HealthEquity (NASDAQ:HQY) Announces Quarterly Earnings Results

HealthEquity (NASDAQ:HQY) released its quarterly earnings results on Thursday. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.05, FiscalAI reports. HealthEquity had a net margin of 17.36% and a return on equity of 15.33%. The business had revenue of $350.73 million for the quarter, compared to analyst estimates of $349.22 million. HealthEquity’s quarterly revenue was up 95.5% compared to the same quarter last year. HealthEquity updated its FY 2027 guidance to 4.660-4.730 EPS.

Here are the key takeaways from HealthEquity’s conference call:

• HealthEquity raised fiscal 2027 guidance after record second-quarter results, including 8% year-over-year revenue growth, a 48% adjusted EBITDA margin, and adjusted EBITDA growth of 11% to $167 million.
• HSA momentum remained strong, with total HSA assets up 14%, total HSAs up 8%, and new HSAs from sales up 24% year over year; retention is expected to remain above 90%.
• Member engagement and operating leverage are improving, with monthly active app users up 62% to 1.4 million, investing HSA members up 20%, and human-handled calls down 25% as AI automation lowers service costs.
• Marketplace activity is accelerating but remains immaterial to overall revenue; Health Savings Days generated 500,000 unique visitors in one week, while management is still testing categories, marketing, and conversion strategies.
• Management noted ongoing competitive pressure and headline service-price erosion, meaning future margin gains will need to be balanced against sharing cost savings with clients through lower administrative fees.

HealthEquity Stock Up 3.2%

HQY stock opened at $96.37 on Friday. HealthEquity has a one year low of $72.76 and a one year high of $107.62. The company has a debt-to-equity ratio of 0.47, a quick ratio of 3.44 and a current ratio of 2.99. The firm’s fifty day moving average is $98.16 and its 200 day moving average is $87.87. The firm has a market cap of $8.06 billion, a PE ratio of 34.79, a P/E/G ratio of 1.57 and a beta of 0.21.

Insider Activity

In related news, EVP Michael Henry Fiore sold 2,354 shares of HealthEquity stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $95.00, for a total value of $223,630.00. Following the completion of the transaction, the executive vice president owned 52,244 shares in the company, valued at $4,963,180. The trade was a 4.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Adrian T. Dillon sold 7,632 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total value of $798,383.52. Following the completion of the transaction, the director directly owned 62,395 shares of the company’s stock, valued at $6,527,140.95. The trade was a 10.90% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 12,456 shares of company stock worth $1,256,664. Corporate insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On HealthEquity

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Acumen Wealth Advisors LLC acquired a new stake in shares of HealthEquity in the fourth quarter valued at about $27,000. Aster Capital Management DIFC Ltd acquired a new position in shares of HealthEquity during the 4th quarter worth about $28,000. Caitong International Asset Management Co. Ltd lifted its stake in HealthEquity by 1,723.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company’s stock valued at $28,000 after buying an additional 293 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in HealthEquity by 190.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 604 shares of the company’s stock worth $55,000 after buying an additional 396 shares during the last quarter. Finally, Larson Financial Group LLC increased its stake in HealthEquity by 24.4% during the 3rd quarter. Larson Financial Group LLC now owns 628 shares of the company’s stock worth $60,000 after buying an additional 123 shares in the last quarter. 99.55% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on HQY shares. BTIG Research reaffirmed a “buy” rating and issued a $115.00 price objective on shares of HealthEquity in a research report on Friday. Citigroup restated a “market outperform” rating on shares of HealthEquity in a research note on Friday. Telsey Advisory Group set a $111.00 target price on HealthEquity in a research report on Friday. Barrington Research restated an “outperform” rating and set a $110.00 price objective on shares of HealthEquity in a research note on Friday, May 22nd. Finally, Citizens Jmp raised their target price on shares of HealthEquity from $110.00 to $111.00 and gave the stock a “market outperform” rating in a report on Monday, June 1st. Eleven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $110.93.

Key Headlines Impacting HealthEquity

Here are the key news stories impacting HealthEquity this week:

• Positive Sentiment: HealthEquity exceeded expectations with adjusted earnings of $1.24 per share versus the $1.19 consensus, while revenue reached $350.7 million, slightly above estimates. Revenue increased 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with net income rising 10% to $65.6 million and net margin expanding to 19% from 18%. Adjusted EBITDA grew 11% to $167 million, while its margin increased to 48% from 46%. HealthEquity Second-Quarter Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. Record HSA assets of $37.9 billion provide additional support for the company’s long-term growth outlook. HealthEquity Raises Fiscal 2027 Guidance
• Positive Sentiment: BTIG Research reaffirmed its “buy” rating and raised its price target to $115. Another analysis indicated that HQY could be approximately 19% undervalued after the guidance increase, reinforcing the bullish interpretation of the earnings update. BTIG Research Rating HealthEquity Could Be Undervalued
• Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.4 billion was broadly in line with expectations, so the guidance improvement was driven mainly by stronger anticipated earnings and margins.
• Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares valued at approximately $798,000, reducing his position by 10.9%. The sale was executed under a pre-arranged Rule 10b5-1 plan, which reduces its negative signaling value but could still attract investor attention. HealthEquity Director Stock Sale
• Negative Sentiment: HQY trades at a premium valuation of roughly 35 times earnings. After the recent advance toward its 52-week high, some investors may lock in gains, potentially tempering the stock’s reaction to otherwise favorable fundamentals.

About HealthEquity

HealthEquity, Inc (NASDAQ: HQY) is a leading administrator of consumer-directed health accounts and related benefit solutions in the United States. Founded in 2002 and headquartered in Draper, Utah, the company specializes in health savings accounts (HSAs) and offers complementary services such as flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA administration and commuter benefits. Through its technology-driven platform, HealthEquity enables employers, health plans and individuals to streamline account management, improve cost transparency and encourage more informed healthcare spending.

Serving millions of members across all 50 states, HealthEquity leverages an open-architecture ecosystem that integrates with health plans, payroll providers and financial institutions.