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.
Contracted Revenue and Full-Year Outlook
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.
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.
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.
Distribution Growth and Carrier Strategy
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.
Product Initiatives Target Larger Groups
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.
Profitability, Expenses and Balance Sheet
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.
About Health In Tech (NASDAQ:HIT)
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.
