Filing Flows › Healthequity (HQY) › Q1 FY27
Healthequity (HQY) Q1 FY27 earnings results (first quarter fiscal 2027)
10-Q filed May 28, 2026
Healthequity (HQY) reported revenue of $355M for the first quarter fiscal 2027 (Q1 FY27), +7% from a year earlier and +6% from the quarter before. Operating margin was 29.0%, net earnings $69.4M (19.6% of revenue).
Healthequity, Q1 FY27: revenue $355M (+7% year over year), operating margin 29.0%, net earnings $69.4M, operating cash flow $97.5M. The chart follows the revenue to costs, profit and cash.
| Q1 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $355M | +6% | +7% |
| Gross profit | $256M | +12% | +14% |
| Operating profit | $103M | +45% | +24% |
| Net earnings | $69.4M | +40% | +29% |
| Operating cash flow | $97.5M | -17% | +51% |
| Free cash flow | $97.2M | -17% | +50% |
What changed
Revenue was $354.6M in Q1 FY27, up 7% year over year and up 6% from the previous quarter. Custodial revenue was the largest line at 49% of revenue. Custodial revenue added $17.9M year over year (up 11%), 75% of the total change.
Gross margin was 72.3%, up 4.5 points from Q1 FY26. Operating profit was $103.0M, a 29.0% margin (up 3.9 points year over year). Of the extra revenue versus Q1 FY26, 84% reached operating profit, above the 25% margin then. Operating expenses grew 9% against revenue growth of 7%. The fastest-growing cost line was General & admin (+22%). Net earnings were $69.4M, up 29% year over year. The effective tax rate was 24.9%.
Operating cash flow was $97.5M (up 51% year over year), 140% of net earnings. Non-cash charges added back $38.2M of depreciation and amortization and $19.4M of share-based compensation. Working capital and other items used $29.5M. Capital expenditures of $362K left free cash flow of $97.2M.
Questions
What was Healthequity's revenue in the first quarter fiscal 2027?
Healthequity (HQY) reported revenue of $355M for the first quarter fiscal 2027 (Q1 FY27), +7% from a year earlier and +6% from the quarter before.
Was Healthequity profitable in the first quarter fiscal 2027?
Operating profit was $103M (29.0% of revenue) and net earnings $69.4M.
Source: Healthequity 10-Q on SEC EDGAR.