Why HealthEquity (HQY) Is Catching Investors' Eyes Right Now

HealthEquity’s been quietly delivering solid returns—up 9.5% in six months versus the industry’s 3.2% gain. Here’s what’s actually moving the needle:

The AI Play: Their AI-powered claims processing is slashing service costs and speeding up reimbursements. They’re rolling out voice automation next, which means fewer wait times and lower operational drag. The full cloud migration of their V5 platform? Already showing tangible improvements in speed and stability.

HSA Growth Numbers: By end of July 2025, HQY was servicing 10 million HSAs (up 6% YoY) with $33.1 billion in total assets (up 12% YoY). The real kicker—HSAs with actual investments jumped 10% YoY to 782k accounts. This shows real customer engagement, not just account opening.

Q2 Beat: Stronger-than-expected margins and solid top-line growth. The consensus for Q3 revenue is $319.9M (+6.5% YoY), with EPS projected at 90 cents (+15.4% YoY).

The Risk: Fraud costs are still real—$1.2M in Q2 reimbursements. Any material data breach could be a reputation killer in this space.

Bottom Line: Zacks ranks it #2 (Buy). They’ve crushed earnings in 3 of last 4 quarters (avg beat: 11.1%). Next-five-year growth forecast sits at 21.7%.