Press Release: Health in Tech Reports Second Quarter 2026 Financial Results

Dow Jones08-14 04:30

Contracted Revenue of $32.3 Million as of June 30, 2026

Pipeline Revenue of $66.3 Million as of July 31, 2026

Distribution Partners Grew 19.9% Year Over Year

STUART, Fla., Aug. 13, 2026 /PRNewswire/ -- Health In Tech, Inc. (Nasdaq: HIT) ("Health In Tech" or the "Company"), an AI-enabled InsurTech platform company, today announced its unaudited financial results for the three and six months ended June 30, 2026.

Second Quarter and First-Half 2026 Highlights

   -- Distribution Partners, including brokers, third-party administrators 
      ("TPAs") and agencies, reached 933 as of June 30, 2026, an increase of 
      19.9% year over year. 
 
   -- Q2 2026 Revenue was $8.1 million, compared with $9.3 million in Q2 2025. 
      First-half 2026 revenue was $16.8 million, compared with $17.3 million in 
      the prior year period. 
 
   -- Contracted Revenue1 totaled $32.3 million for first-half 2026, of which 
      $17.3 million was recognized as GAAP revenue in first-half 2026. The 
      remaining $14.0 million and $1.0 million are expected to be recognized as 
      GAAP revenue in second-half 2026 and in 2027, respectively. 
 
   -- Pipeline Revenue2 was $66.3 million as of July 31, 2026, of which $1.9 
      million was contracted subsequent to quarter end. The remaining $64.4 
      million represents policies in quoting or binding status, with an 
      expected conversion rate of 15% to 40%. 
 
   -- Net loss for Q2 2026 was $2.5 million, or $(0.04) per diluted share, 
      compared to net income of $0.6 million, or $0.01 per diluted share, in Q2 
      2025, and $4.1 million for the first half of 2026, or $(0.07) per diluted 
      share, compared to net income of $1.1 million, or $0.02 per diluted share, 
      in first-half 2025. 
 
   -- Adjusted EBITDA3 was $(1.3) million for Q2 2026 and $(2.6) million for 
      first-half 2026, reflecting continued investment in distribution, 
      technology, and product development. 
 
   -- Platform Placed Plan Value ("PPPV")4 was $84.0 million as of June 30, 
      2026. 

2026 Outlook and Beyond

As of July 31, 2026, the Company had approximately $66.3 million in Pipeline Revenue, of which $1.9 million was contracted, while the remaining $64.4 million is in the quoting or binding stage. Based on the Company's estimated conversion rate of 15% to 40%, the Pipeline Revenue in the quoting or binding stage is expected to generate approximately $9.7 million to $25.8 million of additional Contracted Revenue. Under U.S. GAAP revenue recognition, this is expected to result in approximately $3.1 million to $8.3 million of GAAP revenue recognized in 2026, with an additional $6.6 million to $17.5 million of GAAP revenue expected to be recognized in 2027.

With five more months remaining in 2026, the Company expects to continue expanding its Pipeline Revenue through new product launches and new system enhancement. Supported by its growing base of Contracted Revenue, increasing forward revenue visibility, and continued pipeline development, the Company is reaffirming its full-year 2026 revenue guidance of $45 million to $50 million.

CEO Commentary

Tim Johnson, Chief Executive Officer of Health In Tech, commented, "We continued to execute against our long-term growth strategy during the quarter by investing in sales, marketing, and key talent, supported in part by the capital raised through our recent PIPE financing. These investments are designed to expand our distribution network, accelerate product innovation, and strengthen our execution capabilities. Our contracted book of business continued to grow, providing greater visibility into future revenue. We believe Contracted Revenue and Pipeline Revenue are meaningful operating metrics that complement our GAAP financial results by illustrating the strength of our sales pipeline, the pace of customer conversion, and our expected revenue trajectory."

Mr. Johnson continued, "We also made meaningful progress on several strategic initiatives that we believe position the Company for its next phase of growth. During the quarter, we contractually secured our first employer group for the Three-Year Rate Stabilization Program, a differentiated solution designed to provide employers with greater predictability in stop-loss pricing over a multi-year period. This represents an important milestone as we advance toward the program's anticipated launch in the capital markets. In parallel, we are engaged with several high-profile governmental organizations that are evaluating participation in the program, and we expect to provide additional updates in the coming months.

As we execute on our strategic roadmap, we remain on track to launch HitRix, our next-generation marketplace platform, in the second half of 2026. While our current eDIYBS platform has transformed AI-enabled underwriting through bindable stop-loss quoting and customized plan design, HitRix expands the application of AI across the entire self-funded stop-loss insurance ecosystem. The platform leverages advanced AI-powered document intelligence to automate data extraction across multiple document types, enable intelligent plan comparisons, and facilitate an integrated competitive bidding process within a unified digital marketplace. By connecting a broad network of brokers, carriers, TPAs, and employer groups, HitRix is designed to increase market transparency, expand access to competitive stop-loss solutions, streamline the placement process, and deliver better outcomes for all participants across the self-funded insurance value chain."

End Notes

   1. Contracted Revenue represents the total revenue expected to be generated 
      over the contractual term of self-funded health plan policies placed 
      through the Company's platform. Standard self-funded plan policies 
      generally have a contractual term of 12 months, while the Company's 
      Three-Year Rate Stabilization Program is designed with a 36-month 
      contractual term. Revenue is recognized under U.S. GAAP on a 
      straight-line basis over the policy term, beginning on the policy's 
      effective date. Accordingly, Contracted Revenue represents revenue that 
      has been contractually secured but has not yet been fully recognized 
      under U.S. GAAP, providing an indication of future revenue expected from 
      existing contracts. 
 
   2. Pipeline Revenue represents revenue from self-funded plan policies that 
      are being quoted, are in binding status, or have been contracted 
      subsequent to the end of the reporting period. This metric reflects the 
      entire contractual term of the underlying policies, some of which may not 
      ultimately convert to revenue. 
 
   3. Adjusted EBITDA is a non-GAAP financial measure. Additional information 
      and reconciliation of Adjusted EBITDA to its most comparable GAAP 
      financial measure is provided in the "Reconciliation of Net (Loss) Income 
      Attributable to Common Stockholders to Adjusted EBITDA" section of this 
      release. 
 
   4. Platform Placed Plan Value ("PPPV") represents the aggregate contractual 
      value of self-funded health plans with stop-loss insurance (self-funded 
      stop-loss plans) placed through the Company's platform during the fiscal 
      year through the applicable fiscal quarter end, measured over each plan's 
      full contractual term of typically 12 or 36 months from the plan's 
      effective date. PPPV reflects the total economic value flowing through 
      the platform, including premium, claim funding, and administrative fees, 
      and is a measure of platform transaction volume rather than an indication 
      of the Company's own revenue or take rate. 

Conference Call Details

Health In Tech will host a conference call to discuss its financial results for the second quarter of 2026 on August 13, 2026, at 5:00 p.m. $(ET)$. To participate in our live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants).

A live audio webcast will be available via the Investor Relations page of Health In Tech's website at https://healthintech.com/. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

Non-GAAP Financial Information

This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses Adjusted EBITDA to provide investors with additional insight into operational performance and to facilitate comparison with other companies in the industry. Adjusted EBITDA should not be considered an alternative to net income, operating income, or other GAAP measures. A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Use of Forward--Looking Statements

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