Health In Tech (NASDAQ:HIT) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight rapid top-line growth, continued distribution expansion, and product initiatives aimed at moving further upmarket in self-funded employer health insurance.
2025 described as a “pivotal” first year as a public company
Chief Executive Officer Tim Johnson said 2025 marked the company’s first year as a public company and was “a pivotal year” in demonstrating that its “AI-enabled underwriting marketplace,” distribution-led growth model, and technology platform can scale in the self-funded health insurance market. For the full year 2025, the company reported revenue of $33.3 million, up 71% year over year.
Distribution growth and early market penetration
Management emphasized the role of brokers, third-party administrators (TPAs), and agency partners as the primary channel for reaching employers. Johnson said the company expanded its distribution network to 858 partners in 2025, a 34% increase year over year, and argued the company remains in the early stages of market penetration compared with an estimated 1.1 million U.S. insurance brokers.
CFO Julia Qian later cited a distribution network of 885 brokers, TPAs, and agencies, also up 34% year over year, and said enrolled employees grew 23% year over year to 22,515. Qian said increased partner onboarding has been accompanied by more quoting activity, a higher bind rate, and improved conversion efficiency.
Platform expansion into larger employers and AI positioning
Johnson said Health In Tech expanded its Enhanced Do It Yourself Benefit Systems (eDIYBS) platform to support employers with more than 100 employees, extending beyond the small-group market where the company initially found product-market fit. He characterized larger-group underwriting as manual and operationally complex, with long sales cycles and fragmented workflows.
Johnson said the platform can compress underwriting timelines for larger employers from “approximately 3 months to roughly 2 weeks,” which he said can improve broker productivity and placement efficiency. During Q&A, management noted the large-employer initiative was launched recently, with Qian describing it as “very fresh” financially and starting in the third quarter with an official launch in September. Johnson said a product launch expected “at the end of next month” is intended to further speed the process for large groups.
Johnson also addressed what he called a frequent investor question around the company’s AI differentiation. He said the advantage is not only the model, but the combination of proprietary, HIPAA-governed data tied to underwriting activity, integrated workflows spanning underwriting through vendor coordination, and distribution that drives usage and ongoing data generation. He argued that as adoption scales, model performance and “platform stickiness” can compound.
Three-Year Rate Stabilization Program and early feedback
Health In Tech discussed its Three-Year Rate Stabilization Program, which management said is designed to address pricing volatility through multiyear pricing stability supported by a fixed remittance framework and stop-loss protection. Johnson said the offering is intended to deepen client relationships and support expansion into larger employer segments where budgeting stability is important.
In response to an analyst question, management said the program has attracted attention, particularly from government-related entities such as municipalities that rely on multiyear budgeting. Johnson said the company was still gathering submission data and fine-tuning program details, and that the quoting process had not yet meaningfully started. Qian said the company expects an official launch with partners in the second half of the year, with management discussing a possible timing around the end of the second quarter or the beginning of the third quarter.
On seasonality, management noted municipalities often have effective dates of July 1 and January 1. Johnson indicated January would likely be the biggest effective date for the program.
Financial results, margins, and cash flow
Qian said fourth-quarter 2025 revenue rose 53% year over year to $7.5 million. She emphasized that employer decision cycles do not always align with calendar quarters and said year-over-year performance is more meaningful than sequential comparisons. She also said the company’s revenue is contractually driven and recognized over a 12-month policy period, which she said supports forward-looking visibility and a more recurring revenue profile.
On profitability, Qian reported:
- Adjusted EBITDA: $4.1 million for full-year 2025 (12.3% margin), up 81% year over year; $0.3 million in the fourth quarter compared with $3.5 million in the prior year period.
- Net income: $1.2 million for full-year 2025 (about 4% margin), up 91% year over year.
- Pre-tax income: $1.7 million for full-year 2025; a fourth-quarter pre-tax loss of $0.4 million, which she attributed to timing of investments.
Qian said the “first quarter” reflected planned reinvestment in go-to-market initiatives, broker engagement, program development alongside peak enrollment activity, and support for new product launches. (Management also pointed investors to the earnings release for GAAP to non-GAAP reconciliations.)
Operating expenses totaled $19.4 million for the year, representing 58% of revenue and a 16% improvement year over year, Qian said. She broke out full-year spending as $4.2 million in sales and marketing (about 13% of revenue), $13.7 million in general and administrative expense (41% of revenue), and research and development that included $3.2 million of capitalized software development and $1.6 million expensed, which she said represented about 5% of revenue on an expensed basis.
Qian said the company generated $3.1 million in positive operating cash flow in 2025 and reduced accounts receivable days to 14 from 29 in 2024.
Looking ahead, management reiterated full-year 2026 revenue guidance of $45 million to $50 million, representing approximately 35% to 50% year-over-year growth. Johnson said the company believes it can “compress time to revenue,” allowing new features to scale in one to two quarters versus 12 to 24 months in traditional insurance environments. He also cited partnerships with Ciklum and an AWS Advanced Tier Services provider as part of strengthening the technology foundation.
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.
