HealthEquity

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

HealthEquity is ending the employment of CTO Eli Rosner effective April 17; he will receive severance payments and additional benefits conditional on signing a release and complying with noncompete provisions. Executive VP and chief product and strategy officer Sunil Rajasekar will assume leadership of the technology organization on that date. Rajasekar joined HealthEquity in January 2026 and brings leadership experience from Billtrust, MINDBODY, eBay, Intuit, Cisco and Oracle. » More on de.investing.com