A：Adjusted EBITDA for the third quarter was 141.8 million, a 20% increase compared to Q3 last year, with an adjusted EBITDA margin of 460 basis points compared to 39% in the prior year.

A：The company experienced approximately 145 million dollars of fraud reimbursements to members in the third quarter.

A：The company generated 339 million of cash flows from operations in the first nine months of fiscal 2026.

A：The company has entered into Treasury bond forward contracts with a notional amount of approximately $2.3 billion to hedge interest rate volatility on future HSA cash deposit contracts. They expect to execute additional interest rate hedges depending on market conditions and anticipate an average yield on HSA of approximately 3.54% for fiscal 2026.

A：GAAP net income per share was 1 dollar 88 cents, while non GAAP net income per share was 3 dollars 5 cents. Non GAAP net income excludes the amortization of acquired intangible assets, but includes revenue from those assets.

A：The company's initial outlook for fiscal 2027 will be provided at the JP Morgan Healthcare Conference in January.

A：The company plans to ensure a seamless and frictionless enrollment experience, roll out a new experience, and utilize marketing features such as the Script Dollar match for new accounts. They will also leverage integrated plan partners to enhance the value proposition and invest in brand marketing and growth marketing initiatives. Sales and marketing expenses are expected to progress by ramping up spend in the fourth quarter to align with open enrollment and continue focusing on brand and marketing activities.

A：The expectations for further improving the efficiency and reducing cost per account involve monitoring the impact of pricing pressures from employers, which could potentially slow down the rate of margin increase. An update on the progress is expected to be provided in the fourth quarter.

A：The target set was to achieve a certain margin efficiency by the end of the next year, and the company is in a very good shape to achieve that target. An update on the fourth quarter margin efficiency is expected to be given, which will include a breakdown of the results.

A：The approach to enhancing service efficiency includes leveraging technology and automation, such as AI deployment across service centers, to deliver a better experience more efficiently. This strategy includes claims automation, enhanced engagement through chat, and the rollout of more agentic experiences to improve the efficiency and effectiveness of service delivery.

A：The company differentiates itself in the HSA space through its leading market position and strategy focused on the 'flywheel of better save, spend, and invest for health.' This strategy is about providing greater, more seamless access to spend HSA dollars, which can lead to increased member contributions and integration with the fore health value proposition. The company remains competitive, especially with a focus on high-end accounts, and believes in driving differentiated solutions in the market.

A：The investments in AI and automation are expected to address nearly a third of the cost structure, specifically in member services, client services, and back-office operations. Most efforts are focused on member services due to the high volume of call interactions. Additionally, the company is looking at integrating large data sets, which can be automated with AI, contributing to cost savings and operational efficiency.

A：The app downloads in October are expected to contribute positively to the margins. The strategy revolves around creating a secure mobile experience and aligning with the digital expectations of the younger workforce. By driving app engagement, the company aims to improve the overall product experience and, consequently, client engagement and margin expansion.

A：Passkey is driving app adoption as it is required for authentication within the app, which eliminates the need to remember a password and reduces a top call driver into the service center. The speaker expects continued app downloads and believes that app adoption and Passkey adoption will lead to a decrease in calls related to forgotten passwords.

A：The company's view on the macro environment has not changed. They expect less job growth or job churn among a specific cohort of members. However, they remain optimistic because the value proposition for enterprises is large due to the rising costs of health care and the expansion of the HSA market.

A：The company is focusing on the expansion of the HSA market and educating enterprise clients on strategies to drive adoption. They are also optimistic about the quality of the enterprise pipeline and retention rates, and are preparing a strong selling season for the upcoming period.

A：The company's capital allocation strategy remains unchanged. They intend to continue stock buybacks and pay back debt while considering M&A activities from an opportunistic perspective. They have a high bar for acquisitions, but portfolio acquisitions are considered attractive.

A：HSAs are expected to reprice higher, and while the company has hedged some repricing for certainty, they do not provide quarterly outlook numbers. There is no risk to the actual migration, and with the ongoing contract waves migrating, they expect a significant yield impact in the full year.

A：The company is investing some of the gross profit upside directly into the bottom line. They do not expect significant changes in the percentage of revenue allocated towards sales and marketing and product and technology. However, they plan to reinvest in the business, focusing on efficiency gains and top-line growth. Key investment priorities include enhancing the app experience, service center modernization, and improving the market place experience.

A：The potential revenue opportunities from the company's early adoption of the GOP and the referral program could become material in the future as they are currently immaterial to the company's current results. As members spend significantly across platforms on products and services, bringing these experiences into the platform itself is seen as an opportunity to show up in service revenue. The company's marketing arrangements with FSA HSA store also contribute to service revenue. The model is expected to evolve over time with a combination of recurring administrative fees from members signing up to programs and fees from promoting products or providing affiliate links to other platforms.

A：The opportunity for expansion with the brand product appears to be very significant, especially given that there are currently 7 million people enrolled in bronze plans compared to 10 million in HSA plans now. The expansion could capture a substantial portion of the market as the transition from silver to bronze plans is noted to be a positive development, since those in silver plans are more likely to fund their accounts. Early indications suggest strong account contributions, potentially involving a couple of million households. However, it is difficult to quantify the exact percentage of the market that the industry can capture, although CMS reports estimate around 12 million people could be in HSA-eligible plans coming out of the open enrollment cycle.

A：The impact of changes in premiums and subsidies on enrollment in HSA plans is uncertain, but there are indications that some people are moving from silver to bronze plans. This shift could be beneficial for HSA plan enrollment as those in silver plans are more likely to fund their accounts. Early data shows stronger account contributions than anticipated, with people contributing money to their HSA plans. The exact number of people who will migrate from silver to bronze plans and how this will affect HSA enrollment is not known, but it is anticipated that more HSA-eligible plans will be available due to recent regulatory changes.

A：It is difficult to predict the exact percentage of the migration from silver plans to bronze plans that the industry will capture. The CMS report suggests that around 12 million people could be in HSA-eligible plans coming out of the open enrollment cycle, but the company is striving to secure more than its fair share. The strategy involves educating people about the benefits of HSA plans and the potential tax advantages, as well as reminding them to sign up for HSA if they haven't already. The company hopes that the transition will lead to a significant increase in HSA plan enrollment, especially given the tax benefits and the ability to use HSA dollars to pay for out-of-pocket health expenses.

A：The current status of HSA plan usage is positive, with people starting to use their health insurance throughout the year and the company is actively encouraging them to use their HSA plans. HealthEquity is reminding people to sign up for HSA if they haven't, to utilize the tax advantages and the opportunity to spend the money wisely. There's an expectation that as more people understand the benefits of HSA plans, enrollment and usage will increase. The company has been working to educate the market on HSA plans for years, and while the commercial market is new, the anticipation is that HSA plans will gain more traction due to recent regulatory changes.

A：Currently, HSA dollars can only be used to pay premiums under very specific circumstances: if one is unemployed or previously on COBRA. However, there are discussions among lawmakers to broaden the use of HSA funds for premiums. HealthEquity is supportive of these changes, advocating for the use of HSA funds on a wider range of expenses including premiums. The implication is that allowing the use of HSA funds for premiums could further incentivize the use of HSA plans and improve financial management for individuals.