Health In Tech, Inc. Class A ((HIT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Health In Tech, Inc. Class A’s recent earnings call painted a promising picture of the company’s trajectory, underscored by robust revenue growth and strategic expansions. The sentiment was overwhelmingly positive, with the company’s achievements in revenue and distribution network expansion taking center stage. Despite challenges such as market uncertainties and high administrative costs, Health In Tech’s strategic initiatives and future programs are poised to drive further growth and efficiency.
Strong Revenue Growth
Health In Tech reported a remarkable revenue increase, reaching $8.5 million for the quarter, which marks a 90% year-over-year growth. The nine-month revenue totaled $25.8 million, surpassing the full year 2024 revenue of $19.5 million. This substantial growth underscores the company’s successful strategies and market penetration.
Expansion of Distribution Network
The company significantly expanded its distribution network, with the number of brokers, TPAs, and agencies growing to 849 partners, a 57% increase year-over-year. This expansion has facilitated greater adoption of the eDIYBS platform, enhancing the company’s market reach and influence.
Launch of Large Employer Underwriting Capability
Health In Tech completed beta testing and launched a large employer underwriting capability on its enhanced eDIYBS platform. This new feature allows brokers to generate bindable quotes in just two weeks for groups of 150 or more employees, streamlining the underwriting process and improving service delivery.
Adjusted EBITDA Growth
The company’s adjusted EBITDA for the quarter was $1 million, reflecting a 49% year-over-year increase. For the first nine months, adjusted EBITDA reached $3.8 million, which is 167% of the full year 2024 total, indicating strong operational efficiency and profitability.
3-Year Rate Hold Program
Health In Tech is testing a new program offering a three-year rate hold, aimed at providing predictable and stable pricing for employers with 150+ employees. This initiative is expected to launch in Q1 2026, offering a competitive edge in pricing stability.
HITChain Blockchain Initiative
The company announced a nonbinding letter of intent with AlphaTON Capital Corp. to co-develop HITChain, a blockchain-enabled platform designed to enhance claims processing efficiency and transparency. This initiative highlights Health In Tech’s commitment to innovation and technological advancement.
InsurTech Summit at Davos
Health In Tech will host the InsurTech Summit at Davos during the World Economic Forum week in January 2026. This event is set to enhance the company’s visibility and influence within the industry, positioning it as a thought leader in InsurTech.
Market Uncertainty and Timing Shifts
The company acknowledged challenges posed by rising healthcare costs and market uncertainties, which have led to mixed timing patterns. Some employers are delaying decision-making into January, impacting Q4 sales volumes.
High Administrative Costs
General and administrative expenses were reported at $3.5 million, reflecting the high costs associated with being a public company, including D&O insurance and investor relations. These costs are a significant consideration in the company’s financial planning.
Forward-Looking Guidance
Looking ahead, Health In Tech anticipates a robust 70% year-over-year revenue growth for the full year of 2025, projecting revenues to reach $32-33 million. The company is also focused on expanding its distribution network and enhancing its technological capabilities, including the launch of the HITChain platform.
In conclusion, Health In Tech’s earnings call highlighted a positive outlook, driven by strong revenue growth, strategic expansions, and innovative initiatives. Despite facing challenges such as market uncertainties and administrative costs, the company’s forward-looking strategies and programs are set to sustain its growth momentum and operational efficiency.