Episode Details

HealthEquity (HQY) Q2 FY2027 — The stock fell 10.6% the same day, from $104.42 to $93.39. Records on every line, guidance raised - and the filing shows the company has fixed the rate on $3.04bn of future HSA cash at 3.93%, a position now $91.5m underwater that Note 10 feeds back through custodial revenue. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$101.27 vs ~$97.00 today. KEY METRICS: - Revenue $350.7m (+7.6%); custodial/interest revenue $175.9m (+10.0%) = 50.2% of the company - Net income $65.6m (+9.7%) but comprehensive income $28.3m (-52.8%) - Non-GAAP EPS $1.24 (+14.8%); GAAP EPS $0.78 (+14.7%) - Adjusted EBITDA $167.0m at a record 48% margin; service costs FELL to $73.2m - Hedge book: 23 Treasury bond forwards, $3.04bn notional at 3.93%, $91.5m unrealised loss - FY27 guide: revenue +$1m, adj EBITDA +$3m, non-GAAP EPS UNCHANGED at $4.66-$4.73 - HSA assets $37.9bn (+14%); 10.7m accounts (+8%); $231m of buybacks in H1 What to watch: the hedge notional stops growing AND the second half beats $2.25 adjusted EPS Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.