Healthequity, Inc. (NASDAQ: HQY)

Healthequity, Inc. provides technology enabled services that help consumers manage healthcare saving, spending, and investing decisions. The company administers tax advantaged health savings accounts (HSAs) and other consumer directed benefits such as flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA continuation coverage, and commuter programs. Through its platform, Healthequity offers payment processing, personalized benefit information, a healthcare marketplace, and investment advisory services to grow members tax advantaged savings.

Healthequity generates revenue from three primary sources: service, custodial, and interchange. Service revenue consists of fees paid by employer clients, network partners, and account holders for administration of HSAs and other CDBs, as well as earnings from invested HSA assets and the marketplace. Custodial revenue is derived from fees on HSA cash held by depository partners, including insurance company affiliated Enhanced Rates accounts and bank affiliated Basic Rates accounts, plus fees on client held funds deposited with those partners. Interchange revenue comes from merchant fees on payments made using the company's physical and virtual payment cards.

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Healthequity holds a leading position in the HSA industry, ranking as the largest provider by number of accounts and the second largest by HSA assets as of June 2025, according to the 2025 Midyear Devenir HSA Research Report. The company's HSA asset market share grew from 4% in December 2010 to 20% in June 2025. Key competitors include traditional banks, insurance companies, and financial services firms such as Fidelity Investments, UnitedHealth Group's Optum division, and Webster Bank, as well as various health insurance carriers, HR consultants, payroll providers, and specialized third party administrators. Competitive advantages stem from a service driven culture, broad product suite, deep ecosystem connectivity with more than 200 network partners, and a proprietary cloud based technology platform that integrates eligibility, claims processing, payment, and investment functionalities.

The company serves a diverse customer base that includes employer clients who offer HSAs and other consumer directed benefits to their workers, benefits brokers and advisors who recommend its solutions, network partners such as health plans, benefits administrators, and retirement plan recordkeepers that integrate its platform, and individual account holders (members) who use the accounts to save, spend, and invest for healthcare expenses. No specific customer names are disclosed in the filing.