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.
“Our penetration of the broker pool remains well below one-tenth of 1%, which highlights the significant runway potential ahead,” Johnson said.
Revenue rises as company reiterates full-year outlook
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.
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.
Operating expenses increase with planned investment
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.
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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.
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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.
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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.
New metrics aim to show platform activity and revenue visibility
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.
Management focuses on brokers, carriers and technology
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.
Three-year rate stabilization program advances
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.
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.
