v3.26.1
Derivative financial instruments and hedging activities
 3 Months Ended
Apr. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative financial instruments and hedging activities Derivative financial instruments and hedging activities
Yields paid by the Company's insurance company partners and depository partners are impacted by the prevailing interest rate environment at the time HSA cash is placed with those partners. The Company uses Treasury bond forwards to hedge a portion of the benchmark interest rate risk of expected future placements of HSA cash. These derivatives involve the Company and its counterparty agreeing to fix the price of a specified Treasury bond on a future date, ranging from June 2026 to January 2029, resulting in cash settlement for the difference between the fixed price and the market price on that date. The parties may elect net settlement of multiple transactions under certain conditions; however, the Company presents its derivative assets and liabilities on a gross basis on its condensed consolidated balance sheets. The gain or loss on the derivative is recorded in AOCI and subsequently reclassified into custodial revenue in the same periods during which the hedged transaction affects custodial revenue earned from the Company's insurance company partners and depository partners. As of April 30, 2026, each of the Company's derivatives was designated as a cash flow hedge.
As of the April 30, 2026, the weighted average interest rate indicated by the Company's Treasury bond forwards was 3.91%.
Notional amount of derivative contracts
The notional amount of the Company's derivative instruments was as follows:
(in thousands, except
number of instruments)		April 30, 2026January 31, 2026
Number of instrumentsNotionalNumber of instrumentsNotional
Treasury bond forwards26$3,495,000 18$2,350,000 
Fair value of derivative contracts
The tables below present the fair value of the Company’s derivatives as well as their classification in the condensed consolidated balance sheet.
April 30, 2026
Derivative assetsDerivative liabilities
(in thousands)Other current assetsOther assetsAccrued liabilitiesOther long-term liabilities
Treasury bond forwards$666 $— $(19,387)$(27,161)
January 31, 2026
Derivative assetsDerivative liabilities
(in thousands)Other current assetsOther assetsAccrued liabilitiesOther long-term liabilities
Treasury bond forwards$— $3,285 $(6,935)$(7,997)
Effect of derivatives on the condensed consolidated financial statements
The pre-tax losses on the Company's cash flow hedges recognized in AOCI were as follows:
Three months ended April 30,
(in thousands)20262025
Treasury bond forwards$34,312 $— 
Total amounts presented in the condensed consolidated statements of operations
Three months ended April 30,
20262025
(in thousands)Custodial revenueIncome tax provisionTotal reclassificationsCustodial revenueIncome tax provisionTotal reclassifications
Treasury bond forwards
Amount of gains reclassified from AOCI$196 $(48)$148 $— $— $— 
As of April 30, 2026, the estimated amount of AOCI that is expected to be reclassified into earnings within the next 12 months is a net loss of $1.2 million.