HealthEquity (NASDAQ:HQY) posted solid results in its third quarter, surpassing analyst estimates for both earnings and revenue, but the company’s stock reagrdedly dropped almost 7% in after-hours trading last night.

The latest quarter revealed adjusted earnings of $0.78 per share, compared to a Street consensus of $0.72. Revenue increased by 21% year-over-year to $300.4 million, outpacing projections of $289.92 million. Notably, the company reached new records for health savings accounts (HSAs), HSA assets, total accounts, and revenue.

By the quarter’s end, the number of HSAs surged to 9.5 million, reflecting a 15% year-over-year uptick. Total HSA assets displayed even stronger growth, soaring by 33% year-over-year to $30 billion.

Looking forward, HealthEquity forecasts fiscal 2025 revenue between $1.185 billion and $1.195 billion, with adjusted earnings per share predicted to be between $3.08 and $3.16. Furthermore, the company has extended its early outlook for fiscal 2026, projecting revenue between $1.275 billion and $1.295 billion.