revenue
1.411–1.421 $billion
FY 2027
official guidance
HEALTHEQUITY, INC.
Last · NasdaqGS$92.27+2.40 (+2.67%)live · yahoo · 10m ago
Market cap$7.63B82.7M sh
P/E · TTM33.4fwd 16.8 · eps 2.76
Beta0.24vs S&P 500
Div yield0.00%annual · TTM
52w range
$72.76$107.62
Volume129.9Ksession
| Revenue | $1.4B |
|---|---|
| Operating income | $351.4M |
| Net income | $236.5M |
| Free cash flow | $487.7M |
| Operating margin | 25.8% |
| Net margin | 17.4% |
| Return on equity | 11.9% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Excellent execution, but competitive pricing and limited proof of new growth engines make this a wait-for-better-entry story.
Hold: HealthEquity delivered a strong Q2, with revenue up 8% to $350.7 million, adjusted EBITDA up 11% to $167.0 million at a record 48% margin, and new HSA sales up 24%.
Fiscal 2027 guidance was raised to $1.411-$1.421 billion of revenue and $628-$636 million of adjusted EBITDA, but service-price erosion, largely hedged custodial yields, and an unproven marketplace temper the upside.
Themes
- Q2 2027 Earnings
- Raised Guidance
- Hsa Growth
- Custodial Yield
- Ai Automation
- Marketplace
Near term
Next-generation mobile app launch could improve engagement, reimbursement usage, investing adoption, and marketplace conversion, but execution and adoption remain untested.
Open enrollment performance and renewal results will determine whether 24% new-HSA sales growth can persist; management cited renewals above 90% but did not provide a quantified win-rate trend.
Fiscal 2027 HSA cash-yield guidance of 3.85%-3.90% provides near-term earnings visibility, while the existing hedge book limits upside from higher Treasury yields.
Additional share repurchases and potential revolver paydown may support per-share results, though the company ended the quarter with approximately $931 million of debt.
Longer term
HSA invested assets grew 28% and investing accounts grew 20%; deeper investment engagement could expand member lifetime value because investors contribute materially more than non-investors.
AI and automation have reduced human-handled service calls 25% year over year while accounts grew, leaving potential for further operating leverage in client services, onboarding, and back-office claims workflows.
HealthEquity's scale, integrated data, health-plan relationships, and strategic advisory services support share gains as employers seek to manage healthcare affordability.
Marketplace could become a high-margin engagement and monetization layer, but it remains immaterial to revenue and has yet to demonstrate durable conversion or meaningful financial contribution.
Competitive moat remains under pressure: peers are also reducing service costs, creating a continuing risk that efficiency gains are shared with clients through lower administrative pricing.
Red flags
CFO explicitly acknowledged 'headline price erosion' in service revenue and described the benefits-administration market as highly competitive; management did not quantify the expected revenue impact.
Marketplace evidence remains mostly activity-based: 14,000 active members and a record 500,000 unique visitors during one promotional week, but no conversion, revenue, retention, or profitability figures were disclosed.
Custodial yield visibility is strong for fiscal 2027 because much of the portfolio is hedged, but that also caps upside from higher rates and leaves future results sensitive to cash deployment, repricing, and renewal assumptions.
Management highlighted strong competitive wins and retention but did not provide concrete win-rate, pricing, or share data to substantiate continued outperformance.
The company is funding substantial growth initiatives while repurchasing shares and retaining acquisition capacity against roughly $931 million of debt, making capital-allocation returns important to monitor.
Forward outlook
ebitda
628–636 $million
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-17
- Hsa Scale
- Custodial Revenue
- Interest Rate Sensitivity
- Leverage
- Benefitwallet Acquisition
- Cybersecurity Litigation
- Tax Policy
- Competitive Pressure
Red flags
- Custodial revenue represented approximately 48% of fiscal 2026 revenue, compared with 45% in fiscal 2025 and 39% in fiscal 2024, creating substantial sensitivity to interest rates and partner economics.
- Outstanding debt was $961.9 million at January 31, 2026, including $600.0 million of 4.50% senior notes due 2029 and $361.9 million drawn on the revolving facility; scheduled principal and interest payments total $1.125 billion through 2030.
- HSA cash held through insurance-company partners is not federally insured, and failures or breaches could expose members to losses and HealthEquity to financial and reputational damage.
- A 2024 cybersecurity incident involving a business partner's account led to multiple lawsuits and regulatory inquiries; potential losses cannot currently be reasonably estimated.
- Interchange revenue contributed 15% of fiscal 2026 revenue, leaving results exposed to lower payment-card utilization or substitution by non-revenue-generating reimbursement methods.
Earnings transcripts
Press & signals
- GlobeNewswire
HealthEquity Appoints Moody’s CFO Noémie Heuland to Board of Directors
- GlobeNewswire
HealthEquity Reports Second Quarter Ended July 31, 2026 Financial Results