olivLaw · US equity research
HealthEquity, Inc. HQY
Services-Business Services, NEC · SIC 7389 · Vertical: Services-Business Services, NEC (SIC 7389)
HealthEquity administers health savings accounts (HSAs) and other employer-funded consumer benefits that help people save, spend and invest healthcare dollars. In the second quarter of fiscal 2027 it reported revenue of 350.7 million USD and HSA Assets of 37.9 billion USD, and rising demand for consumer-directed healthcare keeps its position relevant.
At the close of 04 Nov 2026, HealthEquity, Inc. (HQY) stock was 108.84 USD (+6.67% on the day), with market capitalisation 9.0 bn USD, P/E 39.4 on diluted EPS of 2.76 USD over the last 12 months, beta 0.84, 52-week range 73.21–108.84 USD. Latest reported quarter (Q2 2027): revenue of 350.7 m USD (+7.6% YoY), net income of 65.6 m USD (+9.7% YoY), diluted EPS 0.78 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 73.0
- overbought (≥ 70)
- Bollinger (20, 2)
- 86.98 – 108.93
- in the upper half of the band · %B 1.00 · band width 22.4%
- SMA 50 / 200
- 95.34 / 89.30
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 3.08 / 2.13
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +18.9% | −1.1% | +20.0 pp | — |
| 3 months | +4.2% | −0.5% | +4.7 pp | — |
| 6 months | +30.7% | +4.4% | +26.3 pp | — |
| Year to date | +18.8% | +12.3% | +6.5 pp | — |
| 1 year | +14.5% | +13.5% | +1.0 pp | −4.0% |
| 3 years | +69.7% | +76.4% | −6.7 pp | −2.3% |
| 5 years | +59.5% | +63.7% | −4.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 31 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 300.4 m | 311.8 m | 330.8 m | 325.8 m | 322.2 m | 334.6 m | 354.6 m | 350.7 m |
| Cost of revenue | 103.4 m | 122.8 m | 106.5 m | 93.2 m | 94.1 m | 106.4 m | 98.3 m | 92.8 m |
| Gross profit | 197.0 m | 189.0 m | 224.3 m | 232.6 m | 228.1 m | 228.1 m | 256.3 m | 258.0 m |
| Research & development | 60.2 m | 64.7 m | 61.4 m | 64.8 m | 65.9 m | 70.4 m | 67.8 m | 73.9 m |
| Operating income | 19.6 m | 42.2 m | 83.1 m | 89.6 m | 78.7 m | 71.1 m | 103.0 m | 98.7 m |
| Depreciation & amortisation | 40.7 m ≈ | 39.2 m | 38.7 m | 38.5 m ≈ | 38.8 m ≈ | 38.7 m | 38.2 m | 42.0 m ≈ |
| Interest expense | 18.2 m | 15.3 m | 14.9 m | 15.0 m | 14.0 m | 13.3 m | 12.6 m | 12.6 m |
| Pre-tax income | 6.2 m | 30.0 m | 71.0 m | 78.0 m | 67.5 m | 60.9 m | 92.4 m | 87.9 m |
| Income tax | 515.0 k | 3.6 m | 17.0 m | 18.2 m | 15.8 m | 11.2 m | 23.0 m | 22.2 m |
| Net income | 5.7 m | 26.4 m | 53.9 m | 59.9 m | 51.7 m | 49.7 m | 69.4 m | 65.6 m |
| Diluted EPS | 0.06 | 0.30 ≈ | 0.61 | 0.68 | 0.59 | 0.57 ≈ | 0.82 | 0.78 |
| Operating cash flow | 90.6 m ≈ | 75.7 m | 64.7 m | 135.9 m ≈ | 138.6 m ≈ | 117.9 m | 97.5 m | 136.2 m ≈ |
| Capex | 294.0 k ≈ | 328.0 k | 86.0 k | 773.0 k ≈ | 784.0 k ≈ | 326.0 k | 362.0 k | 978.0 k ≈ |
| Share repurchases | 58.5 m ≈ | 63.0 m | 59.1 m | 66.7 m ≈ | 92.4 m ≈ | 81.0 m | 123.3 m | 107.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 9 percentile of its own 32-quarter history (min 30.8, median 77.2, max 9,025.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 287.2 m | 532.0 m | 733.6 m | 756.6 m | 861.7 m | 999.6 m | 1.2 bn | 1.3 bn |
| Revenue YoY | +25.1% | +85.2% | +37.9% | +3.1% | +13.9% | +16.0% | +20.0% | +9.5% |
| Net income | 73.9 m | 39.7 m | 8.8 m | -44.3 m | -26.1 m | 55.7 m | 96.7 m | 215.2 m |
| Net income YoY | +56.0% | −46.3% | −77.7% | −601.3% | unavailable | unavailable | +73.6% | +122.5% |
| Diluted EPS | 1.17 | 0.58 | 0.12 | -0.53 | -0.31 | 0.64 | 1.09 | 2.46 |
| Diluted EPS YoY | +51.9% | −50.4% | −79.3% | −541.7% | unavailable | unavailable | +70.3% | +125.7% |
| net % | 25.7% | 7.5% | 1.2% | -5.9% | -3.0% | 5.6% | 8.1% | 16.4% |
| Free cash flow | 109.6 m | 97.7 m | 168.5 m | 132.1 m | 147.3 m | 241.1 m | 337.8 m | 455.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Jan 2026
- Cash
- 318.9 m USD
- Financial debt
- 957.4 m USD
- Net debt
- 638.5 m USD
- Equity
- 2.1 bn USD
- Total assets
- 3.4 bn USD
- Debt / equity
- 0.45x
- Current ratio
- 3.27x
- ROE
- 10.2%
- ROA
- 6.3%
- FCF margin
- 34.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 733.6 m | 756.6 m | 861.7 m | 999.6 m | 1.2 bn | 1.3 bn | SEC (XBRL)· 17 Mar 2026verified |
| Cost of revenue | 318.2 m | 331.8 m | 369.8 m | 377.0 m | 422.5 m | 400.3 m | SEC (XBRL)· 17 Mar 2026verified |
| Gross profit | 415.3 m | 424.8 m | 491.9 m | 622.6 m | 777.3 m | 913.1 m | SEC (XBRL)· 17 Mar 2026verified |
| Research & development | 124.8 m | 157.4 m | 193.4 m | 218.8 m | 239.5 m | 262.5 m | SEC (XBRL)· 17 Mar 2026verified |
| Operating income | 34.0 m | -24.2 m | 9.1 m | 117.7 m | 162.3 m | 322.5 m | SEC (XBRL)· 17 Mar 2026verified |
| Depreciation & amortisation | 115.9 m | 137.2 m | 161.2 m | 153.1 m | 162.5 m | 154.7 m | SEC (XBRL)· 17 Mar 2026verified |
| EBITDA | 149.9 m ≈ | 113.0 m ≈ | 170.3 m ≈ | 270.8 m ≈ | 324.8 m ≈ | 477.1 m ≈ | SEC (XBRL)· 17 Mar 2026derived |
| Interest expense | 34.9 m | 36.6 m | 48.4 m | 55.5 m | 60.6 m | 57.1 m | SEC (XBRL)· 17 Mar 2026verified |
| Pre-tax income | 4.1 m | -66.7 m | -38.1 m | 75.0 m | 116.0 m | 277.4 m | SEC (XBRL)· 17 Mar 2026verified |
| Income tax | -4.7 m | -22.5 m | -12.0 m | 19.3 m | 19.3 m | 62.2 m | SEC (XBRL)· 17 Mar 2026verified |
| Net income | 8.8 m | -44.3 m | -26.1 m | 55.7 m | 96.7 m | 215.2 m | SEC (XBRL)· 17 Mar 2026verified |
| Diluted EPS | 0.12 | -0.53 | -0.31 | 0.64 | 1.09 | 2.46 | SEC (XBRL)· 17 Mar 2026verified |
| Weighted average diluted shares | 75.7 m | 83.1 m | 84.4 m | 87.0 m | 88.8 m | 87.5 m | SEC (XBRL)· 17 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 328.8 m | 225.4 m | 254.3 m | 404.0 m | 295.9 m | 318.9 m | SEC (XBRL)· 17 Mar 2026verified |
| Receivables | 72.8 m | 87.4 m | 96.8 m | 104.9 m | 118.0 m | 123.7 m | SEC (XBRL)· 17 Mar 2026verified |
| Current assets | 460.2 m | 351.3 m | 382.9 m | 557.4 m | 477.7 m | 512.3 m | SEC (XBRL)· 17 Mar 2026verified |
| Property, plant & equipment, net | 29.1 m | 23.4 m | 12.9 m | 6.0 m | 3.2 m | 3.2 m | SEC (XBRL)· 17 Mar 2026verified |
| Goodwill | 1.3 bn | 1.6 bn | 1.6 bn | 1.6 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 17 Mar 2026verified |
| Intangibles (excl. goodwill) | 767.0 m | 973.1 m | 936.4 m | 835.9 m | 1.2 bn | 1.1 bn | SEC (XBRL)· 17 Mar 2026verified |
| Total assets | 2.7 bn | 3.1 bn | 3.1 bn | 3.2 bn | 3.4 bn | 3.4 bn | SEC (XBRL)· 17 Mar 2026verified |
| Accounts payable | 1.6 m | 27.5 m | 13.9 m | 12.0 m | 14.4 m | 12.2 m | SEC (XBRL)· 17 Mar 2026verified |
| Short-term debt | 62.5 m | 8.8 m | 17.5 m | 0 | 0 | 0 | SEC (XBRL)· 17 Mar 2026verified |
| Long-term debt | 924.2 m | 922.1 m | 907.8 m | 875.0 m | 1.1 bn | 957.4 m | SEC (XBRL)· 17 Mar 2026verified |
| Current liabilities | 204.7 m | 153.2 m | 131.1 m | 117.1 m | 156.3 m | 156.9 m | SEC (XBRL)· 17 Mar 2026verified |
| Total liabilities | 1.3 bn | 1.3 bn | 1.2 bn | 1.1 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 17 Mar 2026verified |
| Equity | 1.4 bn † | 1.9 bn † | 1.9 bn † | 2.0 bn † | 2.1 bn † | 2.1 bn † | SEC (XBRL)· 17 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 181.6 m | 141.0 m | 150.7 m | 242.8 m | 339.9 m | 457.1 m | SEC (XBRL)· 17 Mar 2026verified |
| Capex | 13.1 m | 8.9 m | 3.4 m | 1.7 m | 2.1 m | 2.0 m | SEC (XBRL)· 17 Mar 2026verified |
| Free cash flow | 168.5 m ≈ | 132.1 m ≈ | 147.3 m ≈ | 241.1 m ≈ | 337.8 m ≈ | 455.1 m ≈ | SEC (XBRL)· 17 Mar 2026derived |
| Investing cash flow | -97.0 m | -639.2 m | -119.1 m | -46.1 m | -505.5 m | -47.1 m | SEC (XBRL)· 17 Mar 2026verified |
| Financing cash flow | 52.4 m | 394.9 m | -2.7 m | -47.0 m | 57.6 m | -387.0 m | SEC (XBRL)· 17 Mar 2026verified |
| Share repurchases | — | — | 0 | 0 | 121.5 m | 299.3 m | SEC (XBRL)· 17 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 65 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 9.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation43
- Returns64
- Quality74
- Balance sheet71
- Growth100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 53.49 – 166.81 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)102.99 – 166.81 (Mid 127.42)WACC 8.9% · starting FCFF 528.0 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 8.2%
- Peers: EV/EBITDA64.87 – 109.17 (Mid 87.19)17 companies used · median multiple 15.5x · quartiles 11.9x – 19.1xBR, CBZ, CPAY, CSGP, EBAY, FICO, FIS, GPN, MELI, MSCI, PAYS, PHR, PSFE, PYPL, RBA, UBER, WEX
- Peers: P/E53.49 – 102.91 (Mid 70.83)20 companies used · median multiple 25.6x · quartiles 19.3x – 37.2xACN, BR, CASS, CBZ, CPAY, EBAY, FICO, FIS, FLYW, GRAB, MA, MELI, MSCI, PAYS, PYPL, RBA, RSSS, TNET, UBER, WEX
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 65/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 9.8% | 55 (vs peers) | 12% |
| Net margin · Quality | 17.4% | 82 (vs peers) | 7% |
| FCF conversion · Quality | 206.2% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 15.1% | 100 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 1.3x | 55 (vs peers) | 12% |
| Interest coverage · Balance sheet | 6.7x | 80 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 3.0x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 39.4x | 38 (vs peers) | 12% |
| EV/EBITDA · Valuation | 19.0x | 29 (vs peers) | 12% |
| FCF yield · Valuation | 5.4% | 68 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 4.5% | 64 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet71/100 · 3/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality74/100 · 3/3 factors with a value
- Returns· partial64/100 · 1/2 factors with a value
- Valuation43/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
HEALTHEQUITY, INC. (HQY). Latest full fiscal year: 2026; data up to 2026-07-31.
Figures computed from the financial statements: revenue 1.3 bn USD in 2026; YoY growth 9.5%; net margin 17.4%; ROE 11.4%; net debt/EBITDA 1.3x.
The estimated value range is 64.87–109.17 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 87.19 USD, the price of 108.84 USD leaves a potential of -19.9% (value / price − 1) and a margin of safety of -24.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 65/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 17.4%
- FCF conversion: 206.2%
- Revenue CAGR 3Y: 15.1%
- Interest coverage: 6.7x
- Current ratio: 3.0x
What contradicts it
- EV/EBITDA: 19.0x
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Payout ratio (FCF).
Versus the vertical median
Services-Business Services, NEC (SIC 7389) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BABAAlibaba Group Holding Ltd | 195.6 bn | 131.6 | 10.3% | 10.1% | +8.1% | −33% / +41% |
| UBERUber Technologies, Inc. | 142.7 bn | 41.3 | 12.4% | 6.1% | +18.3% | −20% / +24% |
| MELIMercadoLibre, Inc. | 88.2 bn | 47.3 | 27.5% | 5.3% | +39.1% | −16% / +7% |
| EBAYeBay Inc. | 54.9 bn | 27.2 | 46.6% | 16.9% | +7.9% | +51% / +205% |
| PYPLPayPal Holdings, Inc. | 50.0 bn | 11.5 | 23.8% | 13.8% | +4.3% | −4% / +4% |
| MSCIMsci Inc. | 48.2 bn | 35.7 | — | 40.3% | +9.7% | +20% / +29% |
| FISVFiserv, Inc. | 33.0 bn | — | -17.0% | -18.9% | +3.6% | +1% / −52% |
| CPAYCorpay, Inc | 27.5 bn | 25.4 | 30.5% | 22.7% | +13.9% | +42% / +74% |
| GPNGlobal Payments Inc. | 25.4 bn | — | -4.1% | -9.1% | −0.4% | +27% / −17% |
| BRBroadridge Financial Solutions, Inc. | 21.4 bn | 20.9 | 40.2% | 13.9% | +8.5% | −17% / −2% |
| RBARB Global, Inc | 17.6 bn | 39.9 | 8.8% | 10.0% | +7.2% | −3% / +49% |
| FISFidelity National Information Services, Inc. | 15.3 bn | 4.4 | 23.0% | 26.8% | +5.4% | −55% / −49% |
| FICOFair Isaac Corp | 15.1 bn | 20.3 | — | 34.1% | +15.9% | −61% / −36% |
| CSGPCoStar Group, Inc. | 13.1 bn | 74.3 | 2.2% | 4.9% | +18.7% | −53% / −61% |
| HQYHealthequity, Inc. | 9.0 bn | 39.4 | 11.4% | 17.4% | +9.5% | +15% / +70% |
| WEXWEX Inc. | 5.9 bn | 15.5 | 35.6% | 14.0% | +1.2% | +21% / +2% |
| ALITAlight, Inc. | 5.7 bn | — | -67.9% | -46.0% | −3.0% | −72% / −92% |
| XMTRXometry, Inc. | 5.2 bn | — | -3.9% | -2.0% | +25.9% | +94% / +364% |
| TNETTrinet Group, Inc. | 3.1 bn | 18.1 | 141.6% | 3.6% | −0.9% | +14% / −42% |
| CBZCBIZ, Inc. | 3.0 bn | 25.8 | 6.8% | 4.6% | +52.1% | −0% / +6% |
| FLYWFlywire Corporation | 2.7 bn | 36.3 | 9.1% | 10.3% | +26.6% | +56% / −6% |
| AHGAkso Health Group | 2.2 bn | 133.0 | -9.8% | -135.0% | −6.4% | −11% / +56% |
| PAYSPaysign, Inc. | 863.9 m | 58.4 | 30.8% | 15.7% | +40.5% | +194% / +551% |
| PHRPhreesia, Inc. | 818.1 m | 77.1 | 3.1% | 2.1% | +14.5% | −36% / −14% |
| CASSCass Information Systems, Inc. | 704.1 m | 18.9 | 16.3% | 18.9% | +5.3% | +31% / +33% |
1- and 3-year price returns: for HQY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 73.54 Total return -32% · Per year -32% | 129.43 Total return 19% · Per year 19% | 194.14 Total return 78% · Per year 78% |
| 3 years | 87.24 Total return -20% · Per year -7% | 171.17 Total return 57% · Per year 16% | 279.56 Total return 157% · Per year 37% |
| 5 years | 103.48 Total return -5% · Per year -1% | 226.37 Total return 108% · Per year 16% | 402.57 Total return 270% · Per year 30% |
- Exit P/E± 42.79
- Net margin± 29.95
- Annual revenue growth± 22.34
- Annual dilution± 2.52
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
HealthEquity administers health savings accounts (HSAs) and other employer-funded consumer benefits that help people save, spend and invest healthcare dollars. In the second quarter of fiscal 2027 it reported revenue of 350.7 million USD and HSA Assets of 37.9 billion USD, and rising demand for consumer-directed healthcare keeps its position relevant 123.
SWOT
Strengths
- The company is a recognised leader by number of HSA accounts and ranks second by assets, with an integrated HSA and complementary CDB offering 12.
- Its proprietary platform and service culture are stated differentiators against competitors with older technology 1.
- Recent quarterly results show high margins and asset growth, supporting the ability to reinvest and repurchase shares 3.
Weaknesses
- Revenue depends heavily on interest rates and on partners holding HSA cash, an exposure that could become a weakness if rates fall 1.
- Larger competitors have more resources for development and marketing, which may limit the company's ability to match them 1.
- Reliance on tax benefits for one product category makes the model sensitive to regulatory change 1.
Opportunities
- Broader HSA eligibility and possible policies bringing new populations into the system could open new customer segments 12.
- Acquiring portfolios from competitors that treat HSAs as a non-core business could add accounts 2.
- Use of AI and platform modernisation could lower costs and improve member services 1.
Threats
Risks
- Tax changeshigh
Removing or limiting deductions for HSA contributions would have a material effect on revenue 1.
- Cash-holding partnershigh
Problems at an insurer or partner bank could affect member funds and company revenue 1.
- Falling interest ratesmedium
Lower rates would reduce custodial revenue and the attractiveness of HSA accounts for members 1.
- Competitive pressuremedium
Competitors with greater resources and partners turning into competitors could reduce market share 1.
- AI and security risksmedium
Use of AI and cyber threats could cause errors, fraud or data loss with reputational effects 1.
Investment thesis
What would need to be true (bull case)
- If HSA adoption keeps growing, the company, with its market share and integrated platform, could see rising revenue 23.
- Raised guidance and a high adjusted margin suggest the model can generate profit and support share repurchases 3.
- Portfolio acquisitions could extend the account base without large development costs 12.
What would break the thesis
What to watch
- Delivery of fiscal 2027 revenue and Adjusted EBITDA guidancenext 10-K
- Growth in HSA Assets and new account salesQ3 2027
- Rates offered by insurance and depository partners2027
- Effect of wider HSA eligibility on new sales2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
HealthEquity is a technology-enabled services provider that helps consumers save, spend and invest healthcare dollars. The company administers HSAs and other consumer-directed benefits, such as FSAs, HRAs, COBRA and commuter benefits, on a proprietary platform 1. As of 31 January 2026 it administered 10.6 million HSAs with 36.5 billion USD of assets 1, and as of 31 July 2026 it had 10.7 million HSAs 3.
Revenue comes from three sources: service fees paid by employers, partners and members, custodial revenue from HSA cash held by insurance and bank partners, and interchange revenue from card payments 1. Consumers are reached through employers, benefits brokers and more than 200 integrated Network Partners 1.
In fiscal 2025 the company acquired the BenefitWallet HSA portfolio of about 616,000 HSAs and 2.7 billion USD of HSA Assets for 425.0 million USD 1. Acquisitions are part of its growth strategy, and integrating them efficiently remains important to delivering these results 2.
Segments
Market context
The HSA market has grown, and the company says its share rose from 4% in December 2010 to 20% in December 2025, measured by HSA Assets 2. Rising health premiums, up 26% since 2020 1, support demand for consumer accounts, but the timing and impact of new policies remain uncertain 2.
Guidance for fiscal 2027 was raised to revenue of 1.411 to 1.421 billion USD and Adjusted EBITDA of 628 to 636 million USD 3. If asset growth and interest rates change, these benchmarks could be reassessed.
Trends
- Wider HSA eligibilitytailwind
A July 2025 law extended HSA availability to Bronze and Catastrophic plans and to a broader range of healthcare services 1. If the pool of eligible people grows, the account base could rise.
- Rising insurance coststailwind
Higher premiums push consumers toward high-deductible plans and HSAs 2.
- Interest ratesheadwind
Lower rates would reduce income on HSA Assets and client funds, and member retention depends on the rate offered 1.
- Tax policy and artificial intelligencemixed
Tax changes could limit HSA benefits, while AI use brings efficiency but also legal and security risks 1.
Competitive position
Competitors include state and federal banks, investment firms such as Fidelity Investments, insurers, benefits administrators and health plan operators such as Optum 1. Many competitors have greater resources and may adopt AI faster 1.
In the near term the main pressure comes from Network Partners that choose to offer benefit accounts directly, which could shrink sales channels and lead to account losses 1.
- Fidelity Investments
investment company with a strong presence in HSAs and CDBs, and brand and retirement-account experience advantages 1
- Optum Bank
bank linked to healthcare services provider Optum that administers HSAs 1
- Webster Bank
federally chartered bank offering HSAs and competing directly in this segment 1
- Health insurers and benefits administrators
providers that can offer their own accounts or white-label HSA offerings, reducing channel opportunities 1
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- HealthEquity’s (HQY) Health Savings Engine Hits A New GearYahoo Finance — News · 01 Sept 2026 · EN
- Why HealthEquity Stock Sank This WeekYahoo Finance — News · 30 Aug 2026 · EN
- HealthEquity, Inc. Q2 2027 Earnings Call SummaryYahoo Finance — News · 27 Aug 2026 · EN
The latest news item in our archive is from 01 Sept 2026; the newest SEC filing is from 09 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report09 Oct 2026Departure or appointment of officers
- Current report30 Sept 2026Departure or appointment of officers · Regulation FD disclosure
- Quarterly report27 Aug 2026
- Current report27 Aug 2026Results of operations · Financial statements and exhibits
- Current report26 Jun 2026Shareholder vote · Financial statements and exhibits
- Quarterly report28 May 2026
- Current report28 May 2026Results of operations · Financial statements and exhibits
- Proxy statement13 May 2026
- Current report08 May 2026Departure or appointment of officers · Financial statements and exhibits
- Current report06 Apr 2026Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / HealthEquity, Inc. · 17 Mar 2026
- [2] Form 10-Q, quarter ended 2026-07-31 · SEC / HealthEquity, Inc. · 27 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / HealthEquity, Inc. · 27 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.