EarningsQ2 2027 Earnings Report

Healthequity (2HE) Q2 2027 Earnings Report

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Previous Report: Q1 2027

DE:2HE Q2 2027 EPS Results

Actual EPS€1.07

Consensus EPS€1.03

Beat/MissBeat by +€0.04

One Year Ago EPS€0.93

DE:2HE Q2 2027 Revenue Results

Actual Revenue€301.55M

Expected Revenue€300.23M

Beat/MissBeat by +€1.32M

YoY Revenue Growth+7.65%

Earnings Announcement Details

QuarterQ2 2027

Date08/27/2026

TimeAfter Close

Conference CallThursday, August 27, 2026

DE:2HE Upcoming Earnings

Healthequity's next earnings date is estimated for December 8, 2026, based on past reporting schedules.

Q2 2027 Earnings Call Audio

DE:2HE Q2 2027 Earnings Call

0:00 / 0:00

Q2 2027 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2027 Earnings Call Summary

Q2 2027

Earnings Call Date:Aug 27, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed strong operational and financial momentum: accelerated revenue growth, record gross profit and adjusted EBITDA margin expansion, raised fiscal 2027 guidance, robust HSA account and asset growth, meaningful digital and AI-driven efficiency gains, and healthy cash generation enabling share repurchases. Key risks and near-term constraints include marketplace revenue still being immaterial, competitive price pressure on service fees, hedging that limits yield upside, modest total account growth outside HSAs, and a small current share of investing HSA members. Overall, the positive execution, raised guidance, and margin durability materially outweigh the noted challenges.

Company Guidance

HealthEquity raised its fiscal 2027 outlook, now expecting revenue of $1.411–1.421 billion, GAAP net income of $242–248 million (or $2.88–$2.96 per share), non‑GAAP net income of $392–398 million (or $4.66–$4.73 per share on an estimated 84 million shares), and adjusted EBITDA of $628–636 million; management assumes a GAAP and non‑GAAP tax rate of ~25%. They expect average HSA cash yield of 3.85–3.90% in FY27 and noted $2.3 billion of HSA cash repricing remaining in FY27, $460 million of forward Treasury contracts matured in Q2, $3.0 billion of outstanding forward contracts effectively locking a ~3.9% five‑year Treasury rate (net of costs) across FY27–29, and small forward hedges placed post‑quarter for enhanced‑rate repricings over the next 12–18 months. The company closed the quarter with $256 million of cash, generated $136 million of operating cash flow, had ~$931 million of debt outstanding (net of issuance costs), repurchased about $108 million of shares in Q2 at an average price below $90 and has roughly $948 million remaining under its $1.6 billion repurchase authorization; the guidance reflects continued funding of growth initiatives, planned share repurchases, potential revolver paydowns, and preserved capacity for opportunistic M&A.

Accelerating Revenue Growth

Total revenue growth accelerated to 8% year-over-year in Q2; first-half revenue $705.4M, up 7% year-over-year. Company raised fiscal 2027 revenue guidance to $1.411B–$1.421B.

Record Profitability and Margins

Adjusted EBITDA reached a record $167M, up 11% year-over-year, with an adjusted EBITDA margin of 48% (vs. 46% YoY). Gross profit was a record $258M (~74% of revenue vs. 71% a year ago).

Strong GAAP and Non-GAAP Earnings

GAAP net income was a record $65.6M ($0.78 per diluted share); non-GAAP net income was $103.8M ($1.24). Company raised full-year GAAP net income guidance to $242M–$248M and non-GAAP net income to $392M–$398M.

HSA Account and Asset Momentum

HSA accounts reached a record 10.7 million. Total HSA assets were up 14% year-over-year; total HSAs grew 8% YoY; new HSAs from sales grew 24% YoY and set a Q2 record (strongest quarter outside Q4 open enrollment).

Custodial & Interchange Revenue Strength

Custodial revenue grew 10% to a record $175.9M. Interchange revenue increased 5% to $50.4M. Annualized yield on HSA cash reported at 3.83% for the quarter and company expects average FY27 HSA cash yield of 3.85%–3.90%.

Record Investing Engagement

Record levels of HSA investing: invested asset balances up 28% year-over-year; record proportion of investing HSA members cited (company noted 20% in context) and highlighted that invested members have higher contributions and engagement.

Digital Engagement Acceleration

Monthly active app users reached 1.4M in July (up 62% YoY) and total app downloads exceeded 5M. Company plans a next-generation single app rollout to further drive engagement and cross-product usage.

Marketplace Early Traction

Marketplace active members exceeded 14,000 with month-over-month growth; targeted promotions (e.g., Health Savings Days) drove record marketplace activity including 500,000 unique visitors in a week. Early data show marketplace purchasers were more likely to begin HSA contributions than non-purchasers.

AI & Efficiency Gains

AI-driven automation improved service efficiency: 85% of routine chat inquiries resolved via AI; 55% containment of card-related phone contacts. Human-handled calls fell 25% YoY and card-related calls fell 30% YoY. Service costs per account decreased, contributing to margin expansion.

Strong Cash Flow and Share Repurchase Activity

Operating cash flow generated $136M in Q2. Ended quarter with $256M cash and ~$931M debt outstanding. Repurchased ~$108M of shares during the quarter and have ~$948M remaining under the $1.6B authorization.

DE:2HE Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Dec 08, 2026	2027 (Q3)	0.99 / -	0.868	―
Aug 27, 2026	2027 (Q2)	1.03 / 1.07	0.928	14.81% (+0.14)
May 28, 2026	2027 (Q1)	0.96 / 1.07	0.834	27.84% (+0.23)
Mar 17, 2026	2026 (Q4)	0.77 / 0.82	0.593	37.68% (+0.22)
Dec 03, 2025	2026 (Q3)	0.78 / 0.87	0.671	29.49% (+0.20)
Sep 02, 2025	2026 (Q2)	0.79 / 0.93	0.739	25.58% (+0.19)
Jun 03, 2025	2026 (Q1)	0.70 / 0.83	0.688	21.25% (+0.15)
Mar 18, 2025	2025 (Q4)	0.62 / 0.59	0.542	9.52% (+0.05)
Dec 09, 2024	2025 (Q3)	0.62 / 0.67	0.516	30.00% (+0.15)
Sep 03, 2024	2025 (Q2)	0.60 / 0.74	0.456	62.26% (+0.28)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed