TacticScaleWhat Healthequity Does & How It Makes Money (HQY)
Updated October 2026 · reflects Healthequity's latest reported financials
Health savings account and employee benefits administration platform. It earns money by administering health savings, spending and other benefit accounts for employers and their employees, and by providing investment and marketplace services to account members.
How Healthequity makes money
It earns money by administering health savings, spending and other benefit accounts for employers and their employees, and by providing investment and marketplace services to account members. Clients come through its direct sales force and through partners such as health plans, benefits brokers and consultants, benefits administrators and retirement plan record-keepers.
What Healthequity does
HealthEquity, Inc., founded in 2002 and based in Draper, Utah, is a technology-enabled services company focused on consumer-directed health and benefit accounts in the United States. Its main product is the health savings account (HSA), backed by an investment platform and Advisor, an online automated investment advisory tool that lets members invest their HSA balances. It also runs a marketplace where HSA and FSA members can access certain healthcare products, programs and services. Beyond HSAs, the company administers flexible spending accounts for health and dependent care, health reimbursement arrangements, COBRA continuation services and pre-tax commuter benefits. It reaches employers through a direct sales force and a broad partner network of health plans, benefits administrators, brokers, consultants and retirement plan record-keepers. This makes it a one-stop provider of pre-tax benefit account administration.
Products & services
- Health Savings Accounts (HSA)
- HSA investment platform and Advisor automated investment tool
- Flexible Spending Accounts (health and dependent care)
- Health Reimbursement Arrangements (HRA)
- COBRA continuation services
- Pre-tax commuter benefit programs
What is Healthequity worth?
On an owner-earnings DCF, Healthequity's most-likely value is about $150 versus a recent price near $93 (62% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$54) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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Equitable (EQH) · HealthStream (HSTM) · American Healthcare REIT (AHR) · Humana (HUM) · CVS Health (CVS)