Here are 1-3 brief analogies for HealthEquity (HQY):

• A Fidelity or Vanguard for Health Savings Accounts (HSAs).
• An ADP or Paychex for administering employee healthcare spending accounts.
• A Blue Cross Blue Shield for managing your healthcare money, rather than your health insurance.

• Health Savings Accounts (HSAs): Administration of tax-advantaged savings accounts for qualified medical expenses, integrated with high-deductible health plans.
• Flexible Spending Accounts (FSAs): Management of employer-sponsored, pre-tax accounts for healthcare and dependent care expenses.
• Health Reimbursement Arrangements (HRAs): Administration of employer-funded health benefit plans used to reimburse employees for medical costs.
• Commuter Benefits: Provision of pre-tax accounts for qualified transit and parking expenses, helping employees save on commuting costs.
• COBRA Administration: Comprehensive services for employers to manage the regulatory and administrative requirements of COBRA benefits.
• Well-Being & Lifestyle Accounts: Administration of customizable employer-funded accounts supporting employee wellness, lifestyle, and supplemental benefits.

HealthEquity (symbol: HQY) primarily sells its services to other companies (B2B) rather than directly to individuals.

The company provides Health Savings Accounts (HSAs) and other consumer-directed benefits (such as FSAs, HRAs, COBRA, and commuter benefits) through partnerships with various organizations.

Due to the nature of their business and confidentiality agreements, HealthEquity does not publicly disclose the names of specific major customer companies. However, their customer base primarily consists of the following categories of organizations:

• Employers: HealthEquity partners with a wide range of employers, from small businesses to large corporations, to offer health savings and spending accounts to their employees as part of their benefits packages.
• Health Plans (Insurance Carriers): The company collaborates with numerous health insurance carriers to integrate its solutions with their health plans, providing a comprehensive offering to the health plan's members.

Scott Cutler, President and Chief Executive Officer

Scott Cutler will become President and CEO of HealthEquity effective January 6, 2025. He previously served as Chief Executive Officer of StockX LLC since June 2019. Before StockX, Mr. Cutler was the Senior Vice President, Americas at eBay Inc. from August 2017 to March 2019, and President of StubHub, Inc. from April 2015 to August 2017. He also held the role of Executive Vice President at NYSE Euronext, Inc. from April 2006 to March 2015. Prior to joining NYSE Euronext, Mr. Cutler worked as a technology investment banker and corporate securities lawyer.

James Lucania, Executive Vice President and Chief Financial Officer

James Lucania serves as the Executive Vice President and Chief Financial Officer of HealthEquity, a position he assumed after the company's fiscal second-quarter 10-Q filing in September 2023. Before joining HealthEquity, Mr. Lucania was the Chief Financial Officer of Ascensus Holdings since 2016. His previous experience includes serving as Chief Financial Officer at CheckPoint Systems. Mr. Lucania also held various positions at Miller Buckfire & Co. and Levine Leichtman Capital Partners, a private equity firm.

Stephen D. Neeleman, MD, Founder and Vice Chairman

Dr. Stephen Neeleman is the Founder and Vice Chairman of HealthEquity. He founded HealthEquity in 2002, with a vision to reintroduce consumerism to healthcare and help people obtain quality health insurance. He served as President and Chief Executive Officer of HealthEquity from November 2002 through January 2014, and has been Vice Chairman since February 2014. In addition to his leadership at HealthEquity, Dr. Neeleman is a board-certified general and trauma surgeon. Before his medical training, he worked as the General Airport Manager for Morris Air, which was later acquired by Southwest Airlines.

Jon Kessler, Former President and Chief Executive Officer

Jon Kessler served as President and Chief Executive Officer of HealthEquity, a role he is retiring from effective January 6, 2025, after more than 15 years with the company. He joined HealthEquity in 2009. Mr. Kessler founded WageWorks, a provider of tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits. He served as Chairman and CEO of WageWorks from 2000 to 2007. WageWorks was acquired by HealthEquity in 2019. Previously, Mr. Kessler was a senior economist in Washington, DC, specializing in employee benefits and environmental taxation during the Clinton and Bush (Sr.) administrations, and a benefits taxation specialist at Arthur Andersen, LLP. He also served as a Director of Redwood Equity Partners, Inc.

Del Ladd, Executive Vice President, General Counsel and Secretary

Del Ladd serves as the Executive Vice President, General Counsel and Secretary of HealthEquity, Inc., leading the company's Legal Department. He joined HealthEquity in 2016. Prior to his tenure at HealthEquity, Mr. Ladd worked at Willkie Farr & Gallagher LLP in New York, where he gained significant experience in corporate governance, securities, and mergers and acquisitions.

The key risks to HealthEquity's business are primarily centered around its revenue streams and the regulatory environment in which it operates.

1. Interest Rate Sensitivity: A substantial portion of HealthEquity's revenue, specifically custodial revenue, is highly dependent on prevailing interest rates. A decline in interest rates could significantly slow the growth of or even reduce this revenue stream, as the company earns interest on Health Savings Account (HSA) cash assets deposited with its partners.
2. Regulatory and Healthcare Policy Changes: HealthEquity's business model is built around tax-advantaged HSAs and other consumer-directed benefits. Changes in healthcare policy, legislation, or regulations, such as proposals for "Medicare for All" or shifts in HSA eligibility and contribution limits, could disrupt the market for these products and adversely affect the company's operations and profitability.
3. Cybersecurity and Data Security Risks: As a major custodian of sensitive financial and protected health information, HealthEquity faces ongoing risks from cyber threats and data breaches. Such incidents could lead to significant reputational damage, a loss of customer trust, and substantial financial liabilities due to remediation expenses, legal costs, and regulatory fines.

Increased competition from large, integrated financial services firms, particularly Fidelity Investments, which offers a highly competitive Health Savings Account (HSA) product with low fees and robust investment options. Fidelity's strategy targets the investment component of HSAs, directly challenging HealthEquity's asset-based fee model and potentially drawing away high-balance, investment-savvy account holders. This is analogous to how a strong, established player with a different business model can leverage its existing infrastructure and expertise to disrupt specialized market incumbents.

HealthEquity (HQY) operates in the U.S. market, primarily focusing on Health Savings Accounts (HSAs) and other consumer-directed benefits (CDBs).

Here are the addressable market sizes for their main products and services:

• Health Savings Accounts (HSAs): The U.S. HSA market was estimated at approximately $146.6 billion in assets across 39.3 million accounts in 2024. This market is projected to grow to $199.1 billion in assets, held in over 45 million accounts, by the end of 2027. HealthEquity itself estimates the total number of HSAs could reach 50 million with $300 billion in assets by 2030.
• Flexible Spending Accounts (FSAs): In the U.S., an estimated 32.6 million FSAs were in force in 2022. The market for FSA solutions is anticipated to experience growth from 2024 to 2032. In 2020, approximately $30.7 billion was saved in FSAs in the U.S.
• Health Reimbursement Arrangements (HRAs): For the U.S. market, it is estimated that between 500,000 and one million lives are covered by Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) or Individual Coverage Health Reimbursement Arrangements (ICHRAs) in 2025. ICHRA adoption among large employers increased by 34% from 2024 to 2025 in the U.S.
• COBRA Administration: null
• Retirement Savings & Custodial Services: HealthEquity's offerings, particularly HSAs, contribute to retirement savings. The total U.S. retirement assets amounted to $45.8 trillion as of June 30, 2025. The U.S. custody, asset, and securities services market, which includes custodial services, was valued at $42.5 billion in 2024 and is projected to reach $45.7 billion in 2025.

HealthEquity (HQY) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Growth in HSA Members and Total Accounts: The company continues to expand its base of Health Savings Account (HSA) members and total accounts. In the third quarter of fiscal year 2025, HealthEquity reported 9.5 million HSAs and 16.5 million total accounts, and in the second quarter of fiscal year 2026, these numbers grew to 10.0 million HSAs and 17.1 million total accounts, respectively. This growth is fueled by new enterprise client wins and an expanded network partner footprint.
2. Increase in HSA Assets and Custodial Yields: Growth in HSA assets under management directly boosts custodial revenue. HealthEquity benefits from higher interest rates, which enhance custodial yields. Management anticipates an average yield on HSA cash of approximately 3.5% for fiscal year 2026.
3. Legislative Expansion of HSAs: Recent legislative changes are expected to significantly broaden the HSA market. These changes include allowing direct primary care arrangements and the use of low-cost telehealth services before deductibles are met. Additionally, starting January 1, 2026, all individual bronze and catastrophic plans will be permitted to be coupled with HSAs, potentially expanding the market to an additional 3-4 million American families. HealthEquity plans further investments in sales and marketing to capitalize on this "bronze-plan HSA expansion."
4. AI-Driven Services and Technology Modernization: HealthEquity is investing in artificial intelligence (AI)-driven automation and a secure mobile experience to improve member satisfaction, reduce service costs, and decrease fraud rates. The company has successfully migrated its V5 platform to a fully cloud-based system, leading to 92% faster response times, increased platform stability, and an 80% reduction in delays. These technological advancements are aimed at enhancing efficiency and attracting more users.
5. Strategic Acquisitions: HealthEquity's growth strategy includes pursuing further portfolio acquisitions to strengthen its proprietary health accounts platform and ecosystem. An example of this strategy is the anticipated acquisition of the BenefitWallet HSA portfolio, which was expected to be completed in the second quarter of fiscal year 2025.

Share Repurchases

• HealthEquity announced a $300 million stock repurchase program in September 2024.
• The company repurchased 1.4 million shares for $122.2 million during fiscal year 2025 (ended January 31, 2025).
• As of October 31, 2024, $240.0 million remained authorized for common stock repurchases under the company's program.

Share Issuance

• In July 2020, HealthEquity announced a public offering of 4,600,000 shares of common stock at $56.00 per share, with expected gross proceeds of $257,600,000.
• The number of outstanding shares increased from 76.00 million in 2020 to 86.66 million in 2024, reflecting an average annual increase of 3.03% over the past five years.

Outbound Investments

• HealthEquity completed the acquisition of Conduent's BenefitWallet HSA portfolio in fiscal year 2025.
• This acquisition involved the transfer of approximately 665,000 customer accounts and $2.7 billion in HSA assets, with a total purchase price of approximately $425 million.
• The first tranche of the BenefitWallet transfer occurred on March 7, 2024, involving 266,000 HSAs and $1.1 billion of HSA assets, for which HealthEquity paid $163.9 million.

Capital Expenditures

• Annual capital expenditures were $46.074 million in 2024, $119.127 million in 2023, and $137.081 million in 2022.
• Capital investments are focused on the company's proprietary platform and its connectivity within the health benefits ecosystem, leveraging cloud, data science, and API technology.
• Ongoing investments are also directed towards AI-driven automation and enhancing the secure mobile experience to improve member satisfaction and reduce service and fraud costs.