Stephanie Davis Demko's questions to Healthequity Inc (HQY) leadership • Q2 2025
Question
Stephanie Davis Demko of Barclays pressed on the full-year guidance, questioning why the implied second-half margin shows a significant step-down from Q2 levels, even after accounting for yield curve shifts, and asked if large investments or conservatism were the cause.
Answer
EVP and CFO James Lucania acknowledged the margin step-down, attributing it to several factors: the back-end weighted impact of lower interest rates, an expected increase in seasonal service costs, and a planned ramp-up in technology and development spending in the second half of the year to fill open positions and accelerate high-return projects. President and CEO Jon Kessler added that these three factors roughly account for the delta.