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HealthEquity HQY Custodial revenue — Total Cost of Revenue

Other product segments

Service revenue
$78.33M-11.0%
Interchange revenue
$8.35M+7.3%

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Other financials

Income statement

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Revenue$354.6M+7.2%
Gross profit$256.3M+14.3%
Operating income$103.0M+23.9%
Net income$69.4M+28.8%
EPS (diluted)$0.82+34.4%

Balance sheet

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Cash & equivalents$265.4M-7.8%
Total debt$984.7M-11.0%
Total equity$2.0B-3.6%
Total assets$3.3B-3.2%

Cash flow

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Operating cash flow$97.5M+50.6%
CapEx$362.0K+321%
Free cash flow$97.2M+50.3%

Valuation

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Market cap$8.73B+11.0%
Enterprise value$9.45B+9.7%
P/E37.8×-16.1×
P/S6.5×+0.3×

Profitability

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Gross margin70.7%+5.2pp
Operating margin25.6%+9.2pp
Net margin17.3%+7.5pp
FCF margin36.5%+9.3pp

Returns & leverage

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Return on equity11.1%+5.3pp
Debt / equity0.5×0.0×
Current ratio3.4×-0.6×

Where this comes from

Reported directly by HealthEquity in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The source filing: HealthEquity’s 10-Q, filed May 28, 2026.

Filed
May 28, 2026, 4:04 PM EDT
Fiscal quarter
Q1 FY2027
Calendar quarter
Q2 2026
Accession
0001428336-26-000028
(in thousands, except per share data)Three months ended April 30, 2026Three months ended April 30, 2025
Total revenue354,641330,844
Cost of revenue
Service costs78,32688,005
Custodial costs11,65510,747
Interchange costs8,3487,781
Total cost of revenue98,329106,533
Gross profit256,312224,311
Operating expenses

Item 1. Financial statements

FAQ

What is HealthEquity's custodial revenue — total cost of revenue?
HealthEquity (HQY) reported custodial revenue — total cost of revenue of $11.66M in Q1 2026.
How has HealthEquity's custodial revenue — total cost of revenue changed year-over-year?
HealthEquity's custodial revenue — total cost of revenue increased by 8.4% year-over-year, from $10.75M to $11.66M.
What is the long-term trend for HealthEquity's custodial revenue — total cost of revenue?
Over 4 years (2022 to 2026), HealthEquity's custodial revenue — total cost of revenue has grown at a 22.4% compound annual growth rate (CAGR), from $19.49M to $43.82M.
What does custodial revenue — total cost of revenue mean?
This metric captures the direct expenses incurred to deliver custodial services, including operational support, technology maintenance, and transaction processing costs. Monitoring this figure helps assess the direct cost structure and operational efficiency of the custodial business segment. A lower ratio of these costs relative to segment revenue indicates improved operating leverage.

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