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HealthEquity HQY Service revenue — Total Cost of Revenue

Other product segments

Custodial revenue
$11.66M+8.4%
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
Interchange revenue57,37554,605
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

Item 1. Financial statements

FAQ

What is HealthEquity's service revenue — total cost of revenue?
HealthEquity (HQY) reported service revenue — total cost of revenue of $78.33M in Q1 2026.
How has HealthEquity's service revenue — total cost of revenue changed year-over-year?
HealthEquity's service revenue — total cost of revenue decreased by 11.0% year-over-year, from $88.01M to $78.33M.
What is the long-term trend for HealthEquity's service revenue — total cost of revenue?
Over 4 years (2022 to 2026), HealthEquity's service revenue — total cost of revenue has grown at a 3.0% compound annual growth rate (CAGR), from $291.62M to $328.51M.
What does service revenue — total cost of revenue mean?
This metric measures the direct expenses incurred to deliver the company's service-based offerings, including personnel costs, technology infrastructure, and operational support. It reflects the cost structure required to maintain and provide these specific services to the customer base. Monitoring this metric is essential for evaluating the direct profitability and operational efficiency of the service segment.

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