HealthEquity, Inc. (NASDAQ:HQY) Quarterly Earnings Preview

• HealthEquity, Inc. (NASDAQ:HQY) has shown a positive trend with a gain of approximately 3.64% over the past month, despite a recent dip of about 5.55% in the last 10 days.
• The company has a strong growth potential with an estimated stock price growth potential of 26.79%, supported by its expanding services and customer base.
• HealthEquity boasts a perfect Piotroski Score of 9, indicating excellent financial health and operational efficiency.

HealthEquity, Inc. (NASDAQ:HQY) is a company that specializes in providing technology-enabled services to help consumers make informed healthcare spending decisions. It offers a range of solutions, including health savings accounts (HSAs), which are designed to help individuals save for medical expenses. HealthEquity competes with other financial service providers in the healthcare sector, such as UnitedHealth Group and Optum Bank.

Over the past month, HQY has experienced a gain of approximately 3.64%, indicating a positive trend. This performance suggests that investors have confidence in the company's ability to grow and deliver value. However, in the last 10 days, the stock has seen a decline of about 5.55%. This recent dip could present a buying opportunity for investors looking to capitalize on its potential rebound.

One of the key highlights of HQY is its strong growth potential, with an estimated stock price growth potential of 26.79%. This suggests that the stock could see significant appreciation in value, making it an attractive option for growth-oriented investors. The company's focus on expanding its services and customer base supports this optimistic outlook.

Additionally, HQY boasts a perfect Piotroski Score of 9, which is a strong indicator of the company's financial health. The Piotroski Score is a measure used to determine the strength of a company's financial position, with a score of 9 being the highest possible. This score reflects HQY's robust financials and operational efficiency, making it a reliable choice for investors.

Currently, HQY has touched a local minimum, which could be an opportune moment for investors to consider entering a position. The target price for HQY is set at $117, indicating substantial upside potential from its current levels. This target price reflects the market's confidence in HQY's ability to deliver strong financial performance and growth in the future.

HealthEquity, Inc. (NASDAQ:HQY) is a prominent player in the medical services industry, specializing in providing technology-enabled services that help consumers make informed healthcare decisions. The company offers a range of solutions, including health savings accounts (HSAs) and other consumer-directed benefits. HealthEquity competes with other firms in the healthcare technology sector, striving to deliver value to its customers and shareholders.

On September 2, 2025, HealthEquity reported earnings per share (EPS) of $1.08, surpassing the estimated $0.92. This represents a significant improvement from the $0.86 EPS reported in the same quarter last year. The earnings surprise for this quarter stands at +17.39%, highlighting the company's ability to exceed market expectations consistently. In the previous quarter, HealthEquity also outperformed with an EPS of $0.97 against an anticipated $0.81, resulting in a +19.75% surprise.

HealthEquity's revenue for the quarter ending in July 2025 reached $325.84 million, marking an 8.6% increase compared to the same period last year. This figure exceeded the Zacks Consensus Estimate of $318.81 million by 2.2%. The company's consistent ability to surpass revenue estimates over the past four quarters underscores its strong market position and operational efficiency.

The company's financial metrics provide further insights into its performance. HealthEquity has a price-to-earnings (P/E) ratio of approximately 63.21, indicating that investors are willing to pay over 63 times the company's earnings for its shares. The price-to-sales ratio stands at about 6.18, suggesting that investors are paying $6.18 for every dollar of the company's sales. These ratios reflect investor confidence in HealthEquity's growth potential.

HealthEquity's balance sheet also shows a healthy financial position. The debt-to-equity ratio is 0.52, indicating a moderate level of debt compared to equity. The current ratio of 4.06 suggests that the company has a strong ability to cover its short-term liabilities with its short-term assets. These metrics, combined with the company's recent earnings performance, provide a comprehensive view of HealthEquity's financial health and future prospects.

• The consensus price target for HealthEquity has remained stable, indicating analyst confidence in the company's business model.
• HealthEquity's Q1 FY26 results demonstrated strong revenue and earnings growth, along with margin expansion.
• Despite a recent stock price decline, HealthEquity has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about its future performance.

HealthEquity, Inc. (NASDAQ:HQY) is a prominent player in the U.S. healthcare financial management sector. The company provides a variety of services, including cloud-based platforms for managing healthcare finances, mutual fund investment platforms, and automated investment advisory services. HealthEquity also offers flexible spending accounts and health reimbursement arrangements, making it a comprehensive provider in the benefits administration space.

The consensus price target for HealthEquity has shown remarkable stability over the past year, with a slight decrease from $109.8 to $109. This consistency suggests that analysts have a steady outlook on the company's stock, reflecting confidence in its business model. Despite this, RBC Capital has set a lower price target of $75, indicating a more cautious approach.

HealthEquity's economic model is highly regarded, with high margins and capital-light growth. The company's Q1 FY26 results showed strong revenue and earnings growth, along with margin expansion. This indicates efficient scaling of the business, which is crucial for long-term investors. The company's recurring, asset-linked revenue model is well-positioned to benefit from ongoing healthcare trends.

Despite a recent 10.4% decline in stock price since its last earnings report, HealthEquity has been upgraded to a Zacks Rank #2 (Buy). This upgrade reflects growing optimism about the company's future performance. The market is closely monitoring how HealthEquity will address the challenges following its recent earnings announcement.

Investors should stay informed about any new developments or changes in the healthcare industry that could impact HealthEquity's operations and stock performance. Strategic partnerships, earnings reports, and changes in healthcare regulations are key factors to watch. These elements could influence the company's ability to maintain its market position and continue delivering value through its technology-enabled services.

HealthEquity, Inc. (NASDAQ: HQY) is a prominent player in the Zacks Medical Services industry, specializing in providing services related to Health Savings Accounts (HSAs) and Consumer-Directed Benefits (CDBs). The company has shown consistent growth, as evidenced by its recent financial performance. HealthEquity competes with other firms in the healthcare financial services sector, striving to offer innovative solutions to its clients.

On June 3, 2025, HealthEquity reported earnings per share (EPS) of $0.97, surpassing the estimated $0.81. This represents a significant improvement from the $0.80 EPS reported a year ago, marking a 19.75% earnings surprise. Over the past four quarters, HealthEquity has exceeded consensus EPS estimates three times, showcasing its ability to outperform market expectations.

In addition to strong earnings, HealthEquity reported revenues of $330.8 million for the quarter ending April 2025, exceeding the Zacks Consensus Estimate by 3.03%. This marks a 15% increase from the $287.6 million reported in the same quarter last year. The company has consistently surpassed consensus revenue estimates in the last four quarters, highlighting its robust revenue growth.

HealthEquity's net income saw a significant rise of 87%, reaching $53.9 million compared to $28.8 million in Q1 FY25. On a non-GAAP basis, net income was $85.8 million, up 22% from the prior year. The company's adjusted EBITDA was $140.2 million, reflecting a 19% increase from $117.4 million in Q1 FY25, indicating strong operational performance.

The company also reported growth in its Health Savings Accounts (HSAs), with 9.9 million accounts, a 9% increase from the previous year. Total HSA assets reached $31.3 billion, up 15%. Additionally, HealthEquity repurchased 0.7 million shares of its common stock for $60.3 million, demonstrating confidence in its financial health and future prospects.

HealthEquity, Inc. (NASDAQ:HQY) is a prominent provider of healthcare savings management services, including health savings accounts (HSAs), flexible spending accounts (FSAs), and other related financial services. The company is currently under scrutiny by the Rosen Law Firm for potentially misleading business information, which could have significant implications for shareholders and the stock market.

• HealthEquity faces an investigation by the Rosen Law Firm over potential securities claims due to allegedly misleading business information.
• The company's stock experienced a notable 17% drop following reports of negative impacts from cyber threats and fraud.
• Director Robert W. Selander's recent stock sales raise further questions about HealthEquity's future prospects.

HealthEquity competes with other financial service providers in the healthcare sector, such as Optum Bank and Fidelity Investments. The ongoing investigation by the Rosen Law Firm alleges that HealthEquity may have provided misleading information to the public, which is a significant concern for shareholders. They might be eligible for compensation through a contingency fee arrangement, meaning no upfront fees are required. The investigation was prompted by a 17% drop in HealthEquity's stock price on March 19, 2025, following an Investopedia article that highlighted the company's struggles with cyber threats and fraud. These issues have led to missed profit estimates and weak future guidance, causing investor concern. Adding to the company's challenges, Robert W. Selander, a director at HealthEquity, executed two significant stock sale transactions on April 9, 2025, selling shares at approximately $76.79 and $78.06 each. After these transactions, Selander holds 85,369 shares of the company's common stock, which might raise questions among investors regarding the company's future prospects. The Rosen Law Firm, known for its expertise in securities class actions, is preparing a class action to recover investor losses. Investors are encouraged to contact the Rosen Law Firm for more information on joining the class action as they seek to address the potential misleading information provided by HealthEquity.

HealthEquity, Inc. (NASDAQ:HQY) is a prominent provider of healthcare savings management services, including health savings accounts (HSAs), flexible spending accounts (FSAs), and other related financial services. The company is currently under scrutiny by the Rosen Law Firm for potentially misleading business information, which could have significant implications for shareholders and the stock market.

• HealthEquity faces an investigation by the Rosen Law Firm over potential securities claims due to allegedly misleading business information.
• The company's stock experienced a notable 17% drop following reports of negative impacts from cyber threats and fraud.
• Director Robert W. Selander's recent stock sales raise further questions about HealthEquity's future prospects.

HealthEquity competes with other financial service providers in the healthcare sector, such as Optum Bank and Fidelity Investments. The ongoing investigation by the Rosen Law Firm alleges that HealthEquity may have provided misleading information to the public, which is a significant concern for shareholders. They might be eligible for compensation through a contingency fee arrangement, meaning no upfront fees are required. The investigation was prompted by a 17% drop in HealthEquity's stock price on March 19, 2025, following an Investopedia article that highlighted the company's struggles with cyber threats and fraud. These issues have led to missed profit estimates and weak future guidance, causing investor concern. Adding to the company's challenges, Robert W. Selander, a director at HealthEquity, executed two significant stock sale transactions on April 9, 2025, selling shares at approximately $76.79 and $78.06 each. After these transactions, Selander holds 85,369 shares of the company's common stock, which might raise questions among investors regarding the company's future prospects. The Rosen Law Firm, known for its expertise in securities class actions, is preparing a class action to recover investor losses. Investors are encouraged to contact the Rosen Law Firm for more information on joining the class action as they seek to address the potential misleading information provided by HealthEquity.