HealthEquity, Inc.
- Open
- 95.55
- Day high
- 96.86
- Day low
- 93.06
- Prev close
- 96.37
- Volume
- 842K
- Mkt cap
- $8.0B
- P/E (TTM)
- 34.5
- EPS (TTM)
- $2.80
- P/B
- 4.0
- P/S
- 5.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.3M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
HealthEquity, Inc. (HQY) is a Healthcare company listed on NASDAQ. The stock is up 8% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
HealthEquity, Inc. (HQY) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HQY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 27, 2026 | $1.19 | $1.24 | +3.9% | $351M | +0.4% |
| May 28, 2026 | $1.11 | $1.24 | +11.4% | $355M | +0.6% |
| Mar 17, 2026 | $0.90 | $0.95 | +5.9% | $335M | +0.3% |
| Dec 3, 2025 | $0.91 | $1.01 | +10.6% | $322M | +0.1% |
| Sep 2, 2025 | $0.92 | $1.08 | +17.6% | $326M | +1.0% |
| Jun 3, 2025 | $0.82 | $0.97 | +18.4% | $331M | +2.3% |
| Mar 18, 2025 | $0.71 | $0.69 | -3.5% | $312M | +1.9% |
| Dec 9, 2024 | $0.71 | $0.78 | +9.1% | $300M | +3.5% |
| Sep 3, 2024 | $0.70 | $0.86 | +22.5% | $300M | +5.2% |
| Jun 3, 2024 | $0.66 | $0.80 | +21.2% | $288M | +3.4% |
| Mar 19, 2024 | $0.56 | $0.63 | +12.3% | $262M | +1.2% |
| Dec 5, 2023 | $0.49 | $0.60 | +22.0% | $249M | -2.3% |
HQY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 27, 2026 | DILLON ADRIAN Tdirector | Sell | 6,300 | $104.47 |
| Aug 27, 2026 | DILLON ADRIAN Tdirector | Option | 7,632 | $32.50 |
| Aug 27, 2026 | DILLON ADRIAN Tdirector | Sell | 1,332 | $105.26 |
| Jul 14, 2026 | Fiore Michael Henryofficer: EVP, CHIEF COMMERCIAL OFFICER | Sell | 2,354 | $95.00 |
| Jul 13, 2026 | Gathright Michaelofficer: Chief Customer Officer | Tax | 2,270 | $93.07 |
| Jul 10, 2026 | Lucania James Mofficer: EVP & CFO | Tax | 2,839 | $95.08 |
| Jul 10, 2026 | Cutler Scottdirector, officer: President and CEO | Tax | 1,238 | $95.08 |
| Jul 10, 2026 | Ladd Delanoofficer: EVP, General Counsel | Tax | 1,087 | $95.08 |
| Jul 10, 2026 | Neeleman Stephendirector, officer: FOUNDER AND VICE CHAIRMAN | Tax | 1,103 | $95.08 |
| Jul 10, 2026 | Fiore Michael Henryofficer: EVP, CHIEF COMMERCIAL OFFICER | Tax | 2,045 | $95.08 |
| Jul 7, 2026 | Fiore Michael Henryofficer: EVP, CHIEF COMMERCIAL OFFICER | Sell | 2,470 | $95.00 |
| Jun 29, 2026 | Natarajan Rajeshdirector | Grant | 2,877 | — |
| Jun 29, 2026 | Parker Stuart B.director | Grant | 2,877 | — |
| Jun 29, 2026 | DILLON ADRIAN Tdirector | Grant | 2,877 | — |
| Jun 29, 2026 | McCowan Debra Charlottedirector | Grant | 2,877 | — |
Source: HQY SEC Form 4 filings, latest Aug 27, 2026. For informational purposes only — not investment advice.
See the full HQY insider & 13F page →HealthEquity, Inc. company profile
Overview
HealthEquity, Inc. (NASDAQ:HQY) is a leading provider of technology-enabled health savings account (HSA) and consumer-directed benefit services in the United States. Founded in 2002 and headquartered in Draper, Utah, the company went public in 2014. HealthEquity has grown to become the largest HSA custodian in America, serving over 17 million accounts and managing $32 billion in HSA assets as of fiscal year 2025. The company has expanded through both organic growth and strategic acquisitions, including the recent integration of the BenefitWallet HSA portfolio, positioning itself as the dominant platform in the rapidly growing consumer-directed healthcare benefits market.
Business
HealthEquity operates in the healthcare benefits administration industry, specifically focusing on Health Savings Accounts (HSAs) and other consumer-directed benefit programs. HSAs are tax-advantaged savings accounts that individuals can use to pay for qualified medical expenses, available to those enrolled in high-deductible health plans. These accounts offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. The company's core platform provides cloud-based technology that enables individuals to make healthcare savings and spending decisions, pay medical bills, compare treatment options and prices, and receive personalized benefit information. HealthEquity serves as the custodian for these accounts, meaning they hold and manage the funds on behalf of account holders while providing the technology infrastructure and customer service. Beyond HSAs, HealthEquity administers several other benefit programs: 1. Flexible Spending Accounts (FSAs) - Pre-tax accounts for medical and dependent care expenses that typically must be used within the plan year 2. Health Reimbursement Arrangements (HRAs) - Employer-funded accounts that reimburse employees for qualified medical expenses 3. Commuter Benefits - Pre-tax programs for parking and transit expenses 4. COBRA Administration - Services for employees continuing health coverage after leaving their jobs The HSA business represents the vast majority of HealthEquity's revenue and growth, with HSA-related services generating approximately 85-90% of total revenue based on recent financial disclosures.
Revenue model
HealthEquity generates revenue through three primary streams tied to the accounts and assets it manages: Service Revenue (approximately 40% of total revenue) comes from monthly account maintenance fees paid by employers and health plans for administering benefit accounts. This includes customer service, claims processing, and platform maintenance. The company earns these fees regardless of account balances, providing a stable recurring revenue base. Custodial Revenue (approximately 45% of total revenue) is generated from the cash balances held in HSA accounts. HealthEquity earns interest on these deposits by placing funds with partner banks and credit unions at negotiated rates, then keeping the spread. The company has developed an "Enhanced Rates" program with insurance partners that provides higher yields on a portion of HSA cash, currently representing over 30% of total HSA cash balances. Interchange Revenue (approximately 15% of total revenue) comes from debit card transaction fees when account holders use their HSA debit cards to pay for medical expenses. HealthEquity receives a small fee from merchants for each transaction processed. The company's profitability is influenced by several key factors. Interest rate environments significantly impact custodial revenue - higher rates increase the spread HealthEquity earns on cash deposits. Account growth drives both service fees and the base for earning custodial revenue. The company benefits from economies of scale, as technology investments can serve growing account volumes with relatively stable operational costs. However, fraud prevention and cybersecurity represent increasing cost pressures, while competitive dynamics in the benefits administration space can pressure pricing. Healthcare utilization patterns also affect interchange revenue, as higher medical spending generates more debit card transactions.
Competitive moat
HealthEquity possesses a moderate to strong competitive moat built primarily around scale advantages and switching costs. As the largest HSA custodian with over 17 million accounts, the company benefits from significant economies of scale in technology development, regulatory compliance, and operational efficiency. The cost of building and maintaining the complex technology infrastructure required for tax-advantaged account administration creates substantial barriers to entry for new competitors. Switching costs provide additional protection, as employers and health plans face significant operational disruption when changing benefit administrators. The integration between HealthEquity's platform and clients' payroll systems, employee communications, and existing workflows creates friction that helps retain customers. For individual account holders, switching HSA custodians involves paperwork and potential service disruption that most prefer to avoid. The company's network effects strengthen over time as more health plans, employers, and service providers integrate with HealthEquity's platform. This ecosystem becomes increasingly valuable as it grows, making it harder for competitors to replicate the breadth of partnerships and integrations. However, the moat faces several challenges. Large financial services companies like Fidelity and Bank of America have entered the HSA market with significant resources and existing customer relationships. Technology disruption could potentially lower barriers to entry if new platforms can offer superior user experiences or significantly lower costs. Regulatory changes affecting HSA rules or tax advantages could also impact the entire market structure. The company's reliance on interest rate spreads for a significant portion of revenue creates vulnerability to changing financial market conditions.
Risks & safety
HealthEquity demonstrates a strong margin of safety with solid financial fundamentals and conservative capital structure. • Liquidity Position: $296 million in cash and short-term investments with minimal debt, providing substantial financial flexibility • Debt Management: Debt-to-equity ratio of 0.52, indicating moderate leverage that is well within manageable levels • Cash Generation: Strong free cash flow of $338 million for fiscal 2025, demonstrating the business model's cash-generative nature • Current Ratio: 3.06 indicates strong short-term liquidity to meet obligations • Valuation Metrics: Trading at high multiples (P/E of 99x, EV/EBITDA of 31x) suggesting limited valuation-based margin of safety • Growth Trajectory: Consistent double-digit revenue growth and expanding market opportunity provide operational safety • Market Position: Dominant market share in a growing industry with regulatory tailwinds supporting HSA adoption
Recent development
Over the past few years, HealthEquity has pursued several strategic initiatives to strengthen its market position and expand its service offerings. The company completed the significant BenefitWallet HSA portfolio acquisition, successfully transitioning these accounts to its platform and achieving higher-than-expected Enhanced Rates penetration of 85% versus the 80% target. The company has invested heavily in technology modernization, including cloud migration, AI-powered claims processing serving 7,000 clients, and launching a new mobile app that has been downloaded by over 1 million members. HealthEquity introduced mobile wallet capabilities for iOS and Android and deployed new chip-enabled stacked benefits cards to improve user experience and security. A major strategic focus has been the Enhanced Rates program, which now represents over 30% of HSA cash balances, up from 20% in fiscal 2023. The company targets reaching 60% Enhanced Rates allocation by fiscal 2027, primarily through new asset additions and contract maturities. HealthEquity recently launched its Assist portfolio of AI-driven solutions, including Analyzer for real-time benefit program data, Navigator for healthcare decision support, and Momentum for personalized benefit recommendations. The company also introduced Health Payment Accounts (HPAs), providing no-interest, no-fee medical payment options to make healthcare more accessible. Under new CEO Scott Cutler, who took over from retiring founder Jon Kessler in January 2025, the company is prioritizing a "member-first secure mobile experience" while continuing to advocate for legislative changes like the HOPE Act that could expand the addressable market from 60-65 million to over 100 million potential accounts.
HQY company profile · for informational purposes only — not investment advice.
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