3 unchanged sentences
A significant downturn in this market or changes in state and/or federal laws impacting the preferential tax treatment of healthcare accounts such as HSAs could have a material adverse effect on our results of operations.
−Removed: During the fiscal years ended January 31, 2025, 2024, and 2023, no customer accounted for greater than 10% of our total revenue.
+Added: During the fiscal years ended January 31, 2026, 2025, and 2024, no single customer accounted for greater than 10% of our total revenue.
We monitor market and regulatory changes regularly and make adjustments to our business if necessary.
2 unchanged sentences
Concentration of credit risk
−Removed: Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents.
+Added: Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, accounts receivable, and derivatives.
We maintain our cash and cash equivalents in bank and other depository accounts, which frequently exceed federally insured limits.
3 unchanged sentences
We have not experienced any significant write-offs to our accounts receivable and believe that we are not exposed to significant credit risk with respect to our accounts receivable.
−Removed: We continue to monitor our credit risk and place our cash and cash equivalents with reputable financial institutions.
+Added: Our derivative contracts are executed with a reputable financial institution, and we do not believe our derivative contracts expose us to significant credit risk.
+Added: We continue to monitor the credit risk associated with our financial instruments on an ongoing basis.
Interest rate risk
2 unchanged sentences
As of January 31, 2026 and 2025, we held in custody HSA Assets of $36.5 billion and $32.1 billion, respectively.
−Removed: As a non-bank custodian, we contract with our Depository Partners and insurance company partners to hold HSA cash on behalf of our members, and we earn a significant portion of our total revenue from interest paid to us by these partners.
+Added: As a non-bank custodian, we contract with our insurance company partners and Depository Partners to hold HSA cash on behalf of our members, and we earn a significant portion of our total revenue from interest paid to us by these partners.
HSA cash held by our insurance company partners is held in group annuity contracts or similar arrangements.
The lengths of our agreements with Depository Partners typically range from three to five years and have either fixed or variable interest rates.
−Removed: As HSA Assets increase and existing contracts with Depository Partners expire, we seek to enter into new contracts with Depository Partners and insurance company partners, the terms of which are impacted by the then-prevailing interest rate environment.
−Removed: We believe that increased participation in our Enhanced Rates offering, diversification of Depository Partners and insurance company partners, and varied contract terms, substantially reduces our exposure to short-term fluctuations in prevailing interest rates and mitigates the short-term impact of a sustained increase or decline in prevailing interest rates on our custodial revenue.
+Added: As HSA Assets increase and existing contracts with Depository Partners continue to expire, we seek to enter into new contracts with insurance company partners and Depository Partners, the terms of which are impacted by the then-prevailing interest rate environment.
+Added: We believe that increased participation in our Enhanced Rates offering, diversification of insurance company partners and Depository Partners, and varied contract terms, substantially reduces our exposure to short-term fluctuations in prevailing interest rates and mitigates the short-term impact of a sustained increase or decline in prevailing interest rates on our custodial revenue.
A sustained decline in prevailing interest rates may negatively affect our business by reducing the size of the interest rate yield, or yield, available to us and thus the amount of the custodial revenue we can realize.
1 unchanged sentence
An increase in our yield would increase our custodial revenue as a percentage of total revenue.
−Removed: In addition, if our yield increases, we expect the spread to also increase between the interest offered to us by our Depository Partners and insurance company partners and the interest retained by our members, thus increasing our profitability.
+Added: In addition, if our yield increases, we expect the spread to also increase between the interest offered to us by our insurance company partners and Depository Partners and the interest retained by our members, thus increasing our profitability.
However, we may be required to increase the interest retained by our members in a rising prevailing interest rate environment.
Changes in prevailing interest rates are driven by macroeconomic trends and government policies over which we have no control.
+Added: We have entered into derivative contracts to hedge a portion of the benchmark interest rate risk of expected future placements of HSA cash;
+Added: however, we continue to have exposure to such risks to the extent they are not hedged.
+Added: See Note 11—Derivative financial instruments and hedging activities to our consolidated financial statements for further information.
Client-held funds are interest earning deposits from which we generate custodial revenue.
13 unchanged sentences
Long-term debt.
−Removed: As of January 31, 2025 and 2024, we had $461.9 million and $286.9 million, respectively, outstanding under our Revolving Credit Facility and our Prior Credit Facilities, respectively.
+Added: As of January 31, 2026 and 2025, we had $361.9 million and $461.9 million, respectively, outstanding under our Revolving Credit Facility.
The stated interest rate on our Revolving Credit Facility is variable and was 5.02% as of January 31, 2026.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.