HealthEquity, Inc. (HQY): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to map the strategy of the firm that's clearly winning the consumer-directed healthcare savings game, and honestly, the numbers HealthEquity, Inc. posted through late 2025 tell a compelling story of scale. This isn't just about holding accounts; we're talking about managing over 10.1 million Health Savings Accounts with total assets hitting $34.4 billion as of October 31, 2025, all while pulling in $1.20 billion in revenue for the fiscal year. To really understand how they built this fortress-from their fee structure to their partnership expansion-you need to look past the headlines and examine the core levers they are pulling. Below, we'll dissect the Product, Place, Promotion, and Price that solidify HealthEquity, Inc.'s position as the largest HSA custodian.

HealthEquity, Inc. (HQY) - Marketing Mix: Product

You're looking at the core offerings HealthEquity, Inc. puts in front of its clients and members. The product element here is entirely service and platform-based, focused on managing tax-advantaged healthcare spending.

Health Savings Accounts (HSAs) are the bedrock of HealthEquity, Inc.'s product suite. As of October 31, 2025, the total number of Health Savings Accounts (HSAs) for which HealthEquity served as a non-bank custodian totaled over 10.1 million accounts, marking a 6% increase year over year. This core offering is supported by a significant asset base.

The product line extends beyond just HSAs to include Complementary Consumer-Directed Benefits (CDBs). These CDBs encompass services like Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and COBRA administration. HealthEquity reported that Total Accounts, as of October 31, 2025, reached 17.3 million, which included 7.2 million of these complementary CDBs.

Here's a quick look at the key product metrics as of the end of the third quarter of fiscal 2026:

Technological innovation is integral to the HealthEquity, Inc. product experience, especially in driving efficiency. The platform features AI-powered member support, building on existing tools like the HSAnswers educational resource. Furthermore, the Expedited Claims tool uses AI to streamline reimbursement processing. This technology has delivered a 66% reduction in claims processing time, and members save an average of 70% of the time typically spent on claims entry and processing. For over 60% of claims, the processing time is now under two minutes, up from approximately two business days. Member satisfaction related to reimbursement has risen 18% since deployment.

The product ecosystem is also evolving through marketplace expansion to address broader employer needs. HealthEquity expanded its digital marketplace to offer GLP-1 programs, integrating these HSA-eligible wellness solutions directly for employers. This move helps connect members with affordable healthcare options like GLP-1 weight management medications through a dedicated platform.

The value proposition is clearly tied to the growth of assets under administration. Total HSA assets reached over $34.4 billion as of October 31, 2025. This total asset base is split between:

• HSA Investments: $17.5 billion.
• HSA Cash: $16.9 billion.
• HSA accounts with investments: 802,000.

Finance: draft 13-week cash view by Friday.

HealthEquity, Inc. (HQY) - Marketing Mix: Place

HealthEquity, Inc.'s Place strategy centers on its massive, established network and its digital accessibility, ensuring its services reach consumers where they receive their benefits or seek them out directly. The company's primary distribution channel remains its integrated network of partners, which includes enterprise and regional employers, benefits advisors, health plans, and retirement plan recordkeepers. You know this is the core engine, as the CEO noted that the majority of business comes through these partners.

To illustrate the scale of this distribution, as of October 31, 2025, HealthEquity, Inc. administered 17.3 million Total Accounts nationally. This total is comprised of a significant base of Health Savings Accounts (HSAs) and Consumer Directed Benefits (CDBs). The company operates nationally, leveraging its position as the largest HSA custodian in the United States.

The distribution footprint was immediately deepened by the acquisition of the BenefitWallet HSA portfolio in the first half of fiscal 2025. This transaction added 616,000 HSAs plus other accounts and approximately $2.7 billion of HSA Assets. This move solidified the company's market reach, building upon its position where it held a 21% market share of HSA Assets as of December 2024.

Digital channels are critical for transaction execution and new member acquisition. All transactions are managed through the intuitive HealthEquity app and web portal. To capture new direct-to-consumer growth, the company launched a new direct HSA enrollment platform, which offers a streamlined digital experience for individuals to open and fund HSAs directly.

This digital push directly supports the expanding retail channel focus targeting new members via ACA exchanges. Management is investing in marketing to educate potential members about HSA eligibility, specifically for those choosing Bronze plans on the ACA exchanges, which represents a large new opportunity. The company is working to support this by continuing to invest in sales and marketing efforts aimed at driving HSA adoption on these exchanges.

HealthEquity, Inc. (HQY) - Marketing Mix: Promotion

Strategic focus is on the 3Ds: Deepen partnerships, Deliver experiences, Drive outcomes.

HealthEquity, Inc. appointed Mukund Ramachandran as Chief Marketing Officer and Garett Kitch as Senior Vice President of Client Sales & Relationship Management, effective September 29, 2025. This executive restructuring is timed to capitalize on the largest HSA eligibility expansion in 20 years.

Marketing capitalizes on the 2026 HSA eligibility expansion for ACA Bronze plans, which become HSA-compatible beginning January 1, 2026. With over 7 million people currently enrolled in Bronze plans, approximately 90% of whom were previously ineligible for HSAs, HealthEquity, Inc. is positioned to capture this market shift. The company launched a new direct HSA enrollment platform to support this retail opportunity.

Targeted campaigns include a $25 account match to drive retail adoption. This incentive is offered when new members make a contribution to their Health Savings Account (HSA). The third quarter of fiscal 2026 saw Team Purple open approximately 175,000 new HSAs from sales in the quarter.

Investments in security and mobile experience deliver a Member First brand promise. The company continues to invest in security measures, reporting fraud costs in the third quarter totaled approximately $0.3 million, which is well below their run rate target of 1 basis point of total HSA assets per year.

The results of the strategic focus and promotional activities are reflected in the third quarter fiscal 2026 performance metrics:

The company's fiscal 2026 revenue guidance is now projected to be between $1.302 billion and $1.312 billion.

The promotional strategy utilizes multiple channels, as evidenced by the revenue breakdown for the third quarter ended October 31, 2025:

• Service revenue: $120.3 million
• Custodial revenue: $159.1 million
• Interchange revenue: $42.8 million

HealthEquity, Inc. returned $93.7 million to shareholders through stock repurchases during the third quarter ended October 31, 2025.

HealthEquity, Inc. (HQY) - Marketing Mix: Price

Revenue is diversified across three streams, totaling $1.20 billion in fiscal year 2025.

Custodial revenue, the largest stream, was $545.4 million in FY2025, driven by interest rates.

Service revenue accounted for $478.3 million and Interchange revenue for $176.0 million in FY2025.

Pricing model includes administrative fees, often employer-paid, and investment fees.

Investment fees cap at 0.36% annually for self-directed balances, or 0.60% for Advisor services.

Here's the quick math on the revenue streams for fiscal year 2025:

The investment fee structure for members choosing advisory services is detailed below:

• Investment administration fee: 0.03% per month (0.36% annually).
• Monthly fee cap for investment administration: $10.00.
• Advisor services annual advisory fee: 0.60% annually.
• Monthly fee cap for Advisor services: $15.00.
• Average annual mutual fund fees and expenses: 0.071%.

For account holder fees, which may be employer-paid or billed directly to the account holder depending on the plan, specific amounts apply: