Health In Tech, Inc. Q3 FY2025 earnings call

• Revenue growth: Third quarter revenue was $8.5 million, with 90% year-over-year growth; nine-month revenue was $25.8 million vs. $19.5 million in 2024.
• Distribution network: Number of brokers, TPAs, and agencies grew to 849, up 57% year over year; billed enrolled employees reached 25,248, an increase of 7,654 employees YOY.
• Product innovation: Launched large employer underwriting capability on the enhanced eDibs platform, enabling bindable quotes for groups of 150+ employees in as little as two weeks.
• Marketing and events: Hosted the InsurTech Summit at Davos in January 2026, featuring panels on AI, digital transformation, and blockchain.
• Partnerships: Non-binding LOI with Alphaton Capital for HitChain, a blockchain-enabled claims platform.
• Program offering: Testing a 3-year rate hold program for groups with 150 or more employees, to launch in 2026.

For the third quarter, total revenue reached $8,500,000, with year-over-year growth of 90%. Nine-month revenue was $25,800,000 compared to $19,500,000 in 2024. Adjusted EBITDA for the third quarter was $1,000,000, up 49% year over year. For the first nine months, adjusted EBITDA reached $3,800,000, which was 167% of the full year 2024 total. Total operating expenses for the third quarter were 55% of revenue, down from 68% in the same period last year. Research and development expenses declined to 2.8% of revenue from 16% the previous year.

• Q4 revenue is anticipated to grow around 50% year over year.
• Full year 2025 revenue is expected to be $32,000,000 to $33,000,000, representing ~70% YOY revenue growth.
• Full year net income growth is expected to be near 90%, outpacing revenue growth.

• Market uncertainty related to rising healthcare costs and evolving regulations.
• Timing differences in employer plan selections, with some making early selections in late Q3 and others delaying into January and early Q1 2026.

Q: Response on large employer market response and comparison to small/medium market A: Tim Johnson mentioned that the large employer market is in the early stages with increased quotes from 2 per day to 5 per day, but it's too early to see a full trend due to training and timeline for proposals.

Q: Enrolled employees stickiness A: Julia Chin stated that the 3-year rate hold program enhances retention, and the healthcare insurance product itself is already sticky, with adding more products making it even more so.

Q: Blockchain initiative status A: Tim Johnson and Dustin Plantholt discussed HitChain as a first-of-its-kind large-scale blockchain in healthcare, set to bring real-time visibility and efficiency to claims workflows, with no one else at the same scale currently.

Q: Three-year rate hold program details A: Tim Johnson explained that it was challenging to get insurance carriers comfortable, but it involves medical management programs to make the program profitable over three years; Julia Chin noted the program will be fully launched in Q1 2026.

Q: Broker relationships and renewal season A: Tim Johnson and Julia Chin talked about growing broker distribution, training brokers, and the InsurTech Summit at Davos attracting large agencies and enhancing visibility for broker relationships during renewal season