HealthEquity, Inc.

Worth knowing

• Buybacks largely absorbed by stock pay. Stock-based pay expense $247M vs $421M spent repurchasing shares over the 3 fiscal years to FY Jan 2026. Shares outstanding changed −2.4% from January 2023 to August 2026.

  Over three fiscal years HealthEquity recorded $247M of stock-based pay expense and spent $421M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). The share count barely moved (−2.4%), so much of the repurchasing offset new employee shares rather than shrinking the count.Over three fiscal years HealthEquity recorded $247M of stock-based pay expense and spent $421M repurchasing shares. The share count barely moved (−2.4%), so much of the repurchasing offset new employee shares rather than shrinking the count.

• Operating margin at a 6-year high. 25% in FY Jan 2026, the best of the last 6 years.

  HealthEquity kept 25% of revenue as operating profit in FY Jan 2026, its highest in the 6 years of filings we have.

• Profit recovered from an unusually weak FY Jan 2023. Since FY Jan 2023 (an unusually weak year for operating profit): revenue +52%, operating profit +3460%.Since FY Jan 2023: revenue +52%, operating profit +3460%.

  Since FY Jan 2023, HealthEquity's revenue grew 52% while operating profit grew 3460%: each extra dollar of sales is adding more profit.

• Cash flow well above reported profit. Free cash flow is 2.1× reported profit.

  Free cash flow is 2.1× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.