Health In Tech, Inc.

What they do

Health In Tech operates a digital marketplace where insurance carriers list stop-loss policies and brokers can obtain bindable quotes, often within two minutes for small employers (10-100 employees) and about two weeks for larger groups. The company offers customizable self-funded benefits plan design, medical underwriting, and administrative services through its wholly-owned subsidiaries: Stone Mountain Risk (SMR) as a program manager, International Captive Exchange (ICE) as a managing general underwriter, and HI Card as an optional add-on payment card service.

Revenue drivers

• Stone Mountain Risk (SMR) program services — Generates service fees, primarily on a per enrolled employee per month (PEPM) basis, for designing and managing self-funded health plans. Accounted for 79.4% of total revenue in 2025.
• International Captive Exchange (ICE) MGU activities — Earns underwriting and administrative fees from stop-loss carriers, including use of the eDIYBS quoting platform. Contributed 20.6% of total revenue in 2025.
• HI Card platform — Optional add-on service, but currently generates negligible revenue (0.0% in 2025); not offered on a standalone basis.

Recent performance

For the first half of 2026, total revenue was $16.8 million, down approximately 3% from $17.3 million in the same period of 2025, primarily due to onboarding a new stop-loss carrier that delayed sales. Q2 2026 revenue was $8.1 million vs. $9.3 million in Q2 2025, with a net loss of $2.5 million ($(0.04) per diluted share) compared to net income of $0.6 million in Q2 2025. Full-year 2025 revenue was $33.3 million with net income of $1.3 million, up from $19.5 million revenue and $0.7 million net income in 2024. As of June 30, 2026, the company had $6.5 million in cash, total assets of $29.6 million, and shareholder equity of $19.6 million.

Strategy

Management is focusing on expanding the distribution network of brokers, TPAs, and agencies, which grew 19.9% year over year to 933 partners as of June 30, 2026. The company is investing in sales, marketing, and product development, including the upcoming launch of HitRix, a next-generation marketplace platform, scheduled for the second half of 2026. It also secured its first employer group for the Three-Year Rate Stabilization Program, designed to offer multi-year stop-loss pricing predictability, with an anticipated launch in capital markets. Additional priorities include onboarding new insurance carriers to offer more product options and monetizing its technology through new products and enhancements.

Risks

• Dependence on intermediaries — Substantially all revenue is derived through brokers, TPAs, and third-party agents; failing to retain or expand this network could materially harm business and revenue.
• Carrier transition disruptions — Onboarding new stop-loss insurance carriers can cause sales delays and timing shifts in revenue recognition, as seen in the first half of 2026.
• Regulatory and compliance burden — The company faces complex, evolving state and federal regulations for insurance products and services; failure to meet regulatory or performance standards could result in products being removed from the platform, severely impacting revenue.
• Underwriting accuracy and conversions — Inaccurate actuarial reviews or underwriting adjustments could raise health plan costs and hurt the reputation of the eDIYBS platform, while pipeline conversion rates are estimated at only 15% to 40%.

Outlook

Management reaffirmed full-year 2026 revenue guidance of $45 million to $50 million, supported by contracted revenue of $32.3 million as of June 30, 2026, and pipeline revenue of $66.3 million as of July 31, 2026. The company expects the carrier transition to be substantially complete by September 2026 and business volume to recover in Q3 2026. Management also expects to launch HitRix in the second half of 2026 and continues development of the Three-Year Rate Stabilization Program, with governmental organizations evaluating participation.