Recent News
On August 29, 2025 HealthEquity announced that its AI-powered benefits-education tool, HSAnswers, received multiple industry awards recognizing its generative-AI capabilities and benefits-education innovation. On August 6, 2025 the company set its second-quarter fiscal 2026 earnings release for September 2, 2025 and disclosed a schedule of investor conference presentations in early September.
Technical Analysis
ADX at 14.42 signals no established trend; this indicates price action likely remains range-bound until directional strength rises above the 20–25 band and validates a sustained move.
Directional indicators diverge: DI+ at 24.14 shows a peak-and-reversal pattern, indicating recent loss of bullish impetus; DI- at 18.42 decreasing signals reduction in selling pressure. Together these suggest short-term tug-of-war between buyers and sellers rather than a clear directional breakout.
MACD sits at 0.71 above its signal line at 0.37, which reflects a recent bullish cross, but the MACD trend registers a peak-and-reversal, implying momentum has started to wane despite the cross; monitor for whether the MACD completes the reversal or resumes an uptrend.
MRO reads -1.12 (increasing). A negative MRO indicates price currently below the WMDST target and implies potential upside pressure toward that target; the small magnitude suggests modest upward potential rather than an outsized gap to close.
RSI at 48.58 and increasing signals growing buying pressure from the midpoint, consistent with short-term support building just above the 20-day mean.
Price sits at $94.77, above the 20-day average ($94.13) and the 50-day average ($92.68) while remaining below the 200-day average ($96.92). The 12-day EMA rising at $94.52 supports near-term price support; the 200-day average places resistance slightly above current levels. Bollinger bands place the one‑standard‑deviation band roughly between $92.30 and $95.97, indicating current volatility remains contained inside recent trading bands.
Volume at 762,565 trades below 10-, 50- and 200-day averages, suggesting recent moves occurred on lighter participation and therefore lack broad conviction.
Fundamental Analysis
Profitability anchors the fundamental story. EBIT of $93,003,000 produces an EBIT margin of 28.54%, above the industry peer mean of 17.13% and above the industry peer median of 17.23%, reflecting material operating efficiency versus peers. EBIT margin rose QoQ by 10.05% and expanded YoY by 37.98%, reinforcing the improvement in operating leverage.
Operating margin at 27.89% and return on sales at 27.89% both sit well above the industry peer mean of 17.51%, reflecting a higher-than-peer conversion of revenue into operating profit. Return on equity of 2.79% exceeds the industry peer mean of 2.04%, while return on assets of 1.75% trails modestly above the peer mean of 1.10%, indicating capital returns align favorably with peers given the company’s capital intensity.
Top-line metrics show pressure. Total revenue equals $325,835,000 with revenue growth reported at -1.51% (quarter) and revenue growth year-over-year reported at -135.31% (YoY). QoQ revenue growth printed -124.812% (as provided). These figures show contraction on the topline measures provided and suggest revenue dynamics have slowed relative to the margin gains.
Market multiples sit above peer medians: P/E of 87.35 exceeds the industry peer mean of 70.39; price-to-book at 3.80 stands above the industry peer mean of 2.33; price-to-sales at 25.02 remains above the industry peer mean of 13.44. Free cash flow yield at 1.53% outpaces the industry peer mean of 0.57%, and free cash flow of $124,686,000 supports cash conversion metrics—operating cash flow of $135,866,000 and a cash conversion ratio of 0.866 reinforce cash generation versus accounting earnings.
Leverage and liquidity present a mixed picture. Total debt of $1,055,024,000 produces debt-to-assets of 30.88%, slightly above the industry peer mean of 30.15%, while the current ratio at 4.23 sits well above the industry peer mean of 2.03, indicating strong near-term liquidity. Interest coverage at 6.22 remains below the industry peer mean of 8.21 but stays positive and supportive of servicing obligations.
Reported EPS came in at $1.08 versus an estimate of $0.92, an EPS surprise ratio of 17.39%, and EPS difference of $0.16. Forward EPS sits at $0.9225 with a forward P/E of 106.86. WMDST values the stock as fair-valued, reflecting the balance between elevated multiples and stronger-than-peer margins and cash conversion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-09-02 |
| NEXT REPORT DATE: | 2025-12-02 |
| CASH FLOW | Begin Period Cash Flow | $ 287.9 M |
| Operating Cash Flow | $ 135.9 M | |
| Capital Expenditures | $ -11.18 M | |
| Change In Working Capital | $ -11.16 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 16.6 M | |
| End Period Cash Flow | $ 304.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 325.8 M | |
| Forward Revenue | $ 108.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 93.2 M | |
| Depreciation | $ 11.5 M | |
| Depreciation and Amortization | $ 38.5 M | |
| Research and Development | $ 64.8 M | |
| Total Operating Expenses | $ 235.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 232.6 M | |
| EBITDA | $ 131.5 M | |
| EBIT | $ 93.0 M | |
| Operating Income | $ 90.9 M | |
| Interest Income | $ 3.4 M | |
| Interest Expense | $ 15.0 M | |
| Net Interest Income | $ -11.59 M | |
| Income Before Tax | $ 78.0 M | |
| Tax Provision | $ 18.2 M | |
| Tax Rate | 23.3 % | |
| Net Income | $ 59.9 M | |
| Net Income From Continuing Operations | $ 59.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.92 | |
| EPS Actual | $ 1.08 | |
| EPS Difference | $ 0.16 | |
| EPS Surprise | 17.391 % | |
| Forward EPS | $ 0.92 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.4 B | |
| Intangible Assets | $ 2.8 B | |
| Net Tangible Assets | $ -654.18 M | |
| Total Current Assets | $ 492.8 M | |
| Cash and Short-Term Investments | $ 304.5 M | |
| Cash | $ 304.5 M | |
| Net Receivables | $ 111.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 80.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 9.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 116.6 M | |
| Net Debt | $ 702.4 M | |
| Total Debt | $ 1.1 B | |
| Total Liabilities | $ 1.3 B | |
| EQUITY | ||
| Total Equity | $ 2.1 B | |
| Retained Earnings | $ 226.9 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 24.84 | |
| Shares Outstanding | 86.421 M | |
| Revenue Per-Share | $ 3.77 | |
| VALUATION | Market Capitalization | $ 8.2 B |
| Enterprise Value | $ 8.9 B | |
| Enterprise Multiple | 67.73 | |
| Enterprise Multiple QoQ | -6.311 % | |
| Enterprise Multiple YoY | 11.276 % | |
| Enterprise Multiple IPRWA | high: 161.723 HQY: 67.73 median: 60.952 mean: 60.936 low: -62.011 |
|
| EV/R | 27.325 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.592 | |
| Asset To Liability | 2.69 | |
| Debt To Capital | 0.33 | |
| Debt To Assets | 0.309 | |
| Debt To Assets QoQ | -4.686 % | |
| Debt To Assets YoY | 5384.725 % | |
| Debt To Assets IPRWA | high: 0.656 median: 0.314 HQY: 0.309 mean: 0.302 low: 0.188 |
|
| Debt To Equity | 0.492 | |
| Debt To Equity QoQ | -5.678 % | |
| Debt To Equity YoY | 5260.196 % | |
| Debt To Equity IPRWA | high: 4.753 median: 0.597 mean: 0.565 HQY: 0.492 low: 0.289 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.798 | |
| Price To Book QoQ | -1.444 % | |
| Price To Book YoY | 21.602 % | |
| Price To Book IPRWA | HQY: 3.798 high: 2.529 median: 2.405 mean: 2.329 low: 0.984 |
|
| Price To Earnings (P/E) | 87.353 | |
| Price To Earnings QoQ | -10.236 % | |
| Price To Earnings YoY | -2.639 % | |
| Price To Earnings IPRWA | high: 351.269 HQY: 87.353 median: 70.629 mean: 70.394 low: -23.411 |
|
| PE/G Ratio | 7.703 | |
| Price To Sales (P/S) | 25.022 | |
| Price To Sales QoQ | 1.137 % | |
| Price To Sales YoY | 11.382 % | |
| Price To Sales IPRWA | HQY: 25.022 high: 13.712 mean: 13.442 median: 13.429 low: 0.679 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 106.858 | |
| Forward PE/G | 9.423 | |
| Forward P/S | 75.143 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -5.536 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.095 | |
| Asset Turnover Ratio QoQ | -1.058 % | |
| Asset Turnover Ratio YoY | 7.495 % | |
| Asset Turnover Ratio IPRWA | high: 0.445 HQY: 0.095 median: 0.094 mean: 0.093 low: 0.0 |
|
| Receivables Turnover | 2.865 | |
| Receivables Turnover Ratio QoQ | 1.449 % | |
| Receivables Turnover Ratio YoY | 2.548 % | |
| Receivables Turnover Ratio IPRWA | high: 9.066 HQY: 2.865 mean: 1.346 low: 1.343 median: 1.343 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 31.844 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 21.953 | |
| Cash Conversion Cycle Days QoQ | 0.0 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 261.049 mean: 169.673 median: 160.142 HQY: 21.953 low: -17.924 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.866 | |
| CapEx To Revenue | -0.034 | |
| CapEx To Depreciation | -0.976 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.2 B | |
| Net Invested Capital | $ 3.2 B | |
| Invested Capital | $ 3.2 B | |
| Net Tangible Assets | $ -654.18 M | |
| Net Working Capital | $ 376.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.612 | |
| Current Ratio | 4.228 | |
| Current Ratio QoQ | 4.029 % | |
| Current Ratio YoY | 3.132 % | |
| Current Ratio IPRWA | HQY: 4.228 high: 3.656 mean: 2.026 median: 2.014 low: 0.577 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.026 | |
| Cost Of Debt | 1.061 % | |
| Interest Coverage Ratio | 6.219 | |
| Interest Coverage Ratio QoQ | 7.678 % | |
| Interest Coverage Ratio YoY | 54.632 % | |
| Interest Coverage Ratio IPRWA | high: 8.398 median: 8.398 mean: 8.211 HQY: 6.219 low: -10.187 |
|
| Operating Cash Flow Ratio | 0.854 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 9.891 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.012 % | |
| Revenue Growth | -1.514 % | |
| Revenue Growth QoQ | -124.812 % | |
| Revenue Growth YoY | -135.308 % | |
| Revenue Growth IPRWA | high: 13.274 % HQY: -1.514 % mean: -2.797 % median: -3.909 % low: -56.322 % |
|
| Earnings Growth | 11.34 % | |
| Earnings Growth QoQ | -72.055 % | |
| Earnings Growth YoY | 51.2 % | |
| Earnings Growth IPRWA | high: 53.659 % median: 53.659 % mean: 48.711 % HQY: 11.34 % low: -350.0 % |
|
| MARGINS | ||
| Gross Margin | 71.384 % | |
| Gross Margin QoQ | 5.286 % | |
| Gross Margin YoY | 4.924 % | |
| Gross Margin IPRWA | HQY: 71.384 % high: 65.265 % median: 65.015 % mean: 64.988 % low: 24.145 % |
|
| EBIT Margin | 28.543 % | |
| EBIT Margin QoQ | 10.047 % | |
| EBIT Margin YoY | 37.982 % | |
| EBIT Margin IPRWA | HQY: 28.543 % high: 17.23 % median: 17.23 % mean: 17.128 % low: -7.627 % |
|
| Return On Sales (ROS) | 27.891 % | |
| Return On Sales QoQ | 7.534 % | |
| Return On Sales YoY | 34.83 % | |
| Return On Sales IPRWA | HQY: 27.891 % high: 17.673 % median: 17.673 % mean: 17.511 % low: -3.623 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 124.7 M | |
| Free Cash Flow Yield | 1.529 % | |
| Free Cash Flow Yield QoQ | 157.407 % | |
| Free Cash Flow Yield YoY | -202.069 % | |
| Free Cash Flow Yield IPRWA | high: 5.888 % HQY: 1.529 % mean: 0.573 % median: 0.507 % low: -3.961 % |
|
| Free Cash Growth | 156.582 % | |
| Free Cash Growth QoQ | -816.229 % | |
| Free Cash Growth YoY | -409.212 % | |
| Free Cash Growth IPRWA | HQY: 156.582 % high: 22.255 % mean: -71.716 % median: -71.774 % low: -165.763 % |
|
| Free Cash To Net Income | 2.083 | |
| Cash Flow Margin | 30.538 % | |
| Cash Flow To Earnings | 1.662 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.752 % | |
| Return On Assets QoQ | 11.521 % | |
| Return On Assets YoY | 65.283 % | |
| Return On Assets IPRWA | HQY: 1.752 % high: 1.139 % median: 1.139 % mean: 1.097 % low: -2.046 % |
|
| Return On Capital Employed (ROCE) | 2.818 % | |
| Return On Equity (ROE) | 0.028 | |
| Return On Equity QoQ | 9.846 % | |
| Return On Equity YoY | 67.911 % | |
| Return On Equity IPRWA | HQY: 0.028 high: 0.022 median: 0.022 mean: 0.02 low: -0.654 |
|
| DuPont ROE | 2.803 % | |
| Return On Invested Capital (ROIC) | 2.262 % | |
| Return On Invested Capital QoQ | 10.288 % | |
| Return On Invested Capital YoY | -114.578 % | |
| Return On Invested Capital IPRWA | HQY: 2.262 % high: 1.555 % median: 1.555 % mean: 1.486 % low: -11.418 % |
|