Filing Flows › Healthequity (HQY) › Q2 FY26
Healthequity (HQY) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Sep 2, 2025
Healthequity (HQY) reported revenue of $326M for the second quarter fiscal 2026 (Q2 FY26), +9% from a year earlier and -2% from the quarter before. Operating margin was 27.5%, net earnings $59.9M (18.4% of revenue).
Healthequity, Q2 FY26: revenue $326M (+9% year over year), operating margin 27.5%, net earnings $59.9M, operating cash flow $136M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $326M | -2% | +9% |
| Gross profit | $233M | +4% | +14% |
| Operating profit | $89.6M | +8% | +52% |
| Net earnings | $59.9M | +11% | +67% |
| Operating cash flow | $136M | +110% | +26% |
| Free cash flow | $135M | +109% | +26% |
What changed
Revenue was $325.8M in Q2 FY26, up 9% year over year and down 2% from the previous quarter. Custodial was the largest line at 49% of revenue. Custodial added $21.2M year over year (up 15%), 82% of the total change.
Gross margin was 71.4%, up 3.4 points from a year earlier. Operating profit was $89.6M, a 27.5% margin (up 7.9 points year over year). Of the extra revenue versus a year earlier, 118% reached operating profit, above the 20% margin then. Operating expenses fell 1% while revenue rose 9%. The fastest-growing cost line was Research & development (+11%). Net earnings were $59.9M, up 67% year over year. The effective tax rate was 23.3%.
Operating cash flow was $135.9M (up 26% year over year), 227% of net earnings. Non-cash charges added back $38.5M of depreciation and amortization and $19.1M of share-based compensation. Working capital and other items added $18.5M. Capital expenditures of $773K left free cash flow of $135.1M.
Questions
What was Healthequity's revenue in the second quarter fiscal 2026?
Healthequity (HQY) reported revenue of $326M for the second quarter fiscal 2026 (Q2 FY26), +9% from a year earlier and -2% from the quarter before.
Was Healthequity profitable in the second quarter fiscal 2026?
Operating profit was $89.6M (27.5% of revenue) and net earnings $59.9M.
Source: Healthequity 10-Q on SEC EDGAR.