HealthEquity

HealthEquity reported Q2 fiscal 2027 revenue growth of 8% year over year and adjusted EBITDA up 11% to $167 million, a record 48% margin. New HSA sales rose 24% to 202,000, total HSA assets reached $37.9 billion and invested assets climbed 28% to $20.6 billion as member engagement and app usage surged. Management raised full-year revenue guidance to $1.411–1.421 billion and adjusted EBITDA to $628–636 million, while automation cut service costs and buybacks returned $108.1 million to shareholders. Management flagged headline price erosion, a GAAP/non-GAAP earnings gap and $2.3 billion of HSA cash subject to repricing in fiscal 2027 amid $931.1 million of net long-term debt. » More on finance.yahoo.com

Moody’s has upgraded HealthEquity’s Corporate Family Rating from Ba3 to Ba2 and its Probability of Default rating from Ba3-PD to Ba2-PD; the rating for unsecured senior notes (USD 600m) was raised from B1 to Ba3 and the outlook changed from “positive” to “stable.” Moody’s cites continued positive operational performance, integration of the BenefitWallet acquisition, free cash flow of over USD 400m in the twelve months to 30 April 2026, and faster deleveraging (leverage of 2.1x debt/EBITDA). Moody’s praises the high interest coverage (around 9.0x), EBITDA margins in the low-to-mid 30s percentage range, and a very strong liquidity profile (about USD 265m cash plus expected revolver availability of ~USD 600m). Constraining factors include the relatively smaller revenue size, labor market and interest-rate risks, and the possibility of more shareholder-friendly capital policy after an increase in the share buyback program. » More on de.investing.com

HealthEquity reports Q1 of fiscal 2027 earnings per share of $1.24 versus $1.11 expected and revenue of $354.6 million (+7% y/y). Gross profit margin rose to 72% and adjusted EBITDA climbed 17% to $164.5 million. Management cites efficiency gains from AI and growth in the marketplace and HSAs and signals a positive outlook; the stock rose roughly 4.56% intraday following the release. » More on de.investing.com