Health In Tech, Inc. Q4 FY2025 earnings call

• 2025 was a pivotal year as it was the first year as a public company and demonstrated scaling of AI-enabled underwriting marketplace, distribution-led growth model, and technology platform in the self-funded health insurance market. • Distribution: Expanded network to 858 brokers, TPAs, and agency partners in 2025, with 34% year-over-year increase, and remains at early stage of market penetration. • Platform development: Expanded enhanced do-it-yourself benefit systems (EDEBs) to support employers with over 100 employees, compressing underwriting timelines for larger employers from approximately three months to roughly two weeks. AI advantage is combination of proprietary data, integrated workflow, and distribution. • Program development: Advanced three-year rate stabilization program to address pricing volatility, designed to provide greater pricing stability over multi-year period with fixed remittance framework and stop-loss protection. • 2026 strategic priorities: Continue to expand distribution footprint, invest in platform development and AI capabilities to evolve into fully integrated marketplace including claims administration, cost containment solutions, and broader plan management capabilities. In January 2026, enhanced platform to offer over 100 pre-configured customized stop-loss programs. Plan to initiate beta testing of new data-driven solution integrating physiological and plans data.

For the full year 2025, total revenue increased 71% year-over-year to $33.3 million. In the fourth quarter, revenue increased 53% to $7.5 million. Distribution network grew to 885 brokers, TPAs, and agencies, increased 34% year-over-year. Enrolling employees increased to 22,515, increased 23% year-over-year. Full-year 2026 revenue guidance is 45 to 50 million, representing approximately 35% to 50% year-over-year growth. Adjusted EBITDA for the full year was 4.1 million, about 12.3% of revenue, increased 81% year-over-year. Net income for the full year was 1.2 million, representing about 4% of revenue, increased 91% year-over-year. Total operating expenses for the full year were $19.4 million, 58% of revenue, a 16% increase year-over-year. Sales and marketing expenses were $4.2 million, 13% of revenue. General and admin expenses were $13.7 million, 41% of revenue. Research and development investment, including $3.2 million in CapEx and $1.6 million expenses, representing approximately 5% of revenue.

• Provided full-year 2026 revenue guidance of 45 to 50 million, representing approximately 35% to 50% year-over-year growth. • Confidence supported by ability to compress time to revenue, enabling new features to scale within one to two quarters compared to 12 to 24 months in traditional insurance environments.

Q: Good quarter. Wanted to start with your larger employer offering, could you give feedback from partners?

A: Announced entry to large employee space last year, financials for 2025 are fresh as started in Q3 and launched in September, sales cycle long, product launch end of next month to speed process up.

Q: For three-year rate stabilization offering, feedback and ramp thoughts?

A: Attention grabber for government entities, municipalities, just started a month and a half ago, anticipating beta test traction, officially launched second half of year.

Q: Thoughts on amount of renewables for large employer and three-year rate stabilization?

A: In large group business, most business is small, medium-sized group, started last year September, don't have renewer from prior year business book, July 1 and January 1 are effective dates for municipalities.

Q: Expand on beta testing of physiological data and claims data?

A: Physiologic data from devices tracking info, cleanse data with health info, just started beta test, will share due cost.

Q: Entrance into large organizations spectrum of sales, difference in stickiness or retention?

A: Stickiness comes from ease of use of system, AI technology organizing data for underwriters, trying to significantly reduce turnaround time.

Q: Surprise at level of interest in large organization sector?

A: Internally underwriter can now quote up to 20 groups in a week vs. a month before, conversations in underwriting space are excited.

Q: Ongoing pipeline of potential affiliations to expand service offerings?

A: Tool has expanded market, looking at other industries or vendors wanting to use the tool, part of strategy to offer more service and get more brokers on board.

Q: Expand on expanding to roll out cost containment and claims paying, business model?

A: Building marketplace, near future marketplace function will expand, offer as service for other carrier, MGU, etc., not launched currently, pricing not finalized.

Q: Feedback on Davos conference?

A: Went great, met many good people, relationships still fruitioning, got good attention.

Q: Biggest AI initiatives in 2026?

A: Continually improving own processes, applying AI to improve processes like MGU's intake claims, speeding up or eliminating manual intervention.