06:37 AM EDT, 03/19/2025 (MT Newswires) -- HealthEquity ( HQY ) shares fell early Wednesday as the health-savings account firm's fiscal fourth-quarter earnings fell short of market estimates while the company raised the top end of its full-year revenue outlook.

Revenue is now expected to come in at $1.28 billion to $1.31 billion for the fiscal year ending Jan. 31, 2026, the company said late Tuesday, reflecting a higher top end versus the previous outlook of about $1.3 billion. The current consensus on FactSet is for sales of $1.31 billion. In the prior fiscal year, revenue climbed 20% to $1.2 billion.

The firm anticipates adjusted earnings to be in a range of $3.57 to $3.74 per share, while the Street is looking for $3.70. In fiscal 2025, adjusted EPS jumped 39% to $3.12.

"Our fiscal 2026 guidance reflects the expected carryforward of our strong sales trajectory into next year, technology and security investments to reduce fraud and drive operational efficiencies and continued tailwinds from current forward interest rate curves," Chief Financial Officer James Lucania said during an earnings call, according to a FactSet transcript.

HealthEquity ( HQY ) forecasts member service costs to normalize in the ongoing quarter, according to Lucania. It expects "heavier than normal costs" in the first two quarters of the fiscal year, followed by "better margins" in the subsequent quarters from investments in its members' assets and data, the CFO said on the call.

For the three months through January, overall revenue rose to $311.8 million from $262.4 million the year before, surpassing the average analyst estimate of $305.8 million. Adjusted EPS inclined to $0.69 from $0.63 last year, but missed the Street's view for $0.72. Shares of the company dropped 14% in the most recent premarket activity.

Service revenue gained 5% to $124.2 million while custodial revenue jumped 37% to $144.1 million. Revenue in the interchange segment grew 13% to $43.5 million.

Total operating expenses rose to $146.9 million from $124.4 million in the prior-year quarter. HealthEquity ( HQY ) ended the fiscal year with 9.9 million health savings account members, reflecting an annual increase of 14%. Total health savings account assets climbed 27% to $32.1 billion.