HealthEquity, Inc.HQY
NasdaqGS•Healthcare•Health Information Services
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. It offers health savings accounts (HAS); investment platform; online-only automated investment advisory services through Advisor, a Web-based tool. The company also provides flexible spending accounts (FSA) for health and dependent care; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. In addition, the company offers HSA and FSA members with access to certain healthcare products, programs, and services through its marketplace. It serves clients through a direct sales force; and brokers and advisors, a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.
HealthEquity, Inc. (HQY) reported trailing twelve months revenue of $1.34B as of April 2026, a 7.6% increase year-over-year. Quarterly revenue reached $354.64M, reflecting continued top-line momentum.
HealthEquity, Inc. generated $230.70M in TTM net income, with quarterly EBITDA of $141.17M. The operating margin expanded from 25.1% to 29.0%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (29.0%) and net margin (19.6%) indicates moderate non-operating costs. Net margin has improved from 16.3% a year ago, signaling stronger bottom-line efficiency.
HQY trades at a P/E of 31.8x (a premium multiple) and a P/S of 5.5x. The price-to-book ratio of 3.6x reflects a moderate premium to book value.
The company generated $97.16M in free cash flow over the trailing twelve months, a 50.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $3.31B in total assets with $942.66M in long-term debt against $2.05B in stockholders equity for a debt-to-equity ratio of 0.5, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~20.9%, suggesting durable pricing power and cost discipline.
ROE is positive at ~7.1% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~21.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~25.6% — no sign of cost or pricing stress.
FCF covers net income by 3.9x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.1% — net buybacks are reducing shares outstanding and boosting per-share value.