HealthEquity, Inc.

Good day, and welcome to the Health Equity First Quarter 2027 Earnings Call. All participants will be in a 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 Mr. Richard Putnam. Please go ahead, sir.

Thank you, Jack. Hello, everyone. Thank you for joining us this afternoon, HealthEquity's first quarter fiscal 2027 earnings conference call. My name is Richard Putnam. I do investor relations for HealthEquity, and joining me today are Scott Cutler, President and CEO, Dr. Steve Neileman, Vice Chair and Founder of the company, and James Lucania, Executive Vice President and CFO. A press release announcing our first quarter financial results was issued after the market closed this afternoon. and includes certain non-GAAP financial measures that we will reference. You can find a copy of today's press release, including reconciliations of these non-GAAP measures with comparable GAAP measures, on our investor relations website, ir.healthequity.com. Our comments and responses to your questions reflect management's view as of today, May 28, 2026. and will contain forward-looking statements as defined by the SEC, including predictions, expectations, estimates, and 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 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 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. Let's go over to Scott.

Thank you, Richard, and welcome, everyone. Our first quarter results demonstrate disciplined execution against our mission and the strength of HealthEquity's financial model. We delivered higher profitability, expanded adjusted EBITDA margin to 46%, and are raising our fiscal 2027 guidance. The execution of our strategy alongside accelerating growth is reinforcing confidence in the long-term growth outlook for the business. That confidence is reflected in our raised fiscal 2027 guidance and disciplined capital allocation, including our decision to increase our share repurchase authorization by $1 billion. Healthcare affordability remains among the biggest financial challenges families face, while rising healthcare costs are driving a structural shift among employers that continues to expand the overall market. Against that backdrop, this quarter's results reflect our ability to empower healthcare consumers while driving operational leverage and durable growth across the business. HealthEquity is not simply an administrator. We operate a scaled healthcare financial platform that connects accounts, assets, payments, investing, marketplace, digital engagement, investment advisory capabilities, and service. Our strategy is to make that platform the healthcare financial operating system for members and clients. expanding the value of each relationship while improving efficiency as we scale. In the quarter, we outpaced industry account growth, grew assets, deepened engagement, and applied technology and AI to improve service speed, strengthen security, and lower costs to serve. At a high level, our growth is driven by two forces working together, growth in accounts and assets, and expansion in lifetime value of each member relationships. Together, these support durable compounding as accounts mature. Let me start with account growth. The structural challenge of healthcare affordability continues to support demand for HSAs and healthcare financial solutions. As more costs shift to consumers, employers and members need better ways to prepare for, manage, and pay for healthcare. We believe this dynamic supports long-term category growth. The HSA remains the entry point to a long-duration financial relationship. In the first quarter, total HSA assets grew 19%. New HSAs from sales grew 15%, introducing 172,000 new HSAs to our platform. Importantly, we bent the growth curve with total HSA growth of 8%, outperforming Devonier's reported market growth of 6% for calendar year 2025. We are encouraged by the early momentum in our selling season. client retention remains strong, and we continue to see opportunities to win new clients and expand existing relationships. Our data and analytics capabilities are an important differentiator as clients look for ways to improve adoption, increase contributions, and manage healthcare costs over the long term. While account growth remains an important entry point, it is only one driver of our business. That brings me to engagement. Members are engaging more deeply as they save, spend, and invest. That engagement expands the value of each relationship over time. Marketplace is an emerging driver of engagement. Marketplace is helping more than 10,000 members access health-related programs and products. This month, we expanded into diagnostics and men's health. We expect Marketplace to become an increasingly meaningful contributor to the lifetime value of each member. On investing, HSA investors grew 18%. and invested assets held by our HSA members grew 38%. With only about 10% of HSAs using the full tax benefits of investing industry-wide, this represents a substantial long-term opportunity. As a reminder, investors tend to hold larger balances, exhibit higher engagement, have higher average contributions, and spending over time. Over the past year, we've significantly expanded digital engagement. with mobile monthly active usage increasing by 90% year over year, and in the quarter, over two-thirds of marketplace transactions occur through our mobile app, underscoring our long-term strategy to deliver an engaging, secure, and trusted digital experience that meets members where they are. Together, account growth, asset growth, engagement, marketplace, and investing support a flywheel that expands value per member and strengthens the durability of our revenue engine. The third part of this story is efficiency. We're applying technology and AI to improve the member experience, strengthen security, and lower cost to serve. We view AI as an operational amplifier. In the quarter, AI-driven tools reduced manual handling of member and client service emails by 25%, improving response times and lowering workload. In certain targeted workflows, such as card servicing and claims inquiries, AI-enabled automation reduced manual efforts by more than 90% and accelerated processing times by up to 50%. AI-enabled self-service and automation contributed to more than 50,000 fewer card-related service center contacts. Fraud remained below target, card acceptance improved, and fraud costs declined nearly 90% compared with the first quarter of last year. For members, that means fewer calls and faster access. For clients, less administrative complexity. For health equity, a more scalable operating model. As we scale, revenue driven by assets and transaction activity enhances durability and visibility. As accounts mature, they become more economically meaningful, reducing reliance on new account volumes in any single year. Taken together, these dynamics reflect our evolution beyond administration to a healthcare financial operating system that helps members and clients address healthcare affordability while expanding value per member and improving efficiency over time. With that, I'll turn it over to Jim to walk through our first quarter financial results, the drivers of our margin expansion, and our raised fiscal 2027 outlook.