Revenue

FY 2026

$1,280,000,000 to $1,305,000,000 " "

$1,285,000,000 to $1,305,000,000 "

raised

GAAP Net Income

FY 2026

$164,000,000 to $179,000,000 " "

$173,000,000 to $188,000,000 "

raised

Non-GAAP Net Income

FY 2026

$318,000,000 to $333,000,000 " "

$320,000,000 to $335,000,000 "

raised

Adjusted EBITDA

FY 2026

$525,000,000 to $545,000,000 " "

$530,000,000 to $550,000,000 "

raised

Average Yield on HSA Cash

FY 2026

Approximately 3.45% " "

Approximately 3.5% "

raised

Income Tax Rate

FY 2026

Approximately 25% "

Approximately 25% "

no change

Diluted Share Count

FY 2026

89,000,000 "

88,500,000 "

lowered

Share Repurchases

FY 2026

Under $300,000,000 repurchase authorization "

Under $300,000,000 repurchase authorization "

no change

Fraud Cost Management and Detection

Discussed in Q4 2025 with incremental service costs around $17M due to fraud protection " " and in Q3 2025 with $8M in excess service costs for fraud-related events. " "

Q1 2026 highlighted a significant reduction in fraud costs to $3M from $11M in Q4, with increased investments in AI-driven fraud detection and prevention " " " and improvements in retention. "

Improved sentiment with effective cost reduction and enhanced technology investments shifting focus from high expense to proactive fraud management. " " " " " " "

Legislative and Regulatory Impact on the HSA Market

Q4 2025 mentioned bipartisan legislation and reconciliation pathways for HSA expansion. " Q3 2025 detailed the HOPE Act, HSA Modernization and Improvement Acts along with regulatory actions. " " Q2 2025 cited bipartisan support for the HOPE Act to expand access. "

In Q1 2026, the discussion focused on a proposed budget bill with provisions to expand HSA access for working seniors and others, signaling optimism about legislative changes. " "

Consistent optimism with continued emphasis on legislative change, now with clear market-expanding bills under discussion. " " " " " "

Margin Performance and Operational Efficiency

Q4 2025 noted lower gross margins (61% vs 62%) impacted by fraud and consolidation costs. " " Q3 and Q2 2025 showed improved margins driven by HSA mix shifts and operational efficiencies (e.g., 66% gross margin in Q3, 68% in Q2). " "

In Q1 2026, gross profit improved to 68% of revenue with lower fraud-related costs and further operational efficiency gains through AI and mobile-first initiatives. "

Gradual improvement with enhanced operational efficiency and cost normalization, driven by technology and reduced fraud-driven expenses. " " " " "

Revenue Growth and Market Expansion Opportunities

Q4 2025 reported strong revenue growth (19% YoY) with record service, custodial, and interchange revenue. " " Q3 2025 highlighted 21% growth driven by HSA expansion and new product initiatives. " " " Q2 2025 showed double-digit revenue growth and record new HSA openings. " "

Q1 2026 continued with robust growth: revenue up 15% YoY, record custodial revenue (29% growth), and strong interchange revenue, supported by legislative and technology-driven market expansion strategies. " " " "

Consistently strong growth with a stable upward trajectory in revenue and market expansion, further bolstered by tech and legislative catalysts. " " " " " " " " " " "

Digital Transformation and Technology Investments

Q4 2025 focused on launching a new app experience and AI-driven automation along with fraud prevention enhancements. " " Q3 2025 emphasized digital member education, mobile wallet integration, and efficiency improvements through tech spending. " " Q2 2025 discussed digitization, API development, and generative AI initiatives for operational efficiency. " " "

Q1 2026 reinforced investments in AI for real-time claims adjudication, a member-first secure mobile experience (including mandatory mobile authentication), and innovations like digital wallet and custom brokerage investing. " " "

Steady and enhanced focus on digital transformation with incremental advances in AI, mobile strategies, and automation improving member experience and cost management. " " " " " " " " " "

Emergence of New Health Payment and Enhanced Rate Products

Q4 2025 detailed enhanced rate product penetration (49% of HSA cash, target 60% by fiscal 2027) and the launch of the Assist portfolio. " " " Q3 2025 highlighted a growing new product pipeline and strategic pricing adjustments. " Q2 2025 introduced Health Payment Accounts (HPAs) and noted progress in transitioning HSA cash to enhanced rate products. " " " "

There was no specific discussion of new health payment or enhanced rate products in Q1 2026 [N/A].

Drop in emphasis: Previously a key focus, this topic was not discussed in the current period, suggesting it may be on hold or considered resolved for now. " " " " " " " "

Macroeconomic and Interest Rate Risks

Q3 2025 focused on custodial yield assumptions based on forward interest rate curves (yield guidance of 3.4%-3.5%) and acknowledged inherent uncertainties. " " Q2 2025 discussed a lower annualized yield of 3.1%, the impact of rate shifts on floating components, and CFO insights on rate adjustments. " " Q4 2025 had no detailed discussion on these risks.

Q1 2026 provided a detailed analysis of softer macroeconomic conditions affecting HSA sales and discussed interest rate risks, including an annualized HSA cash yield of 3.5%, forward treasury contracts, and various derisking measures. " " " "

Increased emphasis: The current period shows a deeper focus on managing macroeconomic and interest rate risks with more detailed hedging strategies and yield management compared to previous selective mentions. " " " " " " "

Diminishing Focus on Card Migration Challenges

Q3 2025 noted significant operational challenges with the largest wave of card migration, which led to $8M in excess service costs. " Q2 2025 indicated that the card processor migration had wrapped up, enabling digital wallet integration. " Q4 2025 mentioned ongoing migration efforts and associated costs with card consolidation. " " "

Q1 2026 did not mention card migration challenges, implying this issue is no longer a focus or has been largely resolved.

Diminishing focus: Earlier challenges have normalized as migration has completed, resulting in no discussion in the current period. " " " "