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HealthEquity HQY Interchange revenue — Total Cost of Revenue

Other product segments

Service revenue
$78.33M-11.0%
Custodial revenue
$11.66M+8.4%

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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
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
Sales and marketing26,83325,984

Item 1. Financial statements

FAQ

What is HealthEquity's interchange revenue — total cost of revenue?
HealthEquity (HQY) reported interchange revenue — total cost of revenue of $8.35M in Q1 2026.
How has HealthEquity's interchange revenue — total cost of revenue changed year-over-year?
HealthEquity's interchange revenue — total cost of revenue increased by 7.3% year-over-year, from $7.78M to $8.35M.
What is the long-term trend for HealthEquity's interchange revenue — total cost of revenue?
Over 4 years (2022 to 2026), HealthEquity's interchange revenue — total cost of revenue has grown at a 7.9% compound annual growth rate (CAGR), from $20.68M to $27.99M.
What does interchange revenue — total cost of revenue mean?
This metric captures the direct costs associated with facilitating payment card transactions, including network processing fees, card issuance expenses, and related operational support costs. It serves as a measure of the variable expenses required to maintain and scale the company's payment processing infrastructure. Monitoring this cost relative to interchange revenue helps assess the operational efficiency and direct profitability of the payment services segment.

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