Latest news with #HealthSavings
Yahoo
6 days ago
- Business
- Yahoo
HealthEquity Stock Gains as Q1 Earnings Beat Estimates, Revenues Up Y/Y
HealthEquity, Inc. HQY reported adjusted earnings per share (EPS) of 97 cents for first-quarter fiscal 2026, surpassing the Zacks Consensus Estimate by 19.8%. The bottom line improved 21.3% on a year-over-year basis. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.) GAAP EPS in the fiscal first quarter was 61 cents, up 84.8% compared with the year-ago quarter's EPS. Shares of HQY were up 5.8% in after-market trading following the earnings call. In the fiscal first quarter, the company generated revenues of $330.8 million, which beat the Zacks Consensus Estimate by 3%. The top line improved 15% from the prior-year quarter. As of April 30, 2025, the total number of Health Savings Accounts (HSAs) for which HealthEquity served as a non-bank custodian was 9.9 million, up 9% year over year. HealthEquity reported 770,000 HSAs with investments as of April 30, 2025, up 16% year over year. Total accounts, as of April 30, 2025, were 17.1 million, up 6.9% year over year. This uptick included total HSAs and 7.2 million Consumer Direct Benefits (CDBs), up 4.3% year over year. Total HSA assets were $31.3 billion at the end of April 30, 2025, up 15% year over year. This included $17.1 billion of HSA cash (up 7.5% year over year) and $14.2 billion of HSA investments (up 24.6% year over year). This figure compares to our fiscal first-quarter HSA cash and HSA investments projection of $18.3 billion and $13.5 billion, respectively. We had projected total HSA assets of $31.9 billion for the fiscal first quarter. Client-held funds, which are deposits held on behalf of HealthEquity's clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $0.9 billion as of April 30, 2025. HealthEquity derives revenues from three sources: Service revenues, Custodial revenues, and Interchange revenues. Service revenues totaled $119.8 million in the quarter, up 1.3% year over year. This reflected a higher number of HSAs and invested HSA Assets. This figure compares favorably with our first-quarter projection of $121.9 million. Custodial revenues totaled $156.5 million, up 28.6% from the year-ago period. Our projection for the fiscal first-quarter Custodial revenues was $140.4 million. Interchange revenues totaled $54.6 million, up 14.4% year over year. This figure compares favorably with our fiscal first-quarter projection of $52 million. HealthEquity, Inc. price-consensus-eps-surprise-chart | HealthEquity, Inc. Quote In the quarter under review, HealthEquity's gross profit rose 19.9% to $224.3 million. The gross margin expanded 270 basis points (bps) to 67.8%. We had projected the gross margin to be 63.2% in the fiscal first quarter. Sales and marketing expenses rose 10.6% to $25.9 million year over year, whereas technology and development expenses climbed 9.5% year over year to $61.4 million. General and administrative expenses decreased 33.2% year over year to $25.5 million. Total operating expenses of $141.2 million decreased 2.9% year over year. Operating profit totaled $83.1 million, improving significantly by 99.6% from the prior-year quarter. The operating margin in the quarter expanded by a huge 1060 bps to 25.1% compared with the prior-year quarter. The company exited the first quarter of fiscal 2026 with cash and cash equivalents of $287.9 million compared with $295.9 million at the end of the fourth quarter of fiscal 2025. Total debt (net of issuance costs) at the end of first-quarter fiscal 2026 was $1.06 billion, flat compared with that at the end of fourth-quarter fiscal 2025. Net cash provided by operating activities at the end of first-quarter fiscal 2026 totaled $64.7 million compared with $65.4 million a year ago. HealthEquity has reiterated its revenue and updated its EPS projections for fiscal 2026. For fiscal 2026, revenues are projected to be between $1.285 billion and $1.305 billion. The Zacks Consensus Estimate is currently pegged at $1.30 billion. Adjusted EPS is now expected to be in the range of $3.61-$3.78 as compared with the previous guidance of $3.57-$3.74. The Zacks Consensus Estimate currently stands at $3.60. HealthEquity exited first-quarter fiscal 2026 with better-than-expected results. The company witnessed solid top-line and bottom-line performances in the reported quarter. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. Significant improvement in the operating and gross margins also bodes well. The company added 150,000 new HSAs during the quarter and maintained strong enterprise pipeline momentum despite macroeconomic pressures. Per management, fraud-related costs dropped significantly from $11 million in the fourth quarter of fiscal 2025 to $3 million in the reported quarter, thanks to AI-powered tools and enhanced mobile security, boosting margins and member trust. Management raised full-year guidance and reiterated confidence in further margin normalization, growth from legislative tailwinds, and strong client retention, positioning HQY for sustained growth and operational strength. However, fraud-related costs, though significantly reduced, still stood at $3 million, which management acknowledged as still elevated. While this reflects major improvement from the prior quarter's $11 million, it highlights that fraud remains a lingering operational risk. Management is targeting to bring fraud costs down to 1 basis point of total HSA assets. Currently, HealthEquity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO. CVS Health, carrying a Zacks Rank of 2, reported first-quarter 2025 adjusted earnings per share (EPS) of $2.25, beating the Zacks Consensus Estimate by 31.6%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. CVS Health has a long-term estimated growth rate of 11.4%. Its earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 18.1%. Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank of 1. Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%. AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite's 10.5% growth. AngioDynamics' earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 70.9%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
22-05-2025
- Business
- CNBC
This fitness stock is a buy as sales momentum is set to continue, Stifel says
Growth in Planet Fitness is nowhere near done, according to Stifel. Analyst Chris O'Cull upgraded shares of the gym chain to buy from hold and raised his price target to $120 from $82. That new objective suggest shares of Planet Fitness could jump roughly 15% from their latest close. The stock has rallied 10% this month after the company reaffirmed its full-year earnings per share, revenue and system-wide same club sales growth. "Recent results suggest gross joins have stabilized, and we believe there are several potential catalysts to keep comparable sales in the mid-to-high single-digit range over the next couple of years," O'Cull said. "The company has improved its marketing efforts, but we believe there is considerable runway for further improvement," O'Cull continued, referring to advertising campaigns he has found encouraging given their messaging that emphasizes Planet Fitness' value as an affordable and nonjudgmental gym. PLNT 1Y mountain Planet Fitness stock performance. According to O'Cull, Planet Fitness locations could see steady improvement in net new unit growth over the next few years given strong top-line performance and ongoing efforts to reduce investment costs. Fueling its strong growth potential is the company's ability to the pricing of its Black Card monthly membership plan from $24.99 to $29.99 later this year, the analyst noted. Planet Fitness also has "promising avenues" to improve the overall value proposition of its Black Card Spa, by expanding potential upgrades to locations' spa areas with the availability of spray tanning, red light therapy and cryotherapy services. "We believe tests to upgrade the Black Card Spa are yielding positive results and could provide new reasons to join. Relative to other consumer-facing segments, Planet's low-cost membership model should also prove relatively resilient in the event of a downturn in consumer spending," O'Cull said. O'Cull also pointed out that efforts to include gym membership costs under individuals' Health Savings Accounts could drive memberships for the fitness industry, potentially benefitting Planet Fitness.
Yahoo
20-05-2025
- Business
- Yahoo
Businessolver Introduces Stand-Alone Consumer Accounts Administration Platform to Bring more Financial Stability and Benefits Engagement to Market
DENVER, COLORADO, May 20, 2025 (GLOBE NEWSWIRE) -- Businessolver®, the market-leader in SaaS-based HR and benefits technology, announced at its annual Vision conference in May that it is launching MyChoice Accounts, its consumer-directed healthcare account platform, as a standalone solution, giving employers nationwide access to a modern, flexible technology for managing health and benefit accounts. Previously available exclusively to organizations using Businessolver's benefits administration solution, MyChoice Accounts offers an intuitive, mobile-friendly approach to manage key accounts such as HSAs, FSAs and HRAs alongside industry leading service and support. 'When we built our MyChoice Accounts solution five years ago leveraging industry experts with more than 225+ years of experience, it was to create an AI-driven, flexible solution that would grow with employers as consumer expectations changed,' said Rae Shanahan, Chief Strategy Officer. 'Finding a recently developed accounts technology in the space is hard to come by, meaning most employers are stuck with legacy options that do not have the flexibility to truly innovate. We are excited to bring a new technology and administration option to all employers, regardless of where they administer their benefits today.' Additionally, Businessolver is also excited to launch new features to its Health Savings Account experience that puts more savings power in employees' hands. Set to launch this summer, individuals with a MyChoice Accounts HSA will have a new option to set aside funds within a Spend, Save, Invest model. Alongside a modern lineup of exchange-traded funds (ETFs), MyChoice Accounts will introduce a "Save" category, allowing members to grow their savings through a money market account. This feature encourages members to set shorter-term financial goals with higher interest savings options, beyond the traditional investment options for retirement This innovation is in immediate response to the data from Businessolver's platform detailing that 48% of employees say they would feel panicked about an unexpected medical expense. Generationally, Gen Z and Millennials, who collectively make up over half of today's workforce, are the most panicked at 62% and 50% respectively. The new shorter term saving options support a differentiated financial savings strategy. 'Financial wellness is top of mind as we continue to innovate in the accounts spaces,' said Kent Rausch, Businessolver's Head of Product and the original designer of the MyChoice Accounts platform. 'Today, we are offering all of the usual suspects, like the tax-advantaged accounts, lifestyle offerings, and a truly innovative HSA; but tomorrow—the sky's the limit. Our platform can really handle financial wellness products that will support informed financial decisions for a healthier workplace.' MyChoice Accounts was originally launched in 2019 as an integrated product on the Benefitsolver® benefits administration platform and offers configurable and personalized consumer account administration options including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), and Health Reimbursement Arrangements (HRAs). Now, with nearly one million active accounts, and significant product growth, MyChoice Accounts is poised to serve clients who want streamlined and simplified accounts management, with or without benefits administration services. Supporting the MyChoice Accounts platform is Sofia™, Businessolver's virtual AI-powered benefits assistant that enhances member engagement by providing chat assistance, account balance retrieval, claims status updates, and more. Most recently, Sofia successfully resolved more than 94% of consumer account inquiries, while employees who interacted with our Service Center call representatives reported a Net Promoter Score (NPS) of 67. About Businessolver Since 1998, Businessolver has delivered market-changing benefits technology the empowers empathetic service supported by an intrinsic responsiveness to client needs. The company creates client programs that maximize benefits program investment, minimize risk exposure, and engage employees with easy-to-use solutions and communication tools to assist them in making wise and cost-efficient benefits selections. Founded by HR professionals, Businessolver's unwavering service-oriented culture and secure SaaS platform provide measurable success in its mission to provide complete client delight. CONTACT: Nicole Selinger Businessolver 314-805-2165 Nicole@
Associated Press
20-05-2025
- Business
- Associated Press
Businessolver Introduces Stand-Alone Consumer Accounts Administration Platform to Bring more Financial Stability and Benefits Engagement to Market
DENVER, COLORADO, May 20, 2025 (GLOBE NEWSWIRE) -- Businessolver ®, the market-leader in SaaS-based HR and benefits technology, announced at its annual Vision conference in May that it is launching MyChoice Accounts, its consumer-directed healthcare account platform, as a standalone solution, giving employers nationwide access to a modern, flexible technology for managing health and benefit accounts. Previously available exclusively to organizations using Businessolver's benefits administration solution, MyChoice Accounts offers an intuitive, mobile-friendly approach to manage key accounts such as HSAs, FSAs and HRAs alongside industry leading service and support. 'When we built our MyChoice Accounts solution five years ago leveraging industry experts with more than 225+ years of experience, it was to create an AI-driven, flexible solution that would grow with employers as consumer expectations changed,' said Rae Shanahan, Chief Strategy Officer. 'Finding a recently developed accounts technology in the space is hard to come by, meaning most employers are stuck with legacy options that do not have the flexibility to truly innovate. We are excited to bring a new technology and administration option to all employers, regardless of where they administer their benefits today.' Additionally, Businessolver is also excited to launch new features to its Health Savings Account experience that puts more savings power in employees' hands. Set to launch this summer, individuals with a MyChoice Accounts HSA will have a new option to set aside funds within a Spend, Save, Invest model. Alongside a modern lineup of exchange-traded funds (ETFs), MyChoice Accounts will introduce a 'Save' category, allowing members to grow their savings through a money market account. This feature encourages members to set shorter-term financial goals with higher interest savings options, beyond the traditional investment options for retirement This innovation is in immediate response to the data from Businessolver's platform detailing that 48% of employees say they would feel panicked about an unexpected medical expense. Generationally, Gen Z and Millennials, who collectively make up over half of today's workforce, are the most panicked at 62% and 50% respectively. The new shorter term saving options support a differentiated financial savings strategy. 'Financial wellness is top of mind as we continue to innovate in the accounts spaces,' said Kent Rausch, Businessolver's Head of Product and the original designer of the MyChoice Accounts platform. 'Today, we are offering all of the usual suspects, like the tax-advantaged accounts, lifestyle offerings, and a truly innovative HSA; but tomorrow—the sky's the limit. Our platform can really handle financial wellness products that will support informed financial decisions for a healthier workplace.' MyChoice Accounts was originally launched in 2019 as an integrated product on the Benefitsolver® benefits administration platform and offers configurable and personalized consumer account administration options including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), and Health Reimbursement Arrangements (HRAs). Now, with nearly one million active accounts, and significant product growth, MyChoice Accounts is poised to serve clients who want streamlined and simplified accounts management, with or without benefits administration services. Supporting the MyChoice Accounts platform is Sofia™, Businessolver's virtual AI-powered benefits assistant that enhances member engagement by providing chat assistance, account balance retrieval, claims status updates, and more. Most recently, Sofia successfully resolved more than 94% of consumer account inquiries, while employees who interacted with our Service Center call representatives reported a Net Promoter Score (NPS) of 67. About Businessolver Since 1998, Businessolver has delivered market-changing benefits technology the empowers empathetic service supported by an intrinsic responsiveness to client needs. The company creates client programs that maximize benefits program investment, minimize risk exposure, and engage employees with easy-to-use solutions and communication tools to assist them in making wise and cost-efficient benefits selections. Founded by HR professionals, Businessolver's unwavering service-oriented culture and secure SaaS platform provide measurable success in its mission to provide complete client delight. Nicole Selinger Businessolver 314-805-2165 [email protected]
Yahoo
19-03-2025
- Business
- Yahoo
HealthEquity Shares Drop 19% as Higher Service Costs Weigh on Earnings
HealthEquity (HQY, Financials) shares fell 19% to $82.29 as of 11:15 a.m. ET Wednesday after the company reported fourth-quarter earnings that showed strong revenue growth but a lower-than-expected profit due to higher service costs. Warning! GuruFocus has detected 3 Warning Signs with HQY. With a sales of $311.82 millionan 18.8% rise from the previous yearthe firm exceeded experts' projections by $5.99 million. But profits per share came in at $0.69, below projections by $0.03. Strong year over-year increase in Health Savings Accounts, invested assets, and custodial income drove the 17 million total accounts at end of the quarter, HealthEquity had 9.9 million HSAs totaling $32 billion in assets. 23% more members of HSAs made investments, which helped to boost invested assetswhich came to $14.7 billionby 44%.Gross profit margin dropped from 62% a year ago to 61% notwithstanding income increase. The corporation blamed the decline on extra $17 million in service costs, mostly for system consolidation of card processing and handling of fraudulent activity in member the results conference, Chief Financial Officer James Lucania said HealthEquity keeps improving fraud prevention strategies and anticipates service expenses to remain high in the first half of fiscal 2026 before leveling later in the revenue between $1.28 billion and $1.305 billion, HealthEquity offered direction for fiscal 2026. Projected GAAP net income falls between $164 million and $179 million, or $1.85 to $2.01 per share. Forecasts of adjusted EBITDA fall between $525 million and $545 by fresh deposits and a change toward enhanced rate placements, the business also anticipates the average return on HSA cash to rise to 3.45% over the year. With an aim to achieve 60% by the end of fiscal 2027, 49% of HSA cash placements now are in improved firm unveiled its Assist suite of digital solutions meant to maximize advantages for businesses and workers. Along with Navigator, a tool created with TALON to assist educated healthcare choices, the portfolio has Analyzer, which offers statistical insights on benefit keeps making investments in security and fraud avoidance while giving cost savings via service automation first priority. To simplify processes and lower service costs, the corporation intends to deploy digital technologies and artificial intelligence more its $300 million buyback authorization, HealthEquity has $178 million left after purchasing $122 million worth of shares in fiscal 2025. The corporation also paid back loans totaling $50 million, leaving around $1.1 billion in outstanding possible acquisitions, Cutler said the firm has a high bar for M&A and emphasizes portfolio purchases in line with its main business instead of broad business is keeping an eye on legislative actions like the bipartisan HOPE Act and other regulatory changes pertaining to HSA growth. Cutler expressed hope for possible legislative reforms meant to increase the acceptance of its HSA platform, enhancing digital engagement, and tackling fraud-related issues are HealthEquity's top priorities. Over fiscal 2026, the business anticipates further revenue growth, profitability improvements, and more technological and security enhancing investments. This article first appeared on GuruFocus.
