Revenue growth has decelerated from a peak of 23.1% in 2025Q2 to 7.6% in 2027Q2, yet gross margins have expanded dramatically from 56.2% to 73.5% over the same period, indicating strong operating leverage on the technology platform.
HealthEquity, Inc. (HQY) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 1.36B | 1.31B | 1.2B | 999.59M | 861.75M | 756.56M | 733.57M | 531.99M | 287.24M | 229.53M | 178.37M | 126.79M | 87.86M | 62.02M | 46.09M |
| Revenue Growth % | 7.34% | 9.47% | 20.03% | 16% | 13.9% | 3.13% | 37.89% | 85.21% | 25.15% | 28.68% | 40.69% | 44.31% | 41.67% | 34.56% | - |
| Cost of Goods Sold | 337.64M | 400.31M | 507.19M | 469.71M | 466.24M | 415.64M | 394.3M | 240.79M | 111.98M | 99.47M | 76.31M | 56.4M | 41.52M | 30.85M | 23.61M |
| COGS % of Revenue | - | 30.48% | 42.27% | 46.99% | 54.1% | 54.94% | 53.75% | 45.26% | 38.98% | 43.34% | 42.78% | 44.48% | 47.26% | 49.75% | 51.22% |
| Gross Profit | 1.02B | 913.12M | 692.58M | 529.87M | 395.5M | 340.92M | 339.27M | 291.2M | 175.26M | 130.05M | 102.06M | 70.39M | 46.34M | 31.16M | 22.48M |
| Gross Margin % | 75.21% | 69.52% | 57.73% | 53.01% | 45.9% | 45.06% | 46.25% | 54.74% | 61.02% | 56.66% | 57.22% | 55.52% | 52.74% | 50.25% | 48.78% |
| Gross Profit Growth % | - | 31.84% | 30.71% | 33.97% | 16.01% | 0.48% | 16.51% | 66.15% | 34.76% | 27.43% | 44.99% | 51.91% | 48.68% | 38.62% | - |
| Operating Expenses | 675.61M | 590.66M | 462.51M | 401.74M | 357.85M | 300.35M | 259.27M | 182.09M | 97.59M | 75.64M | 60.85M | 44.25M | 29.46M | 19.64M | 15.39M |
| OpEx % of Revenue | - | 44.97% | 38.55% | 40.19% | 41.53% | 39.7% | 35.34% | 34.23% | 33.98% | 32.95% | 34.11% | 34.9% | 33.54% | 31.67% | 33.39% |
| Selling, General & Admin | 342.77M | 328.15M | 223M | 182.93M | 164.48M | 142.98M | 134.46M | 104.51M | 62.54M | 48.25M | 38.47M | 27.41M | 18.96M | 12.5M | 11.16M |
| SG&A % of Revenue | - | 24.98% | 18.59% | 18.3% | 19.09% | 18.9% | 18.33% | 19.65% | 21.77% | 21.02% | 21.57% | 21.62% | 21.58% | 20.15% | 24.22% |
| Research & Development | 277.96M | 262.51M | 239.51M | 218.81M | 193.38M | 157.36M | 124.81M | 77.58M | 35.06M | 27.39M | 22.38M | 16.83M | 10.5M | 7.14M | 4.23M |
| R&D % of Revenue | - | 19.99% | 19.96% | 21.89% | 22.44% | 20.8% | 17.01% | 14.58% | 12.2% | 11.93% | 12.54% | 13.28% | 11.95% | 11.52% | 9.18% |
| Other Operating Expenses | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 348.87M | 322.46M | 230.07M | 128.13M | 37.65M | 40.57M | 80M | 109.12M | 77.67M | 54.42M | 41.21M | 26.14M | 16.87M | 11.52M | 7.09M |
| Operating Margin % | 25.61% | 24.55% | 19.18% | 12.82% | 4.37% | 5.36% | 10.91% | 20.51% | 27.04% | 23.71% | 23.1% | 20.62% | 19.21% | 18.58% | 15.39% |
| Operating Income Growth % | - | 40.16% | 79.55% | 240.3% | -7.18% | -49.29% | -26.68% | 40.49% | 42.73% | 32.04% | 57.64% | 54.94% | 46.42% | 62.49% | - |
| EBITDA | 326.26M | 322.46M | 392.52M | 281.21M | 198.85M | 177.75M | 195.91M | 164.47M | 95.86M | 70.37M | 54.4M | 34.74M | 18.51M | 15.79M | 10.46M |
| EBITDA Margin % | 23.95% | 24.55% | 32.72% | 28.13% | 23.08% | 23.5% | 26.71% | 30.92% | 33.37% | 30.66% | 30.5% | 27.4% | 21.07% | 25.47% | 22.69% |
| EBITDA Growth % | -28.75% | -17.85% | 39.58% | 41.42% | 11.87% | -9.27% | 19.12% | 71.58% | 36.22% | 29.36% | 56.57% | 87.7% | 17.2% | 51.04% | - |
| D&A (Non-Cash Add-back) | -22.61M | 0 | 162.45M | 153.08M | 161.2M | 137.19M | 115.9M | 55.35M | 18.18M | 15.95M | 13.19M | 8.6M | 1.64M | 4.27M | 3.37M |
| EBIT | 337.44M | 322.46M | 175.09M | 129.34M | 10.33M | -34.22M | 39.02M | 67.93M | 76.09M | 52.46M | 40.12M | 25.55M | 15.76M | 5.42M | 6.83M |
| Net Interest Income | -44.61M | -45.02M | -46.72M | -43.32M | -46.66M | -35.07M | -33.84M | -18.87M | 1.68M | -274K | 0 | 0 | 0 | -44K | -326K |
| Interest Income | 7.9M | 12.11M | 13.91M | 12.14M | 1.76M | 1.5M | 1.04M | 5.91M | 1.68M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 52.51M | 57.13M | 60.63M | 55.45M | 48.42M | 36.57M | 34.88M | 24.77M | 0 | 274K | 0 | 0 | 0 | 44K | 326K |
| Other Income/Expense | -40.16M | -45.02M | -114.03M | -53.09M | -75.75M | -107.31M | -75.86M | -65.96M | -1.85M | -2.23M | -1.09M | -589K | -1.11M | -6.15M | -590K |
| Pretax Income | 308.71M | 277.43M | 116.03M | 75.04M | -38.1M | -66.74M | 4.14M | 43.16M | 75.82M | 52.19M | 40.12M | 25.55M | 15.76M | 5.37M | 6.5M |
| Pretax Margin % | 22.66% | 21.12% | 9.67% | 7.51% | -4.42% | -8.82% | 0.56% | 8.11% | 26.4% | 22.74% | 22.49% | 20.16% | 17.94% | 8.67% | 14.11% |
| Income Tax | 72.22M | 62.23M | 19.33M | 19.33M | -11.95M | -22.45M | -4.69M | 3.49M | 1.92M | 4.83M | 13.74M | 8.94M | 5.6M | 4.14M | -4.67M |
| Effective Tax Rate % | 23.39% | 22.43% | 16.66% | 25.76% | 31.38% | 33.64% | -113.38% | 8.09% | 2.53% | 9.25% | 34.26% | 34.99% | 35.51% | 77.06% | -71.78% |
| Net Income | 236.49M | 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 |
| Net Margin % | 17.36% | 16.38% | 8.06% | 5.57% | -3.03% | -5.85% | 1.2% | 7.46% | 25.73% | 20.63% | 14.79% | 13.1% | 11.57% | 1.99% | 24.23% |
| Net Income Growth % | 62.16% | 122.54% | 73.58% | 313.1% | 40.97% | -601.35% | -77.73% | -46.33% | 56.03% | 79.56% | 58.77% | 63.42% | 724.49% | -88.96% | - |
| Net Income (Continuing) | 236.49M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.81 | 2.46 | 1.09 | 0.64 | -0.31 | -0.53 | 0.12 | 0.58 | 1.17 | 0.77 | 0.44 | 0.28 | 0.21 | 0.03 | 0.21 |
| EPS Growth % | 67.44% | 125.69% | 70.31% | 306.45% | 41.51% | -541.67% | -79.31% | -50.43% | 51.95% | 75% | 57.14% | 33.33% | 677.78% | -87.14% | - |
| EPS (Basic) | - | 2.50 | 1.11 | 0.65 | -0.31 | -0.53 | 0.12 | 0.59 | 1.20 | 0.79 | 0.45 | 0.29 | 0.39 | -1.26 | 0.51 |
| Diluted Shares Outstanding | 84.01M | 87.47M | 88.83M | 86.96M | 84.44M | 83.13M | 75.68M | 68.45M | 63.37M | 61.85M | 59.89M | 58.86M | 51.86M | 45.64M | 45.85M |
| Basic Shares Outstanding | 83.37M | 86.13M | 86.87M | 85.56M | 84.44M | 83.13M | 74.23M | 67.03M | 61.84M | 60.3M | 58.62M | 56.72M | 31.18M | 5.65M | 7.76M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 495.25% | 56.29% | - |
Quick answers to the most common questions about buying HQY stock.
For fiscal year 2026, HealthEquity, Inc. (HQY) reported total revenue of $1.31B. This represents a 2749.8% increase compared to $46.1M in 2013.
HealthEquity, Inc. (HQY) is profitable, generating $215.2M in net income for the fiscal year ending 2026 with a net profit margin of 16.4%.
HealthEquity, Inc. (HQY) reported an operating income of $322.5M, resulting in an operating profit margin of 24.6%. This margin reflects the operational efficiency of the business before interest and taxes.
HealthEquity, Inc. (HQY) generated $913.1M in gross profit for the year, representing a gross profit margin of 69.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Interest rate sensitivity on custodial revenue
Metrics are mathematically derived from official filings.
Decelerating Growth Amidst Margin Expansion
Revenue growth has decelerated from a peak of 23.1% in 2025Q2 to 7.6% in 2027Q2, suggesting the high-growth phase following major acquisitions is maturing into a more stable, organic expansion phase.
The sequential decline in year-over-year revenue growth rates indicates the company is lapping tougher comparisons and that the inorganic boost from prior deals is fading. However, this deceleration is occurring alongside significant margin expansion, implying management is successfully shifting focus from top-line growth at any cost to profitable, sustainable scaling. Investors should monitor whether this growth rate stabilizes in the mid-single digits, which would be consistent with a mature, high-margin platform business.
Structural Margin Expansion Driven by Operating Leverage
Gross margin has expanded dramatically from 56.2% in 2025Q1 to 73.5% in 2027Q2, indicating the high fixed-cost technology platform is now scaling efficiently with incremental member additions.
The 1,730 basis point expansion in gross margin over ten quarters is the most striking feature of the income statement, suggesting the company has moved past integration costs and is now realizing the full operating leverage of its model. This structural shift is likely driven by a combination of higher-yielding custodial assets and the amortization of fixed technology costs over a larger member base. The current margin level appears sustainable and positions the company as a high-profitability leader within its peer group.
SG&A Discipline Amplifies Profitability
Operating income has grown from $43.8M in 2025Q1 to $98.7M in 2027Q2, a 125% increase, while revenue grew only 22%, demonstrating exceptional operating leverage from controlled overhead.
The company's operating margin has expanded from 15.2% to 28.1% over the period, driven by SG&A growing at a fraction of the rate of gross profit. This suggests management has successfully contained corporate overhead and sales costs while scaling the platform. The resulting flow-through to the bottom line is significant, as each incremental dollar of gross profit now contributes more to operating income than it did two years ago.
Stock-Based Compensation Dilutes Reported Earnings
Stock-based compensation has remained elevated at $22.2M in 2027Q2, representing a significant non-cash expense that reduces reported net income and dilutes shareholders, warranting close monitoring.
While the company's adjusted profitability metrics are strong, the consistent and material level of SBC suggests that reported earnings per share may understate the true economic cost of employee compensation. This expense has fluctuated but remains a notable percentage of operating income, indicating it is a core part of the compensation structure. Investors should evaluate the company's free cash flow generation relative to net income to assess the true cash earnings power.
2026Q4: A Quarter of Anomalous Profitability
The 2026Q4 quarter showed a gross margin of 92.4% and a massive SG&A spike to $171.4M, suggesting a significant one-time accounting event, likely related to an acquisition or portfolio migration.
The extreme deviation in cost structure during 2026Q4, where COGS plummeted and SG&A surged, points to a non-recurring event that distorted the income statement for that period. This likely represents the finalization of a large-scale portfolio acquisition, where certain costs were reclassified or one-time integration charges were recognized. The lasting impact appears positive, as subsequent quarters show a permanently higher gross margin profile, indicating the event successfully integrated a valuable asset onto the platform.
Margin Expansion May Mask Growth Deceleration
The impressive margin expansion could be masking a fundamental slowdown in the core business, as revenue growth has fallen from over 20% to under 8% in just two years.
A short-seller would argue that the market is overly focused on margin improvement while ignoring the clear deceleration in top-line growth. The company may be harvesting profits from its existing, sticky member base but struggling to acquire new accounts at the previous pace. If this growth slowdown continues, the current premium valuation may be difficult to sustain, as the story shifts from a high-growth compounder to a mature, cash-generative business with limited reinvestment opportunities.