HealthEquity: Marketplace Opportunity & EBITDA Growth Underappreciated; Reit OW

Research evidence excerpt

HealthEquity: Marketplace Opportunity & EBITDA Growth Underappreciated; Reit OW

Equity Research

30 June 2026

HealthEquity

Marketplace Opportunity & EBITDA

Growth Underappreciated; Reit

HQY OVERWEIGHTOW

Unchanged

The stale “rate stock” narrative continues to hang over HQY U.S. Healthcare Technology NEUTRAL & Distribution

Unchangedas shares have been range-bound YTD despite strong

fundamentals. We reiterate our OW rating given: 1) our view Price Target USD 110.00 Unchanged

that consensus ests are conservative in F28 (C27), 2) a Price (29-Jun-26) USD 87.81

Potential Upside/Downside +25.3%growing tailwind from Marketplace, and 3) hedging derisks

Source: Bloomberg, Barclays Research

NT numbers.

Market Cap (USD mn) 7341

Stale narrative around rates continues to weigh on shares. Based on our conversations with Shares Outstanding (mn) 83.60

investors, we believe there are two key questions that have kept shares range-bound YTD Free Float (%) 97.49

despite generally positive fundamentals. First, many investors continue to view HQY as a rate 52 Wk Avg Daily Volume (mn) 1.0

play, with little credit given for the company’s hedging strategy or the penetration enhanced Dividend Yield (%) N/A

rates. To that end, we are surprised shares have not reacted more positively, particularly as the Return on Equity TTM (%) 11.06

outlook for rates has improved incrementally relative to expectations earlier this year. Second, Current BVPS (USD) 24.39

investors also ask about longer-term growth beyond the current HSA cash rerating cycle. While Source: Bloomberg

we believe rates can remain a tailwind even after F28, we appreciate the tailwind will likely ease,

and we expect growth will increasingly be supplemented by Marketplace and potential M&A. Price Performance Exchange-Nasdaq