Filing Flows › Healthequity (HQY) › Q1 FY26
Healthequity (HQY) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Jun 3, 2025
Healthequity (HQY) reported revenue of $331M for the first quarter fiscal 2026 (Q1 FY26), +15% from a year earlier and +6% from the quarter before. Operating margin was 25.1%, net earnings $53.9M (16.3% of revenue).
Healthequity, Q1 FY26: revenue $331M (+15% year over year), operating margin 25.1%, net earnings $53.9M, operating cash flow $64.7M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $331M | +6% | +15% |
| Gross profit | $224M | +19% | +20% |
| Operating profit | $83.1M | +97% | +100% |
| Net earnings | $53.9M | +104% | +87% |
| Operating cash flow | $64.7M | -15% | -1% |
| Free cash flow | $64.7M | -14% | -0.1% |
What changed
Revenue was $330.8M in Q1 FY26, up 15% year over year and up 6% from the previous quarter. Custodial was the largest line at 47% of revenue. Custodial added $34.8M year over year (up 29%), 80% of the total change.
Gross margin was 67.8%, up 2.7 points from a year earlier. Operating profit was $83.1M, a 25.1% margin (up 10.6 points year over year). Of the extra revenue versus a year earlier, 96% reached operating profit, above the 14% margin then. Operating expenses fell 3% while revenue rose 15%. The fastest-growing cost line was Sales & marketing (+11%). Net earnings were $53.9M, up 87% year over year. The effective tax rate was 24.0%.
Operating cash flow was $64.7M (down 1% year over year), 120% of net earnings. Non-cash charges added back $38.7M of depreciation and amortization and $14.3M of share-based compensation. Working capital and other items used $42.3M. Capital expenditures of $86K left free cash flow of $64.7M.
Questions
What was Healthequity's revenue in the first quarter fiscal 2026?
Healthequity (HQY) reported revenue of $331M for the first quarter fiscal 2026 (Q1 FY26), +15% from a year earlier and +6% from the quarter before.
Was Healthequity profitable in the first quarter fiscal 2026?
Operating profit was $83.1M (25.1% of revenue) and net earnings $53.9M.
Source: Healthequity 10-Q on SEC EDGAR.