v3.25.1

Intangible assets and goodwill | 12 Months Ended
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Jan. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible assets and goodwill | Intangible assets and goodwill BenefitWallet HSA portfolio acquisition During the fiscal year ended January 31, 2025, the Company acquired the BenefitWallet HSA portfolio from Conduent Business Services, LLC ("Conduent"). The transfer closed in a series of three tranches, as follows:
| Transfers to HealthEquity |  | Applicable purchase price
(in thousands, except HSA Assets) | HSAs |  | HSA Assets (in millions) |  | Paid using cash on hand |  | Paid using borrowings under the Prior Revolving Credit Facility |  | Total purchase price
March 7, 2024 | 266 |  | $ | 1,071 |  |  | $ | 163,974 |  |  | $ | — |  |  | $ | 163,974 |
April 11, 2024 | 134 |  | 555 |  |  | 34,925 |  |  | 50,000 |  |  | 84,925 |
May 9, 2024 | 216 |  | 1,047 |  |  | 1,101 |  |  | 175,000 |  |  | 176,101 |
Total | 616 |  | $ | 2,673 |  |  | $ | 200,000 |  |  | $ | 225,000 |  |  | $ | 425,000 |
The acquisition was accounted for as an asset acquisition, and related acquisition costs were capitalized as part of the cost of the asset, which is included within intangible assets, net, on the Company's consolidated balance sheet. The Company capitalized $27.2 million of transaction costs associated with the acquisition during the fiscal year ended January 31, 2025, which includes the reimbursement of $20.0 million of Conduent's transfer-related expenses. In addition, in May 2024, the Company assumed a contract with a depository partner representing approximately 7% of the total HSA Assets added through the acquisition, which provides a custodial yield that is below current market rates and expires in June 2026. The Company recorded deferred revenue of $20.3 million in May 2024 as a result of the assumed contract, which will be recorded as an increase to custodial revenue over the life of the assumed contract. Intangible assets The gross carrying amount and associated accumulated amortization of intangible assets were as follows:
| January 31, 2025
(in thousands) | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount
Amortizable intangible assets: |  |  |  |  |
Software and software development costs | $ | 312,234 |  |  | $ | (234,102) |  |  | $ | 78,132 |
Acquired HSA portfolios | 737,011 |  |  | (124,606) |  |  | 612,405 |
Acquired customer relationships | 759,782 |  |  | (256,820) |  |  | 502,962 |
Acquired developed technology | 132,825 |  |  | (121,666) |  |  | 11,159 |
Acquired trade names | 12,900 |  |  | (12,900) |  |  | — |
Total amortizable intangible assets | $ | 1,954,752 |  |  | $ | (750,094) |  |  | $ | 1,204,658 |
| January 31, 2024
(in thousands) | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount
Amortizable intangible assets: |  |  |  |  |
Software and software development costs | $ | 267,498 |  |  | $ | (197,388) |  |  | $ | 70,110 |
Acquired HSA portfolios | 264,445 |  |  | (81,059) |  |  | 183,386 |
Acquired customer relationships | 759,782 |  |  | (205,127) |  |  | 554,655 |
Acquired developed technology | 132,825 |  |  | (105,049) |  |  | 27,776 |
Acquired trade names | 12,900 |  |  | (12,879) |  |  | 21 |
Total amortizable intangible assets | $ | 1,437,450 |  |  | $ | (601,502) |  |  | $ | 835,948 |
During the fiscal years ended January 31, 2025 and 2024, the Company capitalized $472.6 million and $3.3 million, respectively, to acquire the rights to act as a custodian of HSA portfolios. Amortization expense for the fiscal years ended January 31, 2025, 2024, and 2023 was $157.8 million, $144.3 million and $148.9 million, respectively. Estimated amortization expense for the fiscal years ending January 31 is as follows:
Year ending January 31, (in thousands) |
2026 | $ | 146,511 |
2027 | 129,812 |
2028 | 111,644 |
2029 | 98,155 |
2030 | 97,130 |
Thereafter | 621,406 |
Total | $ | 1,204,658 |
Goodwill The Company’s annual goodwill impairment test resulted in no impairment charges in any of the periods presented in the accompanying consolidated financial statements. There were no changes to the carrying value of goodwill during the fiscal years ended January 31, 2025 or 2024.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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