HealthEquity Hits Record Highs in Q4 2026, Positions for Strong Fiscal 2027
HealthEquity, a leading health savings account (HSA) and consumer-directed benefits platform, has announced its fourth-quarter fiscal 2026 earnings results, exceeding expectations with record highs across various key metrics. The company's strong execution, significant margin expansion, and record HSA sales have positioned it for continued growth in the upcoming fiscal year.
In the fourth quarter, HealthEquity delivered a remarkable 23% adjusted EBITDA growth and more than 500 basis points of adjusted EBITDA margin expansion while adding a record 550,000 HSAs. This resulted in over 1 million new HSAs from sales for the year, bringing total accounts to 17.8 million and HSA assets to more than $36 billion. Revenue grew 7% year-over-year, with net income increasing 89% to $49.7 million.
"This is a testament to our team's dedication and expertise," said Scott Cutler, President and CEO of HealthEquity. "We're proud of the progress we've made in building this platform for the long-term, and we're confident that it will continue to drive strong earnings power in fiscal 2027."
At the heart of HealthEquity's strategy is a flywheel model that helps members save, spend, and invest for healthcare. As engagement deepens across each dimension, the model becomes more valuable and efficient. Greater engagement drives spending, balances, and long-term earnings power.
The company advanced each component of its flywheel in fiscal 2026. On save, total HSA assets increased 14% to over $36 billion, reinforcing the long-term value embedded in the platform. Importantly, asset growth continues to outpace account growth, reflecting higher balances per member and deeper engagement.
On spend, HealthEquity expanded the way members can use their HSAs by launching its Marketplace. The platform also supports flexible spending accounts and commuter benefits, giving employers a single destination to administer the full spectrum of consumer-directed benefits.
Investors grew 10% year-over-year, and invested assets now represent more than 50% of total HSA assets. Notably, about 95% of HSA members still do not reach contribution limits, and over 90% have not yet invested, creating significant opportunity for engagement-driven growth.
Member engagement increasingly happens through HealthEquity's mobile platform, with more than 3.6 million downloads of its app. This shift towards digital-first healthcare is expected to accelerate as younger consumers enter the system expecting to manage healthcare and finances digitally.
"The compounding value of our member cohorts becomes clear over time," said Scott Cutler. "We believe that this flywheel model will continue to drive strong earnings power in fiscal 2027, positioning us for continued growth and success."
