$HQY

HEALTHEQUITY INC

CIK:0001428336|SEC Filings

Condensed consolidated statements of operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2026	Jul. 31, 2025
Revenue
Total revenue	$ 350,732	$ 325,835	$ 705,373	$ 656,679
Cost of revenue
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 (in usd per share)	$ 0.79	$ 0.69	$ 1.61	$ 1.31
Diluted (in usd per share)	$ 0.78	$ 0.68	$ 1.60	$ 1.29
Weighted-average number of shares used in computing net income per share:
Basic (in shares)	83,374	86,550	83,885	86,601
Diluted (in shares)	84,014	87,746	84,578	88,153
Service revenue
Revenue
Total revenue	$ 124,444	$ 117,873	$ 247,376	$ 237,657
Cost of revenue
Total cost of revenue	73,170	75,156	151,496	163,161
Custodial revenue
Revenue
Total revenue	175,936	159,876	350,270	316,331
Cost of revenue
Total cost of revenue	12,083	11,137	23,738	21,884
Interchange revenue
Revenue
Total revenue	50,352	48,086	107,727	102,691
Cost of revenue
Total cost of revenue	$ 7,525	$ 6,947	$ 15,873	$ 14,728

Condensed consolidated statements of cash flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2026	Jul. 31, 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)	0
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)	0
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
Beginning cash and cash equivalents	318,927	295,948
Ending cash and cash equivalents	256,003	304,461
Supplemental cash flow data:
Interest expense paid in cash	23,350	28,362
Income tax payments, net	35,586	6,507
Supplemental disclosures of non-cash investing and financing activities:
Capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation	3,434	3,380
Purchases of property and equipment included in accounts payable or accrued liabilities	1,294	155
Repurchases of common stock included in accrued liabilities	3,255	1,246
Exercise of common stock options receivable	$ 57	$ 0

Condensed consolidated balance sheets - USD ($) $ in Thousands	Jul. 31, 2026	Jan. 31, 2026
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
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	0	0
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