hqy-20260731

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-36568



HEALTHEQUITY, INC.

(Exact name of registrant as specified in its charter)

Delaware

52-2383166

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

15 West Scenic Pointe Drive

Suite 100

Draper, Utah 84020

(Address of principal executive offices) (Zip code)

(801) 727-1000

(Registrant's telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	HQY	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of August 20, 2026, there were 82,715,296 shares of the registrant's common stock outstanding.

Table of Contents

HealthEquity, Inc. and subsidiaries

Form 10-Q quarterly report

Table of contents


		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial statements
	Condensed consolidated balance sheets as of July 31, 2026 (unaudited) and January 31, 2026	3
	Condensed consolidated statements of operations for the three and six months ended July 31, 2026 and 2025 (unaudited)	4
	Condensed consolidated statements of comprehensive income for the three and six months ended July 31, 2026 and 2025 (unaudited)	5
	Condensed consolidated statements of stockholders' equity for the three and six months ended July 31, 2026 and 2025 (unaudited)	6
	Condensed consolidated statements of cash flows for the six months ended July 31, 2026 and 2025 (unaudited)	7
	Notes to condensed consolidated financial statements (unaudited)	9
Item 2.	Management's discussion and analysis of financial condition and results of operations	20
Item 3.	Quantitative and qualitative disclosures about market risk	35
Item 4.	Controls and procedures	36
Part II. OTHER INFORMATION
Item 1.	Legal proceedings	38
Item 1A.	Risk factors	38
Item 2.	Unregistered sales of equity securities and use of proceeds	38
Item 5.	Other information	38
Item 6.	Exhibits	39
	Signatures	40

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Part I. Financial information

Item 1. Financial statements

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 (see Note 5)
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

See accompanying notes to condensed consolidated financial statements.

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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

See accompanying notes to condensed consolidated financial statements.

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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

See accompanying notes to condensed consolidated financial statements.

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HealthEquity, Inc. and subsidiaries

Condensed consolidated statements of stockholders’ equity (unaudited)


	Three months ended July 31,				Six months ended July 31,
(in thousands)	2026		2025		2026		2025
Total stockholders' equity, beginning balance	$	2,047,395	$	2,123,806	$	2,107,196	$	2,114,911

Common stock:
Beginning balance	8		9		8		9
Issuance of common stock	—		—		—		—
Ending balance	8		9		8		9

Additional paid-in capital:
Beginning balance	1,901,935		1,905,444		1,916,989		1,905,628
Issuance of common stock	297		9,481		716		10,436
Stock-based compensation	22,210		19,068		41,616		33,404
Repurchases of common stock	(27,871)		(14,681)		(62,750)		(30,156)
Ending balance	1,896,571		1,919,312		1,896,571		1,919,312

Accumulated earnings:
Beginning balance	177,204		218,353		195,906		209,274
Repurchases of common stock	(80,265)		(51,310)		(168,385)		(96,146)
Net income	65,644		59,854		135,062		113,769
Ending balance	162,583		226,897		162,583		226,897

Accumulated other comprehensive income (loss):
Beginning balance	(31,752)		—		(5,707)		—
Other comprehensive income (loss)	(37,300)		203		(63,345)		203
Ending balance	(69,052)		203		(69,052)		203

Total stockholders' equity, ending balance	$	1,990,110	$	2,146,421	$	1,990,110	$	2,146,421

See accompanying notes to condensed consolidated financial statements.

-6-

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