HealthEquity Reports Second Quarter Ended July 31, 2026 Financial Results

Rhea-AI Summary

HealthEquity (NASDAQ: HQY) reported fiscal 2027 second-quarter revenue of $350.7 million, up 8% year over year, driven by service revenue of $124.4 million, custodial revenue of $175.9 million, and interchange revenue of $50.4 million. Net income rose 10% to $65.6 million, with net income margin improving to 19% from 18%. Diluted EPS increased to $0.78, while non-GAAP diluted EPS reached $1.24. Adjusted EBITDA grew 11% to $167.0 million, representing a 48% margin.

HSAs reached 10.7 million, up 8% year over year, including 0.9 million investment HSAs, and total HSA Assets climbed 14% to $37.9 billion. The company repurchased 1.2 million shares for $108.1 million. According to HealthEquity, full-year fiscal 2027 guidance was raised to revenue of $1.411–$1.421 billion, net income of $242–$248 million, non-GAAP net income of $392–$398 million, and Adjusted EBITDA of $628–$636 million.

Positive

• Revenue +8% YoY to $350.7 million in Q2 2026
• Net income +10% YoY to $65.6 million; margin 19%
• Diluted EPS +15% YoY to $0.78; non-GAAP EPS $1.24
• Adjusted EBITDA +11% YoY to $167.0 million; 48% margin
• Total HSA Assets +14% YoY to $37.9 billion
• Raised FY 2027 guidance: revenue $1.411–$1.421 billion, net income $242–$248 million

Negative

• Comprehensive income fell to $28.3 million from $60.1 million on $37.3 million OCI loss
• Cash and cash equivalents down to $256.0 million from $318.9 million since January 31, 2026
• Accumulated other comprehensive loss widened to $69.1 million from $5.7 million

News Explained

The completed repurchase used $108.1 million and reduced the reported share count; $948.4 million remains authorized for later purchases.

In the reported quarter ended July 31, 2026, HealthEquity completed $108.1 million of common-stock repurchases, with 82,909 thousand shares issued and outstanding and $256,003 thousand of cash reported at quarter-end.

The release separately says $948.4 million remained authorized under the repurchase program, so that figure represents potential future purchases rather than cash returned in this quarter.

The same July 31, 2026 balance sheet listed $931,062 thousand of long-term debt alongside $256,003 thousand of cash, placing the completed repurchase within the company’s reported capital structure.

Market Context

HQY’s earnings history included both a 7.53% gain and a 3.01% decline over 24 hours. That range adds...

Analysis

HQY’s earnings history included both a 7.53% gain and a 3.01% decline over 24 hours. That range adds context to this report; investors can watch guidance execution, while recent insider activity was net selling.

Key Figures

Revenue: $350.7 million Net Income: $65.6 million Adjusted EBITDA: $167.0 million +5 more

8 metrics

Revenue $350.7 million Q2 ended July 31, 2026; up 8% year over year

Net Income $65.6 million Q2 ended July 31, 2026; up 10%

Adjusted EBITDA $167.0 million Q2 ended July 31, 2026; up 11%

Diluted EPS $0.78 Q2 ended July 31, 2026; versus $0.68 one year ago

HSA Assets $37.9 billion As of July 31, 2026; up 14% year over year

Share Repurchases $108.1 million Q2 ended July 31, 2026

Fiscal 2027 Revenue Guidance $1.411 billion to $1.421 billion Fiscal year ending January 31, 2027; raised guidance

Fiscal 2027 Adjusted EBITDA Guidance $628 million to $636 million Fiscal year ending January 31, 2027

Previous Earnings Reports

5 past events · Latest: May 28 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 28	Q1 earnings report	Positive	-2.8%	Revenue, earnings, EBITDA and guidance increased, but shares declined 2.79%.
Dec 03	Q3 earnings report	Positive	-3.0%	Revenue, EBITDA, EPS and HSA assets increased, but shares declined 3.01%.
Nov 05	Earnings release date	Neutral	-1.8%	The company announced its earnings release schedule, while shares declined 1.75%.
Sep 02	Q2 earnings report	Positive	+7.5%	Revenue, earnings, EBITDA and HSA assets increased as shares gained 7.53%.
Jun 03	Q1 earnings report	Positive	+9.0%	Revenue, earnings, HSA assets and guidance increased as shares gained 8.96%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings history showed more divergent than aligned reactions, including negative responses to several releases reporting positive results.

Key Terms

hsa assets, adjusted ebitda, non-gaap net income, consumer-directed benefits

4 terms

hsa assets financial

"Total HSA Assets grew 14% to $37.9 billion."

Funds held in Health Savings Accounts (HSAs), including cash balances, interest, and any investments or marketable securities within those accounts, plus employer or individual contributions and rollovers. They matter to investors because HSA assets represent deposits and managed assets that banks, custodians, and asset managers may service or earn fees on, similar to how a savings jar shows how much money people are setting aside for health costs and how valuable that business is to firms.

adjusted ebitda financial

"Adjusted EBITDA increased 11% to $167.0 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap net income financial

"Non-GAAP net income was $103.8 million"

Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.

consumer-directed benefits financial

"a leader in consumer-directed benefits ("CDBs")"

Consumer-directed benefits are employee benefit programs that give individuals control over how they spend a set amount of pre-tax or employer-provided funds on health, childcare, or other eligible services — similar to giving someone a gift card they can use where they choose. Investors care because these plans change how companies budget benefits, affect employee satisfaction and turnover, and influence demand for firms that provide related accounts, software, and healthcare services.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Highlights of the second quarter include:

• Net income increased 10% to $65.6 million, and net income margin increased to 19% from 18% last year.
• Adjusted EBITDA increased 11% to $167.0 million, and Adjusted EBITDA margin increased to 48% from 46% last year.
• Revenue increased 8% to $350.7 million.
• Net income per diluted share rose 15% to $0.78 from $0.68 one year ago, and non-GAAP net income per diluted share increased 15% to $1.24.
• Total HSA Assets grew 14% to $37.9 billion.
• Returned $108.1 million to shareholders through stock repurchases.

DRAPER, Utah, Aug. 27, 2026 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the largest independent health savings account ("HSA") custodian by account volume and a leader in consumer-directed benefits ("CDBs"), today announced financial results for its second quarter ended July 31, 2026.

"HealthEquity delivered a record-setting second quarter, with record Adjusted EBITDA margin of 48%, record HSA accounts of 10.7 million and record HSA Assets of nearly $38 billion," said Scott Cutler, President and CEO of HealthEquity. "These results reflect strong execution across the business and the durability of our model as growth comes from more places, member relationships deepen and technology-enabled efficiency improves how we serve members and clients. This momentum gives us confidence to raise fiscal 2027 guidance and enter the second half focused on scaling efficiently and creating long-term value."

Second quarter financial results

Revenue for the second quarter ended July 31, 2026 was $350.7 million, an increase of 8% compared to $325.8 million for the second quarter ended July 31, 2025. Revenue this quarter included: service revenue of $124.4 million, custodial revenue of $175.9 million, and interchange revenue of $50.4 million.

Net income was $65.6 million, or $0.78 per diluted share, for the second quarter ended July 31, 2026, compared to $59.9 million, or $0.68 per diluted share, for the second quarter ended July 31, 2025. Net income margin was 19% for the second quarter ended July 31, 2026, compared to 18% for the second quarter ended July 31, 2025.

Non-GAAP net income was $103.8 million, or $1.24 per diluted share, for the second quarter ended July 31, 2026, compared to $94.6 million, or $1.08 per diluted share, for the second quarter ended July 31, 2025.

Adjusted EBITDA was $167.0 million for the second quarter ended July 31, 2026, an increase of 11% compared to the second quarter ended July 31, 2025. Adjusted EBITDA was 48% of revenue, compared to 46% for the second quarter ended July 31, 2025.

Account and asset metrics

New HSAs from sales were 202 thousand, an increase of 24% compared to the second quarter ended July 31, 2025. HSAs as of July 31, 2026 were 10.7 million, an increase of 8% year over year, including 0.9 million HSAs with investments, an increase of 20% year over year. Total Accounts as of July 31, 2026 were 17.8 million, including 7.0 million complementary CDBs.

Total HSA Assets as of July 31, 2026 were $37.9 billion, an increase of 14% year over year. Total HSA Assets included $17.4 billion of HSA cash and $20.6 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.9 billion as of July 31, 2026.

Stock repurchase program

The Company repurchased 1.2 million shares of its common stock for $108.1 million during the second quarter ended July 31, 2026. As of July 31, 2026, $948.4 million of common stock remained authorized for repurchase under the stock repurchase program.

Business outlook

For the fiscal year ending January 31, 2027, management is raising guidance and now expects revenues of $1.411 billion to $1.421 billion. Its outlook for net income is between $242 million and $248 million, resulting in net income of $2.88 to $2.96 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $392 million and $398 million, resulting in non-GAAP net income per diluted share of $4.66 to $4.73 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $628 million to $636 million.

See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Conference call

HealthEquity management will host a conference call at 8:30 a.m. (Eastern Time) on Thursday, August 27, 2026 to discuss the fiscal 2027 second quarter financial results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.

Non-GAAP financial information

To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.

• Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
• Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
• Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP financial measures, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.

About HealthEquity

HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for more than 17 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers. For more information, visit www.healthequity.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “aims,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:

• our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;
• our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;
• our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;
• the impact of fraudulent account activity involving our member accounts or our third-party service providers on our reputation and financial results;
• our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;
• the significant competition we face and may face in the future, including from those with greater resources than us;
• our reliance on the availability and performance of our technology and communications systems;
• potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;
• the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;
• our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;
• our reliance on partners and third-party vendors for distribution and important services;
• our ability to develop and implement updated features for our technology platforms and communications systems; and
• our reliance on our management team and key team members.

For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investor Relations Contact
Richard Putnam
801-727-1000
rputnam@healthequity.com

HealthEquity, Inc. and subsidiaries Condensed consolidated balance sheets
(in thousands, except par value)	July 31, 2026				January 31, 2026
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	256,003			$	318,927
Accounts receivable, net of allowance for doubtful accounts of $1,067 and $924 as of July 31, 2026 and January 31, 2026, respectively		122,193				123,696
Prepaid expenses and other current assets		82,008				69,658
Total current assets		460,204				512,281
Property and equipment, net		4,823				3,177
Operating lease right-of-use assets		32,874				36,310
Intangible assets, net		1,047,797				1,097,172
Goodwill		1,648,145				1,648,145
Other assets		77,520				83,247
Total assets	$	3,271,363			$	3,380,332
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	8,592			$	12,159
Accrued compensation		37,913				60,392
Accrued liabilities		97,300				74,388
Operating lease liabilities		9,970				9,911
Total current liabilities		153,775				156,850
Long-term liabilities
Long-term debt, net of issuance costs		931,062				957,379
Operating lease liabilities, non-current		29,984				34,190
Other long-term liabilities		73,999				31,007
Deferred tax liability		92,433				93,710
Total long-term liabilities		1,127,478				1,116,286
Total liabilities		1,281,253				1,273,136
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively		—				—
Common stock, $0.0001 par value, 900,000 shares authorized, 82,909 and 85,007 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively		8				8
Additional paid-in capital		1,896,571				1,916,989
Accumulated earnings		162,583				195,906
Accumulated other comprehensive loss		(69,052	)			(5,707	)
Total stockholders’ equity		1,990,110				2,107,196
Total liabilities and stockholders’ equity	$	3,271,363			$	3,380,332

HealthEquity, Inc. and subsidiaries Condensed consolidated statements of operations (unaudited)
	Three months ended July 31,								Six months ended July 31,
(in thousands, except per share data)		2026				2025				2026				2025
Revenue
Service revenue	$	124,444			$	117,873			$	247,376			$	237,657
Custodial revenue		175,936				159,876				350,270				316,331
Interchange revenue		50,352				48,086				107,727				102,691
Total revenue		350,732				325,835				705,373				656,679
Cost of revenue
Service costs		73,170				75,156				151,496				163,161
Custodial costs		12,083				11,137				23,738				21,884
Interchange costs		7,525				6,947				15,873				14,728
Total cost of revenue		92,778				93,240				191,107				199,773
Gross profit		257,954				232,595				514,266				456,906
Operating expenses
Sales and marketing		23,215				19,922				50,048				45,906
Technology and development		73,923				64,804				141,690				126,240
General and administrative		34,869				29,990				66,000				55,526
Amortization of acquired intangible assets		26,286				27,001				52,801				54,003
Merger integration		971				1,266				2,084				2,541
Total operating expenses		159,264				142,983				312,623				284,216
Income from operations		98,690				89,612				201,643				172,690
Other expense
Interest expense		(12,605	)			(14,955	)			(25,193	)			(29,813	)
Other income, net		1,780				3,391				3,828				6,124
Total other expense		(10,825	)			(11,564	)			(21,365	)			(23,689	)
Income before income taxes		87,865				78,048				180,278				149,001
Income tax provision		22,221				18,194				45,216				35,232
Net income	$	65,644			$	59,854			$	135,062			$	113,769
Net income per share:
Basic	$	0.79			$	0.69			$	1.61			$	1.31
Diluted	$	0.78			$	0.68			$	1.60			$	1.29
Weighted-average number of shares used in computing net income per share:
Basic		83,374				86,550				83,885				86,601
Diluted		84,014				87,746				84,578				88,153

HealthEquity, Inc. and subsidiaries Condensed consolidated statements of comprehensive income (unaudited)
	Three months ended July 31,							Six months ended July 31,
(in thousands)		2026				2025			2026				2025
Net income	$	65,644			$	59,854		$	135,062			$	113,769
Other comprehensive income (loss)
Cash flow hedges
Net unrealized gains (losses)		(37,322	)			203			(63,219	)			203
Reclassification of net (gains) losses included in net income		22				—			(126	)			—
Net change, net of income tax benefit (expense) of $12,135, $(70), $20,598, and $(70), respectively		(37,300	)			203			(63,345	)			203
Total other comprehensive income (loss)		(37,300	)			203			(63,345	)			203
Comprehensive income	$	28,344			$	60,057		$	71,717			$	113,972

HealthEquity, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited)
	Six months ended July 31,
(in thousands)		2026				2025
Cash flows from operating activities:
Net income	$	135,062			$	113,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		80,169				77,195
Stock-based compensation		41,616				33,404
Amortization of debt discount and issuance costs		558				533
Amortization of gains on derivatives		(168	)			—
Deferred taxes		19,321				30,711
Changes in operating assets and liabilities:
Accounts receivable, net		1,503				6,842
Prepaid expenses and other current and non-current assets		(12,581	)			(20,650	)
Operating lease right-of-use assets		3,436				3,339
Accrued compensation		(21,095	)			(35,032	)
Accounts payable, accrued liabilities, and other current liabilities		(13,595	)			(3,785	)
Operating lease liabilities, non-current		(4,206	)			(3,951	)
Other long-term liabilities		3,665				(1,771	)
Net cash provided by operating activities		233,685				200,604
Cash flows from investing activities:
Capitalized software development costs		(30,720	)			(26,464	)
Purchases of property and equipment		(1,340	)			(859	)
Settlement of derivatives, net		(7,759	)			—
Net cash used in investing activities		(39,819	)			(27,323	)
Cash flows from financing activities:
Repurchases of common stock		(231,054	)			(125,810	)
Principal payments on long-term debt		(26,875	)			(50,000	)
Settlement of client-held funds obligation, net		480				596
Proceeds from exercise of common stock options		659				10,446
Net cash used in financing activities		(256,790	)			(164,768	)
Increase (decrease) in cash and cash equivalents		(62,924	)			8,513
Beginning cash and cash equivalents		318,927				295,948
Ending cash and cash equivalents	$	256,003			$	304,461

HealthEquity, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (continued)
	Six months ended July 31,
(in thousands)		2026			2025
Supplemental cash flow data:
Interest expense paid in cash	$	23,350		$	28,362
Income tax payments, net		35,586			6,507
Supplemental disclosures of non-cash investing and financing activities:
Capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation		3,434			3,380
Purchases of property and equipment included in accounts payable or accrued liabilities		1,294			155
Repurchases of common stock included in accrued liabilities		3,255			1,246
Exercise of common stock options receivable		57			—

Stock-based compensation expense (unaudited) Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income is as follows:
	Three months ended July 31,						Six months ended July 31,
(in thousands)		2026			2025			2026			2025
Cost of revenue	$	2,713		$	3,114		$	5,500		$	6,501
Sales and marketing		3,229			1,529			7,753			6,399
Technology and development		6,178			5,732			10,131			11,652
General and administrative		10,090			8,693			18,232			8,852
Total stock-based compensation expense	$	22,210		$	19,068		$	41,616		$	33,404

Total Accounts (unaudited)
(in thousands, except percentages)	July 31, 2026		July 31, 2025		% Change			January 31, 2026
HSAs	10,739		9,989		8 %			10,570
New HSAs from sales - Quarter-to-date	202		163		24 %			553
New HSAs from sales - Year-to-date	374		312		20 %			1,040
New HSAs from acquisitions - Year-to-date	—		—		*			—
HSAs with investments	939		782		20 %			832
CDBs	7,016		7,153		(2)%			7,221
Total Accounts	17,755		17,142		4 %			17,791
Average Total Accounts - Quarter-to-date	17,710		17,044		4 %			17,462
Average Total Accounts - Year-to-date	17,772		17,083		4 %			17,220

*     Not meaningful

HSA Assets (unaudited)
(in millions, except percentages)	July 31, 2026			July 31, 2025			% Change			January 31, 2026
HSA cash	$	17,369		$	17,035		2%			$	17,982
HSA investments		20,552			16,102		28%				18,482
Total HSA Assets		37,921			33,137		14%				36,464
Average daily HSA cash - Quarter-to-date		17,388			17,017		2%				17,090
Average daily HSA cash - Year-to-date		17,547			17,149		2%				17,082

HSA cash maturity schedule The following table summarizes the amount of HSA cash held by our depository partners and insurance company partners that is expected to reprice by fiscal year and the respective average annualized yield currently earned on that HSA cash as of July 31, 2026:
Year ending January 31, (in billions, except percentages)	HSA cash expected to reprice			Average annualized yield
Remainder of 2027	$	2.3		1.5%
2028		2.5		4.0%
2029		1.8		3.8%
2030		2.3		4.4%
Thereafter		7.8		4.4%
Total (1)	$	16.7		3.9%

(1)  Excludes $0.7 billion of HSA cash held in floating-rate contracts as of July 31, 2026.

Client-held funds (unaudited)
(in millions, except percentages)	July 31, 2026			July 31, 2025			% Change			January 31, 2026
Client-held funds	$	931		$	818		14 %			$	1,090
Average daily Client-held funds - Quarter-to-date		936			884		6 %				879
Average daily Client-held funds - Year-to-date		986			893		10 %				864

Reconciliation of net income to Adjusted EBITDA (unaudited)
	Three months ended July 31,								Six months ended July 31,
(in thousands)		2026				2025				2026				2025
Net income	$	65,644			$	59,854			$	135,062			$	113,769
Interest income		(1,760	)			(3,364	)			(3,647	)			(6,097	)
Interest expense		12,605				14,955				25,193				29,813
Income tax provision		22,221				18,194				45,216				35,232
Depreciation and amortization		15,669				11,453				27,368				23,192
Amortization of acquired intangible assets		26,286				27,001				52,801				54,003
Stock-based compensation expense		22,210				19,068				41,616				33,404
Merger integration expenses		971				1,266				2,084				2,541
Amortization of incremental costs to obtain a contract		2,139				1,951				4,255				3,877
Costs associated with unused office space		1,016				723				1,702				1,575
Other		(20	)			(27	)			(181	)			(27	)
Adjusted EBITDA	$	166,981			$	151,074			$	331,469			$	291,282

Net income and Adjusted EBITDA as a percentage of revenue (unaudited)
	Three months ended July 31,														Six months ended July 31,
(in thousands, except percentages)		2026				2025			$ Change			% Change				2026				2025			$ Change			% Change
Net income	$	65,644			$	59,854			$	5,790		10	%		$	135,062			$	113,769			$	21,293		19	%
As a percentage of revenue		19	%			18	%									19	%			17	%
Adjusted EBITDA	$	166,981			$	151,074			$	15,907		11	%		$	331,469			$	291,282			$	40,187		14	%
As a percentage of revenue		48	%			46	%									47	%			44	%

Reconciliation of net income outlook to Adjusted EBITDA (unaudited)
	Outlook for the year ending
(in millions)	January 31, 2027
Net income	$242 - 248
Interest income	(7)
Interest expense	50
Income tax provision	81 - 83
Depreciation and amortization	54
Amortization of acquired intangible assets	104
Stock-based compensation expense	87
Merger integration expenses	5
Amortization of incremental costs to obtain a contract	9
Costs associated with unused office space	3
Adjusted EBITDA	$628 - 636

Note: Values presented may not calculate due to rounding.

Reconciliation of net income to non-GAAP net income (unaudited)
	Three months ended July 31,						Six months ended July 31,
(in thousands, except per share data)		2026			2025			2026			2025
Net income	$	65,644		$	59,854		$	135,062		$	113,769
Income tax provision		22,221			18,194			45,216			35,232
Income before income taxes - GAAP		87,865			78,048			180,278			149,001
Non-GAAP adjustments:
Amortization of acquired intangible assets		26,286			27,001			52,801			54,003
Stock-based compensation expense		22,210			19,068			41,616			33,404
Merger integration expenses		971			1,266			2,084			2,541
Costs associated with unused office space		1,016			723			1,702			1,575
Total adjustments to income before income taxes - GAAP		50,483			48,058			98,203			91,523
Income before income taxes - Non-GAAP		138,348			126,106			278,481			240,524
Income tax provision - Non-GAAP (1)		34,586			31,526			69,620			60,130
Non-GAAP net income		103,762			94,580			208,861			180,394
Diluted weighted-average shares		84,014			87,746			84,578			88,153
GAAP net income per diluted share	$	0.78		$	0.68		$	1.60		$	1.29
Non-GAAP net income per diluted share	$	1.24		$	1.08		$	2.47		$	2.05

(1)

The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

Reconciliation of net income outlook to non-GAAP net income outlook (unaudited)
	Outlook for the year ending
(in millions, except per share data)	January 31, 2027
Net income	$242 - 248
Income tax provision	81 - 83
Income before income taxes - GAAP	323 - 331
Non-GAAP adjustments:
Amortization of acquired intangible assets	104
Stock-based compensation expense	87
Merger integration expenses	5
Costs associated with unused office space	3
Total adjustments to income before income taxes - GAAP	199
Income before income taxes - Non-GAAP	522 - 530
Income tax provision - Non-GAAP (1)	131 - 133
Non-GAAP net income	$392 - 398
Diluted weighted-average shares	84
GAAP net income per diluted share	$2.88 - 2.96
Non-GAAP net income per diluted share	$4.66 - 4.73

Note: Values presented may not calculate due to rounding.

(1)

The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

Certain terms
Term	Definition
HSA	Health Savings Account, which is a financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.
CDB	Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits.
HSA member	Consumers with HSAs that we serve.
Total HSA Assets	HSA members’ custodial cash assets held by our federally insured depository partners and our insurance company partners. Total HSA Assets also includes HSA members' investments held by our custodial investment fund partner.
Client	Our employer clients.
Total Accounts	The sum of HSAs and CDBs on our platforms.
Client-held funds	Deposits held on behalf of our Clients to facilitate administration of our CDBs.
Network Partner	Our health plan partners, benefits administrators, and retirement plan recordkeepers.
Adjusted EBITDA	Earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.
Non-GAAP net income	Calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.
Non-GAAP net income per diluted share	Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

FAQ

How did HealthEquity (NASDAQ: HQY) perform in Q2 2026?

HealthEquity reported higher revenue, earnings, and margins in Q2 2026. According to HealthEquity, revenue rose 8% to $350.7 million, net income increased 10% to $65.6 million, and Adjusted EBITDA grew 11% to $167.0 million, with a 48% Adjusted EBITDA margin.

What were HealthEquity's Q2 2026 earnings per share (EPS) for HQY stock?

HealthEquity’s Q2 2026 diluted EPS was $0.78, up from $0.68 a year earlier. According to HealthEquity, non-GAAP net income per diluted share was $1.24, compared with $1.08 in the prior-year quarter, reflecting higher profitability and operating leverage.

How many HSA accounts and assets did HealthEquity (HQY) report as of July 31, 2026?

HealthEquity reported 10.7 million HSA accounts and $37.9 billion in HSA Assets as of July 31, 2026. According to HealthEquity, HSA Assets grew 14% year over year, including $17.4 billion in HSA cash and $20.6 billion in HSA investments.

What Adjusted EBITDA did HealthEquity (HQY) generate in Q2 2026?

HealthEquity generated Q2 2026 Adjusted EBITDA of $167.0 million, up 11% year over year. According to HealthEquity, this represented 48% of revenue, compared with 46% in the prior-year quarter, indicating improved operating efficiency and scale benefits across the business.

What stock repurchases did HealthEquity (NASDAQ: HQY) complete in Q2 2026?

HealthEquity repurchased 1.2 million shares for $108.1 million in Q2 2026. According to HealthEquity, $948.4 million of common stock remained authorized for repurchase under its program as of July 31, 2026, supporting ongoing capital return flexibility for shareholders.

What is HealthEquity's updated fiscal 2027 guidance for HQY investors?

HealthEquity raised fiscal 2027 guidance for revenue, earnings, and Adjusted EBITDA. According to HealthEquity, it now expects revenue of $1.411–$1.421 billion, net income of $242–$248 million, non-GAAP net income of $392–$398 million, and Adjusted EBITDA of $628–$636 million.

How fast are HealthEquity's HSA accounts and investment HSAs growing as of Q2 2026?

HealthEquity’s HSA accounts grew 8% year over year to 10.7 million, with investment HSAs up 20%. According to HealthEquity, new HSAs from sales were 202 thousand in the quarter, a 24% increase versus Q2 2025, highlighting continued demand for its HSA platform.