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Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 5:00 p.m. ET Chief of Staff - Lori Babcock Chief Executive Officer - Tim Johnson Chief Financial Officer - Julia Qian Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call. [Operator Instructions] Now I would like to turn the conference over to Ms. Lori Babcock, Chief of Staff for the company. Ms. Babcock, please proceed. Lori Babcock: Thank you, operator, and hello, everyone. Welcome to Health In Tech's Second Quarter 2026 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-Q recently 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 June 30, 2026, filed with the SEC. Please review the forward-looking and cautionary statements 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 law, 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 now turn the call over to our CEO, Mr. Tim Johnson. Tim Johnson: Thanks, Lori, and good afternoon, everyone. We appreciate you joining us today. Before I get into the quarter, I want to take some time to reiterate because I think it's important for everyone on this call to understand exactly what kind of company we are building. Health In Tech is a young and very dynamic company. We are still early in our journey, but we operate with a business model, a technology foundation and a market opportunity in front of us that we believe will continue to drive enterprise value for the company. That is not about next quarter. It is a statement about the architecture and foundation of this business. And I want to spend some time explaining why we believe that because I think it matters more than any single quarter's revenue print. Let's start with the macro picture. We are living through the most consequential technology shift in enterprise software in a generation. Every industry that has historically run on manual, paper-based relationship-only processes is being rebuilt around artificial intelligence, and insurance and self-funded health insurance specifically is one of the most underdeveloped, most opaque corners of the broader economy. As we've discussed before, self-funding health plans are estimated to generate around 20% to 30% savings for business employers through actively managing vendors and customizing its health plans. It represents nearly $1 trillion self-funded insurance market distributed through more than 1 million insurance brokers nationwide. And today, our platform works with 933 of them. That is a fraction of 1% of the addressable distribution universe. Most AI implementations you read about in the news today are bolted onto legacy systems built to automate a single task or wrapped around a call center. That is not what we have built. We have built a marketplace that is connecting brokers, third-party administrators and carriers into one secured AI-enabled health insurance platform that's efficient, transparent and ultimately reduces cost through removing frictions. That distinction matters enormously in this market. I want to direct something not every company that says AI has actually built something differentiated. A lot of passes for AI in the financial services and insurance today is a thin layer of automation on top of decades old infrastructure. What we have built in health and tech goes well beyond that. Our platform doesn't just speed up a form, it ingests census data, parses experience data automatically, enables the carrier to build its specific underwriting criteria in system in real time and returns a bindable execution-ready quote in a fraction of the time it takes using legacy tools. That is fundamentally different value proposition than what brokers have access to historically. And it is a fundamentally different value proposition than most of what our would-be competitors have brought to the market. I want to spend time here to talk about our Chief Technology Officer. Sri Rajagopalan and the engineering team he has built, Sri spent the majority of his career at SAP and IBM, 2 of the largest enterprise software companies in the world, leading enterprise architecture and large-scale platform engineering for global mission-critical systems. That is exactly the caliber of technical leadership a company like ours needs as we scale from a promising platform serving hundreds of brokers to critical infrastructure serving thousands of brokers, larger carriers and larger employer groups. Under Sri's leadership and through our partnership with Ciklum, and Amazon Web Services Advanced Tier Service Partner, we have spent this year upgrading the front and back-end architecture of our platform, consolidating quoting, underwriting, administration and analytics in a single unified environment and building the data infrastructure that will allow us to layer in increasingly sophisticated AI capabilities without having to re-architecture the platform every time we do it. That is the kind of investment that doesn't always show up in a single quarter's income statement, but it's exactly the kind of investment that determines whether a platform company can actually scale or whether it's hitting a ceiling. We do not intend to hit a ceiling. I'm also proud of what this has translated into for our distribution partners and practice. In the second quarter, we grew our distribution partner network to 933 brokers. Third-party administrators and agencies are up nearly 20% from a year ago, and we've rolled out a significant platform update that included enhanced census insights, expanded large group quoting functionality, automated experience data parsing, AI-driven risk insights and direct broker to underwriter messaging inside the platform itself. Brokers are telling us in real time that this is changing how they work. The adoption curve is leading indicator for everything else we are going to talk about today. Now I want to spend a meaningful amount of time on why we are changing how we talk about our business because I think this is a single most important thing for investors to understand about where Health In Tech is today. For the last several quarters, we have talked about Health In Tech primarily as a revenue growth story. And to be fair, we earned that framing. But a revenue growth story on its own undersells what is actually happening inside the business. And frankly, we believe it paints a limited picture quarter-to-quarter because of how GAAP revenue recognition and reacts with the way our policies are actually sold and onboarded. Here's the reality. This is not a company we believe should be judged quarter-by-quarter on a single reported revenue line. This is a young, still evolving platform business, continuing to establish itself in the small cap world with a business model that generates contractually locked in revenue well ahead of when that revenue actually gets recognized on our income statement. When we sell a policy, we don't recognize that revenue all at once. It gets recognized ratably month by month over the 12- to 36-month life of that policy. That means the revenue we report in any given quarter is really a lagging indicator of the underlying momentum of the business. In our review, the leading indicator, the one that actually tells you where this company is headed is what we've contracted and what we've sold and what is already locked in and simply waiting to be recognized. That is precisely what happened this quarter, and I want to explain it plainly rather than let anyone read more into a single number than they should. During the second quarter, we onboarded a new carrier partner. And as part of that onboarding, the effective dates of a number of policies -- policy placements shifted into subsequent quarters. That timing shift is the primary reason our reported GAAP revenue for the second quarter came in at $8.1 million, down from $9.3 million a year ago. I want to be unambiguous. This was not a demand problem. This was a churn problem and was not a platform problem. It was a timing factor tied to onboarding a new carrier into our platform. The very kind of carrier expansion that we discussed in last quarter is core to our long-term growth strategy because more carriers means more underwriting choice, better pricing outcomes for employers and higher conversions for our brokers. This is exactly why we believe contracted revenue and pipeline revenue are metrics that actually help tell you what's happening inside the Health In Tech. And it's why you should expect us to highlight these metrics from this point forward. Contracted revenue, meaning revenue that is contractually committed under active policies and that simply has not yet been recognized under GAAP totaled $32.3 million for the first half of '26. Beyond what's already contracted, our pipeline revenue, policies currently in quoting or binding status plus policies contracted since quarter end stood at $66.3 million as of July 31 this year. Julia is going to walk you through the details in a moment because I want to spend more of our time today on where business is going, not rehashing a single quarter. Let me talk about what's coming because this is where I think the growth story really comes into focus. We made a genuine proof point this quarter on our 3-year rate stabilization program. We contracted, secured our first employer group under that program, taking it from concept to a live bound plan. This is an important milestone as we advance toward the program's anticipated launch in the capital markets. The program is designed to provide budgetary certainties for health care costs, often the second largest expense on the P&L for many corporations. For large enterprises, particularly governmental agencies and municipalities, multiyear budget certainty is well received compared to the potential for unpredictable annual health care cost types. We are certainly engaged -- currently engaged in several high-profile government organizations evaluating participation, and we expect to provide additional updates in the coming months. We also remain on track to officially launch HitRix in the second half of this year. This platform is genuinely new because HitRix is not an incremental feature update, we believe it is the first true marketplace built for large group self-funded stop-loss market, which is a segment defined by claims data complexity, multiple managing general underwriters and carriers competing for business and a manual fragmented process that has not meaningfully changed in decades. To put this in context, eDIYBS, our existing platform, serves the small group market where the process is very different. The small group market itself is highly concentrated with only a handful of stop-loss carriers. HitRix conversely is purposely built for large groups, generally 100 lives on plan and above, where the underwriting process is fundamentally different and the marketplace opportunity is much larger. HitRix Introduces several first-of-the-kind capabilities to this market, proprietary data parsing that transforms hours of broker preparation into minutes, a competitive marketplace that lets brokers efficiently reach an unlimited number of underwriters simultaneously, real-time comparison and analytics tools that no other platform in the market offers today and a buy now function that can compress what has historically been a week-long negotiation into a single day close. It is a marketplace distinct from anything we have brought to the platform to date and we believe it opens up a meaningful new growth avenue for this company. We expect and look forward to sharing more at launch. I also want to set the stage for how we intend to fund the next phase of growth. I want to close my remarks the way I opened them. Health In Tech is a fast-growing young company. We have a technology foundation built by world-class engineering team, a business model that generates real contractually locked in revenue well ahead of recognition, a distribution network that is growing nearly 20% year-over-year and a market opportunity measured in the hundreds of billions of dollars where our current penetration remains below 0.1%. We believe the combination of these 4 key things should help us continuously drive the enterprise value of the company. That is the story we are building, and I could not be more excited about where this is headed. Before Julia walks through the financials, let me give you a little bit more on how our distribution engine performed this quarter. To put a finer point on the partner number I mentioned earlier, we ended the second quarter at 933 distribution partners, brokers, third-party administrators and agencies, up 19.9% from 778 a year ago. That growth came from the same way it has all year through a capital-light partner-driven model where our in-house team focuses on onboarding and activating partners rather than selling directly into the employer accounts. That's why -- that's what allows us to keep growing our distribution footprint with a linear increase in fixed costs. The carrier onboarding that affected the timing of some of this quarter's revenue is a good example of the trade-off we were willing to make. Short term, it shifted some policy effective dates into later quarters. Long term, it gives our brokers more underwriting choice on the same employer groups, which we believe improves close rates and strengthens retention. We will make that trade every time. We continue to see this industry as a relationship-driven today, but structurally underserved by technology, and that is the gap we intend to keep closing through direct broker engagement, industry conferences and a platform that keeps getting easier for brokers to use and harder for them to walk away from. With that, I will now turn it over to Julia. Julia Qian: Thank you, Tim, and good afternoon, everyone. I'm going to keep my remarks focused and brief because Tim has already walked you through certain of the consideration around this quarter's number. I want to use my time simply to talk through the figures itself through lenses of the metrics we introduced last quarter, contracted revenue and platform place-to-plan value because those are the numbers we believe quietly holistically reflect on the health of this business. Contracted revenue means the revenue that is contractually committed under the active policies that simply has not been recognized under GAAP accounting. There are total $32.3 million for the first half of '26. Of that, $17.3 million was already recognized as GAAP revenue in the first half of this year, with the remaining $14 million expected in the second half of this year and $1 million in 2027. Beyond what already contract, our pipeline revenue policies current in quoting or binding stage or plus the policy contracted single quarter end stood at $66.3 million as of July 31, of which $1.9 million was contracted, the remaining $64.4 million with an expected conversion rate of 15% to 40%. Now with 5 more months remaining in 2026, the expanded sales team will continue to sell to expand its pipeline revenue through adding more brokers, TPAs and our distribution partner. Together, these numbers, I would encourage you to assess for the future revenue visibility, and they underpin our decision to reaffirm full year 2026 revenue guidance of $45 million to $50 million. That is real forward revenue visibility extend well into next year, and we believe it provides a more extensive picture than just a single quarter top line print can tell you. Now running to platform placed plan value or PPPV, which represents the aggregate contractual value of the self-funded stop-loss plan placed through our platform, including premium, claim funding and administrative fee. Measure our overall each plan's full contracted term, PPPV stood at $84 million as of June 30, 2026. I want to be clear that PPPV is a measurement of platform transaction value, not indicated our own revenue or take rate. On reported GAAP revenue, total revenue for the second quarter was $8.1 million, down 13.5% from $9.3 million in the second quarter of last year. As Tim explained, this decrease reflects the timing of the new carrier onboarding that shifted certain policy effective date into the future period, not a change in underlying demand. The onboarding of the new carrier and certain related portfolio transfer between the carrier were designed to provide great options and flexibility to our employer customers. As a result, the number of accounts receivable day or AR days in the first half of the year was 55 days versus 20 days in the first half of 2025, which is not uncommon to us. We have ample experience and the track record of managing accounts receivable day. For example, there were 42 days accounts receivable day in 2023, and then we bring down to 29 in 2024 and further down 14 accounts receivable days in 2025. So it's a remarkable change in the improvement once the carrier was starting to work with us. We actively manage these financials as well. For the first 6 months of 2026, total revenue was $16.8 million compared to $17.3 million for the first half of the year last year. Turning to the profitability. Adjusted EBITDA was negative $1.3 million for the quarter and negative $2.6 million for the first half of the year compared to the positive EBITDA of $1.6 million and $2.8 million, respectively. In the prior year period, net loss for the quarter was $2.5 million or $0.04 per diluted share compared to net income of $0.6 million or $0.01 per diluted share. And the net loss -- for the same period -- compared with the same period, the net loss was $1.4 million for the first half of '26 or $0.07 per diluted share compared to the net income of $1.1 million or $0.02 per diluted share. This reflects our continued planned investment in sales, marketing and technology to support long-term growth, consistent with what we have described entering into this year. Our total operating expenses for the quarter were $7.3 million compared to $5.6 million for the same period last year. Sales and marketing expenses were $2.2 million compared to $1.2 million for the same period last year. As we continue to invest in expanding our distribution footprint, the sales expanding has increased. General and administrative expenses was $4.3 million compared to $3.8 million for the same period last year. And the research and development expenses were $0.9 million, and we capitalized $0.8 million of the software development costs compared to $0.6 million and $0.9 million, respectively, for the same period of last year, reflecting continued investment in our technology platform under Sri's leadership. Turning to our balance sheet. We ended the quarter with $6.5 million in cash and cash equivalents and $11.8 million in working capital compared to $8.1 million in cash and cash equivalents and $9.5 million in working capital a year ago. Operating cash used improved to $2.9 million in the second quarter compared to $3.3 million in the first quarter, reflecting continued discipline in working capital management. Total assets at the quarter end were $29.6 million and total stockholder equity was $19.4 million compared to $22.2 million and $16.4 million, respectively, for the same period of last year. Our balance sheet remains healthy and positioned to execute on our product and development plan. In summary, this was a quarter of continued deliberate investment. The GAAP revenue number reflects a timing shift, not a change in the trajectory for the business. And we believe contracted revenue, platform-based revenue are clear windows into where the company is actually heading. We also reported pipeline revenue give you more visibility of where the company, the trajectory is. With that, now I turn it back to Lori. Lori Babcock: Thank you, Julia and Tim, for these prepared remarks. And now we would like to open the call up to our community for any questions they might have. Operator: [Operator Instructions] And our first question for today will come from George Sutton with Craig-Hallum. George Sutton: So Tim, a lot of this confusion on the timing, I think, relates to a stop-loss carrier change you made and you were really improving the capabilities that your customers would have with a stop-loss carrier going forward and the ratings involved. Can you just kind of walk through that outcome? Tim Johnson: Sorry, guys, I was on mute. Yes. Good to talk to you, George. Thanks for the question. So understanding how insurance carriers are rated and even stop-loss carriers have a rating, certain brokers around the country and especially the bigger ones we call the alpha houses, they require to -- under their corporate charter to only write business with A carriers. And we weren't with a carrier that they were admitted, they just didn't have an A rating. So we are changing carriers that financially can support an A rating, and we hope to have that done in the next -- I don't know, in the next 30 days, probably at the far end. We're very close. I was on the phone with them earlier. So we can pick up more business with larger brokers that are requiring that rating, and that's one of the reasons why we switched. George Sutton: And just help us understand the impact of having that A rating and what that might mean broadly for the business opportunity. Tim Johnson: Yes. I mean, Zain, our Chief Growth Officer, is sitting on the sideline with a lot of business that people want to put with us. It's a significant amount of business. So I would say that our projections, we try to be conservative in our projections, but it will bump our projections at least, I don't know, 20% to 30% higher if we can get an A carrier. It just depends on how fast you get it because the sales cycle takes a while. Once you get -- once you start talking to a broker than a client, as we're coming up in January, January is our biggest time of the year by far. Most effective dates are in January. So we will -- yes, we're going to pick up a lot more business, and I'm trying to not be too direct with that answer. I don't think I'm supposed to be on here. Julia Qian: Yes. So George, I want to add on a little bit, right, because the small group is really normally people pay less attention of the category of the carrier, which we add on one more. That's also the reason. Even the pipeline revenue we reported, it's all not relating to adding on more A carrier, which we're also working on. So just to give a little bit of background, our software, we talk about HitRix is really real market in the large group. So not only just that we expand dramatically our addressable market, but also that means we can offer the total complete solution, including the small employers and the mid and large employers. So that will dramatically change how our business outlook is when we have a pipeline revenue, we do not even include that part. George Sutton: On the HitRix platform, which I understand is a dramatic improvement on what exists out there today. Can you just talk about how quickly you think you can bring users on that platform? What do you think that does for the business once it's up and running? Tim Johnson: Good question. Well, the existing 933 brokers are automatically because we're -- as I said in the discussion we just had, they're all going to get access to it immediately, which means, and Julia has pointed out, it's the larger market space. And they can now market to multiple MGUs as easy as it was to create a submission on the small group side. This marketplace that we've created is it's just not out there today. So all 933 brokers that are on it and TPAs and other access distribution points will have immediate access in the next -- it's supposed to be launched coming up and I'm looking at my calendar in the next 2, 3 weeks. So that will come on. We're doing our UAT testing and everything right now. And we already know some other people who want to use it, some MGUs that are waiting to get it. We've done lots of demos of -- we have a demo page we created, and we're doing demos for everybody now. So there's a lot of excitement on that product. George Sutton: Okay. And then lastly for me, the 3-year stabilization program, that's something we're very excited about and see great applicability, particularly in municipal governments, for example. Can you just give us a sense of what that pipeline looks like and what the feedback has been since you signed this first customer? Tim Johnson: Yes. I can tell you the pipeline -- one of our partners in the program Ascend that the actuary who helped create and build this program. They've hired specific salespeople for it. We have trained our sales guys on it. The anticipation in the word is that we'll probably have about 30 submissions a month or more. And these are large, as you can imagine, they are municipalities, government agencies, counties, cities, all the -- everything in between. They're not small. So our pipeline is already -- I can't tell you who we're talking to. You would know everybody that we're already talking to and they are -- yes, there are cities that everybody on this call would know for sure. Some probably live in them. So it's a big opportunity that's coming in really fast. Operator: The next question will come from Allen Klee with Maxim Group. Allen Klee: When you were talking about the change in the insurance rating, did you make a comment that you thought that impacted your results by a certain amount, not having that? Or I'm not sure. Tim Johnson: Yes, because a lot of our growth in the large and small, I mean, the -- we call them alpha, the bigger brokerage firms, they don't write anything if they won't be able to participate in our programs if we don't have an A carrier. it's just in their charter and it's -- people say it's in their E&O policy. There's different reasons for it. But that's why we're going to grow if we can get that A carrier. The faster we can get an A carrier on, the sooner we can start picking up more business from those alpha houses. Allen Klee: Yes. I mean as a former Moody's senior analyst covering insurance companies, I appreciate the value of the higher ratings. But did you make a statement that it hurt the particular quarter 2Q by a certain amount? Or was it more like going forward, it has this opportunity? Tim Johnson: It's more going forward. Julia Qian: Yes. So we clearly mentioned on the call because of the adding additional carrier, it's not a demand problem. It's shifting, right? Because now within the new income carriers and the preparation and the old carriers, that's the reason we're reporting even the pipeline revenue to see what is pipeline here. It's a timing shift. As you know, for the GAAP accounting, it's really based on the amortization upon effective date. When you shift a quarter, some revenue is going to shift a quarter to the next year. It's just the fact even you can sell the mostly you can sell. So that's why we reported the pipeline revenue when we're looking at -- we have 5 more months to continue to sell. So the revenue itself already give people pretty good indication on this year and what the possibility and the range and beyond. Allen Klee: Okay. And how do you feel about your preparation with your offerings and having the time to educate the brokers and the clients for the big -- the amount of renewals at the end of -- towards the end of the year. How do you feel like you're going to be fully able to work on that and be successful? Tim Johnson: That's a very good question. So I never feel like I have enough time just between us. But this time frame right now, it needs to come out because everybody is starting to market their 1/1 business, they go out with the larger groups. That's what HitRix is. So that's a new product for them. I wish that it could have been done 6 months ago. I want my tech bill yesterday. I always do. But we're going to by 1/1, we'll have a lot more opportunity running through it because of HitRix. Again, I wish I could have built it a year ago. It just takes time to get it done. But right now, we have sufficient time to get into that space because everybody is just now getting their groups out and everybody is starting to look at them, how they run it, what are they doing, and we'll be -- we're hitting it right, just right. I mean, again, I wish it was done 3 months ago, but we're hitting it at the right time right now. It's so easy to use. The people already using our system, they're going to see a better look, a better feel, a better flow. And really, it's just point click. It's in drag and drop. We've made it so easy for them to submit the opportunity in the system. Yes, there should be no real training on it, people who are already using it. The new people, it's really quick. We do a lot of demos every day. Allen Klee: That's great. And then if you could -- just help me understand the path to getting to your guidance a little. You said that contracted revenues that's going to show up in the second half, you believe is going to be $14 million. And then you said pipeline revenue based on conversion rates could be $3 million to $8 million. So if you add those 2 pieces up, that gets you to $17 million to $22 million. And then in the first half, you did $17 million. So if you add both of them up, you're not quite at the $45 million. So what is -- is it just new business in addition that, as you mentioned, the pipeline? Or what gets you to the -- from what I just said to your target? Julia Qian: Yes, that's a great question, Allen. What you're looking at is as of June and the 1 month of the pipeline. That's get us, right? So we have 5 more months to continue to sell, to continue to build the pipeline to convert to the business. So that's the reason we even give the range to look at that. And our conversion rate is the range of about 15% to 40%. So when you do the calculation and clearly, we were adding more salespeople with 5 more months to go. These number you provided do not have 5 more months, the sales. The pipeline we built is as of July. Allen Klee: That makes perfect. That's what I thought. And then maybe I know as you use more referral partners, which is essentially some sales and marketing for you, your gross margin goes down, but you benefit other ways. Is -- so your gross margin this quarter was like 48.7% that compared to like 51.4% in the first quarter. Is it reasonable to think that, that may kind of stay at a lower level than it had been like in the past based on this quarter? Julia Qian: Yes. So when we offer the plan and work with various partners, inevitably, there will be the compromise of the gross margin. That's trade-off of spending through our distribution partner. But at least I want to point that this is a very asset-light of distribution. We do not have these people on payroll fixed. So it really go through whatever we can grow quickly with very little investment we have into the sales team. So we don't have all the sales team sell force but through the partner. And they also, in future, we should be seeing when we have HitRix offering in the market, we have a different way, there will be a mix of the gross margin, which should be around the range of 45% to 50% on the gross margin, still pretty healthy considerably for our sectors. Allen Klee: Okay. So 45% to 46% in the future is what you're thinking? Is that what I heard? Julia Qian: Yes. Allen Klee: Okay. Great. And one last question. On the 3-year stabilization, which I'm praying my company will do this next year. That's a side question. If a lot of that's going to municipalities, remind me the government year-end, is that like September? Or when are the year-ends for a lot of these that kind of the focus is to try to win a lot of this? Tim Johnson: Yes. Typically, they all run towards the year-end as well. A lot of them are in July. So -- but to be honest with you, the people we're talking to, they're -- none of these effective dates that we're talking to right now. I don't know if they're -- because we really don't talk to them a lot about their effective date on their stop-loss policy. They're more concerned about figuring out how to do this faster and get it above their existing one. Even if it's in place today, because we're agnostic to the carrier, even the effective date, but really -- even the effective date of their policy, it really works better if you do have it that way. But some of the people we're talking to, it's just math, and we can figure out how to move it around. Operator: The next question will come from M. Marin with Zacks. Marla Marin: So I wanted to drill down a little bit on some of what you've already discussed during the Q&A, which is the difference between contracted revenue and pipeline revenue. And pipeline has reached the stage where you've already provided a quote or some other element that revolves around actual commitment. So is it fair to think that if you do get this new partner that you've been talking about, that could have a significant impact on the pipeline revenue and then the conversion? Julia Qian: Yes, that's absolutely, yes. And I want to remind everybody again, this pipeline revenue as of July -- so when we continue to execute and adding on the A carrier more, you should see a much higher pipeline and also the higher conversion rate. So the pipeline revenue means there are the employer plan proposal being quoted, some at different stage of implementation, some in the stage of being reviewed. So this is really representing a huge part of opportunities run through our system. And obviously, contracted revenue means through the effective date, it's already contracted and the policy bonded and everything is signed. So we are really commissioned to recognize all the revenue through the effective date of the next either 12 months or 36 months depends on the term of the policy. Marla Marin: Okay. That's helpful. And can you also give us a sense of what you would say the sales cycle is, how long it takes to get to that stage where something is placed in the pipeline revenue category. I'm thinking that it doesn't just happen on day 1 when an inquiry is made or when there's outreach, it takes a little while before you actually get to that stage, and it doesn't happen with every touch point. So do you have a sense for what -- how long that process takes? Julia Qian: I will let Tim to address that question. Tim Johnson: Yes. So it depends on the size of the group. Appreciate the question. Small groups, small groups are -- they'll make a decision in a day. If it's a larger group, you're right. The conversation takes longer with talking about plan designs, carriers, everything that goes into it. Some of the smaller groups, and you can see that from the business that we have, we can -- our brokers are writing new business daily through simple conversations because of the way we set it up with the -- they already have their plan designs and everything in there. It's really just point and click. Here's all the options are taken away from them. It's just easier for them to pick the cost versus what PBM, what TPA, all these other things. So the larger groups, yes, it's a 90-day turn probably from a conversation. The smaller guys I mean, I've got producers that walk around with their computer and do it walk into a company and they'll sell it right while they're sitting there talking to them because the machine can quote that fast. Marla Marin: Okay. That's helpful. And then those are quantitative numbers. I mean you can actually identify where a contract or potential contract is in the process. You've touched upon already in your -- in the Q&A as well as, I think, in the prepared remarks. If you were to give us a sense of the kind of feedback you're getting given all of the improvements you made to the platform and your new products that are coming online, if you would give us a sense of the kind of positive feedback you're seeing, can you try to put some -- not numbers around it, but where do you think that might go over the next year or 2 in terms of taking up some of these pipeline and contract figures? Tim Johnson: I'll let Julia answer that. I'll get myself in trouble. Julia Qian: Okay. And can you just reaffirm your question again, so I could... Marla Marin: Yes. So the numbers you provided and you've termed contracted and pipeline, those are quantifiable. You have a certain number of potential contracts that are already in the stage where you're providing a quote or where it's moving forward. But given how early days, would it be right to think that if you were to give us a number that was not quantifiable, but that was qualitative in terms of the feedback you're getting from your partners, from the brokers and even from the market, if you were to give us a sense of the feedback that you're getting, the number, the qualitative number could grow significantly over the next, I don't know, several quarters. Julia Qian: Yes, that's right. So one thing I want to just reemphasize, the contract revenue is the revenue we already contract from effective date in the last 6 months, right? So it's actual sales. It's not something it's going to sell, will be sold. It is contract is sold. We are collecting revenue for during the 12 months or 36 months. Yes, with the new anticipated the platform launch and the carrier at A-rated, you should be able to see the pipeline revenue increase because the pipeline revenue we reported is as of July. So we have 5 more months to build out. As a matter of fact, if you ask me at the end of the August now, the revenue will be dramatically different, improved. Also, there will be some of the pipeline convert to sales and the $66 million on the pipeline, when we do the earnings call, we already have $1.9 million already inked to the contract. So with the sales cycle is about 3 months, it's for the large group, and we can ink the contract earlier, we have effective date in September, maybe October, but the contract already signed. So those are included in the pipeline because it's not on the financial reporting period, then we were just able to say this is the pipeline $60.6 million and then $1.9 million is already sold. The rest is being sold with the conversion rate. When we look at the conversion rate, we look back what is the conversion rate, actual conversion rate from January to June, then we know the range, the lower end is 15%, the high end of 40%. But with all the improvements, that would drive 2 things. One is the pipeline will continue to build. There's 4 months -- 5 more months to go for the year. And the conversion rate should be a little bit higher because now we are offering a paper solution, there are other employees really like to enter into. So if I give some of the commentary about the trajectory of the business, this is a conservative review we're looking at. The pipeline will be growing and the conversion rate will be higher. Tim Johnson: Yes. The feedback is from the demos because, again, the product is getting launched here in the next 15, 20 days. If we're talking about HitRix, the 3-year one is already out there, but the HitRix one, if that's what you're talking about, the feedback is great. It just -- we're really selling a lot of convenience here, and it's making the brokers' lives easier to do their job, and that's what they like about it. Marla Marin: That is what I was trying to get at. In other words, the contracted revenue is already in hand. The pipeline revenue, there'll be a conversion rate, which could be significant. But beyond that, there's probably pre, before it even hits that stage of pipeline revenue, there's a lot of feedback that you're getting right now from partners and -- and I'm just trying to gauge, you've mentioned that it's positive. I'm just trying to gauge what it could mean to that pipeline as it develops going forward. That was it, and I think you answered that. And then my last question is, you mentioned a couple of times that there are 5 more selling months in the year. Just remind us, please, in terms of the seasonality of your -- the selling of these products. Are we in a heavier selling period now in the back half of the year? Tim Johnson: It will pick up in November and December for the small group for sure. Yes, for sure, because when the ACA happened, there was a lot of groups that moved because they wanted to get grandfathered in years ago before January 1, so they would have to pay the price for the ACA plans and everything else. So we have a lot of business in November and December. But between now and then, it will be moderate on the small group, they can change and they do frequently change or pull themselves out of fully insured, but it isn't as high as it's July, for example, June and July. August is a down month. But yes, we had a -- I think our August was -- I don't remember what our August was, to be honest with this time. But I know our September was pretty good and it's starting to pick up now as we transition to this new carrier. Operator: And this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Johnson for any closing remarks. Please go ahead. Tim Johnson: Thanks, operator, and thanks to everybody for joining us today. Before we close, I'd like to leave you with this. Health In Tech was not built to be a marginally better version of how self-funded health insurance has always been sold. We built this company to replace a process that has been slow, opaque and expensive for employers for decades, and we are doing exactly that every single day at scale. Every quote our platform generates in minutes instead of weeks, every carrier we add widen competitive pricing, every plan we streamline into a single transparent framework, that is real money staying in the pockets of businesses and employees who trust us with their health care plans. Collectively, our platform has already helped employers avoid hundreds of thousands of dollars in unnecessary costs and as we scale into larger employer groups and expand our carrier network, that number grows with us. This team -- this team knows how to execute. We have grown this business profitably. We have built and shipped technology most companies our size couldn't attempt, and we have done it with capital discipline every step of the way. We are not asking to take -- we're not asking you to take our growth story on faith. We are asking you to look at what we've already built and to measure us against what we do next. We are just getting started. Thank you all for continued partnership and trust. We look forward to updating you again next quarter. With that, I'll turn it over to Lori for the closing statement. Lori Babcock: This is all the time that we have for today. This concludes the Health In Tech Q2 2026 Investor Earnings Conference Call. We encourage our community to continue to reach out to us, and we can answer any questions that you have individually. You can send your questions to us at [email protected]. We would like to thank our listeners, shareholders, analysts and others who have taken the time to listen to our earnings call. We urge you to refer to our latest SEC filings for any information that you need. This call will be available from our website in the Investors section, and you will find the link there. To be alerted to news, events and other information in a timely manner, we recommend following us on all of our social media channels, sign up to our newsletter and explore our website at www.healthintech.com. Thank you, everyone, for participating and listening to the call today. Operator: Thank you all again. This concludes the call. You may now disconnect. Before you buy stock in Health In Tech, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Health In Tech wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Health In Tech (HIT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the Q2 GAAP revenue decline to a timing shift caused by onboarding a new carrier partner, which moved policy effective dates into subsequent quarters. The company is transitioning its reporting focus to 'contracted revenue' and 'pipeline revenue' to better reflect underlying business momentum that is often obscured by ratable GAAP revenue recognition. Strategic investment in technology architecture, led by CTO Sri Rajagopalan, aims to consolidate quoting, underwriting, and analytics into a single unified environment capable of scaling to thousands of brokers. The distribution network grew to 933 partners, a 19.9% year-over-year increase, utilizing a capital-light model that focuses on partner activation rather than direct employer sales. Management emphasizes that their AI-enabled marketplace is a fundamental rebuild of legacy insurance processes, not just a thin layer of automation over old infrastructure. The company secured its first employer group under the new 3-year rate stabilization program, marking a proof point for providing budgetary certainty to large enterprises and municipalities. Management reaffirmed full-year 2026 revenue guidance of $45 million to $50 million, supported by $32.3 million in contracted revenue for the first half of the year. The upcoming launch of HitRix in the second half of 2026 is expected to open the large group self-funded stop-loss market, targeting groups with 100 or more lives. The company is in the final stages of securing an A-rated carrier partner, which management expects could increase business projections by 20% to 30% by accessing 'alpha' brokerage houses. Pipeline revenue stood at $66.3 million as of July 31, with management projecting conversion rates between 15% and 40% over the remaining five months of the year. Future gross margins are expected to stabilize in the 45% to 50% range as the company balances partner-driven distribution costs with new marketplace offerings. Accounts receivable days increased to 55 days in the first half of 2026, up from 20 days in the prior year, due to the complexities of new carrier onboarding and portfolio transfers. Adjusted EBITDA turned negative at $1.3 million for the quarter, reflecting planned increases in sales, marketing, and technology investments to support the next growth phase. The company reported a net loss of $2.5 million for the quarter, compared to a net income of $0.6 million in the prior year, driven by a 30% increase in total operating expenses. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that many large 'alpha' brokerage houses are contractually prohibited from writing business with carriers lacking an A rating. Securing this rating is expected to increase projections by 20% to 30% and significantly expand the addressable market for the upcoming January renewal cycle. The existing network of 933 brokers will receive immediate access to HitRix upon its launch, which is scheduled within the next 2 to 3 weeks. The platform is designed to simplify complex large-group submissions, allowing brokers to market to multiple managing general underwriters (MGUs) simultaneously. Management reported a strong pipeline of municipalities and government agencies seeking multi-year budget certainty for healthcare costs. The company expects approximately 30 submissions per month for this program, noting that these are typically large-scale employer groups. Management clarified that the $45 million to $50 million guidance includes five additional months of sales activity not yet reflected in the July pipeline figures. Small group sales typically see a significant seasonal uptick in November and December ahead of January 1 effective dates.

Interested in Health In Tech, Inc.? Here are five stocks we like better. Q2 revenue fell 13.5% to $8.1 million, which management attributed to policy-recognition timing related to onboarding a new carrier rather than weaker demand or platform issues. The company reaffirmed its 2026 revenue guidance of $45 million to $50 million. Health In Tech reported $32.3 million in contracted revenue for the first half of 2026 and $66.3 million in pipeline revenue as of July 31. Distribution partners grew nearly 20% year over year to 933, while management is pursuing an A-rated carrier that it believes could increase projections by 20% to 30%. Profitability weakened as first-half adjusted EBITDA turned negative at $2.6 million and operating expenses rose to $7.3 million, driven by planned investments in sales, marketing and technology. The company ended the quarter with $6.5 million in cash and plans to launch its large-group self-funded stop-loss platform, HitRix, in the second half of 2026. Health In Tech (NASDAQ:HIT) reported second-quarter revenue of $8.1 million, down 13.5% from $9.3 million in the year-earlier period, as the company said the onboarding of a new carrier shifted certain policy effective dates into later quarters. Chief Executive Officer Tim Johnson said the revenue decline did not reflect weaker demand, churn or platform issues. Instead, he attributed the result to timing associated with adding the carrier, which the company said should provide brokers with more underwriting choices and potentially improve pricing and conversion rates over time. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be “When we sell a policy, we don't recognize that revenue all at once,” Johnson said. “It gets recognized ratably month by month over the 12 to 36-month life of that policy.” Management emphasized contracted revenue and pipeline revenue as indicators of its future sales activity. Contracted revenue, defined as revenue committed under active policies but not yet recognized under GAAP, totaled $32.3 million for the first half of 2026, according to Chief Financial Officer Julia Qian. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Of that total, $17.3 million had been recognized as first-half GAAP revenue. Qian said the remaining $14 million is expected to be recognized in the second half of 2026, with another $1 million expected in 2027. Pipeline revenue, comprising policies in the quoting or binding stages as well as policies contracted after the quarter ended, stood at $66.3 million as of July 31. Of that amount, $1.9 million had been contracted, while the remaining $64.4 million was subject to an expected conversion rate of 15% to 40%, Qian said. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company reaffirmed its full-year 2026 revenue guidance of $45 million to $50 million. Qian said the company has five remaining selling months in the year and expects its expanded sales team to continue adding brokers, third-party administrators and other distribution partners. Health In Tech ended the quarter with 933 distribution partners, including brokers, third-party administrators and agencies, up 19.9% from 778 a year earlier. Johnson said the company uses a partner-driven model in which its internal team focuses on onboarding and activating partners rather than directly selling to employer accounts. During the question-and-answer session, Johnson said the company is working to add a carrier with an A rating. He said certain larger brokerage firms, referred to by the company as “alpha houses,” require business to be placed with A-rated carriers under their internal requirements. Johnson said Health In Tech expects the carrier effort to be completed within about 30 days and that an A-rated carrier could expand the company’s access to larger brokers. He said the company’s projections could increase by 20% to 30% if it secures such a carrier, depending on the pace of sales activity and the sales cycle. Qian said the reported pipeline revenue did not include the potential impact from adding more A-rated carriers. The company said it secured its first employer group under its Three-Year Rate Stabilization Program during the second quarter. Johnson said the program is intended to offer more predictability in health care costs, particularly for large enterprises, government organizations and municipalities. Johnson said Health In Tech is in discussions with several government organizations regarding the program, though he did not identify them. He said a partner in the initiative, MassMutual Ascend, has hired dedicated sales personnel, and the company anticipates receiving about 30 or more submissions per month for the program. Health In Tech also said it expects to launch its HitRix platform in the second half of 2026. Johnson said HitRix is designed for the large-group self-funded stop-loss market, generally covering plans with 100 or more lives, while the company’s existing eDIYBS platform primarily serves small groups. The company said HitRix will include automated data parsing, a marketplace through which brokers can reach multiple underwriters, comparison and analytics tools, and a “buy now” function intended to shorten the negotiation process. Johnson said the company’s 933 existing distribution partners will receive access to the platform upon launch, which he said was expected within two to three weeks of the call. For the first six months of 2026, revenue totaled $16.8 million, compared with $17.3 million in the prior-year period. Adjusted EBITDA was negative $1.3 million in the second quarter and negative $2.6 million for the first half, compared with positive EBITDA of $1.6 million and $2.8 million, respectively, a year earlier. Net loss for the quarter was $2.5 million, or $0.04 per diluted share, compared with net income of $0.6 million, or $0.01 per diluted share, in the prior-year quarter. First-half net loss was $1.4 million, or $0.07 per diluted share, compared with net income of $1.1 million, or $0.02 per diluted share, a year earlier. Operating expenses increased to $7.3 million from $5.6 million. Sales and marketing expense rose to $2.2 million from $1.2 million, while general and administrative expense increased to $4.3 million from $3.8 million. Qian attributed the spending to planned investments in sales, marketing and technology. Health In Tech ended the quarter with $6.5 million in cash and cash equivalents, $11.8 million in working capital, total assets of $29.6 million and stockholders’ equity of $19.4 million. Operating cash used improved to $2.9 million in the second quarter from $3.3 million in the first quarter, Qian said. Health in Tech, Inc engages in the provision of insurance technology platforms which offer a marketplace of processes in the healthcare industry. Its services include Stone Mountain Risk, eDIYBS, HI Card, HI Performance Network, and Ancillary Products. The company was founded by Tim Johnson in 2014 and is headquartered in Stuart, FL. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Health In Tech Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Distribution partner network grew 19.9% year-over-year to 933 brokers, TPAs, and agencies, expanding market reach. Contracted revenue for H1 2026 reached $32.3 million, with $14 million expected to be recognized in H2 2026, providing strong forward revenue visibility. Pipeline revenue stood at $66.3 million as of July 31, 2026, with a 15%-40% expected conversion rate, indicating robust future growth potential. The company secured its first employer group under the three-year rate stabilization program, a key milestone toward capital markets launch. Hitrix, the new large-group marketplace platform, is on track to launch in H2 2026, opening a significant new growth avenue. The company is in the process of onboarding an A-rated carrier, which could boost business by 20-30% and unlock access to larger brokerage firms. The balance sheet remains healthy with $6.5 million in cash and $11.8 million in working capital, supporting continued investment. The platform's AI-enabled capabilities, such as automated data parsing and real-time quoting, differentiate it from legacy systems. The company reaffirmed its 2026 revenue guidance of $45-$50 million, backed by strong contracted and pipeline revenue. The capital-light, partner-driven model allows for scalable growth with linear fixed cost increases. Q2 2026 GAAP revenue declined 13.5% year-over-year to $8.1 million, due to timing shifts from new carrier onboarding. Adjusted EBITDA turned negative at -$1.3 million for the quarter, compared to positive $1.6 million in the prior year period. Net loss for the quarter was $2.5 million, versus net income of $0.6 million in the same quarter last year. Operating expenses increased significantly, with sales and marketing expenses up 83% year-over-year to $2.2 million. Accounts receivable days rose to 55 days in H1 2026, up from 20 days in H1 2025, indicating potential collection delays. The company's reliance on distribution partners compresses gross margins, which are expected to remain in the 45%-50% range. The timing shift in policy effective dates creates quarter-to-quarter revenue volatility, making GAAP revenue a less reliable indicator. The company is still early in its journey, with a small market penetration of less than 0.1% of the addressable market. The success of the Hitrix launch and the A-rated carrier onboarding are not yet fully reflected in current financials, adding execution risk. Cash used in operations was $2.9 million in Q2, indicating ongoing cash burn as the company invests in growth. Warning! GuruFocus has detected 1 Warning Sign with HIT. Is HIT fairly valued? Test your thesis with our free DCF calculator. Q: Can you walk through the outcome of the stop-loss carrier change and its impact on the business?A: Tim Johnson (CEO) explained that the company switched to a new carrier that can financially support an 'A' rating, which is required by larger brokerage firms ('alpha houses') under their corporate charters. This change is expected to be completed within the next 30 days. The CEO noted that this could potentially bump their projections by 20-30% higher, as it opens up significant new business opportunities with larger brokers that previously couldn't participate with the company's programs. Q: Can you explain the difference between contracted revenue and pipeline revenue, and how they provide visibility into the business?A: Julia Chin (CFO) clarified that contracted revenue ($32.3 million for H1 2026) represents revenue already contractually committed under active policies that hasn't yet been recognized under GAAP. Pipeline revenue ($66.3 million as of July 31st) represents policies currently in quoting or binding status, with an expected conversion rate of 15-40%. She emphasized that these metrics provide better forward revenue visibility than a single quarter's GAAP revenue print, which was impacted by timing shifts from the new carrier onboarding. Q: How quickly can you bring users onto the Hitrix platform, and what impact will it have on the business?A: Tim Johnson (CEO) stated that all 933 existing brokers will get immediate access to Hitrix upon its launch in the next 2-3 weeks. The platform is designed for the large group self-funded stop-loss market (100+ lives), which is a much larger opportunity than the small group market served by eDevs. The CEO noted that Hitrix introduces first-of-its-kind capabilities including proprietary data parsing, a competitive marketplace reaching unlimited underwriters simultaneously, real-time comparison tools, and a buy-now function that can compress weeks-long negotiations into a single day close. Q: What does the pipeline look like for the three-year rate stabilization program, and what feedback have you received since signing the first customer?A: Tim Johnson (CEO) revealed that the program, designed for large enterprises and governmental agencies, is expected to generate about 30 submissions per month or more. The company is already engaged with several high-profile government organizations, including cities that would be recognizable to everyone on the call. The program provides multi-year budget certainty for healthcare costs, which is particularly appealing to municipalities and government agencies. Q: Can you help me understand the path to achieving your 2026 revenue guidance of $45-50 million?A: Julia Chin (CFO) explained that the pipeline revenue reported as of July 31st doesn't include the five additional months of selling remaining in 2026. The company continues to expand its sales team and distribution partners, which will build the pipeline further. She emphasized that the conversion rate range of 15-40% is based on actual historical conversion from January to June, and with improvements like the A-rated carrier and Hitrix launch, both the pipeline and conversion rates should improve. Q: Is it reasonable to expect gross margins to stay at the lower level seen this quarter (48.7%)?A: Julia Chin (CFO) confirmed that working with distribution partners involves a trade-off in gross margin, but emphasized this is an asset-light distribution model without fixed payroll costs. She indicated that going forward, with the Hitrix marketplace offering, gross margins should remain in the healthy range of 45-50%, which is still considerably strong for the sector. Q: If you get the new A-rated carrier partner, could that have a significant impact on pipeline revenue and conversion?A: Julia Chin (CFO) confirmed this would absolutely have a significant impact. She reminded that the pipeline revenue is as of July 31st, and as the company continues to add carriers and execute, the pipeline should increase substantially. The pipeline represents employer plan proposals at various stages, and with the A-rated carrier, the company expects both higher pipeline numbers and higher conversion rates. Q: How long is the sales cycle to get to the pipeline revenue stage?A: Tim Johnson (CEO) explained that it depends on the size of the group. Small groups can make decisions in a day, with brokers able to quote and sell on the spot using the platform. Larger groups typically have a 90-day sales cycle from initial conversation to closing, as they involve more complex plan designs and carrier considerations. Q: Can you provide a sense of the qualitative feedback you're receiving from partners and brokers about the platform improvements?A: Julia Chin (CFO) emphasized that contracted revenue represents actual sales already collected, not projections. She noted that with the new platform launch and A-rated carrier, the pipeline should increase significantly. Tim Johnson (CEO) added that feedback from demos has been very positive, particularly for Hitrix, as it's selling convenience and making brokers' jobs easier. The company is seeing strong interest from MGUs waiting to access the platform. Q: Can you remind us about the seasonality of selling these products in the back half of the year?A: Tim Johnson (CEO) explained that business picks up significantly in November and December for the small group market, driven by ACA-related timing. Between now and then, activity is moderate. He noted that August is typically a down month, but September was strong and activity is picking up as they transition to the new carrier. The timing of the Hitrix launch is well-positioned for the 1/1 renewal season. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Contracted Revenue of $32.3 Million as of June 30, 2026Pipeline Revenue of $66.3 Million as of July 31, 2026Distribution Partners Grew 19.9% Year Over Year STUART, Fla., Aug. 13, 2026 /PRNewswire/ -- Health In Tech, Inc. (Nasdaq: HIT) ("Health In Tech" or the "Company"), an AI-enabled InsurTech platform company, today announced its unaudited financial results for the three and six months ended June 30, 2026. Second Quarter and First-Half 2026 Highlights Distribution Partners, including brokers, third-party administrators ("TPAs") and agencies, reached 933 as of June 30, 2026, an increase of 19.9% year over year. Q2 2026 Revenue was $8.1 million, compared with $9.3 million in Q2 2025. First-half 2026 revenue was $16.8 million, compared with $17.3 million in the prior year period. Contracted Revenue1 totaled $32.3 million for first-half 2026, of which $17.3 million was recognized as GAAP revenue in first-half 2026. The remaining $14.0 million and $1.0 million are expected to be recognized as GAAP revenue in second-half 2026 and in 2027, respectively. Pipeline Revenue2 was $66.3 million as of July 31, 2026, of which $1.9 million was contracted subsequent to quarter end. The remaining $64.4 million represents policies in quoting or binding status, with an expected conversion rate of 15% to 40%. Net loss for Q2 2026 was $2.5 million, or $(0.04) per diluted share, compared to net income of $0.6 million, or $0.01 per diluted share, in Q2 2025, and $4.1 million for the first half of 2026, or $(0.07) per diluted share, compared to net income of $1.1 million, or $0.02 per diluted share, in first-half 2025. Adjusted EBITDA3 was $(1.3) million for Q2 2026 and $(2.6) million for first-half 2026, reflecting continued investment in distribution, technology, and product development. Platform Placed Plan Value ("PPPV")4 was $84.0 million as of June 30, 2026. 2026 Outlook and Beyond As of July 31, 2026, the Company had approximately $66.3 million in Pipeline Revenue, of which $1.9 million was contracted, while the remaining $64.4 million is in the quoting or binding stage. Based on the Company's estimated conversion rate of 15% to 40%, the Pipeline Revenue in the quoting or binding stage is expected to generate approximately $9.7 million to $25.8 million of additional Contracted Revenue. Under U.S. GAAP revenue recognition, this is expected to result in approximately $3.1 million to $8.3 million of GAAP revenue recognized in 2026, with an additional $6.6 million to $17.5 million of GAAP revenue expected to be recognized in 2027. With five more months remaining in 2026, the Company expects to continue expanding its Pipeline Revenue through new product launches and new system enhancement. Supported by its growing base of Contracted Revenue, increasing forward revenue visibility, and continued pipeline development, the Company is reaffirming its full-year 2026 revenue guidance of $45 million to $50 million. CEO Commentary Tim Johnson, Chief Executive Officer of Health In Tech, commented, "We continued to execute against our long-term growth strategy during the quarter by investing in sales, marketing, and key talent, supported in part by the capital raised through our recent PIPE financing. These investments are designed to expand our distribution network, accelerate product innovation, and strengthen our execution capabilities. Our contracted book of business continued to grow, providing greater visibility into future revenue. We believe Contracted Revenue and Pipeline Revenue are meaningful operating metrics that complement our GAAP financial results by illustrating the strength of our sales pipeline, the pace of customer conversion, and our expected revenue trajectory." Mr. Johnson continued, "We also made meaningful progress on several strategic initiatives that we believe position the Company for its next phase of growth. During the quarter, we contractually secured our first employer group for the Three-Year Rate Stabilization Program, a differentiated solution designed to provide employers with greater predictability in stop-loss pricing over a multi-year period. This represents an important milestone as we advance toward the program's anticipated launch in the capital markets. In parallel, we are engaged with several high-profile governmental organizations that are evaluating participation in the program, and we expect to provide additional updates in the coming months. As we execute on our strategic roadmap, we remain on track to launch HitRix, our next-generation marketplace platform, in the second half of 2026. While our current eDIYBS platform has transformed AI-enabled underwriting through bindable stop-loss quoting and customized plan design, HitRix expands the application of AI across the entire self-funded stop-loss insurance ecosystem. The platform leverages advanced AI-powered document intelligence to automate data extraction across multiple document types, enable intelligent plan comparisons, and facilitate an integrated competitive bidding process within a unified digital marketplace. By connecting a broad network of brokers, carriers, TPAs, and employer groups, HitRix is designed to increase market transparency, expand access to competitive stop-loss solutions, streamline the placement process, and deliver better outcomes for all participants across the self-funded insurance value chain." End Notes Contracted Revenue represents the total revenue expected to be generated over the contractual term of self-funded health plan policies placed through the Company's platform. Standard self-funded plan policies generally have a contractual term of 12 months, while the Company's Three-Year Rate Stabilization Program is designed with a 36-month contractual term. Revenue is recognized under U.S. GAAP on a straight-line basis over the policy term, beginning on the policy's effective date. Accordingly, Contracted Revenue represents revenue that has been contractually secured but has not yet been fully recognized under U.S. GAAP, providing an indication of future revenue expected from existing contracts. Pipeline Revenue represents revenue from self-funded plan policies that are being quoted, are in binding status, or have been contracted subsequent to the end of the reporting period. This metric reflects the entire contractual term of the underlying policies, some of which may not ultimately convert to revenue. Adjusted EBITDA is a non-GAAP financial measure. Additional information and reconciliation of Adjusted EBITDA to its most comparable GAAP financial measure is provided in the "Reconciliation of Net (Loss) Income Attributable to Common Stockholders to Adjusted EBITDA" section of this release. Platform Placed Plan Value ("PPPV") represents the aggregate contractual value of self-funded health plans with stop-loss insurance (self-funded stop-loss plans) placed through the Company's platform during the fiscal year through the applicable fiscal quarter end, measured over each plan's full contractual term of typically 12 or 36 months from the plan's effective date. PPPV reflects the total economic value flowing through the platform, including premium, claim funding, and administrative fees, and is a measure of platform transaction volume rather than an indication of the Company's own revenue or take rate. Conference Call Details Health In Tech will host a conference call to discuss its financial results for the second quarter of 2026 on August 13, 2026, at 5:00 p.m. (ET). To participate in our live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants). A live audio webcast will be available via the Investor Relations page of Health In Tech's website at https://healthintech.com/. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. Non-GAAP Financial Information This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses Adjusted EBITDA to provide investors with additional insight into operational performance and to facilitate comparison with other companies in the industry. Adjusted EBITDA should not be considered an alternative to net income, operating income, or other GAAP measures. A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. Use of Forward‑Looking Statements Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity. About Health In Tech Health In Tech, Inc. (Nasdaq: HIT) is an AI-enabled InsurTech platform company, which offers a marketplace that improves processes in the health insurance industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, Managing General Underwriter ("MGUs") and third-party administrators ("TPAs"). Health In Tech's platform serves as a marketplace for brokers, TPAs, MGUs and carriers to access self-funded health insurance for employers, providing functions including customized self-funded health plans, bindable stop-loss quotes, AI-enabled underwriting, claims administration and reporting integration. Investor Contact:Health In Tech Investor [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/health-in-tech-reports-second-quarter-2026-financial-results-302851136.html

STUART, Fla., Aug. 3, 2026 /PRNewswire/ -- Health In Tech, Inc. (Nasdaq: HIT), an AI-enabled InsurTech platform company, today announced that it will release financial results for the second quarter ended June 30, 2026, following the close of market on Wednesday, August 13, 2026. Health In Tech will host a conference call and live webcast to discuss the Company's financial results, recent developments and business outlook. Event: Health In Tech's Second Quarter 2026 Earnings Conference Call When: Wednesday, August 13, 2026, at 5:00 p.m. ET Live Call: PARTICIPANT DIAL IN (TOLL FREE): 1-888-346-8982PARTICIPANT INTERNATIONAL DIAL IN: 1-412-902-4272 Webcast Link: https://app.webinar.net/1aeXyLWJgEl Replay: A webcast replay will be available on Health In Tech's investor relations website at https://healthintech.investorroom.com/ shortly after the completion of the call, and will remain available for approximately 90 days. About Health In Tech Health In Tech, Inc. (Nasdaq: HIT) is an AI-enabled InsurTech platform company, which offers a marketplace that improves processes in the health insurance industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, managing general underwriters ("MGUs") and third-party administrators ("TPAs"). Health In Tech's platform serves as a marketplace for brokers, TPAs, MGUs and carriers to access self-funded health insurance for employers, providing functions including customized self-funded health plans, bindable stop-loss quotes, AI-enabled underwriting, claims administration and reporting integration. Forward-Looking Statements Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity. Health In Tech undertakes no obligation to update any forward-looking statements, except as required by law. Investor Contact: Health In Tech Investor [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/health-in-tech-to-announce-second-quarter-2026-financial-results-on-august-13-2026-302841525.html

Image source: The Motley Fool. Wednesday, May 13, 2026 at 5 p.m. ET Chief Executive Officer — Tim Johnson Chief Growth Officer — Zain Hasan Chief Financial Officer — Julia Qian 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 31, 2026, to be filed with the SEC. Please review the forward-looking and cautionary statements 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. Tim Johnson: Thank you, Lori, and 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. According to industry estimates, as of 2025, roughly 80% of large businesses had adopted self-funded health plans, while only about 27 of medium -- 27% of medium and small businesses had. Self-funded health care plans allow businesses to manage their costs better with a lot of flexibility. However, the complexity has made the implementation nearly unrealistic for many businesses. Our AI-powered solutions remove barriers and make it simple and easy. The self-funded health care 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 we demonstrated that our model could scale meaningfully and achieve strong profitability. And 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, of PIPE, which was -- 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 channel 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 5-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 well -- 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 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 carriers' 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 carriers' risk appetite. These fluctuations can lead to less competitive pricing or limited options for the employer 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 service 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, improved integration of front and back-end workflows, consolidating quoting, underwriting, administration and analytics into a unified platform; and 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'm 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 access 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 compromise 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 e-mail 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 manage through disconnected e-mail 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 goes smoother, requires less feed back 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 3-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 3-year rate stabilization program. In addition, in the second quarter of '26, 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'm 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% to 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 data -- additional detail on how we are scaling our sales and distribution strategy. Zain Hasan: 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 6 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 e-mail-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 provide 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. Julia Qian: Thank you, Zain, and 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 reflects the underlying growth and the 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 under active policies. As a measurement day, this is expected to be recognized in future periods. Our policies are typically written for terms of 12 months. And under GAAP accounting, the reported revenue is recognized over the lifetime of the policy. For example, if a new employee is on board and have a policy effect on February 1, 2026, under 12 months policy, we recognize the revenue from the contract months from February '26 through January 2027. In this scenario, where only 2 months of revenue are recognized in the first quarter '26 reporting period, the remaining 10 months of the contractual committed revenue will be recognized in the 9 remaining months of '26 and 1 month in '27. By reporting contracted revenue, we are providing investors and shareholders with a greater transparency and visibility into the future revenue that is already locked in. That is contractually secured, but not yet recognized. We believe these changes align 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 31, our contracted revenue for the remaining 3 quarters of this year total will be around $22.9 million. In addition to contract revenue, we are now disclosing platform placed plan value or PPPV. PPPV represents the aggregate contractual value of self-funded health plan with 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 contracted 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 value reflects 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 platform place value to increase with a faster rate, reflecting great deep of engagement in higher-value relationship. Historically, we have disclosed enrolled employees as the operating metric. Enrolled employee represents individual or family covered under company, the self-funded group plan. After carefully consideration, we have decided to discontinue this metric as we believe platform-based value and the contractual revenue better represent our business as the carriers in our platform offer 4 type of coverages: employees only, employees plus spouse, employee plus children and family. So then we have different plans, bronze, silver, gold and platinum. When previously calculated our new -- our now discontinued enrolled employee metric, a single individual employee versus a family, including employee as well as their spouse and children could each become as one enrolled employee. Although the difference of the cost and the premium between these 2 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 2 enrolled employees will have dramatically different premium. Moreover, employers enrolled employee count can change during the period due to the factors such as resignation, layoff, new hire family situation change, birth and death. Even we continue -- 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 metrics in the near term reflect this intentional investment pace. Let me talk about the revenue. For the first quarter '26, the total revenue was $8.8 million, representing approximately 9% growth year-over-year. As of March, we estimate $31.7 million in revenue will be reported in the full year '26 fiscal year. With $8.8 million reporting first quarter and $22.9 million will be recognized in the report in the remaining of '26. This estimate figure is represented before monthly adjustment. So as to 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 close tied to the expansion of our distribution network, the ramping up of the broker activity and the conversion of the pipeline opportunity in which we are actively investing in during '26. Turning to profitability. Adjusted EBITDA for the first quarter was negative $1.3 million compared to positive $1.2 million in the prior year period. The net loss was $1.6 million compared to the net income of $0.5 million in the prior period. This reflects our planned increase in the investment across key growth initiatives, particularly in sales and marketing and product development. Turning to the operating expenses. Total operating expenses for the quarter was $6.7 million, approximately 76% of the 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 '25. This increase reflects 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 on the massive broker 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 reflects 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 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 reflects continued investment in our technology capability and the new products initiative, including data-driven solutions as well as ongoing enhancement to our underwriting and 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 new solution compared to $1.4 million and $0.9 million, respectively, in prior year. Overall, the increase in operating expenses reflected a purposeful shift in capital allocation towards growth initiatives. We are investing ahead of the revenue to expand distribution, enhance our product capabilities and position the company to capture a large share of the significant market opportunity. Importantly, we expect this elevated level of investment to continue throughout '26 as we execute on our strategy to scale the business and build a more robust growth engine. Turning to our cash balance. We ended the quarter with $10.3 million in cash and cash equivalents, 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 areas 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 offering, 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 scale to execute on our growth strategy. With that, now I turn it back to the operator for Q&A. Operator: [Operator Instructions] The first question comes from George Sutton with Craig-Hallum. George Sutton: And Zain, I'm excited to have you on the call. I wondered if you could walk through some of these key expansion areas, 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. Zain Hasan: Yes, sure. And I appreciate the kind remarks. So essentially, it's just a matter of -- like Tim mentioned, we penetrated a very, very small portion of the overall broker market. And so we've hired -- our intention to hire 2 to 3 sales reps that will focus on outbound and then to just drive overall marketing message that allows brokers to have a better understanding of what we do. And if we increase the brokers that have visibility into our platform, we've gotten a lot of positive feedback, and we're very optimistic that, that will lead to the growth. George Sutton: So 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? Zain Hasan: Sure. So I mean just taking a step back for brokers, as they're looking at fully insured health plans or 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. And the pre-configured health plans is -- it's a proven playbook for the health insurance world, where you have package plans that make it easier for the brokers to be able to evaluate those rates against whatever their employers' renewal is. George Sutton: So Tim, our discussions with industry folks, there's a lot of potential excitement around your 3-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? And Julia, I wondered if you could just give us any sense if anything is built in for the back half of the year from that 3-year plan. Tim Johnson: Yes. 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. So it's even getting spread more broad. We are really just now getting out there. I mean, understanding self-funded health plans, they look 3 months, the larger groups do. They look 3 to 6 months out. So we're seeing a lot of people take a look at it. We're starting to give our proposals on those groups now. I hope that we have one. We think we have one. But until the ink is read on the paper, I will tell you that we are anticipating at least one in the second quarter. Julia Qian: Yes. So George, from the financial perspective on our forecast, we're very conservative. We were thinking about only start from the fourth quarter, we will be able to generate some sort of the sales because large group, usually, they purchase this type of plan in the end of the year. But we continue to make progress and the couple of quotes looks like we'll be able to get that done in the second quarter. But as Tim said, before we make the ink, we do not know and very sure by the time we will make the press release and announce to the market. So as we continue, just to 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. George Sutton: I Understand. Tim, I assume these are done electronically, so there really isn't any ink involved, but maybe I'm naive. Tim Johnson: Yes. Good point. Yes. Operator: The next question comes from Allen Klee with Maxim Group. Allen Klee: Could you expand a little on your new metric of platform place land value of $82 million? How does that -- and that's over -- 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? Julia Qian: Allen, yes, it's a great question. So when our platform facilitate place the self-funded plan, you think about self-funded, one is the plan, the other stop loss all combined. So we bundle that together. And then our revenue is just the sum of the portion of that value. When we're looking at the planned placement, every contract is 12 months and our revenue -- contracted 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 totaled $31.6 million. So it's really the revenue mechanism because of GAAP accounting that's spread out. And however, when we wrote and facilitated those plans through the platform is for 12 months. So these give everybody a much better understanding of the flows and the plans and the revenue. Allen Klee: So does that mean if you have a plan on the books today, but it was actually written 6 months ago, in this number, you're including the 12-month value, not the 6 months left. Is that what you mean? Julia Qian: Yes. For instance, the January, just -- and 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 month. In the first quarter, you will only have 2 months of revenue. However, we also -- we also reported the remaining revenue based on the contract will be recognized for the year, which is $22.9 million. So 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. So you're adding on is $32 million. So that does give much, much better visibility in terms of revenue. Allen Klee: Okay. In terms of the 3-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 2 years? And it also seems to me like if you're testing it at the end of 2Q and early 3Q, and it's going to 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? Tim Johnson: The renewal season typically isn't -- 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. So 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 and 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 the clients. So does that help answer your question? Allen Klee: Yes. It just -- 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. So I was just afraid that might happen again. But 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? And also, how much of costs in 1Q were more like first -- like just things associated with the beginning of the year, maybe the audit and different things like that, that maybe are not recurring going forward? Julia Qian: That was approximately cost us about $200,000 and approximately, they are about $100,000, cost will probably will not carry forward going forward. If we look at the -- just operating expenses perspective for the quarter. Operator: The next question comes from M. Marin with Zacks. Marla Marin: So I'm curious, I was wondering if we could get a little bit more color on the 3-year rate stabilization feature because obviously, that seems like it would be very attractive to employers, brokers, et cetera. Is 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 traditionally? Tim Johnson: Zain, do you want me to handle that one? Zain Hasan: I can or you can. So I have no problem. Tim Johnson: Go ahead. Zain Hasan: Okay. Yes. So I appreciate the question. I mean yes, it's fair to say these are targeted towards larger employers. So there -- and there's typically a longer sales cycle of getting the employers and brokers comfortable and educated with the process. And yes, we are seeing a lot of -- really a lot of interest in the program. But it is also what was mentioned earlier where we iterated and got to the point where we're now carrier agnostic and being able to offer that to both new business and renewal opportunities makes it where we feel like there's a tremendous opportunity. It's a hard market and the stop-loss overall industry. And this is a very unique time to be able to have a program like a 3-year rate stabilization that we can offer. Marla Marin: 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 place on your books? And then I'm guessing the mechanics of how you would recognize revenue would be similar to what Julia was describing before. Julia Qian: Yes, I can address the question about the revenue, Marin. So we recognize the revenue monthly from effective date. So even at the 3 years. And if we -- when we have a 3-year program, when we report contractual revenue, we are pointing out that beyond a 3-year program, means people will know the revenue will come in next 36 months. And when we do earnings, which are called GAAP accounting revenue were based on every month from the effective date. So nothing changes just like the 1-year program. We recognize every month, we service the client every month, revenue get reported. However, we give more visibility about what is the remaining longevity of the program, how much revenue we would earn recognized in future. Marla Marin: Yes. But 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 the locked-in rates. Would you -- because it's going to be a business line over 3 years versus 1 for the typical plan, would you require some sort of an upfront deposit that would be different from your normal approach to taking on new business or taking on a new plan with an existing customer? Julia Qian: No, we don't require upfront. Tim Johnson: We don't... Julia Qian: Sorry. Tim Johnson: We don't require an upfront deposit. Through the underwriting process, we float that across all 3 years. So you may have like -- yes, so if your first year would have been $10, we're going to float the overall increase and expand it across the 3 years. So your first year may be a little more, but you -- all things being equal, your third year would be less, but at least you could budget to those numbers. Marla Marin: Got it. Okay. And then switching topics, one final question on the analytics, which I think could be extremely interesting. You talked specifically about 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 package the data in such a way that it could really potentially extend beyond the target market that you originally described. Tim Johnson: Yes. You're reading my mind. That's exactly what we're thinking. Marla Marin: Okay. So 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 once you've gotten in place with the first... Tim Johnson: Significant. Marla Marin: The first one. Okay, great. Operator: Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks. Please go ahead. Tim Johnson: 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. Operator: Thank you all again. This concludes the call. You may now disconnect. Before you buy stock in Health In Tech, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Health In Tech wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!* Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Health In Tech (HIT) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Reiterates Guidance for 2026 Annual Revenue Ranging between $45 Million and $50 Million STUART, Fla., May 13, 2026 /PRNewswire/ -- Health In Tech, Inc. (Nasdaq: HIT) ("Health In Tech" or "Company"), an AI-enabled InsurTech platform company, today announced its unaudited financial results for the three months ended March 31, 2026. First Quarter 2026 Overview Revenue increased 9.4% to $8.8 million from $8.0 million in the first quarter of 2025. Platform placed plan value1 totaled $82.0 million. Adjusted EBITDA2 totaled $(1.3) million, compared to $1.2 million in the first quarter of 2025, and reflected higher sales and marketing expenses for initiatives designed to drive long-term revenue growth. Net loss equaled $1.6 million, or $(0.03) per diluted share, compared to net income of $0.5 million, or $0.01 per diluted share, in the first quarter of 2025. As of March 31, 2026 Distribution partners, including brokers, third-party administrators ("TPAs") and agencies, reached 896, up 29.5% from 692 distribution partners as of March 31, 2025. Contracted revenue3 for the remaining three quarters of 2026 equaled $22.9 million. Cash and cash equivalents totaled $10.3 million, compared to $7.6 million as of March 31, 2025. Working capital totaled $15.0 million, compared to $8.8 million as of March 31, 2025. 2026 Full Year Revenue Guidance Health In Tech today reiterated guidance for 2026 annual revenue ranging between $45 million and $50 million, representing year-over-year growth of approximately 35% to 50%. As of March 31, 2026, the Company's contracted revenue for the remaining three quarters of 2026 totaled $22.9 million, which the Company believes provides useful visibility into 2026 full year revenue. Health In Tech's revenue outlook is based on management's current expectations and assumptions, including continued strong demand for the Company's AI-enabled underwriting marketplace across the self-funded health insurance segment and successful deployment of new features. Actual results may differ materially due to risks and uncertainties described in Health In Tech's filings with the SEC. The Company expects continued growth driven by expanding engagement across its distribution network and the full deployment of new features launched in January 2026. Unlike the traditional insurance industry, where new product and service implementations typically require one to two years, Health In Tech's AI-driven platform enables new capabilities to be developed and deployed within approximately one to two quarters. This accelerated development cycle provides a meaningful competitive advantage, allowing the Company to respond quickly to broker and client demand, continuously enhance its marketplace offerings, and scale its technology platform more efficiently than traditional market participants. CEO Commentary Tim Johnson, Chief Executive Officer of Health In Tech, commented, "In the first quarter of 2026, we continued to execute on strategic priorities to scale our innovative AI-powered self-funded health insurance marketplace and drive revenue growth. In March, we successfully completed a private investment in public equity financing, which provided the Company with approximately $7 million in gross proceeds. We intend to allocate a portion of these proceeds to growth initiatives, including expanding our sales team, broadening our marketing activities, delivering new marketplace offerings, and enhancing the technology architecture and data analytics that underpin our disruptive platform. Through these measures we aim to increase the number of brokers, agencies, third party administrators, and carriers that utilize our efficient, cost-effective ecosystem." Mr. Johnson continued, "We intend for 2026 to be a year of investing for growth and launching new solutions to further penetrate the vast U.S. self-funded health insurance market. Our recently rolled out suite of more than 100 pre-configured, customized stop-loss plans as well as our new three-year rate stabilization program are poised to deliver meaningful revenue beginning in the second half of the year. We also are developing a data-driven offering that integrates physiological and claims data to generate actionable insights. By layering in new capabilities such as these onto our platform, we better serve our ecosystem partners and business employer end-clients, while creating new revenue streams and operating leverage for Health In Tech." End Notes Conference Call Details Health In Tech will host a conference call to discuss the financial results for the first quarter of 2026 on May 13, 2026, at 5:00 p.m. (ET). To participate in our live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants). A live audio webcast will be available via the Investor Relations page of Health In Tech's website at https://healthintech.com/. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. Non-GAAP Financial Information This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses Adjusted EBITDA to provide investors with additional insight into operational performance and to facilitate comparison with other companies in the industry. Adjusted EBITDA should not be considered an alternative to net income, operating income, or other GAAP measures. A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. Use of Forward‑Looking Statements Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity. About Health In Tech Health In Tech, Inc. (Nasdaq: "HIT") is an AI-enabled InsurTech platform company, which offers a marketplace that improves processes in the health insurance industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, Managing General Underwriter ("MGUs") and third-party administrators ("TPAs"). Health In Tech's platform serves as a marketplace for brokers, TPAs, MGUs and carriers to access self-funded health insurance for employers, providing functions including customized self-funded health plans, bindable stop-loss quotes, AI-enabled underwriting, claims administration and reporting integration. Investor Contact: Health In Tech Investor Relations [email protected] The Equity Group Kalle Ahl, CFA T: (303) 953-9878 [email protected] Devin Sullivan, Managing Director [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/health-in-tech-reports-first-quarter-2026-financial-results-302771089.html

Health In Tech (NASDAQ:HIT) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=Bt2YoZ7W Health In Tech reported Q1 2026 revenue of $8.8 million, a 9% year-over-year growth, with expectations of full-year revenue between $45 and $50 million. The company is focusing on expanding its broker network, enhancing its technology architecture, and developing new product offerings, including a three-year rate stabilization program. A recent private investment raised $7 million to support these initiatives, aiming to broaden the shareholder base and fuel growth without an immediate need for working capital. Health In Tech's platform placed $82 million in self-funded stop-loss plans in Q1 2026, showcasing strong market engagement, although adjusted EBITDA was negative due to increased investment in growth strategies. Management reiterated their commitment to scaling distribution and product capabilities, with a strong focus on sales, marketing, and technology development to capture a larger market share. OPERATOR 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 and 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 Laurie Babcock (Chief of Staff) 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. Zane Hazan, Chief Growth Officer and Ms. Julia Chin, 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 Securities and Exchange Commission (SEC). These documents will be available on our Investor relations [email protected] 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 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 31, 2026 to be filed with the Securities and Exchange Commission (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 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 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for comparison purposes only. Our Generally Accepted Accounting Principles (GAAP) results and reconciliations of Generally Accepted Accounting Principles (GAAP) to non Generally Accepted Accounting Principles (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. Tim Johnson (Chief Executive Officer) Thank you Laurie and 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 health care 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 dollar 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 and 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 we demonstrated that our model could scale meaningfully and achieve strong profitability and 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 pipe which was 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 channel through which employers access self-funded health plans on our innovative AI-powered marketplace (EWS), 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 Hassan 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, well 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 career 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 carriers, 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 carriers 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 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 and tech. 3rd Health and Tech's Next Generation Technology Architecture and AI Development Sri Rajmangalan, our Chief Executive, excuse me, 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 cyclam and Amazon Web based Service Advanced Tier Service Partner to expand both the front and back end Functionality of our Technology Platform Our partnership with Cyclam and Amazon Web Services 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, improved integration of front and back end workflows, consolidating quoting, underwriting, administration and analytics into a unified platform and 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. 4th Advancing Services and Product Development to begin, I'm 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 create our curated, 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 compromise 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 translated 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, significant update to our E Dibs 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, 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 EDIBS 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 2Q26 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 and 50 million representing approximately 35% to 50% year over year growth. Before Julia reviews our first quarter financial results. I'll turn it over to Zane who will provide some additional data additional detail on how we are scaling our sales and distribution strategy. Zane Hazan (Chief Growth Officer) Thank you Tim From a sales perspective, one of our largest opportunities remains in a significant, largely untapped broker and Third Party Administrator (TPA) distribution market where many potential partners have yet to actively engage with our platform. We make it extremely easy for brokers and Third Party Administrator (TPA)s 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 to 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 attraction 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 provide 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 Third Party Administrator (TPA)s 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. Julia Chin (Chief Financial Officer) Thank you Zing and 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 reflected underlying growth and visibility Our Platform we are introducing a new KPIs Key Performance Indicator. I will first touch on contracted revenue which represents contractually committed revenue under active policies as on measurement day. This is expected to be recognized in future period. Our policy are typically written for terms of 12 months and under Generally Accepted Accounting Principles (GAAP) accounting the reported revenue is recognized over the lifetime of the policy. For example, if a new employee is on board and have a policy effect on February 1, 2026. Under 12 months policy, we recognize the revenue from the contract months from February 26 through January 2027. In this scenario where only 2 months of revenue are recognized in the first quarter 26 reporting period, the remaining 10 months of the contractual committed revenue will be recognized in the non remaining months of 26 and one month in 27. By reporting contracted revenue, we are providing investors and shareholder with greater transparency and 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 31, our contract revenue for the remaining three quarter of this year total will be around 22.9 million. In addition to contract revenue, we are now disclosing platform placed 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 contract return 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 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 platform place the value to increase with a faster rate reflecting great 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 accompanied self funded group plan. After careful reconsideration, we have decided to discontinue this metric as we believe platform place the value and the contractual revenue better represent our business. As the carriers in our platform offer four type of coverages employees only employees plus spouse, employee plus children and the family. So then we have different plans Bronze, silver, Gold and Platinum. When previously calculated our new discounting our now discontinued enrolled employee metric, a single individual employee versus a family, including an employee as well as their spouse could each be counted as one enrolled employee, although the difference on the cost and the premium between these two can be three times or four times difference. Furthermore, the employee can choose bronze where offer a lower monthly premium and a higher deductible cost versus the platinum offer higher premium and the lowest deductible. These two enrolled employees 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 even we continue 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 metrics in the near term reflect this intentional investment pace. Let me talk about the revenue for the first quarter 26 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 26 fiscal year with 8.8 million reporting first quarter and the 22.9 million will be recognized in the report in the remaining 26. This estimate figure is represented before monthly adjustments, so actually recognized revenue for the remaining 2026 may differ slightly. While growth in the quarter was more moderate compared to the prior periods, this reflected the current stage of the scaling order business rather than any change in underlying demand or platform scalability. At this stage, revenue growth is more close 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 invested in during 26. Turning to profitability, adjusted EBITDA for the first quarter was negative 1.3 million compared to positive 1.2 million in the prior year period. The net loss was 1.6 million compared to the net income of the half million in the prior period. This reflect our planned increase in the investment across key growth initiatives particularly in sales and marketing and product development. Turn to the operating expenses. Total operating expenses for the quarter was 6.7 million, approximately 76% of the 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. 25 these increases reflect our deliberate investment in expanding our sales distribution footprint as Zing explained, including the broker marketing and building out a more scalable go to market infrastructure so we can really tap on the massive broker ecosystem. General and Administrative expenses were 3.5 million representing approximately 39% of the revenue compared to 3.2 million or 41% revenue in the prior year. This increase primarily reflects 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 and 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 new solution compared to 1.4 million and 0.9 million respectively in prior year. Overall, the increasing operating expenses reflect a purposeful shift in capital allocation towards growth initiative. We are investing ahead of the revenue to expand distribution, enhance our product capabilities and 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 26 as we execute on our strategy to scale the business and build a more robust growth engine. Turning to our cash balance, we ended the quarter with 10.3 million in cash and the cash equivalent reflecting the proceed from our recent pipeline 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 offering. 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 scale to execute on our growth strategy. With that now, I turn it back to the operator for Q and A. OPERATOR 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 speakerphone, 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 2. The first question comes from George Sutton with Craig Allen. George Sutton Please go ahead. Thank you. And Zane, 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. Zane Hazan (Chief Growth Officer) Yeah, sure. And I appreciate the kind remarks. Essentially it's just a matter of like Tim mentioned where we put penetrated a very very small portion of the overall broker market. And so we've hired our intentions are to hire two to three sales reps that will focus on outbound and then to just drive overall marketing message that allows brokers to have a better understanding of what we do. And if we increase the brokers that have visibility into our platform, we've gotten a lot of positive feedback and are very optimistic that that'll lead to the growth. George Sutton So you mentioned you've rolled out this hundred 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? Zane Hazan (Chief Growth Officer) Sure. So 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. And the pre configured health plan is, it's a proven playbook for the health insurance world where you have package plans that make it easier for them brokers to be able to evaluate those rates against whatever their employer's renewal is. George Sutton So Tim, you know 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? And Julie, 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 plan. Tim Johnson (Chief Executive Officer) 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. So 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. So 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. Julia Chin (Chief Financial Officer) Yeah. So judge 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 these type of plan in the end of the year. But we continue to make progress and the couple of quotes looks like we'll be able to get that done in second quarter. But as Tim said before we make the ink we do not know and very sure by the time we will make the press release and announce to the market. So as we continue just reiterating still is a test still getting a lot of traction. That's why we continue to refine the program based on the feedback. George Sutton I understand Tim Johnson. I assume these are done electronically so there really isn't any ink involved. But maybe I'm going to eat. That's it for me. Thanks guys. Yeah, good point. Yes. OPERATOR The next question comes from Alan Klee with Maxim Group. Alan Klee Please go ahead. Yes, hi. Could you expand a little on your new metric of platform place land value of 82 million. How does that. And that's over. You said something about the next 12 months. How does that correlate to revenue is all that that you guys capture or how do we think about that? Julia Chin (Chief Financial Officer) Alan? Yes, It's a great question. So when our platform facilitates place the self funded plan, you think about self funded when you plan the other stop loss all combined. So we bundle that together and then 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 all 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 and total 31.6. So it's really the revenue mechanism because of gap accounting that spread out and however, when we wrote and facilitated those plans through the platform is for 12 months. So these give everybody a much better understanding of the flows and the plans and the revenue. Alan Klee So does that mean if you have a plan on the books today, but it was actually written 6 months ago in this number you're including the 12 month value, not the 6 months left? Is that what you mean? Julia Chin (Chief Financial Officer) Yeah. For instance the January just and I made the example February. For instance, the February prime 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. So people kind of will have a much better idea. Even Today we report first quarter as 8.8, but we know 22.9 will be reported in the remaining of the year. So you're adding on is 32 million. So that gave much, much better visibility Alan Klee in terms of revenue. 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 is it's maintained at what impact? What then happens for the remaining two years? And it also seems to me like if you're testing it at the end of 2Q and early 3Q and it's going to 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? Tim Johnson (Chief Executive Officer) 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. So we are testing it now so that we're ready to start the quoting. As I said, the demand's 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. So does that help answer your question? Alan Klee Yeah, it just, 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. So I was just afraid that might happen again. But 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 and also how much of costs in 1Q are more like first like just things associated with the beginning of the year, maybe the audit and different things like that that maybe are not recurring going forward. Thank you. Julia Chin (Chief Financial Officer) Davos 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. Alan Klee Got it. Okay. Thank you so much. OPERATOR Thank you. M. Marin The next question comes from M. Marin rickjacks. Please go ahead. Thank you. So 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, etc. 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. Zane Hazan (Chief Growth Officer) Zane, you want me to handle that one? I can or you can? So I have no problem. Okay. Yeah, so I appreciate the question. I mean, yes, it's fair to say, I mean these are targeted towards larger employers. So there, and there's typically a lot longer sales cycle of getting the employers and brokers comfortable and educated with the process. And yes, we are seeing a lot of, really a lot of interest in the program. But 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. And this is a very unique time to be able to have a program like a three year rate stabilization that we can offer. M. Marin 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 place on your books? And then I'm guessing the mechanics of how you would recognize revenue would be similar to what Julia was describing before. Julia Chin (Chief Financial Officer) Yeah, I can address the question about the revenue. So we recognize the revenue monthly from the effective day. So even at the three years, and if we, when we have a three year program, when we report contractual revenue, we're pointing out that beyond the three year program means people will know the revenue will come in next 36 months. Months. And when we do earnings, which are called GAAP accounting revenue we're based on every month from the effective day. 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 get earn recognizing future. M. Marin Yes, but I guess what I'm also trying to get 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, 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 or would you require some sort of an upfront deposit that would be different from your normal approach to taking on new business or taking on a new plan with an existing customer? Tim Johnson (Chief Executive Officer) No, we don't. Yeah, we're sorry. We don't require an upfront deposit through the underwriting process. We float that across all three years. So you may have like. So yeah, so if your first year would have been $10, you know, we're going to float the overall increase and expand it across the three years. So your first year may be a little more, but you're, you know, all things being equal, your third year would be less, but at least you could budget to those numbers. M. Marin Got it. Okay, thanks. And then switching topics, one final question on the analytics, which I think could be extremely interesting. You talk 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, package the data in such a way that it could really potentially extend beyond the target market that you originally described. Tim Johnson (Chief Executive Officer) Yeah, you're reading my mind. That's exactly what we're thinking. Okay, so 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. Okay, great. Thank you. Yeah, thanks for the question. OPERATOR Seeing no more questions in the queue. Let me turn the call back to Mr. Johnson for closing remarks, please. Go ahead. Tim Johnson (Chief Executive Officer) 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. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: HEALTH IN TECH (HIT): Free Stock Analysis Report This article Health In Tech Q1 2026 Earnings Call: Complete Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Interested in Health In Tech, Inc.? Here are five stocks we like better. Health In Tech posted Q1 2026 revenue of $8.8 million, up about 9% year over year, but swung to a $1.6 million net loss and a negative $1.3 million adjusted EBITDA as it increased spending on growth initiatives. Management said the company is deliberately investing in sales distribution, carrier partnerships, and AI/platform development to expand its tiny share of the large self-funded health insurance market, where it currently works with about 900 distribution partners. The company reiterated its full-year 2026 revenue guidance of $45 million to $50 million and introduced new visibility metrics, including $22.9 million in contracted revenue for the rest of the year and $82 million in platform placed plan value in Q1. Health In Tech (NASDAQ:HIT) reported first-quarter 2026 revenue growth and a wider loss as management said the company is intentionally increasing investment in sales distribution, carrier relationships and technology development to pursue a larger share of the self-funded health insurance market. On the company’s earnings call, Chief Executive Officer Tim Johnson said Health In Tech is operating in what he described as a “massive, opaque” self-funded stop-loss insurance market, where adoption remains far higher among large businesses than among small and medium-sized employers. Citing industry estimates, Johnson said roughly 80% of large businesses had adopted self-funded health plans as of 2025, compared with about 27% of medium and small businesses. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Johnson said the company’s AI-powered platform is designed to reduce the complexity of implementing self-funded plans. He said Health In Tech currently works with about 900 distribution partners, primarily insurance brokers, while the broader pool of insurance brokers exceeds 1 million, according to industry estimates. “Our penetration of the broker pool remains well below one-tenth of 1%, which highlights the significant runway potential ahead,” Johnson said. → MP Materials Is Quietly Building a Rare Earth Powerhouse Chief Financial Officer Julia Qian said total revenue for the first quarter of 2026 was $8.8 million, up approximately 9% from the prior-year period. Adjusted EBITDA was negative $1.3 million, compared with positive $1.2 million a year earlier. Net loss was $1.6 million, compared with net income of $0.5 million in the prior-year period. Qian said the slower revenue growth relative to prior periods reflected the current stage of scaling the business rather than a change in demand or platform scalability. She said revenue growth is tied to expansion of the distribution network, broker activity and conversion of pipeline opportunities, areas in which the company is investing during 2026. → MercadoLibre Boldly Invests in Growth: Discount Deepens Health In Tech reiterated its full-year 2026 revenue guidance of $45 million to $50 million, which Johnson said would represent approximately 35% to 50% year-over-year growth. The company ended the quarter with $10.3 million in cash and cash equivalents, reflecting proceeds from a private investment in public equity, or PIPE, completed in March. Johnson said the financing brought in approximately $7 million in gross proceeds and was not driven by an immediate need for working capital. Instead, he said the company saw an opportunity to broaden its shareholder base and add capital for growth initiatives. Qian said total operating expenses were $6.7 million in the quarter, or approximately 76% of revenue, compared with $4.9 million, or 41% of revenue, in the prior-year period. Sales and marketing expenses were $2.3 million, or about 26% of revenue, up from $1.1 million, or 14% of revenue, in the prior-year period. General and administrative expenses were $3.5 million, or approximately 39% of revenue, compared with $3.2 million, or 41% of revenue, a year earlier. Research and development expenses were $0.9 million, or about 10% of revenue, compared with $0.5 million, or 7% of revenue, in the prior-year period. Qian said the company also capitalized approximately $0.6 million of software development during the first quarter. She said overall expenses reflect a “purposeful shift in capital allocation” toward growth initiatives, and she expects elevated investment to continue throughout 2026. During the question-and-answer session, Qian said costs tied to the Davos conference were approximately $200,000. She also said about $100,000 of first-quarter costs likely would not carry forward from an operating expense perspective. Qian introduced two new business metrics: contracted revenue and platform placed plan value, or PPPV. Contracted revenue represents contractually committed revenue on active policies that is expected to be recognized in future periods. Qian said that as of March 31, contracted revenue for the remaining three quarters of 2026 totaled approximately $22.9 million. Including the $8.8 million reported in the first quarter, she said Health In Tech estimated $31.7 million in revenue would be reported for fiscal 2026 from existing contracts, before monthly adjustments. PPPV represents the aggregate contractual value of self-funded health plans with stop-loss insurance placed through the company’s platform, including premium, claims fund and administrative fees. Qian said Health In Tech’s platform placed $82 million of self-funded stop-loss plans in the first quarter of 2026. The company is discontinuing its prior enrolled employee metric. Qian said that metric did not fully capture differences among coverage types and plan tiers, or the impact of employee changes such as hires, resignations and family status changes. Johnson said Health In Tech plans to deploy capital across several areas: expanding its sales distribution network, adding carrier partners, enhancing technology architecture and AI development, and advancing services and product development. Chief Growth Officer Zain Hasan said the company’s in-house sales team is primarily focused on onboarding and activating distribution partners rather than directly selling to employer accounts. He said Health In Tech generated $33 million in revenue in 2025 with a six-person in-house sales team, and now plans to selectively expand that team. In response to an analyst question, Hasan said the company intends to hire two to three sales representatives focused on outbound efforts to increase broker awareness of the platform. Johnson said adding more carrier partners is important because it gives brokers more underwriting perspectives for the same employer group, increasing the likelihood of a competitive option at renewal. He said that could improve platform utilization, employer retention and revenue growth. The company is also investing in platform improvements. Johnson said Health In Tech engaged Cyclom, an Amazon Web Services advanced tier service partner, to expand front-end and back-end functionality. He said the work is intended to improve platform capabilities, reporting, workflow integration and data infrastructure. Johnson also described updates to the company’s e-dibs platform, including a refreshed interface, improved workflow design, enhanced census insights, expanded large group quoting functionality, underwriting status visibility, automated experience data parsing, AI-driven risk insights and broker-to-underwriter messaging inside the platform. He said early broker feedback has been positive, particularly around messaging and workflow improvements. Health In Tech is developing a three-year rate stabilization program designed to reduce pricing volatility and provide greater cost predictability for employer groups. Johnson said the company expects to complete market testing late in the second quarter into the third quarter of 2026. During the Q&A session, Johnson said demand is beginning to emerge and that the company has modified the program to be carrier agnostic. He said Health In Tech is starting to provide proposals and is “anticipating at least one” agreement in the second quarter, though he cautioned that nothing is final until completed. Qian said the company’s forecast is conservative and assumes sales from the program beginning in the fourth quarter, noting that larger groups often purchase these types of plans toward year-end. Hasan said the program targets larger employers and typically involves a longer sales cycle as brokers and employers become comfortable with the structure. Qian said revenue recognition for a three-year program would remain monthly from the effective date, with the company providing additional visibility into future contracted revenue over the 36-month period. Johnson said the program would not require an upfront deposit. Johnson also said Health In Tech expects to begin initial beta testing in the second quarter of a data-driven solution that integrates psychological data and claims data to generate actionable insights for partners and employer clients. Health in Tech, Inc engages in the provision of insurance technology platforms which offer a marketplace of processes in the healthcare industry. Its services include Stone Mountain Risk, eDIYBS, HI Card, HI Performance Network, and Ancillary Products. The company was founded by Tim Johnson in 2014 and is headquartered in Stuart, FL. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Health In Tech Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.