HealthEquity Hits Record Highs as HSA Assets Reach $31 Billion
HealthEquity has made a remarkable start to its fiscal 2026, with key metrics reflecting significant growth across various segments. The company's revenue surged by 15% year-over-year, while adjusted EBITDA jumped by 19%. The number of Health Savings Accounts (HSAs) grew by 9%, contributing to an overall increase in total accounts by 7%. This expansion led to a substantial hike in HSA assets, which now stand at over $31 billion.
The company's Q1 financial results were marked by impressive growth across the board. Total accounts reached 17 million, with net CDB account growth of 260,000 year-over-year. The number of HSA members who invest grew by 16%, driving invested assets up 24% to $14.2 billion. Additionally, HSA cash reached a staggering $17.1 billion.
The average balances of HealthEquity's HSA members increased by 6% this year, while the company opened 150,000 new HSAs from sales in the quarter, despite softer macroeconomic conditions. This growth is attributed to a strong enterprise pipeline build and an increasing number of Small and Medium-sized Businesses (SMB) adopting HSA-qualified health plans.
HealthEquity's focus on driving enrollment and contribution strategy has proven effective, especially during uncertain times when employers seek solutions to manage healthcare costs that are growing faster than wages. The company aims to empower employees to build real health security while helping employers reduce healthcare costs.
The 2024 year-end Devenir report continues to reflect this market growth and HSA expansion, with HealthEquity taking market share as it now serves nearly a quarter of all HSAs in the U.S.A. The company's member-first secure mobile experience has also seen great progress during the first quarter, with investments in mobility and AI driving significant improvements.
HealthEquity is leveraging these advancements to automate claims adjudication using AI technology. This innovation has resulted in serving over 7,000 clients, processing millions of dollars in reimbursements while enhancing member satisfaction scores. The company's AI-powered chat and agent support have accelerated service delivery, reducing call wait time and volume.
With its record highs and continued growth, HealthEquity is poised to further expand its presence in the HSA market, building on the recently updated stacked chip card that will enable it to deliver a digital wallet experience in the future.
