HQY HEALTHEQUITY, INC.

Overview and Growth

In fiscal 2026, HEALTHEQUITY, INC. recorded $1.31B of revenue, net income of $215.20M, and an operating cash inflow of $457.09M. Revenue of $1.31B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 9.5% above fiscal 2025 revenue of $1.20B, marking a year-over-year increase. The company reported diluted EPS of $2.46, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS increased by 125.7% from $1.09 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.39x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $913.12M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 69.5% of revenue, showing how much of the top line remained after direct costs. Operating income was $322.46M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 24.6% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $215.20M, after the operating, financing, tax, and other items recognized for the period. Net margin was 16.4%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $277.43M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 21.1% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $62.23M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 22.4%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $3.38B, supported by $1.27B of liabilities and $2.11B of shareholder equity. Current assets were $512.28M against $156.85M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 3.27x, leaving a positive buffer for near-term obligations. The company held $318.93M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 203.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $957.38M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.45x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 28.3%, comparing borrowing with the total asset balance. Liabilities represented 37.7% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 9.4% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $457.09M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 2.12x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $1.97M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 0.4% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $455.12M of positive free cash flow for the period. Free cash flow represented 34.7% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 13.5%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jan 31, 2026. Analysis generated Oct 21, 2026.