Healthequity, Inc. (HQY)

Price$96.07Cached quoteAs of 2026-09-05 02:54 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash growth is offset by demanding profit expectations.

At the observed market value, HealthEquity is worth about 32 times management’s fiscal 2027 expected reported earnings and about 20 times adjusted earnings, which exclude items including stock compensation and acquired-asset amortization. Fiscal 2026 operating cash flow was $457 million and capital spending was only $2 million, leaving roughly $455 million of free cash flow, meaning cash left after running and investing in the business. That is about 17 times the company’s market value, or roughly 20 times after treating stock compensation as a real owner cost.

Big pictureRevenue growth is steady, but profit growth has been much faster as costs scale better.

Revenue rose from $734 million in fiscal 2021 to $1.31 billion in fiscal 2026, while operating income climbed from $34 million to $322 million and net income reached $215 million. Operating cash flow also increased to $457 million from $182 million. The main weak spot is rate sensitivity: custodial revenue was $637 million, almost half of fiscal 2026 revenue, and benefited from higher yields on member cash. A sustained fall in interest rates can reduce that income, although longer-term partner contracts and hedges soften the near-term effect.

Business strengthDebt looks manageable, and company share purchases are now reducing dilution from employee awards.

At fiscal 2026 year-end, HealthEquity held $319 million of cash against $957 million of debt, leaving about $638 million of debt after subtracting cash. Current assets of $512 million were more than three times current liabilities, and annual operating cash flow covered nearly half the debt load. The company spent about $299 million repurchasing shares, while shares outstanding fell from 86.5 million to 85.0 million. Stock compensation was still $73 million. Goodwill, the acquisition value above identifiable assets, was $1.65 billion, so tangible downside protection is thinner than total equity suggests.

What could change the storyAccount growth and interest rates will decide whether the shares justify their price or become expensive.

The bull case is continued compounding: second-quarter HSA assets reached $37.9 billion, up 14%, HSA accounts rose 8%, and new HSA sales rose 24%. Adjusted EBITDA margin—a measure of operating profit before interest, taxes, depreciation, amortization and several excluded costs—reached 48%. The bear case is that revenue still grew only 8% and roughly half the business depends on interest-sensitive custodial income. Management expects fiscal 2027 reported earnings of $2.88 to $2.96 per share. Faster account growth or durable mid-40s margins strengthen the valuation case; weaker yields or stalled margins weaken it.

AI: News

Second-quarter outlook disappointmentSecond-quarter results beat expectations, but the raised outlook was too small to satisfy investors.

On August 27, HealthEquity reported second-quarter revenue of $350.7 million, up 8%, and net income of $65.6 million, up 10%. HSA assets grew 14% to $37.9 billion, while management lifted full-year revenue guidance only slightly and kept adjusted earnings guidance at $4.66 to $4.73 per share. The shares fell 10.6% that day. The timing strongly suggests investors wanted a bigger outlook increase, although price timing alone cannot prove the earnings release caused the entire decline.

Buyback capacity expandedThe company authorized far more stock purchases, showing confidence and helping offset shares issued to employees.

On May 28, first-quarter results showed revenue up 7% to $354.6 million and net income up 29% to $69.4 million. HealthEquity also added $1.0 billion to its share repurchase authorization after buying about $123 million of stock during the quarter. That matters because stock-based compensation remains meaningful, so repurchases can protect each remaining shareholder’s ownership percentage. The move was supportive, but its value depends on buying shares at sensible prices rather than simply spending the authorization.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Revenue	$1.31B	$1.20B	$999.6M	$861.7M	$756.6M	$733.6M	$532.0M	$287.2M	$229.5M	$178.4M	$126.8M	$87.9M	$62.0M	$46.1M
Gross profit	$913.1M	$777.3M	$622.6M	$491.9M	$424.8M	$415.3M	$325.9M	$181.2M	$134.9M	$106.4M	$72.6M	$48.0M	$32.8M	$24.1M
Gross margin	69.52%	64.78%	62.29%	57.09%	56.14%	56.62%	61.26%	63.08%	58.78%	59.63%	57.26%	54.60%	52.89%	52.33%
Research & development	$262.5M	$239.5M	$218.8M	$193.4M	$157.4M	$124.8M	$77.6M	$35.1M	$27.4M	$22.4M	$16.8M	$10.5M	$7.1M	$4.2M
Operating expenses	$590.7M	$614.9M	$504.9M	$482.9M	$449.0M	$381.3M	$248.9M	$103.5M	$80.5M	$65.1M	$46.5M	$31.1M	$21.3M	$17.0M
Operating income	$322.5M	$162.3M	$117.7M	$9.1M	−$24.2M	$34.0M	$77.0M	$77.7M	$54.4M	$41.2M	$26.1M	$16.9M	$11.5M	$7.1M
Operating margin	24.55%	13.53%	11.77%	1.05%	−3.20%	4.64%	14.48%	27.04%	23.71%	23.10%	20.62%	19.21%	18.58%	15.39%
EBITDA	$477.1M	$324.8M	$270.8M	$170.3M	$113.0M	$149.9M	$132.4M	$95.9M	$70.4M	$54.4M	$34.7M	$22.8M	$15.8M	$10.5M
EBITDA margin	36.33%	27.07%	27.09%	19.76%	14.93%	20.44%	24.88%	33.37%	30.66%	30.50%	27.40%	25.91%	25.47%	22.69%
Net income	$215.2M	$96.7M	$55.7M	−$26.1M	−$44.3M	$8.8M	$39.7M	$73.9M	$47.4M	$26.4M	$16.6M	$10.2M	$1.2M	$11.2M
Net profit margin	16.38%	8.06%	5.57%	−3.03%	−5.85%	1.20%	7.46%	25.73%	20.63%	14.79%	13.10%	11.57%	1.99%	24.23%
Basic EPSper basic share	$2.50	$1.11	$0.65	-$0.31	-$0.53	$0.12	$0.59	$1.20	$0.79	$0.45	$0.29	$0.39	-$1.26	$0.81
Diluted EPSper diluted share	$2.46	$1.09	$0.64	-$0.31	-$0.53	$0.12	$0.58	$1.17	$0.77	$0.44	$0.28	$0.21	-$1.26	$0.25

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈13.49%of listed shares

BlackRock, Inc.11.28M shares · Jun 30, 2026

View holders

Top 20 reported holders of HQY
Holder	% owned
BlackRock, Inc.	≈13.49%11.28M shares
WASATCH ADVISORS LP	≈9.52%7.96M shares
MORGAN STANLEY	≈5.44%4.55M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈4.85%4.06M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.35%3.64M shares
STATE STREET CORP	≈3.88%3.24M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.84%2.37M shares
AQR CAPITAL MANAGEMENT LLC	≈2.39%2M shares
DIMENSIONAL FUND ADVISORS LP	≈2.24%1.87M shares
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	≈2.12%1.77M shares
FMR LLC	≈1.84%1.54M shares
BROWN ADVISORY INC	≈1.64%1.37M shares
Clearbridge Investments, LLC	≈1.55%1.3M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈1.42%1.19M shares
Greenhouse Funds LLLP	≈1.42%1.18M shares
JPMORGAN CHASE & CO	≈1.39%1.16M shares
GENEVA CAPITAL MANAGEMENT LLC	≈1.38%1.15M shares
BANK OF AMERICA CORP /DE/	≈1.37%1.15M shares
DAVENPORT & Co LLC	≈1.30%1.09M shares
NORTHERN TRUST CORP	≈1.28%1.07M shares

Percentages use 83.6M shares of this listed class outstanding on May 20, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)55$52.11M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 29, 2026Form 4 · 10b5-1	Fiore Michael HenryEVP, CHIEF COMMERCIAL OFFICER	SellCommon Stock	3.1K	$95.00	$298.5K	59.1K
May 28, 2026Form 4 · 10b5-1	Wellborn Gayle FurgursonDirector	SellCommon Stock	2.4K	$90.00	$219.5K	19.7K
May 28, 2026Form 4 · 10b5-1	Ladd DelanoEVP, General Counsel	SellCommon Stock	7.5K	$90.00	$675.0K	91.1K
Dec 19, 2025Form 4 · 10b5-1	Ladd DelanoEVP, General Counsel	SellCommon Stock	1.5K	$94.72	$142.1K	74.0K
Dec 18, 2025Form 4	Rosner ElimelechEVP, CHIEF TECHNOLOGY OFFICER	SellCommon Stock	11.0K	$95.45	$1.05M	45.7K

Review ownership filings at SEC.gov ↗

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Healthequity, Inc. (HQY)

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