Cash generation remains efficient with an OCF/NI ratio of 2.37 in 2026Q4, while the company maintains low capital intensity with a CapEx/Revenue ratio consistently below 0.2% in recent quarters.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 |
|---|
| Cash from Operations | 489.88M | 457.09M | 339.86M | 242.83M | 150.65M | 141M | 181.62M | 105.86M | 113.42M | 81.7M | 45.59M | 26.54M | 15.05M | 18.02M | 11.77M |
| Operating CF Margin % | - | 34.8% | 28.33% | 24.29% | 17.48% | 18.64% | 24.76% | 19.9% | 39.49% | 35.6% | 25.56% | 20.93% | 17.13% | 29.05% | 25.54% |
| Operating CF Growth % | 185% | 34.5% | 39.96% | 61.19% | 6.85% | -22.37% | 71.57% | -6.67% | 38.82% | 79.21% | 71.78% | 76.4% | -16.48% | 53.06% | - |
| Net Income | 230.7M | 215.2M | 96.7M | 55.71M | -26.14M | -44.29M | 8.83M | 39.66M | 73.9M | 47.36M | 26.38M | 16.61M | 10.17M | 1.23M | 11.17M |
| Depreciation & Amortization | 154.13M | 154.66M | 162.45M | 153.08M | 161.2M | 137.19M | 115.9M | 55.35M | 18.18M | 15.95M | 13.19M | 8.6M | 5.89M | 4.27M | 3.37M |
| Stock-Based Compensation | 78.13M | 73.06M | 96.42M | 77.15M | 62.61M | 52.75M | 42.86M | 39.84M | 21.06M | 14.31M | 8.4M | 5.88M | 2.52M | 57K | 47K |
| Deferred Taxes | 48.51M | 39.73M | -12.84M | -13.99M | -17.18M | -23.43M | -5.13M | 3.67M | 408K | 4.31M | -2.89M | -2.18M | 1.59M | 3.55M | -4.91M |
| Other Non-Cash Items | 878K | 1.06M | 3.64M | 4.01M | 3.53M | 17.15M | 6.86M | -23.15M | 1.17M | 220K | 103K | 47K | 790K | 5.74M | 129K |
| Working Capital Changes | -22.48M | -26.62M | -6.53M | -33.13M | -33.37M | 1.63M | 12.29M | -9.52M | -1.3M | -448K | 419K | -2.42M | -5.92M | 3.16M | 1.97M |
| Change in Receivables | -5.75M | -5.69M | -13.11M | -8.06M | -9.57M | -11.2M | -413K | -6.13M | -4.31M | -4.73M | -2.73M | -5.17M | -3.38M | -1.55M | 571K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -30.42M | -4.1M | -2.29M | 377K | 28K | 5K | -234K | -118K | 18K |
| Change in Payables | -2.59M | 1.71M | 8.89M | -204K | -26.67M | -2.18M | 30.42M | -3.84M | 863K | -581K | 567K | 1.01M | -1.16M | 1.49M | 245K |
| Cash from Investing | -44.9M | -47.14M | -505.45M | -46.07M | -119.13M | -639.25M | -96.96M | -1.74B | 25.65M | -36.75M | -13.05M | -90.55M | -8.44M | -4.64M | -3.54M |
| Capital Expenditures | -2.25M | -1.97M | -2.08M | -1.69M | -119.13M | -137.08M | -96.96M | -42.07M | -15.04M | -33.38M | -12.68M | -49.76M | -8.13M | -5.44M | -2.74M |
| CapEx % of Revenue | 0.17% | 0.15% | 0.17% | 0.17% | 13.82% | 18.12% | 13.22% | 7.91% | 5.24% | 14.54% | 7.11% | 39.25% | 9.26% | 8.77% | 5.94% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -504.53M | 0 | -1.65B | 11.17M | -2.88M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -42.66M | -45.17M | -503.37M | -44.38M | 0 | -128.17M | 0 | -34.79M | -11.17M | -27.93M | -9.41M | -88.18M | -6.72M | 800K | -800K |
| Cash from Financing | -467.51M | -386.98M | 57.57M | -47.04M | -2.67M | 394.86M | 52.42M | 1.47B | 22.93M | 14.56M | 23.78M | 36.65M | 90.48M | -5.36M | -7.46M |
| Debt Issued (Net) | -115M | -100M | 171.25M | -54.38M | -8.75M | -65.05M | -239.06M | 1.24B | 0 | 0 | 0 | 0 | 0 | -2.17M | -7.57M |
| Equity Issued (Net) | -352.64M | -287.84M | -112.06M | 6.47M | 6.68M | 466.39M | 295.35M | 469.84M | 22.93M | 14.56M | 7.14M | 25.41M | 137.4M | -2.77M | 110K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -50.35M | -694K | 0 |
| Share Repurchases | -363.5M | -299.25M | -121.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.37M | 0 |
| Other Financing | 132K | 867K | -1.62M | 865K | -603K | -6.49M | -3.86M | -244.29M | 0 | 0 | 16.63M | 11.24M | 3.43M | 271K | 0 |
| Net Change in Cash | -22.52M | 22.98M | -108.03M | 149.71M | 28.85M | -103.39M | 137.08M | -169.75M | 162M | 59.52M | 56.31M | -27.36M | 97.09M | 8.01M | 775K |
| Free Cash Flow | 487.64M | 455.13M | 337.77M | 196.75M | 31.52M | 3.91M | 84.66M | 63.78M | 98.38M | 48.32M | 32.92M | -23.22M | 6.91M | 12.58M | 9.03M |
| FCF Margin % | 36.47% | 34.65% | 28.15% | 19.68% | 3.66% | 0.52% | 11.54% | 11.99% | 34.25% | 21.05% | 18.45% | -18.31% | 7.87% | 20.28% | 19.6% |
| FCF Growth % | 457.18% | 34.74% | 71.67% | 524.15% | 705.39% | -95.38% | 32.72% | -35.17% | 103.61% | 46.79% | 241.76% | -435.84% | -45.02% | 39.22% | - |
| FCF per Share | 5.74 | 5.20 | 3.80 | 2.26 | 0.37 | 0.05 | 1.12 | 0.93 | 1.55 | 0.78 | 0.55 | -0.39 | 0.13 | 0.28 | 0.20 |
| FCF Conversion (FCF/Net Income) | 2.11x | 2.12x | 3.51x | 4.36x | -5.76x | -3.18x | 20.56x | 2.67x | 1.53x | 1.73x | 1.73x | 1.60x | 1.48x | 14.61x | 1.05x |
| Interest Paid | 0 | 0 | 58.59M | 49.56M | 43.57M | 0 | 0 | 21.81M | 203K | 203K | 213K | 51K | 0 | 38K | 331K |
| Taxes Paid | 0 | 0 | 26.07M | 35.35M | 1.53M | 0 | 0 | 9.28M | 587K | 27K | 863K | 1.36M | 1.5M | 353K | 274K |
Interest rate sensitivity
As reported in recent financial statements, HealthEquity consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio reaching 2.37 in 2026Q4, which suggests that non-cash charges and working capital adjustments play a substantial role in the company's reported cash-generating capacity.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by non-cash items, most notably depreciation and amortization. Investors should monitor whether this conversion quality remains sustainable as the company matures and the impact of historical acquisition-related amortization begins to fade.
Based on the provided quarterly data, free cash flow margins have exhibited significant volatility, ranging from a negative 71.1% in 2025Q1 to a peak of 46.4% in 2026Q2, reflecting the lumpy nature of capital expenditures and the impact of periodic large-scale portfolio acquisitions on cash availability.
The trajectory of free cash flow appears highly sensitive to the timing of capital-intensive investments, which can temporarily mask the underlying cash-generating efficiency of the core business. While recent quarters show a stabilization in margins, the historical variance suggests that investors should focus on normalized FCF rather than quarterly fluctuations.
According to recent SEC filings, HealthEquity maintains a remarkably low capital intensity, with CapEx/Revenue ratios frequently below 0.2% in recent quarters, demonstrating that the company's proprietary technology platform requires minimal ongoing investment to support its existing member base and service infrastructure.
The minimal capital expenditure requirements underscore the scalability of the business model, as the platform can support additional members without proportional increases in infrastructure spending. This low capital intensity is a key driver of the company's ability to generate significant free cash flow during periods of organic growth.
As indicated by the cash flow statements, the company has prioritized share repurchases as a primary vehicle for capital deployment, with buybacks totaling $123.3M in 2027Q1 alone, signaling management's confidence in the long-term value of the equity despite the ongoing need for custodial portfolio acquisitions.
The shift toward consistent share repurchases suggests that management views the current valuation as attractive and is comfortable returning capital to shareholders. However, this strategy warrants further investigation to ensure that buybacks do not detract from the liquidity needed for future strategic acquisitions or potential debt reduction.
Quick answers to the most common questions about buying HQY stock.
HealthEquity, Inc. (HQY) generated $457.1M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
HealthEquity, Inc. (HQY) generated $455.1M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
HealthEquity, Inc. (HQY) spent $2.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, HealthEquity, Inc. (HQY) spent $299.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.