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HealthEquity Inc. (HQY) stock soared to a 52-week high, reaching $89.3, as the company continues to capitalize on the growing demand for health savings accounts. The impressive milestone reflects a significant uptrend in the company's market performance, with a robust 1-year change of 32.48%. Investors have shown increased confidence in HealthEquity's business model and strategic initiatives, which have been pivotal in driving the stock to this new high. The company's focus on providing innovative solutions for health savings and its strong customer base have contributed to its sustained growth, making it a notable performer in the healthcare sector.
In other recent news, HealthEquity, Inc. reported robust growth in Q2 2025, with a 23% increase in revenue, a 46% rise in adjusted EBITDA, and a 27% surge in Health Savings Accounts (HSAs) assets. The company also completed the final tranche of the BenefitWallet acquisition, adding 216,000 HSAs and $1.0 billion in assets. Moreover, HealthEquity introduced Health Payment Accounts (HPAs) and announced a new $300 million share repurchase program.
RBC Capital Markets increased its price target for HealthEquity to $100 from $92, maintaining an Outperform rating. The firm cited HealthEquity's HSA growth, custodial cash yields, and service costs as key factors driving this positive outlook. Meanwhile, KeyBanc maintained its Overweight rating on the company, highlighting HealthEquity's resilience in a declining interest rate cycle and ongoing digitization and artificial intelligence initiatives.
Looking ahead, HealthEquity provided a positive outlook for fiscal 2025, expecting revenue to fall between $1.165 billion and $1.185 billion, and adjusted EBITDA to range from $458 million to $478 million. These recent developments underscore HealthEquity's commitment to growth and innovation.
InvestingPro Insights
HealthEquity's recent stock performance aligns with several key financial indicators and expert insights. According to InvestingPro data, the company's revenue growth has been impressive, with a 17.19% increase over the last twelve months as of Q2 2025, reaching $1.09 billion. This growth trajectory is further emphasized by a robust quarterly revenue growth of 23.15% in Q2 2025, underscoring the company's strong market position in the health savings account sector.
InvestingPro Tips highlight that HealthEquity is trading near its 52-week high, which corroborates the article's mention of the stock reaching $89.3. Additionally, the company has shown a strong return over the last three months, with InvestingPro data revealing a 27.91% price total return over that period. This performance is particularly noteworthy given that HealthEquity generally trades with low price volatility, as noted in another InvestingPro Tip.
While the stock's P/E ratio of 72.91 suggests a high valuation, an InvestingPro Tip indicates that HealthEquity is trading at a low P/E ratio relative to its near-term earnings growth. This could imply that despite the current high multiple, there may be further growth potential based on expected earnings.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for HealthEquity, providing a deeper understanding of the company's financial health and market position.
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