# HealthEquity, Inc. (HQY)

> Source: Nexqual · https://nexqual.com/HQY · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, HealthEquity, Inc. (HQY), nexqual.com/HQY" · informational, not investment advice.

**Price:** USD 100.97 (+3.16% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 97.88 · day 97.66–101.09 · 52w 72.76–107.62 · market cap $8.35B · NMS

## Key facts
- Last four reported quarters (through Jul 31, 2026): revenue $1.36B, net income $236M (17.4% margin), free cash flow $488M (SEC filings).
- Valuation: P/E 35.3x (avg 84.7x at the last 3 fiscal year-ends), EV/EBITDA 21.0x, net debt $675M.
- Insider open-market sales, last ~7 months: 7 Form 4 filings, $2.5M; 1 not under a Rule 10b5-1 plan ($13K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $12K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 1.67 on a 1–5 scale) (15 analysts), mean target USD 120.67 (range 108–142).
- Total return with dividends: 1Y +4.8% vs S&P 500 +14.9%; 5Y +49.4% vs S&P 500 +80.3%.
- Next earnings: 2026-08-27, EPS estimate USD 1.15, revenue estimate $347M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $757M | $862M | $1000M | $1.20B | $1.31B | $1.36B |
| Gross profit | $425M | $492M | $623M | $777M | $913M | — |
| Operating income | -$24.2M | $9.1M | $118M | $162M | $322M | $351M |
| Net income | -$44.3M | -$26.1M | $55.7M | $96.7M | $215M | $236M |
| EPS (diluted) | -$0.53 | -$0.31 | $0.64 | $1.09 | $2.46 | — |
| Free cash flow | $132M | $147M | $241M | $338M | $455M | $488M |
| Gross margin | 56.1% | 57.1% | 62.3% | 64.8% | 69.5% | — |
| Operating margin | -3.2% | 1.1% | 11.8% | 13.5% | 24.6% | 25.8% |
| Net margin | -5.9% | -3.0% | 5.6% | 8.1% | 16.4% | 17.4% |
| Revenue growth | +3.1% | +13.9% | +16.0% | +20.0% | +9.5% | — |
| Cash + short-term investments | $225M | $254M | $404M | $296M | $319M | — |
| Total debt | $931M | $925M | $875M | $1.06B | $957M | — |
Fiscal years end Jan. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jul 31, 2026)
P/E 35.3x · P/S 6.1x · EV/EBITDA 21.0x · EV/Sales 6.6x · P/FCF 17.1x · P/B 4.2x · FCF yield 5.84% · Earnings yield 2.83% · Buyback yield (TTM) 4.84% · Net debt $675M · EV $9.03B
P/E at fiscal year-ends: Jan 2026 34.8x, Jan 2025 101.4x, Jan 2024 118.0x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
6 of 7 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-25 | Dillon Adrian T | Director | 7,632 | $798K | 10.9% | Yes (adopted December 20, 2025) | Too little history (no open-market trades in 2023–2025) |
| 2026-04-22…2026-08-24 | Rajasekar Sunil | EVP Chief Prod & Strat Officer | 131 | $13K | 0.2% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-07-10 | Fiore Michael Henry | EVP, CHIEF COMMERCIAL OFFICER | 2,354 | $224K | 4.3% | Yes (adopted October 14, 2025) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-07-02 | Fiore Michael Henry | EVP, CHIEF COMMERCIAL OFFICER | 2,470 | $235K | 4.2% | Yes (adopted October 14, 2025) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-29 | Fiore Michael Henry | EVP, CHIEF COMMERCIAL OFFICER | 3,142 | $298K | 5% | Yes (adopted October 14, 2025) | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-28 | Wellborn Gayle Furgurson | Director | 2,439 | $220K | 11% | Yes (adopted January 14, 2026) | Too little history (no open-market trades in 2023) |
| 2026-05-28 | Ladd Delano | EVP, General Counsel | 7,500 | $675K | 7.6% | Yes (adopted June 12, 2025) | Too little history (no open-market trades in 2023) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $12K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-07-08…2026-10-15 | Rajasekar Sunil | EVP Chief Prod & Strat Officer | 131 | $12K | 91.16 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 1.67 on a 1–5 scale), 15 analysts; mean target USD 120.67 (low 108, high 142).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-21 | BMO Capital | Target raised | Outperform | $105 → $125 |
| 2026-09-18 | Barclays | Target raised | Overweight | $110 → $115 |
| 2026-08-31 | Deutsche Bank | Target raised | Buy | $135 → $142 |
| 2026-08-28 | BTIG | Reiterated | Buy | $115 |
| 2026-07-24 | BTIG | Target raised | Buy | $110 → $115 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +4.8% | +49.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +4.8% | +8.3% |
| Volatility (annualized) | 35.3% | 37.4% |
| Max drawdown | -30.6% (Nov 2025→Feb 2026) | -40.8% (Nov 2021→Dec 2021) |

## Peers (Health Information Services)
HNGE (Hinge Health, Inc.) USD 109.93 -1.85% · TEM (Tempus AI, Inc.) USD 63.81 -5.83% · DOCS (Doximity, Inc.) USD 33.68 +0.30% · BTSG (BrightSpring Health Services, I) USD 60.86 -2.41% · WAY (Waystar Holding Corp.) USD 28.98 +0.49% · HTFL (Heartflow, Inc.) USD 55.43 -0.70%

## More
Full page: https://nexqual.com/HQY · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in HQY's own 10-K filed 2026-03-17 (https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Competitor | UnitedHealth (UNH) | "Some of our direct competitors (including well-known retail investment companies, such as Fidelity Investments, and healthcare service companies such as UnitedHealth Group's Optum and Webster Bank) are in a position to d…" |

## Revenue by product line (quarter ended 2026-07-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Custodial revenue | $175.9M | 50.2% | +10.0% |
| Service revenue | $124.4M | 35.5% | +5.6% |
| Interchange revenue | $50.4M | 14.4% | +4.7% |
| Total revenue | $350.7M | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-10-31) | $1.15 | $1.15 | -0.2% | $347.2M | 14 |
| Next quarter (ends 2027-01-31) | $1.10 | $1.13 | -2.7% | $364.0M | 14 |
| Current fiscal year (ends 2027-01-31) | $4.72 | $4.72 | +0.1% | $1.42B | 14 |
| Next fiscal year (ends 2028-01-31) | $5.50 | $5.45 | +1.0% | $1.53B | 14 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 31.7% | ±7.1% |
| 2026-12-18 | 56 | 36.6% | ±11.4% |
| 2027-03-19 | 147 | 35.0% | ±17.6% |
| 2027-06-17 | 237 | 36.7% | ±23.3% |