HealthEquity

What HealthEquity does

HealthEquity (NASDAQ: HQY) is the largest non-bank custodian of Health Savings Accounts in the United States, administering 17.8 million+ HSAs holding $37.1 billion in assets as of Q1 FY2027. Founded in 2002 in Draper, Utah, and IPO'd on NASDAQ in 2014, the company operates a cloud-based consumer-directed benefits platform that bundles HSAs with FSAs, HRAs, Health Payment Accounts, COBRA administration, commuter benefits, Lifestyle Spending Accounts, direct billing, and Premium Only Plans. Beyond account custody, HealthEquity sells an engagement layer — HealthEquity Assist (Analyzer, Navigator, Momentum), Engage360, HSAnswers, and a mobile app — that uses AI-driven analytics, agentic conversational AI (Parloa), voice security (Pindrop), and price transparency (TALON Healthtech) to drive HSA utilization and member outcomes. Strategic acquisitions have extended the platform: WageWorks (2019, ~$2B) added FSA/HRA/commuter capabilities; Further (2021, $455M) added ~580,000 HSAs and 28,000 employer clients; BenefitWallet (2024) further consolidated the HSA market.

HealthEquity's revenue model is a hybrid of recurring service fees (account administration across HSA, FSA, HRA, COBRA and adjacent products — record $122.9M in Q1 FY2027) and custodial interest income earned on HSA cash balances (record $174.3M in Q1 FY2027 on $37.1B in custody). FY2026 revenue reached $1.09B with adjusted EBITDA margin of 46% in Q1 FY2027, and FY2027 guidance of $1.41–$1.42B implies ~30% YoY growth. The company reaches customers through four primary channels: enterprise field sales (large employers), a 120,000+ organization broker/advisor network, health plan and financial advisor partnerships, and a direct-to-consumer self-serve platform launched to capture the 7 million newly ACA-Bronze-eligible Americans in 2026. Customer segments span employers, benefits advisors, health plans, financial advisors, and individual HSA members — with stated retention above 98% and 17.8 million accounts providing a substantial data flywheel for personalization and risk management.

Name

HealthEquity

Legal name

HealthEquity, Inc.

Website

https://healthequity.com

Company type

Public

Founded year

2002

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

HealthEquity is the largest non-bank HSA custodian in the U.S., administering 17.8 million+ HSAs and $37.1 billion in assets through a cloud-based consumer-directed benefits platform serving employers, brokers, health plans, financial advisors, and individuals.

Ownership category

akta.pro rank

Product category

Health Savings Account (HSA) Administration

NAICS

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Health and Welfare Funds (52512)

SIC

Accident & Health Insurance (6321), Hospital & Medical Service Plans (6324)

akta.pro primary industry

Flexible Benefits Administration (FSA/HSA/HRA) (HLAEALAK)

akta.pro secondary industries

Eligibility, Enrollment & Benefits Administration (HLAEALAH), Benefits Administration & Enrollment Support (BPAAAIAB), High-Deductible Health Plans (HDHP) with HSA-Eligible Coverage (FSAIAFAM), Care Navigation, Advocacy & Benefits Guidance Platforms (HLALADAJ)

Keywords

• Health savings accounts
• Consumer-directed benefits
• Benefits administration platform
• HSA custodian services
• Employer benefits technology

Headquarters

HQ city

Draper

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Custodial Revenue: Interest income earned on HSA cash balances held in custody. Custodial revenue is driven by the yield on HSA cash and total assets under custody, which grew 19% year over year to $37.1 billion in Q1 FY2027. Record custodial revenue of $174.3 million in Q1 FY2027. Management targets yield on HSA Cash of approximately 3.75% for FY2027.
2. Service Revenue: Revenue from account administration services, record $122.9 million in Q1 FY2027. Includes fees for HSA administration, FSA, HRA, COBRA, commuter, and other benefit account management services. Grown through AI-driven operational efficiencies.
3. Total Revenue: Full-year FY2026 revenue of $1.09 billion (ended January 31, 2026), up from $1.0 billion in FY2025. Q1 FY2027 revenue of $354.6 million, growing 7% year over year. FY2027 guidance raised to $1.410-$1.420 billion.

Pricing tiers

Go-to-market motion4 records

Distribution channels6 records

Marketing channels10 records

Core offering

HealthEquity administers Health Savings Accounts (HSAs) and complementary consumer-directed benefit accounts (FSA, HRA, HRA, HPA, COBRA, commuter, lifestyle, POP) on its cloud-based benefits administration platform, serving 17.8 million+ HSAs and $37.1 billion in HSA assets. Revenue is generated from per-account service fees on employer and individual accounts and from custodial interest income on held HSA balances. The platform bundles account administration, debit card payment processing, HSA investment options (33 Vanguard funds), AI-driven engagement (HSAnswers, Navigator, Momentum, Analyzer) and 24/7 member services.

Product overview

HealthEquity operates a comprehensive benefits administration platform offering health savings accounts as the core product alongside a suite of complementary account types and engagement tools. The portfolio includes HSA (core), FSA variants (Healthcare FSA, LPFSA, DCFSA), HRA, HPA (via Paytient), COBRA, commuter benefits (via Luum), LSA, direct billing, and POP. Supporting platforms include HealthEquity Assist (Analyzer, Navigator, Momentum), Engage360, HSAnswers AI tool, mobile apps (HealthEquity and EZ Receipts), GLP-1 telehealth, and direct HSA enrollment. The company serves employers, individuals, benefits advisors, health plans, and financial advisors through integrations with payroll systems, health plans, and retirement providers.

Differentiator

Problem solved

Functional benefit

Brands

• EZ Receipts: Brand for FSA, HRA, and commuter benefits administration (formerly WageWorks)
• HSAnswers
• HealthEquity Assist
• HealthEquity Advisors, LLC
• TransitChek
• HealthEquity Analyzer
• HealthEquity Navigator
• HealthEquity Momentum

Products and services

• Health Savings Account (HSA) Tax-advantaged savings account for qualified medical expenses with pre-tax contributions, tax-free growth and tax-free qualified distributions. Funds never expire, can be invested, and is offered as both employer-sponsored and individual accounts with $0/month fee and a $25 opening/funding match. For employers, employees and individuals enrolled in HDHP or ACA Bronze plans.
• Flexible Spending Account (FSA) Employer-sponsored pre-tax benefit account for qualified medical expenses, including Healthcare FSA, Limited Purpose FSA (LPFSA) for HSA pairings, and Dependent Care FSA (DCFSA) for childcare/eldercare. For employers offering consumer-directed benefits.
• Health Reimbursement Arrangement (HRA) Employer-funded benefit account reimbursing employees for eligible healthcare expenses, including Health Incentive Account (HIA) rewards for healthy behaviors. For employers shifting from defined-benefit to defined-contribution health models.
• Health Payment Account (HPA) Low-cost employer-sponsored payment solution that provides interest-free payment plans for out-of-pocket healthcare expenses, with HSA funds usable to repay HPA balances. Implemented by R.R. Donnelley for 13,000+ eligible employees.
• COBRA Administration End-to-end COBRA compliance and administration platform handling notice fulfillment, premium billing, eligibility reporting, and real-time case management for employers.
• Commuter Benefits Pre-tax transit and parking benefits delivered in partnership with Luum, offering mobile-optimized commute options, parking management and sustainability tracking. For employers offering commuter benefits to reduce payroll taxes.
• Lifestyle Spending Account (LSA) Employer-funded personalized benefit account covering categories such as fitness, wellness, finance and family support, configurable by employers to align with talent attraction and retention goals.
• Direct Billing Premium billing and collections service for employers when payroll deductions are not available; handles billing, payment processing, and health plan provider payments.
• Premium Only Plan (POP)

Quantifiable outcome

• Record new HSA sales with 172,000 HSAs added in Q1 FY2027 (15% increase)
• +10 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability7 records

Feature10 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• PindropcoreTechnology or Integration · 26 February 2026Pindrop provides AI-powered voice security and deepfake detection for HealthEquity's contact centers. Deployment resulted in 90%+ reduction in voice fraud and prevented up to $18 million in potential fraud exposure across 1,200 targeted accounts in one incident. Pindrop expanded its deepfake detection into healthcare citing that over half of healthcare contact center fraud attempts involve AI-generated elements.
• ParloacoreTechnology or Integration · 13 November 2025HealthEquity partnered with Parloa to deploy agentic AI capabilities across member support operations. The partnership enables advanced conversational AI interactions to replace traditional IVR systems, providing faster, smarter, and more empathetic support across multiple channels. Phased rollout began November 2025 with full deployment targeted for 2026.
• Agile TelehealthcoreTechnology or Integration · 14 October 2025HealthEquity launched a curated GLP-1 telehealth platform in partnership with Agile Telehealth, enabling members to access weight-management medications (GLP-1 drugs) with seamless HSA payment processing. The platform addresses mounting employer pressure from GLP-1 costs representing up to 20% of prescription costs.
• Further (Acquired)coreStrategic or Co-development Partner · 1 November 2021HealthEquity acquired Further, a provider of HSA and consumer-directed benefit services, for $455 million in 2021. The acquisition significantly expanded HealthEquity's market share, adding approximately 580,000 HSAs, 28,000 employer clients, and increasing HSA assets to approximately $18 billion.
• WageWorks (Acquired)coreStrategic or Co-development Partner · 1 January 2019HealthEquity acquired WageWorks in 2019 for its Total Solution integrated benefits platform, bringing FSA, HRA, COBRA, commuter, and direct billing capabilities. WageWorks was rebranded to EZ Receipts.
• First HSA (Acquired)minorStrategic or Co-development Partner · 1 January 2010HealthEquity completed its first acquisition, First HSA, in 2010, marking the beginning of its M&A strategy.
• TALON HealthtechcoreTechnology or IntegrationHealthEquity partnered with TALON Healthtech to power the Navigator price transparency solution using MyMedicalShopper, providing AI-powered provider and procedure cost comparisons for employees to compare prices before medical visits.
• VanguardcoreTechnology or IntegrationHealthEquity offers a lineup of 33 low-cost Vanguard mutual funds for HSA investing through its platform. Vanguard funds include index funds and target date funds, enabling members to invest HSA funds like a 401(k).
• HealthEquity Advisors, LLCcoreTechnology or IntegrationSEC-registered investment adviser (wholly owned subsidiary of HealthEquity) providing web-based investment advice to HSA holders through AutoPilot and GPS advisory tools. Minimum thresholds and additional fees apply.
• 200+ Network Partners (Health Plans, Retirement Providers, TPAs)coreChannel Partner/ Reseller/ DistributorOver 200 integrated network partners including health plans, retirement providers (including 401(k) integrations), and third-party administrators (TPAs) that integrate with HealthEquity's platform for seamless claims processing and benefits administration.

Scale indicators12 records

Recent moves7 records

Expansion highlights6 records

Peers

• Benefitfocus (Voya Financial):

Direct peers

• Optum Financial (UnitedHealth Group): Optum Financial, part of UnitedHealth Group, is a major HSA custodian and benefits-administration platform bundled with UnitedHealthcare health plans. It is the largest integrated competitor to HealthEquity, combining HSA custody with health-plan, PBM, and financial-services products targeting the same employer and broker channel.
• Fidelity Investments: Fidelity is a top-tier HSA custodian with strong brand recognition in retirement investing, offering HSAs paired with brokerage and 401(k) accounts. Directly comparable to HealthEquity on HSA custody, investment menus, and employer-sponsored HSA administration.
• HSA Bank (Webster Financial): HSA Bank, a division of Webster Financial, is a leading dedicated HSA custodian and consumer-directed benefits administrator serving employers, brokers, and health plans. Closely comparable to HealthEquity in product breadth (HSA, FSA, HRA, COBRA) and target customer segments.
• Bank of America (HSA offering): Bank of America offers HSAs integrated with its retail banking and Merrill investment platform, serving both individual consumers and employer-sponsored HSA programs. Directly competes with HealthEquity for HSA custody, especially in employer groups and consumer cross-sell from existing banking customers.

Emerging players

• Lively (Humana): Lively is a modern HSA-focused fintech (now part of Humana) offering consumer-direct HSAs with investing and an emphasis on user experience. Targets the same individual HSA segment HealthEquity pursues via its direct-enrollment platform, especially younger, digitally native consumers.

Broad incumbents

• ADP (benefits administration): ADP is a dominant HR, payroll, and benefits-administration provider with a large employer footprint and broker relationships. While not a dedicated HSA custodian at HealthEquity's scale, ADP competes for the same employer benefits-administration wallet and partners with HSA providers that overlap with HealthEquity's offerings.
• Paychex: Paychex provides payroll, HR, and benefits administration primarily to SMB employers, offering retirement and benefits solutions that intersect with HSA and FSA/HRA administration. Comparable in employer-segment focus (SMB/mid-market) and broker-channel distribution.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/healthequity
• YouTubeyoutube.com/user/healthequity11
• Facebookfacebook.com/HealthEquityPage
• LinkedInlinkedin.com/company/healthequity
• Instagraminstagram.com/healthequity

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Subsidiaries7 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A4 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about HealthEquity