HealthEquity(NASDAQ) HQY

HealthEquity, Inc. helps people save and pay for medical costs using tax-advantaged accounts. It makes tools for managing health spending and investing for the future. These services help workers and their employers handle healthcare finances.

Managing Health and Wealth

• Health Savings Accounts: Tax-advantaged accounts for saving and investing healthcare dollars; administered 10.7 million accounts as of July 31, 2026.
• Consumer-Directed Benefits: Administration for Flexible Spending Accounts and Health Reimbursement Arrangements (FSAs and HRAs) which help employees pay for eligible expenses.
• Benefit Administration: Management of Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage and pre-tax commuter benefits.
• Investment Services: Platforms for members to grow savings through mutual funds and automated online advisory services.

Recent Moves and Expansions

• Acquired various Health Savings Account portfolios and businesses to strengthen service offerings and increase market share.
• Integrated the Further acquisition including account migrations and technology-related activities as of July 31, 2026.
• Expanded account availability to Bronze and Catastrophic health plans following the July 2025 signing of the One Big Beautiful Bill Act.
• Invested in proprietary technology modernization to enhance security and improve transaction processing capabilities.

Service and Technology Advantages

HealthEquity maintains a service-driven culture called Purple to provide education and guidance alongside its technology. The company integrates its services with health plans, benefits brokers, and retirement plan record-keepers to reach consumers through their employers.

By the Numbers

• Total revenue was $705.4 million for the six-month period ended July 31, 2026, up 7% year over year.
• Net income reached $135.1 million for the six-month period ended July 31, 2026, up 19% year over year.
• Adjusted EBITDA was $331.5 million for the six-month period ended July 31, 2026, up 14% year over year.
• Total HSA Assets grew to $37.9 billion as of July 31, 2026, up 14% year over year.
• Cash and cash equivalents were $256.0 million as of July 31, 2026.

Bottom Line

HealthEquity has grown by combining health insurance administration with financial investment services. Its business model relies on the ongoing shift toward consumer-directed healthcare and tax-advantaged savings in the United States.