Overview

* HealthEquity Inc ( HQY ) Q2 revenue grows 9%, beating analyst expectations, per LSEG data

* Net income for Q2 misses analyst estimates, per LSEG data

* Adjusted EBITDA rises 18%, exceeding expectations, per LSEG data

Outlook

* Company expects fiscal year revenue of $1.290 bln to $1.310 bln

* HealthEquity ( HQY ) projects net income between $185 mln and $200 mln

* Company forecasts non-GAAP net income of $329 mln to $344 mln

* HealthEquity ( HQY ) anticipates adjusted EBITDA of $540 mln to $560 mln

Result Drivers

* HSA GROWTH - HealthEquity ( HQY ) reports a 6% increase in HSAs, reaching 10.0 million, contributing to revenue growth

* LEGISLATIVE EXPANSION - Company anticipates benefits from recent legislative expansion of HSAs

* CUSTODIAL REVENUE - Custodial revenue increased, driven by higher total HSA assets, which grew 12% year over year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $325.84 $320.80

Revenue mln mln (13

Analysts

)

Q2 Net Miss $59.85 $81.60

Income mln mln (8

Analysts

)

Q2 Beat $151.10 $135.80

Adjusted mln mln (12

EBITDA Analysts

)

Q2 Miss $78.05 $102.40

Pretax mln mln (5

Profit Analysts

)

Q2 Gross $232.60

Profit mln

Q2 $142.98

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Healthequity Inc ( HQY ) is $125.00, about 28.5% above its August 29 closing price of $89.33

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)