The following table shows a summary of stock-based compensation in the Company's condensed consolidated statements of operations during the periods presented:


	Three months ended April 30,
(in thousands)	2026		2025
Cost of revenue	$	2,787	$	3,387
Sales and marketing	4,524		4,870
Technology and development	3,953		5,920
General and administrative	8,142		159
Total stock-based compensation expense	$	19,406	$	14,336

Incentive Plan. The HealthEquity, Inc. 2024 Equity Incentive Plan (the "Incentive Plan") provides for the issuance of stock awards to team members, consultants, and directors of the Company. Subject to adjustment as provided in the Incentive Plan, as of April 30, 2026, the aggregate number of shares of the Company’s common stock reserved and available for issuance pursuant to awards granted under the Incentive Plan was 1.8 million.

A summary of stock option activity is as follows:


	Outstanding stock options
(in thousands, except for exercise prices and term)	Number of options	Range of exercise prices	Weighted- average exercise price		Weighted- average contractual term (in years)	Aggregate intrinsic value
Outstanding as of January 31, 2026	133	$24.36 - 73.61	$	47.50	1.6	$	5,081
Exercised	(15)	$24.36 - 44.53	$	27.84
Outstanding as of April 30, 2026	118	$25.06 - 73.61	$	50.01	1.5	$	3,781
Vested and expected to vest as of April 30, 2026	118		$	50.01	1.5	$	3,781
Exercisable as of April 30, 2026	118		$	50.01	1.5	$	3,781

A summary of restricted stock unit ("RSU") and performance restricted stock unit ("PRSU") activity is as follows:


	RSUs and PRSUs
(in thousands, except weighted-average grant date fair value)	Shares	Weighted-average grant date fair value
Outstanding as of January 31, 2026	2,168	$	84.15
Granted	1,235	87.65
Vested	(432)	78.15
Forfeited	(123)	94.43
Outstanding as of April 30, 2026	2,848	$	86.13

Performance restricted stock units. During the three months ended April 30, 2026, the Company awarded 240,239 PRSUs subject to a market condition based on the Company’s total shareholder return relative to the Russell 3000 index as measured on January 31, 2029. The Company used a Monte Carlo simulation to determine that the grant date fair value of the awards was $28.8 million. Compensation expense is recorded over the requisite service period if the service condition is met regardless of whether the market condition is satisfied. The market condition allows for a range of vesting from 0% to 200% based on the level of performance achieved. The PRSUs cliff vest upon approval by the Talent, Compensation and Culture Committee of the board of directors.

In addition, during the three months ended April 30, 2026, the Company awarded 80,081 PRSUs subject to the achievement of certain financial criteria measured on January 31, 2029. The PRSUs cliff vest and are issued upon approval by the Talent, Compensation and Culture Committee. The Company records stock-based compensation related to PRSUs over the requisite service period when it is considered probable that the performance conditions will be met. The Company believes it is probable that the PRSUs will vest at least in part. The vesting of the PRSUs will ultimately range from 0% to 200% of the number of shares underlying the PRSU grant based on the level of achievement of the performance goals.

Each of the PRSUs granted during the three months ended April 30, 2026 contains a provision such that upon the award holder's eligible retirement, the PRSUs would remain outstanding and eligible to vest based on achievement of their respective market or performance conditions without regard to the award holder’s continued employment on the vesting date. Based on the application of ASC 718, Compensation - Stock Compensation, expense is recognized over the requisite service period, which ends on the earlier of (1) the date of approval by the Talent, Compensation and Culture Committee or (2) the date the award holder becomes eligible for retirement. As a result, the expense associated with PRSUs granted to retirement-eligible individuals was recorded on the grant date.