Key Takeaways

Shares of HealthEquity ( HQY ) tumbled Tuesday after the health savings account (HSA) custodian's full-year outlook missed forecasts.

The company said it expects fiscal 2025 earnings per share (EPS) of $3.08 to $3.16, and revenue of $1.185 billion to $1.195 billion. Analysts surveyed by Visible Alpha were looking for EPS of $3.72 and revenue of $1.32 billion.

The weaker-than-expected outlook offset HealthEquity’s strong third-quarter results, with EPS of 78 cents and revenue up 21% year-over-year to $300.4 million. Both figures exceeded estimates.

Service revenue came in at $119.2 million, custodial revenue was $141 million, and interchange revenue totaled $40.3 million. All three grew from the year before.

The number of HSAs was up 15% to 9.5 million, with total HSA assets jumping 33% to $30 billion. Total accounts, which include HSAs and other consumer-directed benefits (CDB), rose 8% to 16.5 million.

HealthEquity shares were down over 6% to $94.84 in afternoon trading Tuesday, though even with Tuesday’s drop, they've gained about 43% since the start of the year.

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