HealthEquity, Inc.

Good day, and welcome to the Health Equity Third Quarter 2026 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Richard Putnam. Please go ahead.

Thank you, Dave. Hello, everyone. Thank you for joining us this afternoon. This is HealthEquity's third quarter fiscal year 2026 earnings conference call. My name is Richard Putnam. I do investor relations for HealthEquity. Joining me today are Scott Cutler, President and CEO, Dr. Steve Nealman, Vice Chair and Founder of the company, and James Lucania, Executive Vice President and CFO. Before I turn the call over to Scott for prepared remarks, we note that a press release announcing our third quarter financial results was issued after the market closed this afternoon. and that it included certain non-GAAP financial measures that we will reference here today. You can find a copy of today's press release, including reconciliation of these non-GAAP measures with comparable GAAP measures, on our investor relations website, which is ir.healthequity.com. We also note that our comments and responses to your questions today reflect management's views as of today, December 3rd, 2025, and will contain forward-looking statements as defined by the SEC, including predictions, expectations, estimates, or other information that might be considered forward-looking. There are many important factors relating to our business which could affect our results. These forward-looking statements are subject to risk and uncertainties that may cause our actual results to differ materially from statements made here today. We caution against placing undue reliance on these forward-looking statements. and we also encourage you to review the discussion of these factors and other risks that may affect our future results or the market price of our stock, as detailed in our latest annual report on Form 10-K and in subsequent periodic reports filed with the SEC. We assume no obligation to revise or update these forward-looking statements in light of new information or future events.

With that out of the way, let's go to Scott. Thank you, Richard. Happy holidays and welcome, everyone. I'll start with the key metrics that reflect our continued strong fiscal 2026 results and the progress we're making on our strategy. Steve will then speak to the regulatory environment, and Jim will walk through our third quarter financials and our raised outlook for fiscal year 26. The team, again, delivered strong year-over-year growth and margin expansion across our key metrics in Q3, including the Revenue up 7%. Net income up 806% year over year, a result that Jim will explain in more detail in a moment. Adjusted EBITDA up 20%, driven by gross margin of 71%, and adjusted EBITDA margin of 44%. HSAs grew 6%. CDB accounts up 3%, driving total accounts up 5%, and HSA assets up 15%. Behind these numbers is a clear strategy, helping our members better save, spend, and invest for health, and strengthening the flywheel in each of those areas. We are operating against a real affordability challenge for American families and employers. Healthcare costs continue to rise faster than wages, and both households and enterprises are looking for more practical ways to budget for healthcare today while preparing for tomorrow. HSAs sit at the center of our solution to that challenge. They are a proven engine for consumer-directed healthcare and long-term health savings. On the better save side of the flywheel, we are helping more members build tax-advantaged health savings and making it easier for them to contribute. Health equity ended Q3 with more than 17 million total accounts, including more than 10 million HSAs. We grew net CDB accounts by over 200,000 year-over-year, and Team Purple opened approximately 175,000 new HSAs from sales in the quarter. The average HSA balances grew 8% year-over-year, contributing to the 15% increase in HSA assets. We remain optimistic about new account growth in Q4. That optimism is grounded in the work we're doing with employers and partners on plan design and to support HSA adoption, new employer clients, including those offering HSAs for the first time, and a large new opportunity to open retail HSAs for those choosing bronze plans on the ACA exchanges. To support this opportunity, we launched a new direct HSA enrollment platform with a streamlined digital experience, enabling individuals to open and fund HSAs directly through HealthEquity's mobile and web platforms. This positions us well as millions of households consider bronze plans in the months ahead. The Better Spend Flywheel is about helping members stretch their healthcare dollars further and gaining greater access to health resources. Last year, more than $40 billion was spent by Americans through HSAs on eligible medical products, programs, and services. We are pleased with the early momentum of the health equity marketplace platform. which is providing access to affordable healthcare solutions, including our first program supporting weight loss through GLP-1s. Early adoption from subscribing members has been encouraging, and the early retention data is positive. By offering GLP-1s through the Health Equity Marketplace, members experience a coordinated journey from within the Health Equity app and web portal to a HSA-eligible program that supports healthier outcomes and helps employers mitigate rising cost pressures. Payments made with HSAs may be tax-advantaged, providing additional savings for members. Later this month, we will be expanding our marketplace further, providing greater access to healthcare solutions for our members. The Better Invest Flywheel is about securing our members' assets and helping them grow healthcare savings for the future. Our HSA members now hold over $34 billion in HSA assets, up $4.5 billion year over year. The number of our HSA members who invest grew 12%, and HSA invested assets grew 29% to $17.5 billion. As more members move from saving to investing, they build long-term tax advantage health wealth that can support care needs well into retirement. We are entering our busy season well prepared to welcome new members with an enhanced member-first secure mobile experience and market-leading products and services. Our members benefit from advanced security features, including passkey technology, and from our integrated network of leading health plans and our growing marketplace, all accessible through our intuitive health equity app and web experience. Our investments in security are delivering strong results for our members. In the third quarter, fraud costs totaled approximately $0.3 million, well below our run rate target of one basis point of total HSA assets per year. We continue to invest in additional security measures and technologies to protect our members' health savings while maintaining a simple, seamless experience in our secure mobile channel. We are proving that we can deliver industry-leading security and a remarkable experience at the same time. We are committed to continually strengthening our defenses as threats evolve. We will also see significant potential in AI. We believe AI will unlock a more personalized, efficient, and empowering future for healthcare consumers, and HealthEquity is uniquely positioned to lead that transformation. Our expedited client claim solution is already providing quicker and more accurate payments to members while reducing service costs. HSA Answers and Health Equity Assist, along with our work with CX Leader Parloa, are building an integrated AI experience that supports members wherever they are, through voice calls, support lines, chat, or web-based conversations. These capabilities are designed to improve service, reduce friction, and help members save, spend, and invest for health. Taken together, these experience enhancements Our mobile platform, our fraud and security investments, our marketplace, and our emerging AI capabilities are central to health equity's broader strategy and to the flywheels that drive our growth. On the legislative front, our leaders in Washington continue to focus on expanding the use of HSAs to address healthcare affordability. Steve and our government affairs team continue to do a remarkable job of educating our legislators and their staff about the benefits of HSAs and a growing demand for greater access from American families and employers. With that, let me turn it over to Steve to walk through the policy landscape and how HSAs are being discussed in Washington.