Health In Tech Q3 2026 Earnings Results & Report

Health In Tech EPS Results

• Actual EPS: -$0.10
• Consensus EPS: -$0.07
• Beat/Miss: Missed by -$0.03
• One Year Ago EPS: N/A
• EPS Beat Rate: 1 of last 7 quarters

Health In Tech Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Health In Tech (NASDAQ:HIT) is a U.S.-based insurance technology company that provides a digital platform for the self-funded health benefits market. Its technology is designed to connect employers, insurance brokers, third-party administrators and stop-loss carriers through a streamlined process for evaluating and administering health benefit plans.

The company’s platform supports functions including plan quoting, comparison and enrollment, with the goal of simplifying interactions among participants in the employer-sponsored health insurance ecosystem. Health In Tech focuses primarily on self-funded employer health plans, in which employers assume greater responsibility for claims costs while using stop-loss coverage to manage risk.

Health In Tech serves customers and partners in the United States. Its offerings are intended to improve efficiency, transparency and data exchange across the health benefits process, although specific product availability and service capabilities may vary by market participant and plan arrangement.

Health In Tech Q3 2026 Earnings Call Transcript

Key Takeaways

• Neutral Sentiment: Health In Tech appointed Sanjay Shrestha CEO, with founder Tim Johnson moving to Executive Chairman. Management says the split is intended to pair continued technology development with sharper focus on commercial execution, operational discipline, and scaling the business.
• Negative Sentiment: The company cut its 2026 revenue outlook to approximately $30 million; third-quarter revenue fell to $6.6 million from $8.5 million a year earlier. The quarter also included a $5.3 million credit-loss provision, adjusted EBITDA was negative $3.9 million, and gross margin declined to 46.5%.
• Neutral Sentiment: Management cited $156.4 million in pipeline revenue for policies in quoting or binding stages as of October 30, but emphasized this is not contracted revenue and depends on successful placement. The company estimates a 3%–7% conversion rate and says improving conversion through closer partner coordination is its top near-term priority.
• Neutral Sentiment: Commercialization timelines for new initiatives remain conditional: the Three-Year Rate Stabilization Program’s insurance coverage is in place, but its capital-markets financing is still being finalized; HitRix’s MVP is targeted for Q1 2027 and HITChain’s for the second half of 2027. Management described these products as potential growth drivers but acknowledged that commercialization has taken longer than expected.
• Positive Sentiment: Operating cash use improved sequentially to $1.0 million in Q3 from $3.3 million in Q1, and cash stood at $10.1 million at quarter-end, up from $7.7 million at year-end 2025. Management attributed the improvement partly to collections and working-capital progress, while noting that continued cash-flow improvement will depend on execution.

Presentation

[Operator]

Good afternoon, ladies and gentlemen, and welcome to Health In Tech's third quarter 2026 earnings conference call. All participants are currently in listen-only mode. After the prepared remarks, we will open the call for questions. As a reminder, today's conference call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to Lori Babcock, Chief of Staff. Lori, please go ahead.

[Lori Babcock, Chief of Staff at Health In Tech]

Thank you, operator, and good afternoon, everyone. Welcome to Health In Tech's third quarter 2026 earnings call. Joining us today are Tim Johnson, our Founder and Executive Chairman; Sanjay Shrestha, our Chief Executive Officer; and Julia Qian, our Chief Financial Officer. The details of our results are in today's earnings release and our related Form 10-Q to be filed with the SEC. Both will be available on our investor relations website at healthintech.investorroom.com, where a replay of this call will also be posted. Before we continue, please note that today's discussion includes forward-looking statements under the safe harbor provision of the federal securities laws. These statements reflect our current expectations and involve risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release and SEC filings for the applicable risk factors. We undertake no obligation to update these statements except as required by law.

[Lori Babcock, Chief of Staff at Health In Tech]

We may also discuss non-GAAP measures, including adjusted EBITDA. The relevant definitions and reconciliations to GAAP measures will be provided in our earnings release. With that, I turn the call over to Tim.

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

Thanks, Lori. Before we discuss our business performance and outlook, I would like to take a moment to highlight an important leadership transition at Health In Tech and formally introduce Sanjay Shrestha as our new Chief Executive Officer. Since founding Health In Tech, my vision has been to transform the health insurance industry through technology, innovation, and vertical integration. Over the years, we have built a differentiated technology platform designed to simplify complex processes, improve efficiency, and create greater transparency across the health insurance marketplace. As we look towards the next chapter of our growth, I believe the company has reached an important stage in its evolution. While innovation and technology development will always remain central to our business, our next phase requires an even greater emphasis on commercial execution, operational scalability, business expansion, and the ability to capitalize on strategic growth opportunities.

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

That is the rationale behind our leadership transition. By separating the roles of Executive Chairman and Chief Executive Officer, we are creating a leadership structure that allows us to dedicate greater focus and resources to two equally important priorities: continuing to innovate and build for the future while accelerating execution and scaling the business we have established. My role as Executive Chairman, I will remain actively involved in shaping the company's long-term strategy, advancing technology innovation, and guiding product development. I will also continue to leverage my industry experience and relationships to identify emerging opportunities and help position Health In Tech for long-term success. Sanjay, as CEO, will lead our day-to-day operations and be responsible for driving commercial execution, strengthening our organizational capabilities, scaling our existing business, and improving overall operating performance.

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

Importantly, Sanjay will also lead our efforts to identify and evaluate potential strategic acquisitions, partnerships, and other business expansion opportunities. We believe that combining organic growth with disciplined strategic acquisitions could provide additional avenues to expand our capabilities, strengthen our market position, and create meaningful long-term value for our shareholders. Sanjay brings extensive experience in public company leadership, capital markets, corporate strategy, and business development. Having previously served on our Board and worked closely with our leadership team, he already has a strong understanding of our business, our technology, and the opportunities ahead. I believe his experience and capabilities complement my own, and that together we can strengthen Health In Tech's ability to translate our innovation and strategic vision into sustainable business growth. I also want to emphasize that my transition to Executive Chairman is not a step away from Health In Tech.

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

My commitment to the company, our employees, our partners, and shareholders remains as strong as ever. This transition allows me to focus more on my time and energy on long-term strategy, innovation, and the next generation of products, opportunities, while Sanjay provides dedicated leadership to execute and scale our business. Ultimately, this is about building a stronger Health In Tech, one with leadership capacity to innovate, execute, expand, and pursue opportunities that enhance long-term shareholder value. I'm excited about this next chapter and confident in the leadership team we are building. With that, it is my pleasure to welcome Sanjay Shrestha as Chief Executive Officer of Health In Tech. Sanjay, I turn it over to you.

[Sanjay Shrestha, CEO at Health In Tech]

Thank you, Tim, and good afternoon, everyone. It is a pleasure to join you today for my first earnings call as Chief Executive Officer of Health In Tech. I would like to use this opportunity to share my perspective on the business, the opportunities ahead of us, and importantly, the priorities I believe will be critical to translating those opportunities into sustainable growth and long-term shareholder value. Having served on Health In Tech's Board and subsequently as a strategic advisor, I have had the opportunity to develop a strong understanding of the company's technology, business model- industry relationship, and long-term potential. Stepping into the CEO role, however, provides an even closer perspective on our day-to-day operations, commercial execution, and opportunity to strengthen our performance. One thing that has become very clear to me, we believe Health In Tech has built a strong foundation.

[Sanjay Shrestha, CEO at Health In Tech]

Our key focus and strategic priority now is to translate that foundation into scalable commercial growth and stronger financial performance. As it relates to 2026, this really is a year of investment and building for the future. Let me begin by putting 2026 into perspective. Again, as I said, this has been an important year of investment and capability building for Health In Tech. We have invested in expanding our sales and distribution network, strengthening relationship with brokers, carrier, managing general underwriter, MGUs, and strategic partners, and continuing to develop the underlying technology that supports our marketplace. At the same time, we have advanced several significant initiatives, including recently launched HitRix, HITChain, and our Three-Year Rate Stabilization Program. Each of these initiatives address substantial market opportunities in the area of the healthcare insurance ecosystem, where we believe there has been relatively limited technological innovation.

[Sanjay Shrestha, CEO at Health In Tech]

Our objective has not been solely to maximize near-term revenue. We have been building the technology, distribution relationship, financial infrastructure, and product capabilities that we believe can support a much larger and more diversified business over time. That said, we recognize that certain initiatives, frankly, have taken longer than originally anticipated. Product commercialization has required more time. Bringing additional carrier capacity online has taken longer than expected, and coordinating the multiple participants required to launch some of our newer product has introduced additional complexity. As a result, the financial contribution from several important initiatives has been pushed beyond our original expectations. I want to be very clear. We are not satisfied with our current revenue performance. Investment is necessary, but investment alone does not create value for all stakeholders. Ultimately, those investment needs to be translated into customer adoption, transaction volume, revenue growth, and improved financial performance.

[Sanjay Shrestha, CEO at Health In Tech]

This is a standard by which we intend to measure our progress going forward. Throughout my career, I have been fortunate enough to have worked with businesses where the market opportunity was substantial, but realizing that opportunity required aligning commercial execution, operational discipline, organizational capabilities, and capital allocation. I have substantial operating experience scaling new product from incubation to meaningful commercial scale, building first-of-a-kind large-scale process plant, and large-scale renewable assets on a global basis. I share that experience not to suggest that Health In Tech will follow the same trajectory or the timeline, but because I've seen firsthand what becomes possible when a compelling business opportunity is supported by the right strategy, people, execution capabilities, and disciplined capital allocation.

[Sanjay Shrestha, CEO at Health In Tech]

Based on that, my first priority is to be laser-focused on re-accelerating our core business to improve outcome for all stakeholders, which includes our carrier partners, MGUs, brokers, third-party administrator, and more importantly, our clients who are looking for attractive and economical health coverage. I will discuss in more detail our newer initiative that we believe will offer substantial future opportunity. I believe it is important to reiterate that we have an existing core business with meaningful commercial activity and a growing network of distribution partner. We're focused on execution and re-accelerating this business as we look into 2027. Our existing platform and MGU-related solutions support the self-funded medical stop-loss market, including employer across small and large group segments. These offerings provide an established commercial foundation upon which we believe we can expand.

[Sanjay Shrestha, CEO at Health In Tech]

Just to put some numbers in context, as of October 30, 2026, our platform had approximately $150 million in potential annualized revenue associated with quoting activity for policy with anticipated effective dates in November of 2026, December 2026, and January 2027. Approximately 70% of that pipeline was associated with January 1, 2027 anticipated policy effective date, and we expect quoting activity for that period to continue developing. I want to emphasize that this pipeline represents potential business opportunities, not contracted or recognized revenue. Actual conversion will depend on underwriting, pricing, broker and employer decisions, carrier capacity, and successful policy placement. For me, this creates a clear and immediate execution priority. We need to focus on converting qualified opportunity into bound policies and ultimately recognized revenue. That means working more proactively with brokers, distribution partners, carriers, and MGUs to identify and resolve obstacles that may delay or prevent conversion.

[Sanjay Shrestha, CEO at Health In Tech]

We're placing greater emphasis on active pipeline management, stronger follow-through, improved coordination, and accountability throughout the quoting and placement process. Rather than measuring success simply by the volume of opportunities entering the platform, we need to focus on how effectively those opportunities progress through the commercial process. This includes tracking conversion rates, identifying bottlenecks, strengthening partner engagement, and improving the overall efficiency of underwriting and policy placement. We also see opportunity to better integrate the products and capabilities within our broader ecosystem. Our existing eDIYBS and SMR platform, MGU-related solution, HitRix, and Three-Year Rate Stabilization Program address complementary needs across the self-funded insurance marketplace. Together, they create opportunities to serve a broader range of employers, strengthen partner relationship, and potentially capture additional value throughout the insurance distribution and underwriting process.

[Sanjay Shrestha, CEO at Health In Tech]

Our goal is to make it easier for our partners to conduct business through Health In Tech and to build a marketplace that becomes increasingly valuable as participation and transaction activity grow. This is where I believe disciplined commercial execution can have a meaningful impact on our near-term performance. Priority number two is really focused on commercializing and accelerating our new growth initiatives. As we remain focused on driving our base business, we're equally excited about moving our newer product and strategic initiative from development into commercialization. We believe there are three of those strategic initiatives that have potential to meaningfully expand our addressable market and diversify and complement our future revenue opportunity: our Three-Year Rate Stabilization Program, HitRix, and HITChain. Let me briefly walk you through each of them, the commercial potential, and where we are in the development cycle. Three-Year Rate Stabilization Program.

[Sanjay Shrestha, CEO at Health In Tech]

I want to spend a little bit more time on our Three-Year Rate Stabilization Program because it represents a particularly compelling opportunity and involves a sophisticated structure that requires careful coordination among multiple participants. Traditionally, employers face annual uncertainty, as many of you know, in the healthcare insurance cost. For a self-funded employer, this can create significant challenges in budgeting, financial planning, and managing healthcare expenditures. Our Three-Year Rate Stabilization Program is designed to address that challenge through an innovative structure connecting employers, insurance carriers, capital market participants, financial institutions, trustees, and distribution partners. The objective is pretty straightforward, to provide employers with greater predictability in their healthcare insurance costs over a three-year period. For employers, this program is designed to deliver greater budget certainty and improve visibility into healthcare expenses.

[Sanjay Shrestha, CEO at Health In Tech]

For participating insurance carriers, it offers the opportunity to establish longer-term customer relationships and evaluate insurance exposure over a three-year horizon, subject to defined underwriting parameters and risk management safeguards. For investors, the structure complements notes supported by credit enhancement from a financial institution, with scheduled principal and interest payments governed by the transaction documents. Health In Tech's role is to serve as a technology and administrative platform connecting these participants. We coordinate program administration, documentation, communication, collection, and integration with the financial and insurance underwriting process. Our distribution partners manage employer relationships and coordinate the insurance underwriting process. As you can appreciate, successfully launching a program of this complexity requires precise coordination across insurance underwriting, financial structuring, capital markets execution, regulatory requirements, and technology infrastructure. That complexity also illustrates the importance of disciplined implementation.

[Sanjay Shrestha, CEO at Health In Tech]

We've already secured our client under a medical stop-loss agreement and are working towards the capital market launch. The program financing associated with this initial client remains subject to final structuring and market conditions. Beyond this transaction, we believe there is substantial market interest and opportunity in the program. Importantly, any program financing amount and pipeline value should not be confused with revenue to Health In Tech. Our immediate objective and our goal is to complete the first end-to-end program launch by the end of 2026. A successful initial transaction will establish an important operational and commercial foundation for broader deployment. Looking into 2027, our focus will be on converting qualified pipeline opportunities into contracted programs and expanding adoption through our distribution partners.

[Sanjay Shrestha, CEO at Health In Tech]

While the timing and ultimate conversion of this opportunity will depend on underwriting, contractual, financing, and execution requirements, we believe this program has the potential to become a meaningful new business line for Health In Tech over the next several years. Now, the second initiative under our new product line, HitRix, AI-powered large group insurance marketplace. Our second major initiative is this, an AI-powered platform designed to modernize the quoting, underwriting submission, and placement process for large employer health plans. Today, large group insurance placements remain highly fragmented and manually intensive. Brokers routinely manage substantial volumes of employee census data, historical claim information, plan documents, and supporting underwriting materials across multiple formats and systems. They must prepare submissions for different insurance carriers and MGUs, track responses, compare proposals, and coordinate the placement process. This creates considerable administrative work, inefficiencies, and delays. HitRix is designed to transform that workflow.

[Sanjay Shrestha, CEO at Health In Tech]

Using AI-powered document intelligence, the platform can ingest, extract, normalize, and structure information from files brokers already receive, reducing the need for manual data entry and repetitive formatting. It then enables brokers to manage submissions across multiple carriers and MGUs, track market activity, organize proposals, and compare alternatives within a unified environment. The objective is to allow brokers to spend less time managing documents and spreadsheets and more time advising their clients and growing their business. What makes HitRix particularly compelling is its integration with Health In Tech's broader underwriting and marketplace infrastructure. Rather than functioning simply as a document management or a submission tool, HitRix is designed to connect data processing, market access, analytics, underwriting workflow, and transaction execution. We believe this positions us to address a large existing market where billions of dollars in annual premiums are supported by workflows that remain heavily dependent on manual processes.

[Sanjay Shrestha, CEO at Health In Tech]

Equally important, we're not bringing this product to market without an established distribution foundation. As of September 30, 2026, our ecosystem included 984 brokers, third-party administrator, and agency partner, representing almost 16% year-over-year growth. These are relationships we have invested years in building. As we introduce HitRix, we have an opportunity to offer additional capabilities to partners who already understand our marketplace and business model. We also see an opportunity to deepen our relationship with participating carrier and MGUs, expand market access, and support more efficient policy placement. Over time, as transaction activity increases, HitRix could also generate a growing base of structured underwriting and placement data, supporting future analytics, automation, and AI-enabled capabilities. Our current objective is to launch the minimum viable product in the first quarter of 2027 and progressively expand its capabilities and commercial adoption throughout the year.

[Sanjay Shrestha, CEO at Health In Tech]

Now, let me touch on HITChain, which we believe is transforming healthcare claims administration. This is our major third initiative as our new product launch. HITChain addresses another significant source of inefficiency in the healthcare system, the administrative complexity associated with claims processing, reconciliation, and provider payments. The U.S. healthcare system incurs substantial administrative cost, with industry estimates placing the broader healthcare administration opportunity in the hundreds of billions of dollars annually. We believe blockchain-enabled verification, combined with AI-powered automation, has the potential to significantly improve the speed, transparency, and efficiency of certain claims administration process. HITChain is designed to connect healthcare providers, third-party administrator, employers, and other authorized participants through secure, verifiable data and transaction workflows. For hospitals, clinics, and other healthcare providers, the opportunity is to shorten payment cycles, reduce reconciliation requirements, and improve working capital efficiency.

[Sanjay Shrestha, CEO at Health In Tech]

Our longer-term vision is to reduce certain payment processes that traditionally take weeks to a much shorter settlement period, potentially approaching next-day settlement when the necessary conditions are met. For the TPAs, the platform is intended to automate aspects of claims administration, improving processing efficiency and reduce manual intervention. For employers, HITChain could provide greater transparency into claims activity, more timely access to information, and opportunities to benefit from faster payment arrangements and improved cost management. We believe the combination of AI-driven processing and verifiable transaction infrastructure offers a meaningful opportunity to modernize part of the healthcare payment ecosystem. Our objective is to launch an initial minimum viable product during the second half of 2027. As with our other new initiatives, our focus is on validating the technology, establishing the necessary ecosystem relationship, and creating a clear path towards commercialization.

[Sanjay Shrestha, CEO at Health In Tech]

Taken together, these three initiatives illustrate the breadth of opportunity we see ahead of Health In Tech. The most important point is we're moving from a period primarily focused on building new capabilities towards one increasingly focused on building those capabilities to market and generating measurable commercial results. Finally, my third, and somewhat of an obvious priority, is to strengthening operational discipline and financial performance. This is pretty critical, how we operate the business and allocate capital. We have invested significantly in technology, product development, sales capabilities, and infrastructure. As a result, our operating cost structure reflects the investment we've made to support future growth. Going forward, we need to be increasingly disciplined about where we deploy resources and how we measure the returns on those investments. The question I'll be asking are straightforward: What are we generating the greatest commercial return?

[Sanjay Shrestha, CEO at Health In Tech]

Which initiatives are positioned to contribute most meaningfully to revenue and profitability? Where do we need additional capabilities to accelerate execution? Where can we improve efficiency, simplify processes, or redeploy capital to higher-value opportunities? This is not about cutting our way to growth. It is about building an organization where investment decisions, operating priorities, and financial outcomes are closely aligned. We will also be focused on strengthening our organizational capabilities, improving accountability, and establishing clearer performance metrics across the business. On the financial side, working capital management, cash flow, and capital allocation will remain important priorities. We have seen sequential improvement in operating cash uses from first quarter to the second quarter of 2026, which is encouraging. However, we recognize that continued improvement will require disciplined execution and careful management of our financial resources.

[Sanjay Shrestha, CEO at Health In Tech]

As we commercialize our new products and expand our existing business, we will evaluate the appropriate level of investment, the timing of capital deployment, and the potential return associated with each opportunity. In addition to organic growth, we will evaluate strategic acquisition, investments, and partnership that could complement our technology platform, strengthen our market position, expand our capabilities, and/or accelerate our growth strategy. We will be disciplined in evaluating those opportunities with a focus on strategic fit, execution risk, capital requirements, and long-term shareholder value creation. Our objective is not growth for its own sake. It is to build a business capable of generating sustainable growth, improving profitability, and delivering attractive returns on invested capital. As I look ahead, I am encouraged by the opportunity in front of us, but I am equally focused on the work required to realize them.

[Sanjay Shrestha, CEO at Health In Tech]

Health In Tech established an innovative technology foundation, developed meaningful industry relationship, and invested in several initiatives that we believe address significant market opportunity. The next phase is all about execution. In the near term, that means improving conversion across our existing business, continuing to bring our Three-Year Rate Stabilization Program to market, and maintaining disciplined operational and financial management. As we move into 2027, our priorities will include scaling HitRix, advancing HITChain, expanding our distribution capabilities, and evaluating strategic growth opportunity that can further strengthen the business while simultaneously remaining laser focused on re-accelerating our existing base of business. We will measure our progress not simply by the size of the market we address or the opportunities in our pipeline, but by our ability to convert those opportunity into revenue, operating performance, cash generation, and long-term shareholder value.

[Sanjay Shrestha, CEO at Health In Tech]

I am very excited to work closely with Tim Johnson, our Board, and the entire Health In Tech team as we move into the next chapter. Now, before I turn it over to Julia, let me just kind of talk about what should you all expect for the remainder of 2026 and how are we thinking about 2027. As you saw in our press release, we updated our full year 2026 revenue outlook to approximately $30 million. For the balance of 2026, our focus is really on execution ahead of the renewal and placement cycle. We want to get brokers using the products, expand participation from underwriting partners, work through the opportunities already in front of us, and be better positioned as those policy effective dates come around. As we move into 2027, we believe there is an opportunity for these initiatives to make a more meaningful contribution.

[Sanjay Shrestha, CEO at Health In Tech]

That's our current view, but I also want to put an important qualifier around it. I've been in the CEO role only for a short time here, and this is still an ongoing review. Some of the priorities, sequencing, and capital decision may change as we learn more. I am not presenting a finalized 2027 plan today. What I would like to do is come back to investor with a more detailed discussion of our operating priorities and how we intend to measure progress when we report our full year 2026 results, subject, of course, to completing that review. Look, I think there's a lot to work with here. We have technology that's been built, product that address real problems, and relationship across the self-funded market, but we've got to turn those assets into more consistent commercial results. We've got to do it with the right financial discipline.

[Sanjay Shrestha, CEO at Health In Tech]

That's what I'm focused on. Tim will continue to spend his time on innovation and the longer term direction of the platform, as he just touched on. My job is to connect that vision to the operating decisions that we can move this business forward. I look forward to working with the team and keeping you updated as that work progresses. With that, it's my pleasure to turn it over to Julia.

[Julia Qian, CFO at Health In Tech]

Thank you, Sanjay. Good afternoon, everyone. We believe our reported result in this quarter do not yet reflect the opportunity we are building towards. I want to help bridge the gap by starting with forward-looking metrics that show where the commercial activities on our platform actually stand today, and then talking through what sits underneath of the reported number. Let me begin with our forward revenue visibility. Contracted revenue, which represents revenue that is already contractually committed under active enforced policy, but that has not yet been fully recognized under GAAP accounting principle, that totaled $32.7 million for the first nine months of 2026. Of that, $24.4 million has already been recognized as GAAP revenue through September 30, 2026.

[Julia Qian, CFO at Health In Tech]

Before the enrollment adjustment and the refund liability, and with $6.1 million scheduled to be recognized in fourth quarter and $2.2 million flow into 2027 per GAAP accounting, we have already secured $30.5 million of 2026 revenue, with the remaining $2.2 million providing a visibility as a starting point for 2027. Beyond what is already contract, our pipeline revenue presents policy current in quoting or binding stage, plus policy has been contracted since quarter end, stood at $156.4 million as of October 30, 2026. Those are the quoting policy for the three months only: November this year, December this year, and January next year. Obviously, with January, it's about 70% of our total current pipeline, of which the $2.6 million is already contract in December, and the contract in October, excuse me.

[Julia Qian, CFO at Health In Tech]

The remaining $153.8 million carries an expected conversion rate of 3%-7%, meaning it would generate $9.3 million-$10.7 million revenue just for these three months policies. Our Platform Placed Plan Value, or PPPV, which matches the aggregate contract revenue, contract value of the plans on our platform, including premium, claim fund, and administrative fees, stood at $91.8 million as of September 30. I want to put this number in context. Our sales pipeline grew meaningfully, driven by full completion of onboarding new carrier and entering into the peak season of our sales cycle, for which is December and January effective date policies. The next step is laser focused to drive conversion rate of the pipeline revenue, turns out to the contractual revenue, as Sanjay mentioned.

[Julia Qian, CFO at Health In Tech]

Our distribution channel relies on close collaboration between our internal sales team and our network of the broker partners as we introduce new product and expand our marketplace capability. Make sure our brokers fully understand these solutions and how to bring them to the market become increasingly important. Following the recent launch of HitRix, we are placing great emphasis on internal sales training and broker education to strengthen the collaboration. Our goal is to equip our team to better support brokers throughout the submission and the placement process, helping move more opportunity towards to complete the placement. As we enter the year-end renewal season, we believe this effort, together with the broader carrier participation, will help to improve the conversion rate of our existing pipeline revenue to the contracted business, and ultimately will be the revenue for us to recognize per the GAAP accounting.

[Julia Qian, CFO at Health In Tech]

Our distribution footprint also continues to expand as we invest. We ended the quarter with 984 distribution partners, compared with 849 a year ago. It is approximately a 15.9% year-over-year increase, which tells you the broker TPA and the agency network that bring the business into our platform is continuing to grow, even though this transition period is a little bit slowed. Now, turn to reported GAAP revenue. Total revenue for third quarter was $6.6 million, compared with $8.5 million a year ago. For the first nine months of this year, revenue was $23.4 million, compared with $25.8 million last year. Our SMR fee revenue, which is earned on the per enrolled employee per month basis across our platform, was essentially unchanged year-over-year on the first nine-month basis at $20.04 million, compared with $19.99 million in the prior year period.

[Julia Qian, CFO at Health In Tech]

Our underwriting model revenue, which is our ICE subsidiary, and as a certain other percentage of our carrier premium, declined more sharply to $3.37 million for the first nine months of 2026, compared with $5.83 million a year ago. In other words, our largest revenue line, the enrolled-based SMR fee, held essentially steady year-over-year, even through the carrier transition. The compression in the reported revenue was concentrated in the premium-based ICE fee, rather than the broad weakness across the business. So, the pressure on the reporting revenue reflects timing or recognized the carrier transition that is our view is now substantially behind us. Gross margin for the third quarter was 46.5%, compared with 60.6% a year ago. For the first nine months of 2026 was 49.1%, compared with 65.1% of the prior year.

[Julia Qian, CFO at Health In Tech]

As mentioned last quarter, beginning in January 2026, we introduced a pre-designed self-funded health plan that combine our platform capability with additional services, including plan administration provided by TPA and their vendors. Under this expanded service model, the related TPA and the vendor fees are included in our cost of revenue. As a result, we are now delivering a more comprehensive solution to our customer, but also incurring additional direct service cost, which has contributed to the year-over-year decline in the gross margin. Even so, the underlying economics of the business have not been changed, and we see these as the trade-off as we expand our service offering and make it easier for broker and employee to access a more integrated solution. We believe our gross margin would maintain in the range of 45%-50% in the coming quarters. Move to the operating expenses.

[Julia Qian, CFO at Health In Tech]

Total operating expenses for the third quarter were $11.5 million, compared with $4.7 million a year ago. This point, which is $6.8 million year-over-year increase, was mainly driven by a provision charge of $5.3 million and the higher sales and marketing expenditure of $1 million, with tech development expenses up $0.7 million, partially offset by the saving of the G&A reduction of $0.3 million. Starting with sales and marketing. Sales and marketing expenses were $2.1 million for the quarter, compared with $1 million a year ago. The increase is mainly entirely the variable basis, the nature. The larger driver is tied to our expanding distribution channels through the third-party agencies, which are variable-based payout. The fixed component of the sales and the marketing expenditure remains disciplined, consistent, mainly flat. The part of the increase is mainly going to the variable base of the agency fee.

[Julia Qian, CFO at Health In Tech]

General and administrative expenses were $3.1 million for the quarter, compared with $3.5 million a year ago, and $10.1 million for the first nine months of 2026, compared with $10.5 million year prior year. For the both quarter and the nine-month period, G&A actually come in slightly below last year, which reflect the disciplined cost management across our corporate function. With the mix of operating division, expenses decreased year-over-year as a result of the workforce optimizations initiative we have been implementing, partially offset by the higher division cost because of stock-based compensation. Taken all together, this demonstrate our commitment to manage our cost base. We will continue to invest what is matters for us for the long term. Now, the provision for the credit loss was $5.3 million. This is very substantial. That's why you can look at the total expenses increase.

[Julia Qian, CFO at Health In Tech]

For this quarter, $5.3 million, and $6.1 million for the first nine months. Compared to the last year, which is nil, that's mainly the part of the increase. These present the single biggest drivers. I want to talk about these a little bit more in the detail. The provision reflects the management's updated assessment of the collectability of our current book. So, $2.4 million reflect deferred administration surplus receivable associated with a legacy arrangement, which we took full allowance. $1.9 million of the bad debt expenditure related to accounts receivable connecting to the carrier transition reconciliation still in progressing, and $0.9 million related to the loan receivable write-off. As we take a priority for focus on the U.S. market, we are no longer to focus on the overseas. With this limitation, we are taking this charge.

[Julia Qian, CFO at Health In Tech]

As we look at the future, this is the right discipline for us to head into the leadership transition and the fresh strategy plan. Research and development expenses were $0.9 million compared with $0.2 million a year ago. This increase is a classification shift rather than a step-up in overall technology investment. If you look at our total technology spend, meaning expenditure of R&D plus capitalization of the software development together, the total is broadly consistent year-over-year. What changed is where it sits on the financial statement, whether it is balance sheet or the P&L. Our development activity during 2026 has been weighted more towards gathering business requirements, identifying features, and evaluating alternatives as we scope our next-generation platform and AI-empowered capability. Under GAAP accounting, these early-stage planning and evaluations do not meet the criteria for capitalization, and instead flow through the income statement as R&D expenses.

[Julia Qian, CFO at Health In Tech]

The increase on R&D line reflects where the development cycle, not an overall increase in the total technology spend. That brings me to the profitability, adjusted EBITDA. For the quarter, it was -$3.9 million compared with +$1 million a year ago. For the first nine months of 2026, it was -$6.6 million compared with +$3.8 million in the prior year period. Net loss for the quarter was $7.1 million, which included $5.3 million one-time credit provision, as I just talked through. That means $0.11 per basic and diluted share, compared with net income of $0.5 million, or $0.01 per diluted share in the prior year quarter.

[Julia Qian, CFO at Health In Tech]

For the first nine months, the net loss was $11.2 million, which included $6.1 million of the one-time credit loss provision, or $0.18 per basic and diluted share, compared with net income of $1.6 million, or $0.03 per diluted share in the prior year period. Excluding the one-time provision, the remaining year-over-year decline reflects lower revenue due to the timing of the policy effect when we have the carrier transitioning. The plan administration service cost tied to our new self-funded plan administration service launched in January this year, and our continued investment in the sales, marketing, and distribution. All the investment we have made in the last year will support the long-term growth, and the financing-related charge tied to these capital raise were completed. We are completing in this quarter. Turning to cash flow, our operating cash flow has improved every single quarter this year.

[Julia Qian, CFO at Health In Tech]

We had a -$3.3 million operating cash in the first quarter, then -$2.9 million in the second quarter, and then the -$1 million in the third quarter. As we continue to improve the operating cash flow burn quarter-by-quarter, representing approximately 68% reduction from the first quarter to the third quarter. The sequential improvement in the third quarter was driven by actual collection of the accounts receivable, improvement of accounts receivable. In fact, accounts payable pay down through the third quarter, also genuine working capital improvement, not a cash preservation story. For the first nine months of 2026 as a whole, operating cash burn was $7.3 million. We expected a further improvement in operating cash flow as we commercialize the new service and the product in 2027.

[Julia Qian, CFO at Health In Tech]

We invested $1.8 million in software development during the first nine months of 2026, reflecting our continued commitment in the platform investment. Turning to the balance sheet, we ended the quarter with $10.1 million in cash and cash equivalent, compared with $7.7 million at the end of 2025, after absorbing the $7.3 million operating cash use and $1.8 million of the software investment through the first nine months. Our cash position is approximately $2.5 million higher today than it was entering the beginning of the year. The headline message is that we built the capital base we need, and we are entering 2027 from a stronger balance sheet position than we entered 2026, with multiple new products that has completed major development and is targeted to be commercialized in 2027. We are confident that 2027 will be very different year.

[Julia Qian, CFO at Health In Tech]

To close, this was a transitional quarter and a transitional year, and the reported number reflects the three things happened at the same time. The carrier timing dynamics we described the last quarter and the last call, a business mix shift that compressed gross margin without changing the underlying economics, and the balance sheet we continuously monitor very close. Our distribution network expanded by approximately 15.9%. Our operating cash flow continuously improved by approximately 68% from the first quarter to the third quarter of the year. Our cash position entered the quarter higher than it was the starting of the year. We built the balance sheet capabilities to support our continued execution.

[Julia Qian, CFO at Health In Tech]

As Sanjay mentioned, we are completing a comprehensive review of 2027 under his leadership, and we expect to come back to the market at next quarter earnings call to provide a more detailed view of what 2027 will look for Health In Tech. With that, I now turn the call back to Sanjay.

[Sanjay Shrestha, CEO at Health In Tech]

Thank you, Julia. Before we open it up for Q&A, I just want to emphasize that we're not satisfied with weaker revenue and higher expenses. We believe in the opportunity ahead of us, but the responsibility to turn that opportunity into result is ours. We know the market will measure us by the progress we deliver in the coming quarters. We welcome that, and we look forward to updating you with our results. With that, let's turn it to the operator to start Q&A.

[Operator]

Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star and then two. At this time, we will pause momentarily to assemble the roster. The first question will come from Allen Klee with Maxim Group. Please go ahead.

[Allen Klee, Analyst at Maxim Group]

Oh, hi. I just want to understand a little about the revenue being down year-over-year. I understand that some of your initiatives got pushed out, but in the core small market, how much of it is due to, would you say, just that your carrier was not available, or is there a change in the competitive environment or something to do with execution? Just a little more color on that would be helpful. Thank you.

[Julia Qian, CFO at Health In Tech]

Allen, I can take these questions. Julia, CFO of the company. Thank you. It is a great question. We adding on a new carrier this year, which result in a temporary delay of the implementing, onboarding them, because partially a lot of the setting up in the system, the new carrier need to come see, that really slow down, temporary slow down the intake of the business, including convert the business from the quote to the contractual revenue. As you can see, the pipeline, we have very substantial pipeline building up. It is really, to us, it is really the timing. Once we are on course, when the new carrier come on, there will be the transition period, adding on all the service vendor, take a much longer time than we anticipate.

[Julia Qian, CFO at Health In Tech]

In the simple words is, there is certain period time the sales is very, very slow because a lot of things system should take care of it. We have to do additional manual process to make sure compensate the slowing implementation of adding on the carrier, putting on the system. Now with this substantially completed, we should look at this come back to the expected trajectory of being processing through the system by our normal speed.

[Allen Klee, Analyst at Maxim Group]

Thank you. Okay. This provision for credit losses, I think I just need to understand this a little bit. Your accounts receivable as of the end of June 2026 was $8.5 million, and you took a write-down of $5.3 million, so over half of your receivables. What about it? Explain it again of why it was so big, and then is there any reason, why is it going to change that we don't have to worry about this in the future? Also, just, I don't know if it's due to taxes or what, but if I look at your add-backs in adjusted EBITDA, you're adding back lower amount than the $5.3 million, and why is that? Thank you.

[Julia Qian, CFO at Health In Tech]

Thank you. When we look at the provision of the accounts receivable, we really took down a few things. It is the provision, total is $2.5 million, which including of the provision of the surplus admin and the receivables. So surplus admin is about $1.9 million. The rest is the receivables. The receivable is aging-based. As I mentioned, because of the adding on the new carrier and the old carrier pays a little bit slower, when we're looking at the massive reconciliation need to happen before the policy year end. So the aging's getting longer. From around the GAAP accounting, very prudent perspective, we take that provision. Also, the surplus admin cost is the same thing. We are taking provision. So total is $2.5 million. Then the other is the provision for the loan receivables. Roughly, it's about $800,000, more than $800,000 we also took as provisions.

[Julia Qian, CFO at Health In Tech]

That was the arrangement we had before the company went public, and we also disclosed with various documentation on the 10-K and 10-Q. When we looking at that was advance to the agency help us to do the oversea market development, particularly in London and U.K. Given the market dynamic condition and the economic change, and we want to focus on our operations in the U.S. So instead of the advance being a loan, we decided not pursue the opportunity despite there are opportunity being introduced. So we choose take that as a write-off. So total, the one-time write-off together is about $3.5 million.

[Allen Klee, Analyst at Maxim Group]

Okay. You know what? Some of these, my questions are minutiae, but for your Three-Year Rate Stabilization Program, is there a way to think on average how much higher premium rate someone would pay than if they just did a one-year policy?

[Sanjay Shrestha, CEO at Health In Tech]

Yeah. Let me jump in on that, right? Would love to come and talk to you about that in a little bit more detail when we report our Q4 numbers. Because as we touched on the call, we are literally knee-deep, if you would, right now. We already have a customer. We are working with a placement agent. Given that we are in the midst of all that, give us at least a quarter here, and we will be happy to share with you a lot more detail once we actually are able to get one of these products launched in the market with the bond investors.

[Allen Klee, Analyst at Maxim Group]

Okay. Maybe one other question.

[Sanjay Shrestha, CEO at Health In Tech]

Please.

[Allen Klee, Analyst at Maxim Group]

When you are with the new initiatives of the three you mentioned, do you think that business can be added with them throughout the year, or do you think it is going to be much more weighted on kind of enrollment seasons of later in the year?

[Sanjay Shrestha, CEO at Health In Tech]

As I mentioned, we are really going through a deep dive of putting together our plan for 2027 right now. We will obviously give you a lot more details when we report our Q4 numbers. Just on a high level, as we touched on the call earlier, HitRix is really probably Q2 opportunity at the earliest and has had some contribution and new customer. HITChain, I think it is really a second half 2027 opportunity. That is the kind of the cadence you should think about based on what we see right now. As we go through more deeper, we will be more than happy to update you and keep you apprised of how things are unfolding. As it relates to three-year paper, one of our goal is to hopefully place the first product in the market before the year is over.

[Sanjay Shrestha, CEO at Health In Tech]

Look, we're heading into Thanksgiving, fully aware of the fact that then comes Christmas, so the market needs to stay open. Plus or minus a month can always be a factor in things like this, but that's really how we're thinking about it. One thing I do want to emphasize here, though, right? I mean, these are things that are obviously going to re-energize the business, help with the re-acceleration of the growth. But our primary focus, frankly, is to really how you get our base business back growing, given the pipeline we have. We're spending a lot of time really thinking through how do you improve the conversion rate, how do you really grow that base business meaningfully as we go into 2027. But again, give us one more quarter, and we can articulate some more specific on that.

[Allen Klee, Analyst at Maxim Group]

Okay. Thank you so much.

[Sanjay Shrestha, CEO at Health In Tech]

Thank you.

[Operator]

The next question will come from George Sutton with Craig-Hallum. Please go ahead.

[Sanjay Shrestha, CEO at Health In Tech]

Hi, George.

[George Sutton, Analyst at Craig-Hallum]

Thank you. Welcome to Sanjay.

[Sanjay Shrestha, CEO at Health In Tech]

Thank you, sir.

[George Sutton, Analyst at Craig-Hallum]

I've got a thousand questions, but I'm going to limit it to three. First, on the three-year lock product, can you just give us an update on the financing structure? Is that set yet? Are you still working through that? And when would we expect to have a full financing structure in place?

[Sanjay Shrestha, CEO at Health In Tech]

You want to take that one, Julia, first?

[Julia Qian, CFO at Health In Tech]

Yeah. George, I can take that one. I think for the three-year product, as we shared, we have the first con. There's two parts. One year is medical insurance, which is already completed. In terms, turn to the notes on the capital market, it's been progressing. Probably the end of the year, we are thinking, it could be improved months or slip over the months because it's heading the holiday season. It's kind of very hard to predict. You have to think about this as a bundled solution in terms of insurance plus capital market. Insurance part is already done, and the capital market is being progressing. We already substantially complete the insurance part. However, for the official launch, the capital markets need to be done, then we can announce official launch.

[Julia Qian, CFO at Health In Tech]

That's why we are laser focused to push that product forward with very substantial pipelines about the three year. We want to make sure that's get done right.

[Sanjay Shrestha, CEO at Health In Tech]

Yeah—

[George Sutton, Analyst at Craig-Hallum]

Okay. Then, relative to HitRix—

[Sanjay Shrestha, CEO at Health In Tech]

Let me just add one more thing to that, as Julia said, right? I mean, what we're trying to optimize here is not the speed, because this is a very innovative product. It has such a big benefit to the employer, right, to carrier, and a new product coming in the market with a good rating, right? So, we just want to make sure that the first placement is done right. So that when we are actually launching even a larger, bigger product and opportunity in 2027, hopefully it becomes a little bit of a rinse-and-repeat kind of an approach. So if first one takes a little longer, our approach right now is we got to make sure that this gets done absolutely the right way. But it's relatively speaking, it's a complex product, right? Hasn't been done before.

[Sanjay Shrestha, CEO at Health In Tech]

That's really why we're taking probably even a little bit more time and prioritizing better execution rather than just speed.

[George Sutton, Analyst at Craig-Hallum]

Understand. So, relative to HitRix, do you have an A-rated carrier that is providing a backstop on this yet?

[Sanjay Shrestha, CEO at Health In Tech]

I can take that one too. Tim, please add if I miss anything here.

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

Sure.

[Sanjay Shrestha, CEO at Health In Tech]

We are actively working on that, George, as you can imagine. Since I am now three weeks into the job, I would not want to give you the exact timeline of when we think we are going to get that done. But rest assured, that is absolutely in the top three priority of what we want to accomplish here. Just to give you another sense, we are also trying to continue to grow our base business with or without even the A-rated carrier, if you would. We are also trying to be very mindful of that. There is a lot of volume of business to be done. But look, getting an A-rated carrier is obviously a very big focus for us. Not just for HitRix, even to grow our large-scale business, even on our core business side.

[Sanjay Shrestha, CEO at Health In Tech]

I am dying to give you a timeline, but give us a month or so here, and we are really working very diligently on making sure that this gets done the right way. Because I know we have talked about this many times before, and the last thing I want to do on my first earnings call as the CEO of the company is give you a timeline and not meet that. But this is really a very top priority for us at this point in time. Did I miss anything

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

George, I have to. George, I have to think about it that we are agnostic to the carriers because this is a complete transformation as to how brokers work with them. We will send and initiate new submission processes with any carrier. It is the carrier that the broker chooses. So, the process that we use, that is what makes it so unique and special about it. We do not care which carrier they want to work with. We just improve the process and the entire timeline with which they can get it to the market, get the proposal back, compare it, and sell it. It is 100% automated.

[George Sutton, Analyst at Craig-Hallum]

Understand. Okay. Final question. Relative to the pipeline revenue. I like that Sanjay is coming in from the outside because an insider like Tim and Julia says, "Historically, we've had a 3%-7% conversion rate." I would hope Sanjay comes in and says, "Well, that means we're not converting 93%-97%." How do we have a dramatic change to that number?

[Sanjay Shrestha, CEO at Health In Tech]

George, let me maybe jump in here. It's interesting you bring that up. As a matter of fact, I just had a call about that yesterday. Clearly, we need to improve our conversion rate. It used to be a bigger number, even not too long ago. And couldn't agree more with you, but I'm not prepared to commit to a number itself right now in terms of what the target is going to be. But we hear you loud and clear, and that's why I touched on from a three-priority perspective. Priority one is really how do you get that base business back on growth path in a meaningful way, given the pipeline? It's all about converting the bigger chunk of that pipeline into revenue, and that's going to really put us in a pretty good spot. That's really focus number one, frankly.

[Sanjay Shrestha, CEO at Health In Tech]

I agree with you, but before I give you a number, as I said, really going through a deep dive on everything here, what's working. Again, we have a great platform. We have a great opportunity set ahead of us. We just got to do a lot of blocking and tackling to really get 2027 to be substantially better than the transition year we've had here in 2026.

[George Sutton, Analyst at Craig-Hallum]

Can I just quickly ask Tim, using those historical 3%-7% rates, with the improvement in the technology, I assume there's room to meaningfully improve that over time. Is that a fair assessment, or is there something structural that maybe I'm missing in that equation?

[Tim Johnson, Founder and Executive Chairman at Health In Tech]

No, we need to take a more active approach at looking at everything in the system. The way I look at it, George, is the way I think I've explained it before is, it is a system. Should we have more sales based upon the volume coming in? Sure. The 3% and 7%, I used to complain to everybody about how low that was because that's the rest of the market. What we're doing is making it way more convenient to make the sales happen. Since they're not happening, we have to get more aggressive with our brokers. Why are they not happening? We need to start better communication with them to make sure that we can get that number up there.

[George Sutton, Analyst at Craig-Hallum]

All right. Perfect. Thanks, guys.

[Operator]

Thanks, George. The next question will come from Marla Marin with Zacks. Please go ahead.

[Marla Marin, Analyst at Zacks]

Thank you. Following up on some of the conversation in the Q&A, you talked about the goal is to convert a greater amount of opportunities into pipeline, and then from pipeline into contracted revenue. I think a couple of the things you cited as ways you intend to do that is greater interaction with some of your distribution partners and brokers, and deepening relationships with them. Do you think that you have an adequate in-house team at the moment in order to accomplish that, or should we expect to see continued or some uptake in investment and expanding the personnel.

[Sanjay Shrestha, CEO at Health In Tech]

Tim, I'll start, and please add if I miss anything. Thank you for that question. Look, we're going through strategic evaluation of everything. But as I sit here today, and based on what I see, I think we've got some excellent folks in our organization that really know what they're doing. I think we've had the year where there's been so many things that actually kind of, frankly, didn't play out as we had anticipated. As we sit here right now, could we add more sales team if that actually is going to generate more revenue? Sure. That is a great return on our invested capital, right? But I don't think it is a wholesale change, if you would, in terms of what we need to do.

[Sanjay Shrestha, CEO at Health In Tech]

It's really more about getting more organized, tracking things, making sure things are closing on time, and frankly, pushing everybody, including myself and all the executive team, not just the people that are in the sales department or the underwriting department, or managing the third-party administrator. It's really the entire team effort where we're going to really continue to push hard. But I really don't think at this point in time we need to do any kind of a wholesale change, if you would. If we add a few more additional bodies that are going to be calling a lot more brokers and things like that, we will certainly evaluate that. As a matter of fact, we're literally in the midst of evaluating some of those proposals and plans, how much that would help. Is that something we need to do? When do we do that?

[Sanjay Shrestha, CEO at Health In Tech]

But again, it's not a wholesale change. It's probably more of a tweak and few additional adds, if that's what it takes for us to really be able to deliver on that.

[Marla Marin, Analyst at Zacks]

Okay.

[Julia Qian, CFO at Health In Tech]

Yeah. Just one thing, I know one thing. I think this year, 2026, we have built a lot of functionality and change in the system. Tim mentioned, the factors average is 3%-7% closing ratio. With the system should be doing much better, like we did before. It is just a function of the training of the broker, training of the users, right? Once you have system push out, you also need to have people to really know what to use, how to use that. That is always a little bit of curve. So, the combination of the focus and the salespeople to get there, to communicate to the broker, to improve the training, and just blocking and tackling. Those are the discipline, the execution, rather than adding more people. It is more discipline.

[Sanjay Shrestha, CEO at Health In Tech]

Yeah, absolutely.

[Marla Marin, Analyst at Zacks]

Okay.

[Sanjay Shrestha, CEO at Health In Tech]

Hope that answers your question.

[Marla Marin, Analyst at Zacks]

Yes, very comprehensive answer. Thank you. I appreciate it. I am switching topics here. Sanjay, you have mentioned in your prepared remarks and in the Q&A that you have been in your current role now for all of 20+ days.

[Sanjay Shrestha, CEO at Health In Tech]

That's right.

[Marla Marin, Analyst at Zacks]

Yeah, a lot going on. You also mentioned, or the company mentioned in the prepared remarks that there is, in addition to organic initiatives, a potential opportunity for some strategic M&A to complement organic growth. But there's an awful lot going on right now in terms of focusing on executing against the existing opportunities.

[Sanjay Shrestha, CEO at Health In Tech]

Yeah.

[Marla Marin, Analyst at Zacks]

I'm just wondering if you have to give us a sense of, is there already a bit of a pipeline of potential M&A opportunities? Are there early conversations at this point, or are we talking about something further down the road?

[Sanjay Shrestha, CEO at Health In Tech]

It depends, is how I'm going to respond to that probably, right? But look, if a really compelling opportunity comes along, we will obviously evaluate that. But is that a part of my 30, 60, or a 90-day plan to immediately move on that? Probably not. For the next 90 days, it's really hunker down, focus on driving the core business, focus on ideally positioning all of our new initiatives, really spend a lot of time getting our three-year product launch, right? But look, I think given the lack of, frankly, disruption in the broader healthcare insurance space, if there are opportunity that comes our way that makes a lot of sense, then we will certainly evaluate that. But at this point in time, that's why I said it depends, right?

[Sanjay Shrestha, CEO at Health In Tech]

If a compelling opportunity comes along, we'll certainly entertain, but we're not necessarily going out and saying, "Hey, gee, let's go see who we can buy here in the next 60 days.

[Marla Marin, Analyst at Zacks]

Okay. Great. Thanks. My last question is a housekeeping one. I completely understand your reluctance to give us any kind of, to commit to any kind of timing or cadence for 2027 or revenue outlook. That makes total sense. But given that we're talking about really bringing some of these initiatives to market in 2027, are you confident at this point that you will be in a position to meet what is generally the industry sales cycle in time in order to really benefit from some of the initiatives in 2027?

[Sanjay Shrestha, CEO at Health In Tech]

Well, that's the goal, right? I think the goal is to obviously get back on the growth track. The only thing that we just want to make sure when we articulate what that is going to be, that we're really spending a bit more time and digging a little deeper, if you would. We're already doing that. What I've seen so far, as you know, I used to be on the Board. I am familiar with all the great things that the company's done. I served as an advisor as well. Now coming in as a CEO of the company and really focusing on a day-to-day, there's a lot of great things here, right? It's really more about blocking and tackling, getting the base business back on track and growth, all these new initiatives. So the goal is to get on the growth.

[Sanjay Shrestha, CEO at Health In Tech]

The question really that we're trying to dissect here is, what is that rate of growth that is going to allow us to really get to that path of profitability, EBITDA positive, the whole nine yards? But that's why I'm really hesitating to sort of pin down the number or even give you a range. So given, I think, a bit of a transitional year that we've gone through, but the goal is to obviously get back on the growth track in 2027 is the best I can give you at this point in time.

[Marla Marin, Analyst at Zacks]

Okay. Thanks very much.

[Sanjay Shrestha, CEO at Health In Tech]

Thank you.

[Operator]

Thank you. Seeing no more questions in the queue, let me turn the call back to Lori Babcock for the closing statement.

[Lori Babcock, Chief of Staff at Health In Tech]

Thank you all again for joining us today. This concludes the call. You may disconnect.

Participants

Executives

• Lori Babcock, Chief of Staff
• Tim Johnson, Founder and Executive Chairman
• Sanjay Shrestha, CEO
• Julia Qian, CFO

Analysts

• Allen Klee, Analyst at Maxim Group
• George Sutton, Analyst at Craig-Hallum
• Marla Marin, Analyst at Zacks