Companies · HQY
HealthEquity
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Latest analysis
Updated Aug 27, 2026
HealthEquity posts record Q2 adjusted EBITDA margin of 48%, raises FY2027 guidance, and signals AI-driven service cost reduction is still in early innings.
HealthEquity's Q2 FY2027 results demonstrate that AI-enabled service automation is compressing per-account costs faster than account growth is adding them — human-handled calls fell 25% year-over-year while total accounts grew 4%, driving gross margin to 74% from 71% a year earlier. The company raised FY2027 revenue guidance to $1.411–$1.421 billion and adjusted EBITDA guidance to $628–$636 million, reflecting durable margin expansion rather than one-time tailwinds. The Marketplace platform, though immaterial to current revenue, is generating an early signal that purchase activity correlates with HSA contribution initiation — a structural engagement flywheel that management is beginning to scale through targeted campaigns and a next-generation unified app.
Tone: bullishRevenue
$1.3B
HQY 10-K · FY 2026
Employees
2,814
Revenue FY2025
$1.2B
Founded
2002
Profile
HQY 10-K Item 1 · Mar 17, 2026HealthEquity is the largest HSA provider by account count in the United States, administering 10.6 million HSAs and 7.2 million complementary consumer-directed benefits accounts as of January 31, 2026. The company earns revenue through three streams — service fees, custodial income from insured cash placements, and interchange fees — and reaches consumers via a B2B2C model through employers, benefits brokers, and a network of over 200 health plan and administrator partners. Its proprietary cloud-based platform integrates HSA custody, CDB administration, investment advisory services, and a healthcare marketplace into a single system.
Read filing description ↓ Collapse description ↑
We are a leader and an innovator in providing technology-enabled services that empower consumers to make healthcare saving, spending, and investing decisions. We use our innovative technology to manage consumers' tax-advantaged health savings accounts ('HSAs') and other consumer-directed benefits ('CDBs') offered by employers, including flexible spending accounts and health reimbursement arrangements ('FSAs' and 'HRAs'), and to administer Consolidated Omnibus Budget Reconciliation Act ('COBRA'), commuter and other benefits. As part of our services, we provide consumers with payment processing services, personalized benefit information, access to healthcare solutions through our marketplace, and investment advice to grow their tax-advantaged healthcare savings. We believe the shift to greater consumer responsibility for healthcare costs will require a significant portion of consumers under the age of 65 with private health insurance in the United States to use offerings such as ours. The core of our offerings is the HSA, a financial account through which consumers save, spend, and invest their healthcare dollars on a tax-advantaged basis. As of January 31, 2026, we administered 10.6 million HSAs, with balances totaling $36.5 billion, which we call HSA Assets, as well as 7.2 million complementary CDBs. We refer to the aggregate number of HSAs and other CDBs that we administer as Total Accounts, of which we had 17.8 million as of January 31, 2026. We reach consumers primarily through relationships with their employers, which we call Clients. We reach Clients primarily through relationships with benefits brokers and advisors, integrated partnerships with a network of health plans, benefits administrators, and retirement plan recordkeepers, which we call Network Partners, and a sales force that calls on Clients directly. As of January 31, 2026, our platforms were integrated with more than 200 Network Partners.
Primary products
- Health savings accounts (HSAs)
- Healthcare flexible spending accounts (FSAs)
- Dependent care flexible spending accounts
- Health reimbursement arrangements (HRAs)
- COBRA administration
- Commuter programs
End markets
Geographies
Named competitors
“We have increased our share of the growing HSA market from 4% in December 2010 to 20% as of June 2025, measured by HSA Assets. According to the 2025 Midyear Devenir HSA Research Report, as of June 2025, we were the largest HSA provider by number of accounts and the second largest HSA provider by HSA Assets.” Competitive position, as stated in the filing
Revenue commentary · FY 2026
Total revenue increased from approximately $1.20 billion in fiscal 2025 to approximately $1.31 billion in fiscal 2026, driven primarily by growth in custodial revenue as HSA Assets expanded and Enhanced Rates adoption increased.
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