Stan Berenstein

Stan Berenstein with Wells Fargo inquired about HealthEquity's marketing strategy and sales/marketing expense progression for the new direct HSA enrollment platform targeting ACA members, and the company's plans for de-risking longer-duration assets beyond August 2027 through forward contracts.

Answer

CEO Scott Cutler detailed the new retail enrollment flow, highlighting a seamless digital experience, a $25 new account match, integrated plan partner marketing, and a ramp-up in brand and growth marketing spend in Q4. EVP and CFO James Lucania explained the strategy for extending interest rate hedges further into fiscal 2027 and 2028, noting a reduced concentration of maturities in later fiscal years.

Stan Berenstein inquired about HealthEquity's marketing strategies for the new direct HSA enrollment platform targeting ACA members, the expected progression of sales and marketing expenses, and plans to de-risk longer-duration assets beyond August 2027 using forward contracts.

Answer

CEO Scott Cutler detailed the seamless enrollment experience, competitive $25 new account match, and integrated marketing with plan partners, noting a ramp-up in Q4 marketing spend. CFO James Lucania explained the strategy to extend hedging into fiscal 2028 and 2029, focusing on chipping away at future maturities.