HealthEquity Q1 Net Income $69.4M, Revenue Tops Forecasts; AI Cuts Costs 90%
HQY•HealthEquity delivered Q1 fiscal 2027 net income of $69.4 million, adjusted EPS of $1.24 beats estimates, and revenue of $354.6 million tops forecasts. AI-driven tools trimmed manual service emails by 25% and fraud costs by 90%, while HSA assets grew 19% and EBITDA margin reached 46%.
1. Q1 2027 Financial Performance
HealthEquity reported net income of $69.4 million and adjusted EPS of $1.24, surpassing the consensus $1.11 estimate. Revenue reached $354.6 million versus the $354.4 million forecast, and full-year guidance was maintained at $4.66–$4.73 EPS and $1.41–$1.42 billion in revenue.
2. AI-Driven Efficiency Gains
The company’s early-stage AI adoption has driven significant cost savings, reducing manual handling of member and client service emails by 25% and cutting fraud-related costs by nearly 90% year over year. Management highlighted continued investment in AI tools to unlock further operational efficiencies.
3. HSA Assets and Account Growth
Total HSA assets increased by 19% year over year, while new HSAs from sales rose 15%, outpacing industry averages. The firm noted that only about 10% of HSA holders currently leverage full tax benefits through investing, presenting an opportunity to boost engagement and contributions.
4. Profitability and Margin Expansion
HealthEquity’s Adjusted EBITDA margin expanded to 46% in Q1, reflecting both scale benefits and the impact of technology-driven service cost reductions. This margin expansion underscores the company’s ability to convert revenue growth into higher profitability.
