HQY: 2026 RBC Fintech Conference: Steady HSA Growth, Marketplace Gaining Traction

Research evidence excerpt

HQY: 2026 RBC Fintech Conference: Steady HSA Growth, Marketplace Gaining Traction

balize the core business as they are earning more

than what they lose on the custodial side.

Regulatory Tailwinds Unlikely Near-Term Despite "HSA for All" Rhetoric - While the current Republican administration has "HSA

for All" as a healthcare priority, mgmt was realistic about the legislative path forward, noting they "wouldn't put a huge percentage

chance on that" given what's happening in DC. Decoupling plan design from HSA availability would be massive for HQY. The ACA

bronze plan expansion adds an estimated ~4m HSA eligible accounts to the TAM, out of the total 9mm ACA bronze plan covered

lives, but mgmt expects a slow uptake as it requires integrated offerings through their 200 health plan channel partners. We believe

HQY is working with these health plan channel partners to more effectively position HSA accounts during the next enrollment

period on Jan 1, 2027.

Service Cost Efficiencies Focused on Unit Economics, Not Just Headcount - Of HQY's ~$300m in service costs, ~$100m is call center-

focused, with the remaining split between employer services and back office. Mgmt emphasized their AI automation strategy is

less about handling calls with AI and more about eliminating calls by improving self-service capabilities, as calls remain ~90% of

service touches despite being the most expensive channel. Importantly, mgmt noted they're focused on driving unit costs down

rather than being beholden to absolute numbers. We believe there's meaningful opportunity to scale back on outsourced call

center operations to improve margins.

Competitive Market Remains Rational With Limited True Competitors - Mgmt characterized the market as "almost a 2 horse