Revenue growth has decelerated to 7.2% as of 2027Q1, yet the company has successfully expanded gross margins to 72.3% from a 2025Q3 trough of 56.1% through improved operational efficiencies.
| 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 | 1.34B | 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 % | 7.58% | 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 | 365.11M | 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 | 972.12M | 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 % | 72.7% | 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 | 631.06M | 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 | 334.59M | 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 | 268.84M | 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 | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 341.06M | 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 % | 25.5% | 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 | 314.94M | 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 % | 23.55% | 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 % | -27.25% | -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) | -26.11M | 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 | 329.97M | 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 | -43.6M | -45.02M | -46.72M | -43.32M | -46.66M | -35.07M | -33.84M | -18.87M | 1.68M | -274K | 0 | 0 | 0 | -44K | -326K |
| Interest Income | 11.26M | 12.11M | 13.91M | 12.14M | 1.76M | 1.5M | 1.04M | 5.91M | 1.68M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 54.86M | 57.13M | 60.63M | 55.45M | 48.42M | 36.57M | 34.88M | 24.77M | 0 | 274K | 0 | 0 | 0 | 44K | 326K |
| Other Income/Expense | -42.16M | -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 | 298.89M | 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 % | 22.35% | 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 | 68.19M | 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 % | 22.81% | 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 | 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 |
| Net Margin % | 17.25% | 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 % | 89.4% | 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) | 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 |
| 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) | 2.71 | 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 % | 94.28% | 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 | 85.01M | 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 | 84.41M | 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% | - |
Interest rate sensitivity
According to the latest financial disclosures, HealthEquity's year-over-year revenue growth has decelerated from a peak of 23.1% in 2025Q2 to 7.2% by 2027Q1, suggesting that the company is transitioning from a period of rapid inorganic expansion toward a more mature, organic growth phase.
The consistent decline in top-line growth rates indicates that the initial tailwinds from large-scale portfolio acquisitions may be waning. Investors should monitor whether the company can sustain its current revenue trajectory through organic member acquisition or if the lack of new, sizable books of business will continue to compress growth figures.
As reported in recent income statements, HealthEquity achieved a gross margin of 72.3% in 2027Q1, reflecting a significant recovery from the 56.1% trough observed in 2025Q3, which appears to be driven by improved operational efficiencies and the successful integration of acquired custodial portfolios.
The volatility in gross margins suggests that the company's cost structure is highly sensitive to the timing of portfolio migrations and the associated service costs. The recent expansion implies that the platform is successfully scaling, allowing for better absorption of fixed technology and support expenses as the member base grows.
Based on the provided financial data, operating income reached $103.0M in 2027Q1, representing a 29.0% operating margin, which demonstrates that the company is successfully scaling its operating expenses slower than its gross profit growth, signaling improved management of its proprietary technology platform.
The ability to expand operating margins while maintaining consistent R&D spend suggests that the company is achieving meaningful economies of scale. This trend warrants further investigation to determine if the current level of SG&A efficiency is sustainable or if it relies on temporary cost-containment measures.
Analysis of the income statement reveals that stock-based compensation remains a persistent expense, totaling $19.4M in 2027Q1, which continues to represent a meaningful portion of operating income and may suggest that reported EPS figures are somewhat inflated by the exclusion of these non-cash charges.
While net income has shown a positive trend, the consistent level of stock-based compensation warrants caution regarding the true economic profitability of the firm. Investors should assess whether this compensation structure aligns with long-term shareholder value creation or if it serves as a recurring drag on GAAP earnings.
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.