Start here if you're new
what it is
It runs the back-end system that helps people save, spend, and manage healthcare money through HSAs and other benefit accounts.
how it gets paid
Last year Healthequity made $1.2B in revenue. hsa platform services was the main engine at $0.54B, or 45% of sales.
why it's growing
Revenue grew 20.0% last year. Assuming demand grows, we estimate the top line will rise to $1.40 billion and $1.50 billion in fiscal 2026 and fiscal 2027, respectively.
what just happened
The last report showed EPS of $1.01 versus a $0.90 estimate, a 12.22% beat.
At a glance
B+ balance sheet — decent shape, but not bulletproof
70/100 earnings predictability — reasonably predictable
20.3x trailing p/e — priced about right
17.0% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
It runs the back-end system that helps people save, spend, and manage healthcare money through HSAs and other benefit accounts.
This business is sticky because your employer, your health plan, and your money all meet in one place. HealthEquity serves 200 health plan and administrator partners and more than 120,000 clients, so leaving means moving a lot of pipes at once. Cloud-based platform (software that runs the account plumbing) → plain English: the system behind your healthcare savings account → so what: once it is embedded, switching is painful.
How they make money
$1.2B
annual revenue · their business grew +20.0% last year
hsa platform services
$0.54B
custodial revenue
$0.24B
interchange revenue
$0.12B
consumer-directed benefits admin
$0.24B
other platform fees
$0.06B
The products that matter
administers and services HSAs
HSA Administration Platform
$1.2B revenue · 100% of sales
this single platform supports the full $1.2B business and a 33.2% net margin. every new account helps the same engine. every operational problem lands in the same place.
100% of revenue
Key numbers
13.3x
fy2027 eps
At $80.04, you are paying about 13.3 times projected FY2027 earnings of $6.00. Plain English: the stock is priced like growth will cool. So what: if earnings land, the multiple looks modest.
17.0%
return on capital
Return on capital → profit from each dollar invested → so what: 17.0% says this business turns capital into earnings better than a lot of software peers.
$982M
long-term debt
Long-term debt → money owed over many years → so what: $982M is manageable when it equals 13% of capital, but it still limits how sloppy integration can get.
70.0%
gross margin
Gross margin → sales left after direct costs → so what: keeping 70 cents of every revenue dollar gives HealthEquity room to absorb operating noise.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $982M (13% of capital)
- net profit margin 36.0% — keeps 36 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HQY 3 years ago → it's now worth $12,040.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
The last report showed EPS of $1.01 versus a $0.90 estimate, a 12.22% beat.
Latest reported revenue was $979M, up 204% vs. prior year, with gross margin at 70.0%. Deadpan fact bomb: a company with a market cap near $7B reported one quarter of revenue equal to roughly 82% of its $1.2B annual run rate, which tells you source timing matters here.
$300M
revenue
$1.88
eps
70.0%
gross margin
the number that mattered
The 12.22% EPS beat matters most because it supports the jump from $3.95 in fiscal 2025 EPS to a projected $6.00 by fiscal 2027.
-
healthequity, inc.’s top line is trending upward. (please note that full-year fiscal 2025 results were scheduled to be released after we went to press.) in the most recent quarter, revenues increased 7%, thanks to a jump in total accounts and hsa (health savings account) investments.
-
revenues likely expanded to $1.31 billion in fiscal 2025.assuming demand grows, we estimate the top line will rise to $1.40 billion and $1.50 billion in fiscal 2026 and fiscal 2027, respectively.
-
healthequity has announced the launch of two new offerings.first, management has introduced a curated platform connecting hsa members with affordable healthcare solutions, beginning with glp-1 weight loss medications. this platform, provided in partnership with licensed telehealth provider agile telehealth, will give individuals and families access to weight loss solutions that are payable using hsa funds for potential tax advantages. second, leadership has launched a direct hsa enrollment platform, which will enable individuals to open and fund hsa’s directly through the company’s mobile and web platforms. this product also integrates with healthequity’s partner network of leading health plans to offer seamless enrollment options during open enrollment.
-
earnings per share should improve in the coming quarters.
-
service expenses have decreased, thanks to lower costs incurred to reimburse members impacted by outside fraud activity.interchange outlays have fallen due to efficiencies resulting from the company’s transition to a single card processor.
source: company earnings report, 2026
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What could go wrong
the #1 risk is slower HSA account and asset growth inside a one-platform model.
med
single-platform concentration
the HSA Administration Platform accounts for 100% of reported revenue. that makes the business simple to understand and gives you no built-in hedge if growth slows, service levels slip, or clients churn.
all $1.2B of annual revenue sits in one operating lane.
med
HSA policy and adoption exposure
Healthequity lives inside the HSA rulebook. if plan design changes, employer adoption slows, or the tax appeal weakens, this does not hit a side segment. it hits the core model.
policy pressure reaches essentially the full revenue base because the company is built around HSA administration and related services.
med
margin help from cleaner operations fading
recent expense relief came from lower fraud reimbursements and card-processing efficiency. good news. it also means part of the margin story came from operations getting cleaner, which is harder to repeat every quarter.
when a 38.0% operating margin supports the bull case, even modest cost creep changes the stock narrative fast.
all $1.2B of revenue runs through one model, so slower growth or a service problem does not stay contained.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings update
the stock needs fresh proof that the recent 7% quarterly revenue pace is a dip, not the new baseline.
trend
growth deceleration
annual revenue grew +20.0%, but the most recent quarter grew 7%. that gap is the whole debate.
metric
FY2026 EPS estimate
$5.00 implies roughly 16.0x forward earnings at today's price. if that estimate comes down, the valuation cushion gets thinner fast.
risk
new product adoption
direct HSA enrollment and the GLP-1-linked offer sound useful. what matters now is account growth, not launch copy.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts think HQY is trading like a normal stock right now, not a breakout candidate.
risk profile
average
stability score 3 — you are not buying a bunker stock, but you are not buying chaos either.
chart momentum
below average
technical score 4 — the chart is still waiting for the operating story to prove itself.
earnings predictability
70 / 100
good enough to model, not good enough to stop watching. expect some uneven quarters.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 195 buyers vs. 170 sellers in 4q2025. total institutional holdings: 90.9M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$68
$143
$80
current price
$106
target midpoint · +32% from current · 3-5yr high: $175 (+120% · 22% ann'l return)
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