HealthEquity Stock Falls 14% Despite Higher Q2 Profit

HealthEquity (HQY) reported higher Q2 revenue and net income, raising full-year earnings guidance. Despite this, shares are down 8% over the past month, contrasting with a 5% 1-year and 41% 3-year total return. The stock's valuation is now under scrutiny, with a fair value estimate of $115.56, but it trades at a higher P/E ratio compared to industry peers.

HealthEquity (HQY) reported Q2 2027 revenue growth of 8% YoY, up from 7%, with adjusted EBITDA rising 11% to $167M. HSA accounts grew 24% YoY to 202K, and total HSA assets reached $37.9B. Management raised full-year guidance, but noted pricing pressure and GAAP net income was $65.6M.

HealthEquity (HQY) reported Q2 2027 revenue of $350.7M, up 8% YoY, and adjusted EBITDA of $167M, up 11%. HSA assets grew 14% to $37.9B. The company raised full-year revenue guidance to $1.411B-$1.421B and adjusted EBITDA to $628M-$636M. Management highlighted growth in custodial and service revenue, as well as operational efficiencies from AI and technology investments.

HealthEquity reported Q2 revenue of $350.7M, up 8% YoY. Adjusted EBITDA rose 11% to $167M, with a record margin of 48%. HSA assets grew 14% to $37.9B. Net income increased 10% to $65.6M. The company raised fiscal 2027 guidance, citing strong execution and operating leverage.

HealthEquity (HQY) stock fell 8.6% this week despite beating earnings and revenue estimates for Q2. The company reported adjusted EPS of $1.24 on revenue of $350.7M, up 15.7% and 7.6% YoY, respectively. Investors expected stronger guidance, as the company only slightly raised its full-year revenue target and reiterated EPS guidance.

HealthEquity (HQY) stock rose 3.2% to $96.37 after Q2 results showed record adjusted EBITDA margin of 48%, revenue up 7.6% to $350.7M, and net income up 9.7% to $65.6M. Bulls highlight cost reductions and growth in HSA accounts, while bears caution on interest rate risks and pricing pressures. The company raised FY2027 guidance.