HQYHIGH SIGNALFINANCIAL10-K

HQY delivered substantially higher operating income alongside strong revenue growth of 29%, while expanding its HSA administration business to 10.6 million accounts.

The company's operating leverage is clearly working, with operating income growing much more rapidly than revenue, indicating improving operational efficiency and margin expansion. The business fundamentals appear strong with notable growth in both HSA accounts (from 9.9M to 10.6M) and total assets under administration (from $32.1B to $36.5B).

Comparing 2026-03-17 vs 2025-03-18View on EDGAR →
FINANCIAL ANALYSIS

HQY demonstrated strong financial performance with revenue growing 29% to $229.5M and gross profit expanding 17% to $913.1M, while operating income increased substantially to $322.5M. Operating cash flow grew meaningfully by 35% to $457.1M, reinforcing the company's strong cash generation capabilities. The overall picture signals a company successfully scaling its operations with improving profitability metrics and robust cash flow generation.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+98.6%
$162.3M$322.5M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Inventory
Balance Sheet
-63.7%
$592K$215K

Inventory drawn down 63.7% — strong sell-through or deliberate destocking; watch for supply constraints.

Operating Cash Flow
Cash Flow
+34.5%
$339.9M$457.1M

Operating cash flow surged 34.5% — exceptional cash generation, highest quality earnings signal.

Revenue
P&L
+28.7%
$178.4M$229.5M

Revenue growing 28.7% — solid top-line momentum, watch margins for quality of growth.

Gross Profit
P&L
+17.5%
$777.3M$913.1M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-03-17
PRIOR — 2025-03-18
ADDED
As of March 3, 2026, there were 84,478,406 shares of the registrant's common stock outstanding.
Business Company overview We are a leader and an innovator in providing technology-enabled services that empower consumers to make healthcare saving, spending, and investing decisions.
As part of our services, we provide consumers with payment processing services, personalized benefit information, access to healthcare solutions through our marketplace, and investment advice to grow their tax-advantaged healthcare savings.
The core of our offerings is the HSA, a financial account through which consumers save, spend, and invest their healthcare dollars on a tax-advantaged basis.
As of January 31, 2026, we administered 10.6 million HSAs, with balances totaling $36.5 billion, which we call HSA Assets, as well as 7.2 million complementary CDBs.
We refer to the aggregate number of HSAs and other CDBs that we administer as Total Accounts, of which we had 17.8 million as of January 31, 2026.
We have increased our share of the growing HSA market from 4% in December 2010 to 20% as of June 2025, measured by HSA Assets.
According to the 2025 Midyear Devenir HSA Research Report, as of June 2025, we were the largest HSA provider by number of accounts and the second largest HSA provider by HSA Assets.
We seek to differentiate ourselves through our service-driven culture, product breadth, ecosystem connectivity, and proprietary technology, which enables our members to better save, spend, and invest their healthcare dollars.
We earn service revenue mainly from fees paid by our Clients, Network Partners, and account holders, which we refer to as members, for the administration services we provide in connection with the HSAs and other CDBs we offer.
REMOVED
As of March 11, 2025, there were 86,496,449 shares of the registrant's common stock outstanding.
Business Company overview We are a leader and an innovator in providing technology-enabled services that empower consumers to make healthcare saving and spending decisions.
As part of our services, we provide consumers with payment processing services, personalized benefit information, the ability to earn wellness incentives, and investment advice to grow their tax-advantaged healthcare savings.
The core of our offerings is the HSA, a financial account through which consumers spend and save long-term for healthcare expenses on a tax-advantaged basis.
As of January 31, 2025, we administered 9.9 million HSAs, with balances totaling $32.1 billion, which we call HSA Assets, as well as 7.1 million complementary CDBs.
We refer to the aggregate number of HSAs and other CDBs that we administer as Total Accounts, of which we had 17.0 million as of January 31, 2025.
We have increased our share of the growing HSA market from 4% in December 2010 to 21% as of June 2024, measured by HSA Assets.
According to the 2024 Midyear Devenir HSA Research Report, as of June 2024, we were the largest HSA provider by both accounts and HSA Assets.
We seek to differentiate ourselves through our service-driven culture, product breadth, ecosystem connectivity, and proprietary technology.
Our commuter benefits offering also leverages connectivity to an ecosystem of mass transit, ride hailing, and parking providers.
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