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How Healthequity (HQY) makes money

Healthequity (HQY) made $351M of revenue in the second quarter fiscal 2027 (Q2 FY27), +8% from a year earlier. Custodial revenue brought in $176M (50%); Service revenue brought in $124M (35%); Interchange revenue brought in $50.4M (14%). Of every dollar of revenue, 74¢ was left as gross profit, 28¢ was left as operating profit, 19¢ was left as net earnings.

Drawing the Sankey…

Healthequity revenue by segment, Q2 FY27Healthequity revenue by segment, Q2 FY27Custodial revenue$176MService revenue$124MInterchange revenue$50.4M
Healthequity revenue by quarterHealthequity revenue by quarter$312MQ4 FY25$331MQ1 FY26$326MQ2 FY26$322MQ3 FY26$335MQ4 FY26$355MQ1 FY27$351MQ2 FY27
Healthequity: where each dollar of revenue goesHealthequity: where each dollar of revenue goesCost of revenue26¢Gross profit74¢Operating expenses45¢Operating profit28¢Income tax6¢Net earnings19¢Operating cash flow39¢Free cash flow39¢

Revenue by segment, Q2 FY27

SegmentRevenueShareQ/QY/Y
Custodial revenue$176M50.2%+0.9%+10%
Service revenue$124M35.5%+1%+6%
Interchange revenue$50.4M14.4%-12%+5%

Where each dollar of revenue goes

LineQ2 FY27% of revenue
Revenue$351M100.0%
Cost of revenue$92.8M26.5%
Gross profit$258M73.5%
Operating expenses$159M45.4%
Operating profit$98.7M28.1%
Income tax$22.2M6.3%
Net earnings$65.6M18.7%
Operating cash flow$136M38.8%
Free cash flow$135M38.5%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q2 FY27$351M+8%
Q1 FY27$355M+7%
Q4 FY26$335M+7%
Q3 FY26$322M+7%
Q2 FY26$326M+9%
Q1 FY26$331M+15%
Q4 FY25$312M+19%

From Healthequity's 10-Q filed Aug 27, 2026 (on EDGAR).

Questions

How does Healthequity make money?

Healthequity (HQY) made $351M of revenue in the second quarter fiscal 2027 (Q2 FY27), +8% from a year earlier. Custodial revenue brought in $176M (50%); Service revenue brought in $124M (35%); Interchange revenue brought in $50.4M (14%). Of every dollar of revenue, 74¢ was left as gross profit, 28¢ was left as operating profit, 19¢ was left as net earnings.

What is Healthequity's biggest business?

Custodial revenue: $176M in the second quarter fiscal 2027, 50% of revenue, +10% from a year earlier.

What is Healthequity's profit margin?

Net earnings were $65.6M, 18.7% of revenue, in the second quarter fiscal 2027; the operating margin was 28.1%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.