reminded I throw either but me which large mean that do that size M&A 'XX

So some and exactly. of of talked And of times sales operate we we've in revenue, been about it's dev envelope, and far that X-ish an this year. [ Yes, to starts. project an the being ], about, in many before it try we time percent and marketing, thus light quarter, bit a Tech ramp a and We're talked envelope bit that we've little operating little we'd resources a to be takes talked than And more like about of XX% spending bit watermark. lower but that. actually hey, is quite percent that last to timing high

remarks, Jon -- authorization going anything it of forward. currently. got We've sort shareholders an from yes, allocation did I the on expect shouldn't you capital we're then materially in and capital right, place. to of And sort So returning in obviously different that alluded to

like, to of acquisition. before, paying the couple sort down borrowed million a of talked we are the We BenefitWallet to plus hey, revolver. hundred dollars We've fund

size? time some fundamentally get better the have finance that better ratio? if but come be deal best of portfolio to continuing able is it some leaves we denominator and over a that off leverage to that gets and sales the and profile then I our aiming marketing these ample we're we're the make becomes and growing that business leverage of way, capital us still a right? the cash we HSA in for come of Let's And next that nice to leverage Should along envelope margin as and were way. continuing dev larger are within of enhancement profile and tech excess each flow. bucket believe of paid the fund with quarter investments cost that a EBITDA ROI And to its the opportunity the -- acquisitions to that can drive revolver

the of So I those story. for of things positive think that's very are sum all the

from today question come will Larsen BTIG. David next Your with

do X at maybe think to bring was HealthEquity I you to what you about and with proud could hoping of of did Scott related sort your Cutler a those talk most accomplishments? bit Stock little can you what what

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that. excited I'm And about so

Securities. your Steven ] today next Valiquette Mizuho come question from with [ And will

are of are here Really, asset joining custodial pricing retirement on amount questions the on as more shortly congrats the just the dollar contract on your congrats Jon, each cash Scott, HSA here my and year. CEO. fiscal confirmation company just on

previous deck, for had Your 'XX. you slide fiscal $X.X billion

the the upside to maturities, in now, that 'XX right FY year about into versus early will or will guidance? Now is a some assuming earlier for still that of out the unless guidance later the And on then the yields to to that of how XX-Q reconcile little little on again, try confirm, that But that up on talked are might a repricings, billion bit. view went 'XX, figure a Or my call year, as I'm shows bit, to about I'm just is it would pulling 'XX. in baked the sort how 'XX vein, -- any of to baked fiscal went the just be fiscal the is forward be the the recognized same. your of happen in down gave today initial 'XX wrong. fiscal you question 'XX. that's in reprice just much potentially into of then of relative set $X.X so fiscal you But really, fiscal been these some but much The to have

that Thanks question. to clarify. Yes. Yes, good for

So yes, the revenue, cash in say, some that you would year. cash prior. happens has placed very HSA year. seasonally, rightfully This, years very a Most got X later 'XX of legacy in WageWorks it as the mature little of was the little in early normal year

X out slug to pull a of types would of middle of would the Those current years, with expected X-plus forward reprice, runway. we'd one these of million maturities So looking of things we to all those the not a it's our X, of potentially kind be in have be modify that to into that be that the type actions like like like But kind matures not are guidance, X do little year not priced that tougher a longer contracts right, plus yes, years out, year. [indiscernible].

the be of of you were are up hedge. it be move better real if going that. X a we're X-month true much or okay, cost And to well, would that's that be to that of trigger the months. like than X we get not can that? -- It's and hedges we the let's deal But red going Right. can't, you sort We're it, to value pull not. it, Well, about on you what see where if month you'd what's that where kind And this buying say, think these again, way. of if going

that baked come but as a dollars term, probably these of percentage would lack some we would some discount. cost assumptions so they little And a in of come of for some earlier, at better a that

looking is stability know on of our would all up not to of I just create ultimately is and a this longer in for this more is, right? goal it really it down line, Because be one what people is or -- So It's this a is Steve, term topic. fee. ton you really

a things So then dollars. It's little if that we're reason few not doing extra that's we the by bringing get to can forward, do a it. bit

Sean question today RBC Markets. next will with from Capital Your come Dodge

Kelliher Scott, on Tom for and welcome, This retiring guess I is on Sean. congratulations [indiscernible]. first, again

and a switch bit do quick the that on we thinking I'll we stand do offering. So business in a levels commuter about gears XXXX relative the pre-pandemic check here Where be how And fiscal to there? beyond? should and in

but call going to And to that's X of of truth, employees base. be some little a at, I'll revenue going but what or about terribly work, It's margin. back of of other. good it's a delta see -- be especially expect. It's stable that's and material, its sort it the service We'll We're happy XX% a of business. it that not this XX% to really see quick good. seem one. good, the to in give bit, not business, pretty maybe it's it, good answer the -- been way a the it. pre-pandemic But grows in federal It's crazy. a not But ] be would kind it's [ terms going of we'll I'd

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

and do I'm stage Well stock say Steve, observation, has going I'm case long intensely that leaving for at one team a wrap in again leaders personally the than team understanding a to these success. my time do medium and are B+ both without in a And before. of here that the to genuinely in humble been the shareholder serving really it's with remarkable again is case, time so And same stronger other comedian over individuals over time, believe this is I that that well. delivered ever that, going company in everyone Okay. and their It's are is role deeper and has very role very, want their this but about leadership. committed the that and to team who a I here, to as not serve combination a being and over

team for really my can value to thank it is that, the we so I for with want what I'll but I So pursuit done, to believe saying, to all possibly by heart that in And of Is end is purple, we? by for pursuit I could what I whole done the in not you just as as team. I team, be going mission in best is it of you've the or our end way say that's thanking us, think shareholders. us? of well --

all, So fun. and thanks have

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

You disconnect. now may