Please wait

HealthEquity Reports Record Revenue, Earnings and New HSAs From Sales for Fourth Quarter and Year Ended January 31, 2026, Resulting in Raised Fiscal 2027 Outlook
Highlights of the fiscal year include:
•Revenue increased 9% to $1.31 billion.
•Net income increased 123% to $215.2 million, and net income margin increased to 16% from 8% last year.
•Net income per diluted share rose to $2.46 from $1.09 one year ago, and non-GAAP net income per diluted share increased 28% to $4.00.
•Adjusted EBITDA increased 20% to $566.0 million, and Adjusted EBITDA margin increased to 43% from 39% last year.
•Total HSA Assets grew 14% to $36.5 billion.
•Returned $301.7 million to shareholders through stock repurchases.
•Further reduced HSA cash repricing risk with a cumulative $2.35 billion 5-year Treasury bond hedge at 3.92%.
Highlights of the fourth quarter include:
•Revenue increased 7% to $334.6 million.
•Net income increased 89% to $49.7 million, and net income margin increased to 15% from 8% last year.
•Net income per diluted share rose to $0.58 from $0.30 one year ago, and non-GAAP net income per diluted share increased 38% to $0.95.
•Adjusted EBITDA increased 23% to $132.9 million, and Adjusted EBITDA margin increased to 40% from 35% last year.
•Returned $81.7 million to shareholders through stock repurchases.

DRAPER, Utah – March 17, 2026 – HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), a leader in administering health savings accounts (“HSAs”) and complementary consumer-directed benefits (“CDBs”), today announced financial results for its fiscal year and fourth quarter ended January 31, 2026.
“We are raising our fiscal 2027 guidance after delivering record new HSAs from sales and significant margin expansion,” said Scott Cutler, President and CEO of HealthEquity. “Adjusted EBITDA increased 23% in the fourth quarter with Adjusted EBITDA margin expanding more than 500 basis points to 40%, reflecting meaningful operating leverage. We added one million new HSAs from sales for the second consecutive year and ended fiscal 2026 with 17.8 million total accounts and over $36 billion in HSA assets, positioning us for continued growth.”
Fiscal year financial results
Revenue for the fiscal year ended January 31, 2026 was $1.31 billion, an increase of 9% compared to $1.20 billion for the fiscal year ended January 31, 2025. Revenue this year included: service revenue of $485.0 million, custodial revenue of $636.8 million, and interchange revenue of $191.6 million.
HealthEquity reported net income of $215.2 million, or $2.46 per diluted share, and non-GAAP net income of $349.8 million, or $4.00 per diluted share, for the fiscal year ended January 31, 2026. The Company reported net income of $96.7 million, or $1.09 per diluted share, and non-GAAP net income of $277.3 million, or $3.12 per diluted share, for the fiscal year ended January 31, 2025.
Adjusted EBITDA was $566.0 million for the fiscal year ended January 31, 2026, an increase of 20% compared to $471.8 million for the fiscal year ended January 31, 2025. Adjusted EBITDA was 43% of revenue, compared to 39% for the fiscal year ended January 31, 2025.
As of January 31, 2026, HealthEquity had $318.9 million of cash and cash equivalents and $957.4 million of outstanding debt, net of issuance costs. This compares to $295.9 million in cash and cash equivalents and $1.06 billion of outstanding debt as of January 31, 2025.
Fourth quarter financial results
Revenue for the fourth quarter ended January 31, 2026 was $334.6 million, an increase of 7% compared to $311.8 million for the fourth quarter ended January 31, 2025. Revenue this quarter included: service revenue of $127.1 million, custodial revenue of $161.4 million, and interchange revenue of $46.1 million.
HealthEquity reported net income of $49.7 million, or $0.58 per diluted share, and non-GAAP net income of $81.8 million, or $0.95 per diluted share, for the fourth quarter ended January 31, 2026. The Company reported net income of
1

$26.4 million, or $0.30 per diluted share, and non-GAAP net income of $61.3 million, or $0.69 per diluted share, for the fourth quarter ended January 31, 2025.
Adjusted EBITDA was $132.9 million for the fourth quarter ended January 31, 2026, an increase of 23% compared to $107.8 million for the fourth quarter ended January 31, 2025. Adjusted EBITDA was 40% of revenue, compared to 35% for the fourth quarter ended January 31, 2025.
Account and asset metrics
HSAs as of January 31, 2026 were 10.6 million, an increase of 7% year over year, including 832,000 HSAs with investments, an increase of 10% year over year. Total Accounts as of January 31, 2026 were 17.8 million, including 7.2 million complementary CDBs.
Total HSA Assets as of January 31, 2026 were $36.5 billion, an increase of 14% year over year. Total HSA Assets included $18.0 billion of HSA cash and $18.5 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $1.1 billion as of January 31, 2026.
Stock repurchase program
The Company repurchased 3.3 million shares of its common stock for $301.7 million during the fiscal year ended January 31, 2026, including 0.9 million shares for $81.7 million during the fourth quarter ended January 31, 2026. As of January 31, 2026, $177.7 million of common stock remained authorized for repurchase under the Company's stock repurchase program.
Business outlook
For the fiscal year ending January 31, 2027, management expects revenues of $1.405 billion to $1.415 billion. Its outlook for net income is between $239 million and $246 million, resulting in net income of $2.78 to $2.85 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $392 million and $400 million, resulting in non-GAAP net income per diluted share of $4.56 to $4.65 (based on an estimated 86 million weighted-average shares outstanding). Management expects Adjusted EBITDA of $618 million to $628 million.
See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.
Conference call
HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Tuesday, March 17, 2026 to discuss the fiscal 2026 fourth quarter and year-end results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.
Non-GAAP financial information
To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.
•Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
•Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
•Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends
2

relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP financial measures, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.
About HealthEquity
HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for more than 17 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers. For more information, visit www.healthequity.com.
Forward-looking statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “aims,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:
•our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;
•our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
•our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;
•the impact of fraudulent account activity involving our member accounts or our third-party service providers on our reputation and financial results;
•our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
•the significant competition we face and may face in the future, including from those with greater resources than us;
•our reliance on the availability and performance of our technology and communications systems;
•potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
•the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
•our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
•our reliance on partners and third-party vendors for distribution and important services;
•our ability to develop and implement updated features for our technology platforms and communications systems; and
•our reliance on our management team and key team members.
For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
3

otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.



Investor Relations Contact
Richard Putnam
801-727-1000
rputnam@healthequity.com


4

HealthEquity, Inc. and subsidiaries
Consolidated balance sheets (unaudited)
(in thousands, except par value)January 31, 2026January 31, 2025
Assets
Current assets
Cash and cash equivalents$318,927 $295,948 
Accounts receivable, net of allowance for doubtful accounts of $924 and $2,070 as of January 31, 2026 and 2025, respectively123,696 118,006 
Prepaid expenses and other current assets69,658 63,795 
Total current assets512,281 477,749 
Property and equipment, net3,177 3,239 
Operating lease right-of-use assets36,310 43,185 
Intangible assets, net1,097,172 1,204,658 
Goodwill1,648,145 1,648,145 
Other assets83,247 71,574 
Total assets$3,380,332 $3,448,550 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable$12,159 $14,361 
Accrued compensation60,392 69,330 
Accrued liabilities74,388 62,631 
Operating lease liabilities9,911 10,001 
Total current liabilities156,850 156,323 
Long-term liabilities
Long-term debt, net of issuance costs957,379 1,056,301 
Operating lease liabilities, non-current34,190 42,219 
Other long-term liabilities31,007 22,962 
Deferred tax liability93,710 55,834 
Total long-term liabilities1,116,286 1,177,316 
Total liabilities1,273,136 1,333,639 
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of January 31, 2026 and 2025— — 
Common stock, $0.0001 par value, 900,000 shares authorized, 85,007 and 86,536 shares issued and outstanding as of January 31, 2026 and 2025, respectively8 9 
Additional paid-in capital1,916,989 1,905,628 
Accumulated earnings195,906 209,274 
Accumulated other comprehensive loss(5,707)— 
Total stockholders’ equity2,107,196 2,114,911 
Total liabilities and stockholders’ equity$3,380,332 $3,448,550 

5

HealthEquity, Inc. and subsidiaries
Consolidated statements of operations (unaudited)
Three months ended January 31,Year ended January 31,
(in thousands, except per share data)2026202520262025
Revenue
   Service revenue$127,079 $124,209 $485,022 $478,317 
   Custodial revenue161,402 144,133 636,800 545,414 
   Interchange revenue46,105 43,475 191,607 176,043 
   Total revenue334,586 311,817 1,313,429 1,199,774 
 Cost of revenue
   Service costs88,457 105,466 328,507 351,588 
   Custodial costs11,058 10,269 43,821 39,675 
   Interchange costs6,924 7,039 27,985 31,252 
   Total cost of revenue106,439 122,774 400,313 422,515 
 Gross profit228,147 189,043 913,116 777,259 
 Operating expenses
   Sales and marketing24,923 23,084 95,240 90,739 
   Technology and development70,354 64,654 262,510 239,513 
   General and administrative33,527 29,975 119,933 132,260 
   Amortization of acquired intangible assets26,948 27,002 107,953 111,878 
Merger integration1,324 2,178 5,024 40,535 
   Total operating expenses157,076 146,893 590,660 614,925 
 Income from operations71,071 42,150 322,456 162,334 
 Other expense
Interest expense(13,269)(15,257)(57,131)(60,634)
   Other income, net3,097 3,068 12,107 14,334 
 Total other expense(10,172)(12,189)(45,024)(46,300)
 Income before income taxes60,899 29,961 277,432 116,034 
 Income tax provision11,159 3,596 62,231 19,331 
Net income and comprehensive income$49,740 $26,365 $215,201 $96,703 
Net income per share:
 Basic$0.58 $0.30 $2.50 $1.11 
 Diluted$0.58 $0.30 $2.46 $1.09 
Weighted-average number of shares used in computing net income per share:
 Basic85,344 86,677 86,132 86,870 
 Diluted86,290 88,614 87,473 88,828 

6

HealthEquity, Inc. and subsidiaries
Consolidated statements of comprehensive income (unaudited)
Year ended January 31,
(in thousands, except per share data)
202620252024
Net income$215,201 $96,703 $55,712 
Other comprehensive loss
Cash flow hedges
Net unrealized losses(5,695)— — 
Reclassification of net gains included in net income(12)— — 
Net change, net of income tax benefit of $1,854 for the year ended January 31, 2026
(5,707)— — 
Total other comprehensive loss(5,707)— — 
Comprehensive income$209,494 $96,703 $55,712 
7

HealthEquity, Inc. and subsidiaries
Consolidated statements of cash flows (unaudited)
Year ended January 31,
(in thousands)20262025
 Cash flows from operating activities:
 Net income$215,201 $96,703 
 Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization154,657 162,451 
Stock-based compensation73,063 96,425 
Amortization of debt issuance costs1,078 2,067 
Amortization of gains on derivatives(16)— 
Loss on extinguishment of debt— 1,576 
Deferred taxes39,730 (12,836)
 Changes in operating assets and liabilities:
Accounts receivable(5,690)(13,113)
Prepaid expenses and other current and non-current assets(12,663)(11,790)
Operating lease right-of-use assets6,785 6,664 
Accrued compensation(8,806)17,758 
Accounts payable, accrued liabilities, and other current liabilities1,708 8,888 
Operating lease liabilities, non-current(8,001)(7,779)
Other long-term liabilities48 (7,158)
 Net cash provided by operating activities457,094 339,856 
 Cash flows from investing activities:
Purchases of software and capitalized software development costs(46,515)(51,129)
Purchases of property and equipment(1,969)(2,084)
Acquisitions of HSA portfolios(293)(452,241)
Settlement of derivatives, net1,637 — 
 Net cash used in investing activities(47,140)(505,454)
 Cash flows from financing activities:
Principal payments on long-term debt(100,000)(561,875)
Repurchases of common stock(299,254)(121,493)
Proceeds from long-term debt— 736,875 
Payment of debt issuance costs— (3,748)
Settlement of client-held funds obligation, net867 (1,620)
Proceeds from exercise of common stock options11,412 9,428 
 Net cash provided by (used in) financing activities(386,975)57,567 
 Increase (decrease) in cash and cash equivalents22,979 (108,031)
 Beginning cash and cash equivalents295,948 403,979 
 Ending cash and cash equivalents$318,927 $295,948 


8

HealthEquity, Inc. and subsidiaries
Consolidated statements of cash flows (unaudited) (continued)
Year ended January 31,
(in thousands)20262025
Supplemental cash flow data:
Interest expense paid in cash$52,245 $58,587 
Income tax payments, net8,042 26,069 
Supplemental disclosures of non-cash investing and financing activities:
Purchases of software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation4,332 5,971 
Purchases of property and equipment included in accounts payable or accrued liabilities16 45 
Repurchases of common stock included in accrued liabilities3,174 754 
Non-cash purchase consideration related to acquisitions of HSA portfolios— 20,325 
Settlement of derivatives included in other current assets2,465 — 
Exercise of common stock options receivable— 10 
Stock-based compensation expense (unaudited)
Total stock-based compensation expense included in the consolidated statements of operations and comprehensive income is as follows:
Three months ended January 31,Year ended January 31,
(in thousands)2026202520262025
Cost of revenue$3,002 $3,745 $12,686 $14,955 
Sales and marketing3,203 3,750 13,093 15,623 
Technology and development5,534 6,255 23,167 25,002 
General and administrative7,378 7,958 24,117 40,845 
Total stock-based compensation expense$19,117 $21,708 $73,063 $96,425 
Total Accounts (unaudited)
(in thousands, except percentages)January 31, 2026January 31, 2025% Change
HSAs10,570 9,889 7 %
New HSAs from sales - Quarter-to-date553 471 17 %
New HSAs from sales - Year-to-date1,040 1,040 0 %
New HSAs from acquisitions - Year-to-date— 616 *
HSAs with investments832 753 10 %
CDBs7,221 7,144 1 %
Total Accounts17,791 17,033 4 %
Average Total Accounts - Quarter-to-date17,462 16,677 5 %
Average Total Accounts - Year-to-date17,220 16,302 6 %
*Not meaningful
HSA assets (unaudited)
(in millions, except percentages)January 31, 2026January 31, 2025% Change
HSA cash$17,982 $17,435 3 %
HSA investments18,482 14,676 26 %
Total HSA Assets36,464 32,111 14 %
Average daily HSA cash - Quarter-to-date17,090 16,634 3 %
Average daily HSA cash - Year-to-date17,082 16,206 5 %
9

HSA cash maturity schedule
The following table summarizes the amount of HSA cash held by our depository partners and insurance company partners that is expected to reprice by fiscal year and the respective average annualized yield currently earned on that HSA cash as of January 31, 2026:
Year ending January 31, (in billions, except percentages)HSA cash expected to repriceAverage annualized yield
2027$4.5 1.9 %
20282.3 4.0 %
20291.7 3.6 %
20302.4 4.4 %
Thereafter6.4 4.2 %
Total (1)$17.3 3.6 %
(1)Excludes $0.7 billion of HSA cash held in floating-rate contracts as of January 31, 2026.
Client-held funds (unaudited)
(in millions, except percentages)January 31, 2026January 31, 2025% Change
Client-held funds$1,090 $896 22 %
Average daily Client-held funds - Quarter-to-date879 798 10 %
Average daily Client-held funds - Year-to-date864 817 6 %
Net income reconciliation to Adjusted EBITDA (unaudited)
Three months ended January 31,Year ended January 31,
(in thousands)2026202520262025
Net income$49,740 $26,365 $215,201 $96,703 
Interest income(2,768)(3,033)(11,729)(13,914)
Interest expense13,269 15,257 57,131 60,634 
Income tax provision11,159 3,596 62,231 19,331 
Depreciation and amortization11,733 12,180 46,703 50,573 
Amortization of acquired intangible assets26,948 27,002 107,953 111,878 
Stock-based compensation expense19,117 21,708 73,063 96,425 
Merger integration expenses1,324 2,178 5,024 40,535 
Amortization of incremental costs to obtain a contract1,981 1,730 7,840 6,745 
Costs associated with unused office space716 836 2,945 3,244 
Other(329)(35)(378)(403)
Adjusted EBITDA$132,890 $107,784 $565,984 $471,751 
10

Reconciliation of net income outlook to Adjusted EBITDA outlook (unaudited)
Outlook for the year ending
(in millions)January 31, 2027
Net income$239 - 246
Interest income(8)
Interest expense46
Income tax provision85 - 88
Depreciation and amortization48
Amortization of acquired intangible assets103
Stock-based compensation expense89
Merger integration expenses5
Amortization of incremental costs to obtain a contract9
Costs associated with unused office space2
Adjusted EBITDA$618 - 628

Reconciliation of net income to non-GAAP net income (unaudited)
Three months ended January 31,Year ended January 31,
(in thousands, except per share data)2026202520262025
Net income$49,740 $26,365 $215,201 $96,703 
Income tax provision11,159 3,596 62,231 19,331 
Income before income taxes - GAAP60,899 29,961 277,432 116,034 
Non-GAAP adjustments:
Amortization of acquired intangible assets26,948 27,002 107,953 111,878 
Stock-based compensation expense19,117 21,708 73,063 96,425 
Merger integration expenses1,324 2,178 5,024 40,535 
Costs associated with unused office space716 836 2,945 3,244 
Loss on extinguishment of debt— — — 1,576 
Total adjustments to income before income taxes - GAAP48,105 51,724 188,985 253,658 
Income before income taxes - Non-GAAP109,004 81,685 466,417 369,692 
Income tax provision - Non-GAAP (1)27,251 20,421 116,604 92,423 
Non-GAAP net income81,753 61,264 349,813 277,269 
Diluted weighted-average shares86,290 88,614 87,473 88,828 
GAAP net income per diluted share$0.58 $0.30 $2.46 $1.09 
Non-GAAP net income per diluted share$0.95 $0.69 $4.00 $3.12 
(1)The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.






11

Reconciliation of net income outlook to non-GAAP net income outlook (unaudited)
Outlook for the year ending
(in millions, except per share data)January 31, 2027
Net income$239 - 246
Income tax provision85 - 88
Income before income taxes - GAAP324 - 334
Non-GAAP adjustments:
Amortization of acquired intangible assets103
Stock-based compensation expense89
Merger integration expenses5
Costs associated with unused office space2
Total adjustments to income before income taxes - GAAP199
Income before income taxes - Non-GAAP523 - 533
Income tax provision - Non-GAAP (1)131 - 133
Non-GAAP net income$392 - 400
Diluted weighted-average shares86
GAAP net income per diluted share (2)$2.78 - 2.85
Non-GAAP net income per diluted share (2)$4.56 - 4.65
(1)The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
(2)GAAP and Non-GAAP net income per diluted share may not calculate due to rounding.

Certain terms
TermDefinition
HSAA financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDBConsumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits.
HSA memberConsumers with HSAs that we serve.
Total HSA Assets
HSA members’ custodial cash assets held by our federally insured depository partners and our insurance company partners. Total HSA Assets also includes HSA members' investments in mutual funds through our custodial investment fund partner.
ClientOur employer clients.
Total AccountsThe sum of HSAs and CDBs on our platforms.
Client-held fundsDeposits held on behalf of our Clients to facilitate administration of our CDBs.
Network PartnerOur health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
Non-GAAP net income
Calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted shareCalculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.
12