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Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech First Quarter 2026 Earnings Conference Call. Currently, all participants are in listen only mode. Later, we will conduct a question-and-answer session. Instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please go ahead.

Thank you, operator, and hello, everyone. Welcome to Health In Tech's First Quarter 2026 Earnings Conference Call. Joining us today are Mr. Tim Johnson, Chief Executive Officer, Mr. Zain Hasan, Chief Growth Officer, and Ms. Julia Qian, Chief Financial Officer. Full details of our results can be found in our earnings press release and in our related Form 10-Q to be filed with the SEC. These documents will be available on our investor relations website at healthintech.investorroom.com. As a reminder, today's call is being recorded and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These statements are based on information available as of today and involve risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our quarterly report on Form 10-Q for the period ended March 31st, 2026, to be filed with the SEC. Please review the forward-looking and cautionary statement section at the end of our earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Except as expressly required by the federal securities laws, we undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events.

We may also refer to certain financial measures not in accordance with generally accepted accounting principles, such as adjusted EBITDA, for comparison purposes only. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. With that, I will now turn the call over to our CEO, Mr. Tim Johnson.

Thank you, Lori. Good afternoon, everybody. We appreciate you joining us today. Before discussing the quarter, I want to take a step back and frame how we are thinking about 2026. As we discussed during last quarter's call, we are operating within a massive, opaque, self-funded stop-loss insurance market. Excuse me. According to industry estimates, as of 2025, roughly 80% of large businesses had adopted self-funded health plans, while only about 27% of medium and small businesses had. Self-funded healthcare plans allow businesses to manage their costs better with a lot of flexibility. However, the complexity has made implementation nearly unrealistic for many businesses. Our AI-powered solutions remove barriers and make it simple and easy.

The self-funded healthcare market represents nearly $1 trillion stop-loss insurance premium a year, and the total number of insurance brokers exceeds 1 million, according to industry estimates. In comparison, today, just about 900 distribution partners, consisting primarily of insurance brokers, drive the sale of self-funded plans and stop-loss policies through Health In Tech. Our modern information technology, in other words, our penetration of the broker pool remains well below 1/10 of 1%, which highlights the significant runway potential ahead, especially given the substantial benefits that our platform aims to deliver: convenience, customization, cost effectiveness, clarity and condensed time to quote. 2025 was a year in which, excuse me, we demonstrated that our model could scale meaningfully and achieve strong profitability.

Our plan is for 2026 to be a year of deliberate investment in sales distribution and technology development to build our roster of distribution partners, expand our market presence, enhance our technology for new features, deliver new solutions and accelerate long-term revenue growth. In March 2026, we completed a private investment in public equity, a PIPE, which brought us approximately $7 million in gross proceeds that will in part support our growth initiatives. To be clear, this capital raise was not driven by an immediate need for working capital in our view, as our business remains strong from a fundamental balance sheet perspective. Rather, we identified an opportunity to broaden our shareholder base with new institutional investors through a modestly sized raise that limited dilution and provided incremental fuel for growth.

We intend to prudently deploy this new capital across several targeted areas, including expanding our sales distribution network, adding new carrier partners to our platform, enhancing our technology architecture and AI development, and advancing our service offerings and product development. First, expanding sales distribution. Our business scales through distribution, with brokers serving as primary channels through which employers access self-funded health plans on eDIYBS, our innovative AI-powered marketplace. In 2026, we are increasing our investment in sales and marketing to expand our broker network, deepen engagement, and build a more proactive, scalable go-to-market strategy. Historically, much of our growth has been driven organically by word of mouth and through our relatively small in-house sales team. Going forward, we plan to build our sales team and complement their efforts with more structured outreach, marketing initiatives, and direct engagement within the broker community.

Our Chief Growth Officer, Zain Hasan, has more than 15 years of experience in the employee benefits and insurance industry. He is a five-time founder and a former chief executive officer who has successfully built and exited multiple companies. He brings a proven background in scaling revenue, leading both organic and inorganic growth initiatives, executing strategic acquisitions, and driving disciplined value creation. We will expand on growth efforts in a bit later in the call. We believe these investments are critical to capturing a larger share of a huge market in which our current penetration remains very low despite the compelling value-added benefits of our platform. Second, new carrier partners. On the other side of the platform, we will be focused on increasing the number of diversity of participating insurance carriers. I want to spend a moment explaining why adding carriers is important.

Today, our platform generates bindable execution-ready quotes for employer groups through rapid underwriting that is based on carrier-specific, carrier-specific risk criteria. While our technology significantly improves the speed, consistency, and efficiency in the underwriting process, overall pricing to the employer reflects a combination of factors across the value chain, such as carrier's risk assessment, changes of underlying employees, health conditions, claims expense, and administrative costs. Cost variability for the employer at renewal generally boils down to the carrier's underwriting criteria and risk assessment, which can fluctuate based on changes in claims experience or shifts in carrier's risk appetite. These fluctuations can lead to less competitive pricing or limited options for the employer at renewal, even if the broker and the employer are otherwise delighted with our platform.

By expanding our carrier network, we can provide brokers with greater underwriting perspectives for the same employer group, increasing the likelihood of finding a competitive and suitable option within our platform at renewal. In practical terms, more carriers means more choice for brokers, better alignment with employer needs, and ultimately a higher probability of successful placement, which we believe will drive greater platform utilization, enhanced employer stickiness, and stronger revenue growth for Health In Tech. Third, Health In Tech's next-generation technology architecture and AI development. Sri Rajagopalan, our Chief Technology Officer, has spent the majority of his career at SAP and IBM, two of the world's leading enterprise software companies, where he held senior leadership roles in enterprise architecture and large-scale platform engineering. His experience spans global mission-critical systems, serving complex enterprise clients across multiple industries.

As we expand our AI-enabled underwriting and benefits administration platforms, Sri will strengthen our core technology foundation, enhancing scalability, data intelligence, cybersecurity, and operational resilience. Under Sri's leadership, we announced in March 2026, we engaged Ciklum, an Amazon Web-based Services Advanced Tier Service Partner, to expand both the front and back-end functionality of our technology platform. Our partnership with Ciklum is off to a strong start. Together, we are implementing a more integrated technology environment while streamlining data infrastructure and reporting processes. We expect to achieve enhanced platform capabilities, administrative functions that can aid our expansion into larger employer markets, improve integration of front and back-end workflows, consolidating quoting, underwriting, administration, and analytics into a unified platform. Lastly, an advanced data and operational reporting capabilities to deliver deeper insights and improve decision-making for brokers, Third-party administrators, TPAs, managing general underwriters, carriers, and employer end-to-end clients.

Fourth, advancing services and product development. To begin, I am pleased to highlight that starting in January, we expanded our service scope with the launch of our enhanced self-funded plan administration offering. This new model delivers pre-configured end-to-end self-funded health benefit solutions that bundle plan design, administration, and stop-loss coverage into a single streamlined framework. With years of experience, we have developed a comprehensive suite of more than 100 designed customized plans, and these are curated, bundled, and directly supported by a network of specialized administrative vendors, enabling us to deliver consistent, high-quality solutions while maintaining flexibility to meet specific employer needs. This also reflects an evolution in how we engage with vendors. Historically, vendors primarily accessed our platform as independent participants, while our role was focused on providing infrastructure and selecting appropriate vendors.

We are now moving toward a more integrated and actively managed model where we curate, bundle, and manage the vendors that comprise a self-funded health plan as part of a broader end-to-end solution. As of March 2026, these pre-configured options address the majority of employer use cases and can be rapidly deployed, significantly reducing plan design and administrative complexity. For our distribution partners, this translates into a more effective sales process. By taking a more hands-on approach to vendor management, we gain greater visibility into vendor performance, allowing us to continuously evaluate, refine, and improve the quality of our network. Over time, we believe this will help us build a best-in-class vendor ecosystem, strengthen platform differentiation, and support higher conversion and retention across our marketplace.

In addition to expanding our service model, we recently rolled out a significant update to our eDIYBS platform, designed to make the quoting, underwriting, and communication process faster, more transparent, and more efficient for brokers. This update includes a refreshed platform interface, improved workflow design, enhanced census insights, expanded large group quoting functionality, improved underwriting status visibility, automated experience data parsing, AI-driven risk insights, and broker-to-underwriter messaging directly within the platform. These enhancements are important because they directly address many of the friction points that have historically slowed down the self-funded quoting and underwriting process. For example, our enhanced census insights capability helps brokers identify data quality and completeness issues before submission, which can reduce back and forth and help minimize underwriting delays.

While our platform already supports large group quoting, the latest enhancements improve the workflow around larger and more complex cases, including better handling of census data, experience data, and underwriting communication. We have also introduced broker-to-underwrite messaging. This keeps communications, files, and updates tied directly to each opportunity rather than scattered across disconnected email threads. Early feedback from the brokers has been very positive, particularly around the new messaging feature and overall workflow improvements. Brokers have responded well to having communications, files, and updates tied directly to each opportunity rather than managed through disconnected email chains. We are also hearing positive feedback on the RFP or request for proposal and document upload automation functions, with brokers noting that the process feels smoother, requires less feedback and forth, and reduces manual steps.

While the enhanced census insight tool continues to be well-received, the strongest reaction so far has been around the broader efficiency improvements across the platform. Brokers are noticing the impact immediately in their day-to-day workflow, which we view as an encouraging sign for adoption and continued platform engagement. Overall, these updates reflect our broader strategy of continuously enhancing the eDIYBS platform to reduce manual work, improve visibility, and support faster, more accurate quoting and underwriting outcomes. We believe these capabilities will further strengthen broker adoption, improve partner productivity, and support scalability within our marketplace. Among new offerings currently under development, we're making significant progress with our Three-Year Rate Stabilization Program. We expect to complete market testing of this program late in the second quarter into the third quarter of 2026.

This program is designed to address pricing volatility and provide greater cost predictability for employer groups, which we believe is a key differentiator in the market. Governmental agencies and municipalities, among many others, stand out as a logical candidate for our Three-Year Rate Stabilization Program. In addition, in the second quarter of 2026, we anticipate commencing initial beta testing of a new data-driven solution that integrates psychological data and claims data to generate actionable value insights for partners in our ecosystem and business employer end-to-end clients. I am incredibly excited about the growth journey in front of us. We are addressing a vast market opportunity in self-funded health insurance with a comprehensive strategy to expand our ecosystem and democratize self-funded health insurance for all employers, regardless of size.

Based on our current operating momentum and growing pipeline, we are reiterating our guidance for full year 2026 revenue of between $45 million and $50 million, representing approximately 35%-50% year-over-year growth. Before Julia reviews our first quarter financial results, I'll turn it over to Zain, who will provide some additional detail on how we are scaling our sales and distribution strategy.

Thank you, Tim. From a sales perspective, one of our largest opportunities remains in a significant, largely untapped broker and TPA distribution market, where many potential partners have yet to actively engage with our platform. We make it extremely easy for brokers and TPAs to join and onboard onto our platform, which they use at no cost. Unlike traditional models that rely on building large in-house sales teams, we leverage a capital-light partner-driven distribution strategy. In 2025, and with a relatively small in-house sales team of six professionals, we delivered $33 million in revenue. With the additional capital raised through our PIPE financing, we plan to further invest in and selectively expand our in-house sales team and broaden distribution partners to support continued growth.

Importantly, our in-house sales team is primarily focused on onboarding and activating distribution partners rather than directly selling into employer accounts, which allows us to scale efficiently without significant fixed cost expansion. This efficiency is driven by our approach, which is empowering distribution partners with technology that significantly reduces their cost of doing business. By replacing a manual email-driven process with a fully digitized and streamlined workflow, we save brokers a substantial amount of time and improve their ability to serve clients. In addition, adding more carriers and building an AI-driven solution to automate the length of manual processes continue to gain traction. As we continue to expand our technological capabilities, we intend to become the go-to marketplace for brokers to come to and offer a one-stop shop for the entire renewal process of a self-funded health plan.

Scaling our expanded capabilities in the large employer accounts would increase our average contract value of a client, while bringing in additional carriers should improve close rates and renewal rates. At the same time, we are investing in analytics capabilities that provides brokers with greater visibility into their quoting pipeline, including win-loss trends, response times, and actionable opportunities. This represents a meaningful shift toward a more data-driven sales management. While the industry has historically been relationship-driven, we see a significant opportunity to scale beyond that through more structured engagement. Our go-to-market strategy focuses on increasing direct broker engagement through conferences, through targeted outreach, and brand awareness initiatives, creating a flywheel that drives more platform usage and increases deals per sales rep.

We're working on building relationships whereby our tech stack becomes the infrastructure layer for how employee benefit brokers and TPAs serve their self-funded clients, a new strategy for distribution that we are very optimistic about. We'll be active at key industry conferences where our target buyers are concentrated, using those as catalysts for executive-level engagement and pipeline generation. Overall, while we are still early in this process, we are encouraged by the consistency we are seeing, and we believe we are building a durable, scalable distribution engine that can support long-term growth without requiring linear headcount expansion. I'll now turn it over to Julia.

Thank you, Zain. Good afternoon, everybody. I appreciate you joining us today. Before we move on, I'd like to highlight an important update on how we present our business metrics, which we believe better reflect the underlying growth and visibility of our platform. We are introducing a new KPIs, key performance indicator. I will first touch on contracted revenue, which represents contractually committed revenue on the active policies. As a measurement day, this is expected to be recognized in future periods. Our policy are typically written for terms of 12 months. Under GAAP accounting, the reported revenue is recognized over the lifetime of the policy. For example, if a new employer is on board and have a policy effect on February 1st, 2026, under 12 months policy, we recognize the revenue from the contract months from February 2026 through January 2027.

In this scenario, where only two months of revenue are recognized in the first quarter 2026 reporting period, the remaining 10 months of the contractual committed revenue will be recognized in the nine remaining months of 2026 and one month in 2027. By reporting contracted revenue, we are providing investors and shareholder with the greater transparency and the visibility into the future revenue that is already locked in. That is contractually secured, but not yet recognized. We believe these changes aligns our disclosure more closely with how we manage the business internally and provides investors with a useful metric to evaluate the future revenue visibility. As of March 31st, our contracted revenue for the remaining three quarter of this year total will be around $22.9 million. In addition to contracted revenue, we are now disclosing Platform Placed the Plan Value or PPPV.

PPPV represents the aggregate contractual value of self-funded health plan with the stop-loss insurance that is self-funded stop-loss plans placed through the company's platform that covering the duration of the plan's contractual term. The contractual term is typical 12 months from the plan's effective date. In the first quarter of 2026, our platform placed $82 million self-funded stop-loss plans. Platform placed the value reflected the full value of the active policies facilitated through our platform, including the premium claims fund and administrative fees. We believe that PPPV provides a consistent comparable measurement of total ecosystem value flow through our platform. As our business continue to scale, particularly with expansion into larger employee groups and a more complex plan structure, we expect the platform place the value to increase with a faster rate, reflecting great deep of engagement in the higher value relationship.

Historically, we have disclosed enrolled employees as the operating metric. [Enrolled] employee represents individual or family cover under a company, the self-funded group plan. After careful consideration, we have decided to discontinue this metric as we believe platform placed the plan value and the contractual revenue better represent our business. The carriers in our platform offer four type of coverages, employees only, employees plus a spouse, employee plus children and a family. We have different plans, Bronze, Silver, Gold and Platinum. When previously calculated our now discontinued enrolled employee metric, a single individual employee versus a family, including an employee as well as their spouse and children, could each be counted as one enrolled employee. Although the difference on the cost and the premium between these two can be 3x or 4x difference.

Furthermore, the employee can choose Bronze will offer a lower monthly premium and a higher deductible cost, versus the Platinum offer higher premium and the lowest deductible. These two enrolled employee will have dramatically different premium. Moreover, an employee's enrolled employee count can change during the period due to the factors such as resignation, layoff, new hire, family situation change, birth and death. When we continue to expand our business into a large size of the employees and grow our footprint aggressively. We believe the enrolled employee metric could not fully present complexity and the dynamic of underlying business. Move on. As Tim mentioned, we intend for this to be a year of target investment as we scale our distribution network, expand our product capability, and position the company for the long-term growth.

As a result, certain financial metric in the near term reflect this intentional investment pace. Let me talk about the revenue. For the first quarter 2026, the total revenue was $8.8 million, representing approximately 9% growth year-over-year. As of March, we estimated $31.7 million in revenue will be reported in the full year 2026 fiscal year. With $8.8 million reporting first quarter and the $22.9 million will be recognized in the report in the remaining of 2026. This estimate figure is represented before monthly adjustment. Actually recognize the revenue for the remaining 2026 may differ slightly. While growth in the quarter was more moderate compared to the prior periods, this reflects the current stage of the scaling of the business rather than any change in underlying demand or platform scalability.

At this stage, revenue growth is more closely tied to the expansion of distribution network, the ramping up of the broker activity and the conversion of the pipeline opportunity in which we are actively investing in during 2026. Turning to profitability, adjusted EBITDA for the first quarter was - $1.3 million compared to +$1.2 million in the prior year period. The net loss was $1.6 million compared to the net income of the $500,000 in the prior period. This reflect our planned increase in the investment across key growth initiatives, particularly in sales and marketing and the product development. Turn to the operating expenses. Total operating expenses for the quarter was $6.7 million, approximately 76% of revenue, compared to $4.9 million or 41% of the revenue in the prior year.

The breakdown here, give you further detail. Sales and marketing expenses were $2.3 million, representing approximately 26% of the revenue. The investment was doubled compared to $1.1 million or 14% of the revenue of the prior year, 2025. This increase reflect our deliberate investment in expanding our sales distribution footprint, as Zain explained, including the broker marketing and building out a more scalable go-to-market infrastructure so we can really tap it on the massive broker e-ecosystem. General and administrative expenses were $3.5 million, representing approximately 39% of the revenue, compared to $3.2 million or 41% of revenue in the prior year.

This increase primarily reflect we continue to build a stronger team, and we did manage lower percentage of the revenue to be more scalable when we grow. Research and the development expenses were $0.9 million, representing approximately 10% of the revenue, compared to $0.5 million or 7% of revenue in the prior year. This increase reflect continued investment in our technology capability and the new product initiative, including data-driven solution, as well as ongoing enhancement to our underwriting and the workflow platform. In addition to these expenses in R&D investment, we capitalized approximately $0.6 million of the software development during the first quarter.

Thus, approximately $1.5 million was spent related to tech, out of which $0.6 million was reflected to developing new feature and a new solution, compared to $1.4 million and $0.9 million, respectively, in prior year. Overall, the increase in operating expenses reflect a purposeful shift in capital allocation towards growth initiative. We are investing ahead of the revenue to expand the distribution, enhance our product capabilities, and to position the company to capture a large share of the significant market opportunity. Importantly, we expect this elevated level on the investment to continue throughout 2026 as we execute on our strategy to scale the business and to build a more robust growth engine. Turning to our cash balance.

We ended the quarter with $10.3 million in cash and cash equivalent, reflecting the proceed from our recent private financing. We continue to maintain a disciplined approach to capital allocation with a focus on investing in the area that we believe will deliver long-term growth and shareholder value. In summary, we continue to scale distribution, increase platform adoption, and expand our product offerings. We expect to drive high growth and improve operating leverage over time. We remain confident in the long-term trajectory of the business and our ability to execute on our growth strategy. With that, now I turn it back to the operator for Q&A.

Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. The first question comes from George Sutton with Craig-Hallum. Please go ahead.

Thank you. Zain, I'm excited to have you on the call. I wondered if you could walk through some of these key expansion areas, you know, expanding sales, broadening the marketing activities, developing the new marketplace, and enhancing the tech architecture. Can you just give us a picture of the progress that you're seeing? You had mentioned broker feedback that you've received thus far. I just wondered if you can go into more detail on those things.

Yeah, sure, I appreciate the kind remarks. Essentially, it's just a matter of we're, like Tim mentioned, we penetrated a very, very small portion of the overall broker market. Our intentions are to hire two to three sales reps that will focus on outbound, to just drive a overall marketing message that allows brokers to have a better understanding of what we do. If we increase the brokers that have visibility into our platform, we've gotten a lot of positive feedback, we're very optimistic that that'll lead to the growth.

You mentioned, you've rolled out this 100 pre-configured plan, set of options, and I know that greatly increases the simplicity versus the complexity of the traditional platforms. Can you just walk through with us kind of how that's working in the market thus far?

Sure. I mean, just taking a step back for brokers, as they're looking at fully insured health plans or, you know, the health plans that we provide through self-funded, a lot of the brokers have a hard time with self-funded health plans. Through our platform, though, it makes it extremely easy. The pre-configured health plan is, you know, it's a proven playbook for the health insurance world, where you have package plans that make it easier for then brokers to be able to evaluate those rates against whatever their employer's renewal is.

Tim, our discussions with industry folks, there's a lot of potential excitement around your Three-Year Rate Stabilization Plan. I know that's coming later in the year. I wondered if you could just address kind of the progress you've made there. Are you indeed seeing the kind of potential demand that we're hearing about? Julia, I wondered if you could just give us any sense if anything's built in for the back half of the year from that, the Three-Year Rate Stabilization Plan.

Yeah. Thanks, George. Thanks for the question. As far as the demand, we're starting to see a lot of potential coming through. We have modified the program to where it's agnostic to really the carriers. We've changed some things in the plan to make it more open for, more open so that we can give a financial presentation or proposal to just about anybody who is self-funded now. It's even getting spread more broad. We are really just now getting out there. I mean, you know, understanding self-funded health plans, they look, you know, three months, the larger groups do, they look three to six months out. We're seeing a lot of people taking a look at it. We're starting to, you know, give our proposals on those groups now. I hope that we have one.

We think we have one, but until the ink is wet on the paper, I will tell you that we are anticipating at least one in the second quarter.

Yes. George, from the financial perspective on our forecast, we very conservative. We were thinking about only start from the fourth quarter, we will be able to generate some sort of the sales because a large group usually they purchase lease type of plan into the end of the year. We continues to make a progress and the couple of quotes looks like we'll be able to get that done in second quarter. As Tim said, before we make the ink, we do not know and we should when, very sure by the time we will make the press release and announce to the market.

As we continue, just reiterate, it still is a test, still getting a lot of traction. That's why we continue to refine the program based on the feedback.

I understand. Tim, I assume these are done electronically, so there really isn't any ink involved, but, maybe I'm naive. I think that's it for me. Thanks, guys.

Yeah, good point. Yes.

The next question comes from Allen Klee with Maxim Group. Please go ahead.

Yes. Hi. Could you expand a little on your new metric of platform placed plan value of $82 million? That's over the, you said something about the next 12 months. How does that correlate to revenue? Is all that you guys capture or how do we think about that?

Allen Klee, yes, it's a great question. When our platform facilitate place the sell under the plan, you think about sell under the one is the plan, the other stop loss all combined. We bundle that together. Our revenue is just the sum of the portion of that value. When we're looking at the plan placement, every contract is 12 months, and our revenue, contractual revenue will be recognized over the 12-month period of time. Even we did $82 million, you can see our revenue, we report $8.8 million for the first quarter, the remaining $22.9 million, and total is $31.6 million. It's really the revenue mechanism because of GAAP accounting that's spread out. However, when we wrote and facilitated those plans through the platform is for 12 months.

This gives everybody a much better understanding of the flows and the plans and the revenue.

Does that mean if you have a plan on the books today, but it was actually written six months ago, in this number, you're including the 12-month value, not the six months left? Is that what you mean?

Yeah. For instance, the January, I made the example, February. For instance, the February plan we wrote, our revenue will be recognized from the February to next year, January, over the months. In the first quarter, you will only have two months of revenue. However, we also reported the remaining revenue based on the contract will be recognized for the year, which is $22.9 million. People kind of will have a much better idea. Even today, we report first quarter is $8.8 million, but we know $22.9 million will be reported in the remaining of the year, you're adding on, is $32 million. That is a gave much much better visibility in terms of revenues.

Okay. Thank you. In terms of the three-year rate plan, what happens if your underwriting performance is poor and it maxes out and you have to use the excess of loss insurance policy? It's maintained at or what impact, what then happens for the remaining two years? It also seems to me like if you're testing it at the end of 2Q and early 3Q, and it's gonna take people a while to understand it, you may have some risk of missing this year's renewal season or how do you think about that?

The renewal season typically isn't, you know, in large group, most of the renewals happen, whether it's July or January. There's obviously exceptions to that, but January is the biggest date of the year by far. We are testing it now so that we're ready to start the quoting. As I said, the demand is picking up. The brokers are looking right now at these kind of options. You can't finalize anything, but they'll give you a submission, and they want you to quote it, to start looking at it, so that by the time the end of the year comes around, they've tested it, they've had all their questions, and finally, when all the data comes in and we can quote it to get a final, they're ready to have the entire conversation with their clients. Does that help answer your question?

It seemed like at the end of last year, you had some good products, but there wasn't. It took longer for the brokers to figure out the new plan. I was just afraid that might happen again. Let me. One last question. It's on expenses for the quarter. Can you kind of give us an idea of how much the costs were associated with your Davos conference in 1Q? Also, how much of costs in 1Q are more like first, just things associated with the beginning of the year, maybe the audit and different things like that maybe are not recurring going forward? Thank you.

That was approximately cost us about $200,000, and approximately, they are about $100,000, cost we probably will not carry forward going forward if we look at the just operating expenses perspective for the quarter.

Got it. Okay, thank you so much.

Thank you.

The next question comes from M. Marin with Zacks. Please go ahead.

Thank you. I'm curious, I was wondering if we could get a little bit more color on the three-year rate stabilization feature, because obviously that seems like it would be very attractive to employers, brokers, et cetera. That first of all, in terms of what you're seeing right now in terms of the level of interest, is it fair to think that there may be interest right now, but that would be a more extended sales cycle than what you've seen with prior plans that you've been selling, you know, traditionally?

Zain, you want me to handle that one?

I can or you can, but I have no problem.

Go, go ahead.

Okay. Yeah. I appreciate the question. I mean, yes, it's fair to say. I mean, these are targeted towards larger employers. There's typically a longer sales cycle of getting the employers and brokers comfortable and educated with the process. Yes, we are seeing really a lot of interest in the program. It is also what was mentioned earlier where we iterated and got to the point to where we're now carrier agnostic, and being able to offer that to both new business and renewal opportunities makes it to where we feel like there's a tremendous opportunity. It's a hard market and a stop-loss overall industry. This is a very unique time to be able to have a program like a three-year rate stabilization program that we can offer.

Mm-hmm. And just in terms of the housekeeping, how would that work in terms of what kind of an upfront would we expect to see you know, place on your books? Then I'm guessing the mechanics of how you would recognize revenue would be similar to what Julia was describing before.

Yeah, I can address the question about the revenue, Marin. We recognize the revenue monthly from the effective date, even at the three years. When we have a three-year program, when we report contractual revenue, we'll point out that belongs to three-year program. Means people will know the revenue will come in next 36 months. When we do earnings, which are called GAAP accounting revenue, we're based on every month from the effective date, so nothing changes. Just like the one-year program. We recognize every month, we service the client every month, revenue get reported. However, we give them more visibility about what is the remaining longevity of the program, how much revenue we would earn recognizing future.

Yes, I guess what I'm also trying to get at is given that it would be obviously the benefit to you would be the extended visibility and the benefit to the purchaser of the plan would be, you know, the locked in rates. Would you, because it's going to be, you know, a business line over three years versus one for, you know, the typical plan, would you require some sort of an upfront deposit that would be different from, you know, your normal approach to taking on new business or taking on a new plan with an existing customer?

No, we don't require upfront.

We don't. Yeah.

I'm sorry.

We don't require an upfront deposit. Through the underwriting process, we float that across all three years.

Got it.

You, you may have like, so yeah. If your first year would have been $10, you know, we're gonna float the overall increase and expand it across the three years. Your first year may be a little more, but your, you know, all things being equal, your third year would be less, but at least you could budget to those numbers.

Got it. Okay, thanks. Switching topics, one final question on the analytics, which I think would be extremely interesting. You talked specifically about, you know, specific things that you think the analytics could be applied to, but it seems to me that there could be a lot of opportunity to take data analytics and, you know, package the data in such a way that it could really potentially extend beyond the target market that you originally described.

Yeah, you're reading my mind. That's exactly what we're thinking.

Okay. This is the right way to think about it, is that this is your first step, but then there could be significant extension behind that, you know, once you've gotten in place with the first.

Significant.

The first one. Mm-hmm. Okay, great. Thank you.

Yeah, thanks for the question.

Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks. Please go ahead.

Sure. Thank you, operator, and thank you all. I appreciate everyone joining the call today. If anyone has any further questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping the dialogue open. Thanks, everybody. Have a good day.

Thank you all again. This concludes the call. You may now

Good day, ladies and gentlemen. Thank you for standing by and welcome to the Health In Tech, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will follow at that time. As a reminder, we are recording today's call. Now I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please proceed.

Thank you, Operator, and hello, everyone. Welcome to Health In Tech, Inc.'s fourth quarter and full year 2025 earnings conference call. Joining us today are Mr. Tim Johnson, Chief Executive Officer, and Ms. Julia Qian, Chief Financial Officer. Full details of our results can be found in our earnings press release and in our related Form 10-Ks filed with the SEC. These documents will be available on our Investor Relations website at healthandtechinvestorroom.com. As a reminder, today's call is being recorded, and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on information available as of today, and involve risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our annual report on Form 10-Ks for the period ended 12/31/2025, filed with the SEC. Please review the forward-looking and cautionary statement section at the end of our earnings release for various factors that could cause actual results to differ materially from forward-looking statements made today during our call. Except as expressly required by federal securities laws, we undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events. We may also refer to certain financial measures not in accordance with generally accepted accounting principles, such as adjusted EBITDA, for comparison purposes only. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. With that, I will now turn the call over to our CEO, Mr. Johnson.

Thank you, Lori, and good afternoon, everyone. We appreciate you joining us today.

2025 was a pivotal year for Health In Tech, Inc. It marked our first year as a public company. But more importantly, it was a year in which we demonstrated that our AI-enabled underwriting marketplace, distribution-led growth model, and technology platform can scale within a large, underpenetrated, self-funded health insurance market. For the full year 2025, revenue increased 71% to $333.3 million, reflecting strong execution across our core growth drivers. When we look at what drove this performance, three factors stand out: distribution expansion, platform advancement, and program innovation. First, distribution. Our business scales through distribution, with brokers and TPAs serving as the primary channel through which employers access self-funded health plans. As a result, the breadth and productivity of our distribution net are directly correlated with our growth trajectory. In 2025, we expanded our network to 858 brokers, TPAs, and agency partners, representing a 34% year-over-year increase. Importantly, we believe we remain at a very early stage of market penetration. There are approximately 1,100,000 insurance brokers in the United States, and even with over 800 distribution partners on our platform, our penetration remains well below one-tenth of 1%. Similarly, within an estimated $0.9 trillion self-funded health care market, our scale represents only a fraction of the total addressable opportunity. The key takeaway is that while we delivered strong growth in 2025, we believe that the long-term runway for expansion remains substantial, particularly as we continue to scale distribution and engagement across our partner network. Second, platform development. A core inefficiency in this industry is that underwriting remains highly manual, time intensive, and difficult to scale, particularly in the large employer segment. In 2025, we expanded our Enhanced Do-It-Yourself Benefit Systems, or EDIBS, to support employers with over 100 employees, extending our capabilities beyond the small-group market where we initially established strong product-market fit. This is a meaningful step up-market. Larger-group underwriting is characterized by long sales cycles, fragmented workflows, and significant operational friction. Our platform addresses these challenges by compressing underwriting timelines for larger employers from approximately three months to roughly two weeks, which enhances broker productivity, improves the client experience, and increases placement efficiency. We believe this speed and automation represent a durable competitive advantage, particularly as the market increasingly demands faster, data-driven decision-making. Before I move on, I want to address one of the most important questions we hear from investors: What is our AI advantage, and why is it not easily replicable? The short answer is that our advantage is not just the AI model itself. It is the combination of proprietary data and integrated workflow and distribution. On data, we have been applying AI within our platform since 2021, well before AI became a headline theme. Because we operate within employer-sponsored insurance, we have built a HIPAA-governed dataset tied directly to real underwriting activity and plan design structures, rather than relying on generic or publicly available healthcare data. As employer groups renew over time, we continuously incorporate new cohorts and real-world outcomes, which allows our models to improve through ongoing feedback loops embedded in actual production environments. On workflow, many solutions in the market focus on narrow point applications of AI, for example, automating a single administrative function or a discrete vendor process. While those tools can provide incremental efficiency, they do not address the broader structural inefficiencies in the system. What we have built is a fully integrated platform that connects underwriting, plan design, stop-loss, administration, and vendor coordination in a single workflow. This enables brokers to move from quote to bindable, execution-ready solutions significantly faster, while reducing fragmentation for employers. In other words, our AI is most valuable because it is embedded within an operating marketplace, not deployed as a stand-alone tool. On distribution, technology alone is not sufficient. Distribution is critical. We have established a growing network of brokers, TPAs, and carrier integrations actively using the platform, and that real-world usage drives continuous data generation, improves model performance, and increases platform stickiness over time. As we scale, the data becomes richer, the workflow becomes more efficient, and the competitive advantage compounds. Third, program development. We continue to advance our three-year rate stabilization program, which is designed to address one of the most persistent challenges in employer-sponsored healthcare: pricing volatility. Employers are increasingly focused on predictability, while brokers are seeking solutions to improve retention and simplify long-term planning. Our program is structured to provide greater pricing stability over a multiyear period, supported by a fixed remittance framework and stop-loss protection. Strategically, we believe this offering can deepen client relationships, improve retention, and support expansion into larger employer segments where budgeting stability is a critical decision factor. Now let's talk about 2026 strategic priorities and outlook. As we move into 2026, our priorities remain focused on scaling the platform and accelerating adoption. First, we will continue to expand our distribution footprint. Second, we are continuing to invest in platform development and AI capabilities, with a goal of evolving into a fully integrated marketplace that extends beyond underwriting to include claims administration, cost-containment solutions, and broader plan management capabilities. In January 2026, we enhanced the platform to offer more than 100 preconfigured, customized stop-loss programs, translating complex underwriting and plan design into a scalable, repeatable framework. This drives shorter sales cycles, improved conversion visibility, and greater scalability while maintaining flexibility for employer-specific needs. We are providing full year 2026 revenue guidance of $45,000,000 to $50,000,000, representing approximately 35% to 50% year-over-year growth. Our confidence is supported by our ability to compress time to revenue, enabling new features to scale within one to two quarters compared to 12 to 24 months in traditional insurance environments. We are also strengthening our technology foundation through our partnerships with Siclim, an AWS Advanced Tier Service Provider. We are building more integrated, AI-driven platforms. I will now turn the call over to Julia Qian, our CFO. Thanks, team.

Good afternoon, everybody. I appreciate you joining us today. I will work through our fourth quarter and the full year 2025 financial performance, then provide additional context around our operating model, margin profile, capital allocation priorities, and ongoing product investments. Before continuing to the numbers, I want to briefly address seasonality and timing dynamics. Employer decision cycles, particularly around renewals, do not always align cleanly with the calendar quarter, which can create some variance in quarterly results. As such, we believe year-over-year performance is a more meaningful way to evaluate the business rather than sequentially. On that basis, our trends remained strong throughout 2025. Importantly, our revenue model is contractually driven and recognized over a 12-month policy period, which supports forward-looking revenue visibility and an increased recurring revenue profile. Turning to revenue now. For the full year 2025, total revenue increased 71% year over year to $33,300,000. In the fourth quarter, revenue increased 53% to $7,500,000. This performance reflects continued adoption of our AI-enabled underwriting marketplace, supported by expansion in both distribution and enrolled employees. Our distribution network grew to 885 brokers, TPAs, and agencies, an increase of 34% year over year. Enrolled employees increased to 22,515, up 23% year over year. As more partners onboarded to the platform, we are seeing increased quoting activity, higher bind ratio, and improved conversion efficiency, reinforcing the scalability of our model. As Tim mentioned, we are providing full year 2026 revenue guidance of $45,000,000 to $50,000,000, representing about 35% to 50% growth year over year. This is supported by the visibility in how our recurring revenue flows through from the prior year and the remainder of the year, as well as strong distribution and fully deployed platform capability. When we look at profitability, we continue to demonstrate operating leverage as the business scales. Adjusted EBITDA for the full year was $4,100,000, which is about 12.3% of revenue, an increase of 81% year over year. Net income, our most comparable GAAP measure for the full year, was $1,200,000, representing about 4% of revenue, an increase of 91% year over year. For the fourth quarter, adjusted EBITDA was $300,000, compared to $500,000 in the prior year. Net income for the fourth quarter was negative $300,000, compared with negative $100,000 in the prior year. Again, our GAAP results and the reconciliation of GAAP to non-GAAP measures can be found in our earnings release. The fourth quarter reflects planned reinvestment in go-to-market initiatives, broker engagement, and program development, along with peak enrollment activity as well as investments supporting new product launches. Full year pre-tax income was $1,700,000. Fourth quarter pre-tax loss was $400,000, reflecting the timing of investments. Turning to operating expenses, we continue to drive improved operating efficiency while maintaining disciplined investment in growth initiatives. Total operating expenses were $19,400,000 for the full year, representing 58% of revenue, a 16% improvement year over year. In the fourth quarter, operating expenses were $4,300,000, or 57% of revenue. Breaking these down, for the full year, sales and marketing expenses were $4,200,000, about 13% of revenue, reflecting our efficiency in the distribution-led go-to-market strategy. General and administrative expenses were $13,700,000, 41% of revenue, improved year over year as we scale. Research and development investment included $3,200,000 in capitalized software development and $1,600,000 expensed, representing approximately 5% of revenue. Our R&D investments are focused on platform expansion, underwriting automation, and scalability across the marketplace ecosystem. As we think about growth beyond 2025, we are continuing to increase high-value capability into our existing platform. We plan to initiate the beta test of a new data-driven solution that integrates physiological and claims data to generate actionable value insights. We believe these represent a very meaningful step forward, enhancing decision-making across underwriting and plan management. More broadly, these initiatives reflect our strategy of building additional value-added services on top of an already commercialized, scalable platform, which we expect to support the durability of growth and increase operating leverage even further. AI remains a core investment initiative alongside our other programs. We believe that applying AI within a regulated employer-sponsored insurance environment can materially improve the speed, consistency, and decision quality across both underwriting and member-facing work. We will continue investing in AI-driven automation and underwriting support, while maintaining proper human oversight where it matters most. From a financial perspective, when these investments are directly aligned with our model, they support faster adoption, higher retention, improved efficiency, and greater operating leverage as we scale. Turning to cash flow and the balance sheet. For the full year 2025, we generated $3,100,000 of positive operating cash flow. Accounts receivable days reduced to 14 days in 2025 from an already efficient 29 days in 2024, demonstrating the predictability and efficiency of cash collection in our business model. We invested $3,200,000 in platform development software and still generated positive cash flow from operations, ending the year with $7,700,000 in cash and cash equivalents. With that, I now turn back to the Operator for Q&A.

Thank you.

We will now begin the question-and-answer session. The first question will come from Allen Klee with Maxim Group. Please go ahead.

Yes, hi. Good quarter. I wanted to start with your larger employer offering you have rolled out. Could you give us the feedback you have gotten and what you are hearing from your partners that are involved in selling it? Thank you.

Sure, Allen. I can cover that. Yes, Tim can talk about the business part, and I can talk about the financials. We announced the entry to the large employer space last year. The financial contribution is very fresh in 2025 because that is starting in the fourth quarter and officially launched this September, and you will see more benefits in 2026. So Tim can answer business-related questions.

Yes. As Julia said, the sales cycles on those are pretty long, so we are just now really starting to pick up some sales through it. We have a product launch coming up at the end of next month where it really helps speed the process up for the large groups. Right now, we just agreed to underwrite large group, bring them in to make sure that we had a really good process, and then the system that we have built is coming up next month. We have tested it a lot with a lot of brokers and internally, and the speed with which it is performing is really helpful for anybody that uses it.

Okay. Thank you. And then for the three-year rate stabilization offering, which is extremely valuable in today's market, what is the feedback? You are in beta right now. So anything you can say about the feedback and how you're thinking about potential interest and when? When that interest—I know you said second half—but any thoughts of how you think about the inflection of how that might ramp?

Yes. It is really an attention-grabber for government entities, municipalities, these entities that rely on budgeting heavily. So they have to understand, through a tax base, what they have to budget for. When you can do that for three years, there are a lot of cities, states, governments, counties—they are all interested in looking at it, and we are right now just starting to put together some information so we can gather some of their submission data, start to put some programs together for them, making sure that it looks right and fine-tune it. So there is a lot of attention around it. Seriously, we just got it started a month, month and a half ago, where we could go out and talk about it with our partner—our insurance carrier—that was putting it up and we are working with. So there is a lot of attention around it, but you are right. We have not really started the quoting process yet where we have got much going on that we can put some business on the books.

Yes. So, Allen, that is exactly what we said before. We anticipate it is going to go well. The beta test has a lot of traction. It should be officially launched and announced with all the partners involved in the second half of the year. I think it is still on track. Yes. We will try to see whether we can do a Q3.

Third quarter.

Hopefully the end of second quarter and the beginning of third quarter. This is something we are looking at.

Maybe just following up on my first two questions, what are your thoughts in terms of the amount of renewals you think will be available for both the large employer and the three-year rate stabilization? Do you think that most of it will come more at the end of 2026 when plans renew, or do you think that there is good opportunity in 2026?

So, Allen, today we do not have renewals in the large group business. Most of our business is small- and medium-sized groups, but we only started last year, September, and when we have functionality going on, we start to pick up some pace this year. So we do not really have a renewal from any prior-year business book, but we can see we gain share from other places. So we get new customers. Those will be all new customers.

Three-year both, three-year in the large group. Yes. But what I meant is that plans—if most plans renew in January—does that mean that there will not be a lot available that you can sell to?

You are correct. July 1 and January 1 are, especially for municipalities, their effective dates. They start on July and January. So again, we are probably not going to get a lot of business on July with the municipalities in that. We will pick up some other clients. But January is clearly going to be the biggest effective date for us on that.

Okay. That is great. And then just one more, then I will get back in the queue. You mentioned you initiated beta testing of physiological data and claims data to get insights. Could you just expand on that a little more?

Yes. So physiological data is when people wear devices to track their physiological information—heart rate and blood pressure—and then we have, as claims data, a lot associated with individuals’ health information. So when we get the data, hopefully it can produce insights. We just got to the start and the beta test for this year. That is something the product will watch for. It can be very interesting. And on the data part, it will really help the user get more additional insights on the correlation of their health condition versus their medical condition. So we just got to the beta test, and we will share with the market the due cost.

Thank you so much.

The next question will come from M Marin with Zacks. Please go ahead.

Thank you. So I am wondering, you were talking a little bit about your entrance now into the large organizations spectrum of sales. And the sales cycle, as you said, is long. Do you expect that there will be any difference versus smaller organizations in terms of stickiness or retention, or from what you know about the overall industry, do you think it will be pretty much comparable to what you have already experienced in your business?

Yes, I think that the stickiness will come because of the ease of use of the system—the tool, EDIBS. It is extremely easy and efficient. It is easier for a broker to provide a submission to an underwriter through the system. The system uses a lot of AI technology to organize all of that and parses the data into an organized fashion for the underwriter. It is a layup for the underwriter to, when it eventually comes out the other end of the system, underwrite and do their job, which is all they want to do. So once we can show that the turnaround time on getting the information in, understanding the information, and then getting a proposal back—we are really trying to reduce that timeframe significantly. And if you are in this business, you know that a lot of times it takes a long time for various reasons. But the system that we have built, we really think we can dramatically—I say we are going to easily cut it in half, if not more.

Okay. And so I know it is very early in the process because you just really completed the beta testing not that long ago, but are you surprised at the level of interest or potential interest that you are expecting or seeing in your pipeline amongst that sector of the overall customer base?

Yes. We were just talking about that earlier today. In fact, the way that we have positioned ourselves and the people that we are already talking to about it—just trying to get feedback and get through all the beta—you know, internally, my underwriter can now look at and quote up to 20 groups in a week. She used to be able to do that in a month, and now she does it in a week. And just conversations like that around other people in that space, in the underwriting space, they are very excited to see it and test it out. So yes, we hope it is going to be a big splash.

Switching gears a little bit, over the past several quarters you have announced a number of different partnerships or business affiliations to expand the services you can offer or expand distribution. Do you have an ongoing pipeline of other potential affiliations that you are looking at and considering in order to further expand your service offerings?

Yes. The tool itself has really expanded who we traditionally thought our market was. So now, besides just brokers and TPAs using the system to quote groups, we are looking at other industries or other vendors within our industry that want to use the tool because it makes their job even easier. We are all in this business, and we designed the product to help us, because we underwrite—we do all these things. But it is expanding beyond just us to where other people want to use the tool. And that kind of goes back to my other answer on the other question you asked. But yes, it is expanding a lot.

Yes. That is multiple. We are looking at these as multiple different legs to grow for the company. So in terms of sales distribution, just to remind everybody, there are 1,100,000 of these sales agents in the country, and we only scratched the surface. So whatever works, we will continue to build a high-functional sales team, continue to acquire brokers, and provide education. One part of entering the large group space will help us to get the larger brokerage houses, because the more product offered, the more stickiness—people are more inclined to deal with one system to use it. So this is part of the strategy for us to offer more services and try to get more brokers onboard. We do not have some particular list, because now we consider the entire universe is 1,100,000, and there are particular things we want to think about and where our high-functional salespeople have the most relationships. Then we would go down the list of the rest in the country. We really do not have particular things. Additionally, the new functionality we are building, we are surprised to see, can be offered as additional sales to generate more revenue, as the capability is needed by other users as well. Mhmm.

Which would also further enhance your operating leverage, you think?

Yes, definitely. Look, when we started, I often say we are the Amazon selling the bookstore and sell the books at our bookstore, and then we realized people really like to put the store online. So we are like, okay. Now, with a lot of functionality we are developing for our own internal use—because we are part of the customer zero, using the functionality to deal with the manual process, make our automation, make that easier, simpler, use AI—and then we realized a lot of companies like ours on the market also suffer from the manual process. Then we can offer that as an additional service.

Okay. Thanks so much. Thanks for taking my questions.

The next question is a follow-up from Allen Klee of Maxim Group. Please go ahead.

Yes, hi. You talked about how you want to expand to roll out cost containment and claims paying. Is the business model here that kind of what you said of the—like, you are the store, and these are the different things that get added—and you would take a fee or a percent? How do you envision—like, you are partnering with other firms—or how do you envision how you get paid on it?

So, Allen, we are building—we are the marketplace. So today, the marketplace does two things: create self-funded products, self-funded programs, and put programs together, and also does the underwriting and bundles together through the AI process. In the near future, as the marketplace function expands, we will offer that as a service for other carriers, other MGUs, other people who want to come to the marketplace—not just purchase the product. They also want to use the functionality doing their underwriting. They want to create their customized product. So these are the things we are thinking about, which we already get quite a lot of traction on. It has not launched currently, has not launched this year, has not been in the business model last year. But with more and more traction, we think we will make that available in the very near future. We have not thought about the pricing because there are so many different pricing models we can charge. We can have set pricing. We can have different features, different pricing. There are so many ways people are willing to pay for different functionality. So since this has not been launched and we have not finalized the price, we have a lot of ideas through the conversation with potential customers.

Okay. You announced a partnership on the prescription side, I think. Could you talk about what that can do for your offering? What I am referring to is the Vertical Art Administrators.

Oh, yes. They are a TPA. They just happen to be owned by a PBM. So it is just another distribution source for us.

Okay. So on the prescription side, that is not an area of focus right now, I assume, right?

Not really. I mean, we are going to do what we can to manage the drug costs, but as you recently saw, the government is stepping in to try to make some corrections. So it is kind of in flux right now. We do not want to commit to anything and then have something taken away from us. So we are just going to sit back and watch what happens for a while.

Okay. That makes sense. Is there any feedback on the conference you held in Davos and any relationships that you got out of it, or just thoughts on how it went?

Yes. I thought it went great. We met a lot of good people. Those relationships are still fruitioning. We are trying to figure out how we take advantage of all of them. We got a lot of good attention from that. A lot of people are still talking about it, in fact.

Okay.

And then maybe lastly on the AI side, just in terms of how you are looking to apply it in 2026, what would you say the biggest initiatives will be?

The biggest initiatives for AI in 2026? Yes. It is going to be continually improving our own processes. We are really the proof of concept for a lot of these things, and we test it before we take it out. But our system continually needs improvement. We are talking about the claims—I want to clarify—those are the stop-loss claims. Those are not first-dollar TPA claims that we are looking at. We are looking at how MGUs intake claims, and how AI can be used to make that more efficient, because it is a very manual process. So everything we touch, we are looking at applying AI to it to see if we can solve the issue by speeding it up or eliminating intervention by having people get in the middle of it. There are all sorts of different ways that we are looking at AI, but it is improving that entire process of getting information: how you get it, when you get it, what you do with it, where it goes, and where it is stored, and how fast can I get access to it?

Okay. Great. Thank you so much.

Thanks, Allen.

Thank you. Seeing no more in the queue, let me turn the call back to Mr. Johnson for closing remarks.

Thank you, Operator, and I thank all of you. I appreciate everyone joining the call today. If anyone has any follow-up questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping the dialogue open. Thanks, everyone.

Thank you all again. This concludes the call. You may now disconnect.