Health In Tech, Inc. (HIT): Results of Operations and Financial Condition
Health In Tech, Inc. (HIT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Health In Tech Reports Second Quarter 2026 Financial Results 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, FL., August 13, 2026 /PRNewswire/ — Heal
How this was made
The 30-second read
Why it matters
The filing updates investors on revenue trajectory, profitability, and forward revenue visibility via contracted revenue and pipeline revenue, while reaffirming full-year 2026 revenue guidance. It also provides quantified expectations for GAAP revenue recognition from pipeline quoting/binding status based on a stated conversion range.
Market read
Traders can use the new contracted and pipeline revenue metrics, the quantified GAAP recognition ranges, and the reaffirmed $45M to $50M 2026 guidance to reassess near-term risk/reward and positioning ahead of subsequent quarters.
What to watch
The text emphasizes conversion assumptions (15% to 40%) and GAAP recognition deferral from contracted revenue; traders should model sensitivity to conversion and the split between second-half 2026 and 2027 GAAP revenue recognition.
Health In Tech Reports Second Quarter 2026 Financial Results 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
Q2 revenue, gross profit, net income and Adjusted EBITDA were below the prior-year quarter, while the company reported growth in distribution partners, $32.3 million of Contracted Revenue, $66.3 million of Pipeline Revenue, and reaffirmed full-year revenue guidance of $45 million to $50 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $ 8,056,620 | – | – |
| Revenues from underwriting modeling (ICE)GAAP | $ 1,272,647 | – | – |
| Revenues from fees (SMR)GAAP | $ 6,783,973 | – | – |
| Cost of revenuesGAAP | $ 4,134,127 | – | – |
| Gross profitGAAP | $ 3,922,493 | – | – |
| Sales and marketing expensesGAAP | $ 2,215,889 | – | – |
| General and administrative expensesGAAP | $ 4,269,094 | – | – |
| Research and development expensesGAAP | $ 875,811 | – | – |
| Total operating expensesGAAP | $ 7,360,794 | – | – |
| Total other income, netGAAP | $ 117,227 | – | – |
| (Loss) income before income tax expenseGAAP | $ (3,321,074 ) | – | – |
| Income tax benefit (expense)GAAP | $ 809,888 | – | – |
| Net (loss) incomeGAAP | $ (2,511,186 ) | – | – |
| Net (loss) income attributable to common stockholdersGAAP | $ (2,511,024 ) | – | – |
| Net (loss) income per share, basicGAAP | $ (0.04 ) | – | – |
| Net (loss) income per share, dilutedGAAP | $ (0.04 ) | – | – |
| Weighted average common shares outstanding, basicGAAP | 62,829,725 | – | – |
| Weighted average common shares outstanding, dilutedGAAP | 62,829,725 | – | – |
| Adjusted EBITDAnon-GAAP | $ (1,333,077 ) | – | – |
| First-half total revenuesGAAP | $ 16,828,266 | – | – |
| First-half gross profitGAAP | $ 8,431,892 | – | – |
| First-half net (loss) income attributable to common stockholdersGAAP | $ (4,099,305 ) | – | – |
| First-half diluted net (loss) income per shareGAAP | $ (0.07 ) | – | – |
| First-half Adjusted EBITDAnon-GAAP | $ (2,621,592 ) | – | – |
| Contracted Revenueother | $32.3 million | – | – |
| Pipeline Revenueother | $66.3 million | – | – |
| Platform Placed Plan Value (PPPV)other | $84.0 million | – | – |
| Distribution Partnersother | 933 | – | 19.9% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Revenues from underwriting modeling (ICE)No driver disclosed. | $ 1,272,647 | – | – |
| Revenues from fees (SMR)No driver disclosed. | $ 6,783,973 | – | – |
Full-year 2026 outlook
- Revenue$45 million to $50 million
- NotePipeline Revenue in the quoting or binding stage is expected to generate approximately $9.7 million to $25.8 million of additional Contracted Revenue.
- NoteApproximately $3.1 million to $8.3 million of GAAP revenue is expected to be recognized in 2026.
- NoteAn additional $6.6 million to $17.5 million of GAAP revenue is expected to be recognized in 2027.
- NoteThe estimated conversion rate is 15% to 40%.
- NoteThe Company remains on track to launch HitRix in the second half of 2026.
What drove it
- Distribution Partners, including brokers, third-party administrators and agencies, reached 933 as of June 30, 2026.
- Contracted Revenue totaled $32.3 million for first-half 2026, of which $17.3 million was recognized as GAAP revenue in first-half 2026.
- Pipeline Revenue was $66.3 million as of July 31, 2026, including $1.9 million contracted subsequent to quarter end.
- The company cited investment in sales, marketing, key talent, distribution, technology and product development.
- The company contractually secured its first employer group for the Three-Year Rate Stabilization Program.
- The company expects to launch HitRix in the second half of 2026.
Concerns
- Q2 2026 revenue was $8.1 million, compared with $9.3 million in Q2 2025.
- Cost of revenues was $ 4,134,127, compared with $ 3,003,979 in Q2 2025, while gross profit was $ 3,922,493, compared with $ 6,309,870.
- Sales and marketing, general and administrative, and research and development expenses were all higher than in Q2 2025.
- The company reported net loss of $ (2,511,186 ) and Adjusted EBITDA of $ (1,333,077 ), compared with net income of $ 630,631 and Adjusted EBITDA of $ 1,569,016 in Q2 2025.
- The $64.4 million of Pipeline Revenue in quoting or binding status may not ultimately convert to revenue and carries an expected conversion rate of 15% to 40%.
- Net cash used in operating activities was $ (6,231,567 ) for the six months ended June 30, 2026.
What to watch
- Conversion of the $64.4 million of Pipeline Revenue in quoting or binding status.
- Recognition of the remaining $14.0 million of first-half 2026 Contracted Revenue expected in second-half 2026 and $1.0 million expected in 2027.
- Execution against full-year 2026 revenue guidance of $45 million to $50 million.
- The anticipated HitRix launch in the second half of 2026.
- Additional updates on governmental organizations evaluating participation in the Three-Year Rate Stabilization Program.
- Operating cash flow and the cash and cash equivalents balance of $ 6,514,813 as of June 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $ 6,514,813 as of June 30, 2026, compared with $ 7,669,754 as of December 31, 2025.
- Accounts receivable, net were $ 8,546,307 as of June 30, 2026, compared with $ 756,288 as of December 31, 2025.
- Total assets were $ 29,634,680 as of June 30, 2026, compared with $ 23,089,961 as of December 31, 2025.
- Total liabilities were $ 10,010,308 as of June 30, 2026, compared with $ 5,977,896 as of December 31, 2025.
- Total stockholders’ equity was $ 19,624,372 as of June 30, 2026, compared with $ 17,112,065 as of December 31, 2025.
- Net cash used in operating activities was $ (2,912,320 ) for the three months ended June 30, 2026, compared with $ 1,481,276 provided by operating activities in the prior-year quarter.
- Net cash used in operating activities was $ (6,231,567 ) for the six months ended June 30, 2026, compared with $ 2,008,629 provided by operating activities in the prior-year period.
- Development of software was $ (596,992 ) for the three months ended June 30, 2026, compared with $ (909,897 ) in the prior-year quarter.
- Net cash used in investing activities was $ (596,992 ) for the three months ended June 30, 2026, compared with $ (909,897 ) in the prior-year quarter.
- Net cash used in financing activities was $ (301,083 ) for the three months ended June 30, 2026, compared with $ (8,250 ) in the prior-year quarter.
- Cash and cash equivalents at the end of the period were $ 6,514,813, compared with $ 8,138,166 in the prior-year quarter.
Analysis
Health In Tech reported Q2 2026 revenue of $ 8,056,620, compared with $ 9,313,849 in Q2 2025. Both disclosed revenue lines were lower than the prior-year quarter: revenues from underwriting modeling (ICE) were $ 1,272,647 versus $ 2,090,576, and revenues from fees (SMR) were $ 6,783,973 versus $ 7,223,273. First-half revenue was also lower at $ 16,828,266, compared with $ 17,328,833 in the prior-year period. Distribution Partners reached 933 as of June 30, 2026, an increase of 19.9% year over year.
Profitability weakened materially. Cost of revenues rose to $ 4,134,127 from $ 3,003,979, while gross profit fell to $ 3,922,493 from $ 6,309,870. Total operating expenses increased to $ 7,360,794 from $ 5,584,800, including higher sales and marketing expenses of $ 2,215,889, general and administrative expenses of $ 4,269,094, and research and development expenses of $ 875,811. The company recorded net loss attributable to common stockholders of $ (2,511,024 ), or $ (0.04 ) per diluted share, versus net income attributable to common stockholders of $ 630,631, or $ 0.01 per diluted share. Adjusted EBITDA was $ (1,333,077 ), compared with $ 1,569,016.
Management emphasized future revenue visibility rather than current-period GAAP growth. Contracted Revenue totaled $32.3 million for first-half 2026, with $17.3 million recognized as GAAP revenue in the first half. The company expects the remaining $14.0 million to be recognized as GAAP revenue in second-half 2026 and $1.0 million in 2027. Pipeline Revenue was $66.3 million as of July 31, 2026, but $64.4 million was in quoting or binding status and subject to an expected conversion rate of 15% to 40%. PPPV was $84.0 million as of June 30, 2026, and the release states that PPPV is a platform transaction-volume measure rather than an indication of company revenue or take rate.
Cash flow requires attention alongside investment spending. Net cash used in operating activities was $ (2,912,320 ) in Q2 and $ (6,231,567 ) in the first half, compared with cash provided by operating activities in the corresponding 2025 periods. Cash and cash equivalents were $ 6,514,813 at June 30, 2026, compared with $ 7,669,754 at December 31, 2025. The company cited investment in distribution, technology and product development, announced its first contractually secured employer group for the Three-Year Rate Stabilization Program, and said HitRix remains on track for launch in the second half of 2026.
The company reaffirmed full-year 2026 revenue guidance of $45 million to $50 million. It also stated that quoting and binding pipeline could generate approximately $9.7 million to $25.8 million of additional Contracted Revenue, with approximately $3.1 million to $8.3 million of GAAP revenue expected in 2026 and an additional $6.6 million to $17.5 million expected in 2027. The central issues are pipeline conversion, timing of GAAP revenue recognition, expense discipline, and whether operating cash flow improves as the company pursues its product and distribution initiatives.
Management, verbatim
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.
Tim Johnson, Chief Executive Officer of Health In Tech
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.
Tim Johnson, Chief Executive Officer of Health In Tech
Not in the filing
stated, not guessed- Actual gross margin
- Actual operating income
- Actual free cash flow
- Debt balance
- Share repurchases
- Dividends
- Prior-quarter figures and quarter-over-quarter changes for reported operating metrics
- Percentage changes for the disclosed revenue, expense, profit, income and cash-flow line items
- Guidance for gross margin, operating expenses and tax rate
- Previous-quarter outlook needed to compare reported results with prior guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 reporting unaudited Q2 2026 and first-half 2026 financial results for Health In Tech, plus outlook and product/program updates.
Ticker impact
Health In Tech reports Q2 2026 results, including revenue decline, net loss, and reaffirmed full-year 2026 revenue guidance of $45M to $50M.
Likely modest volatility around the guidance and pipeline conversion outlook, with downside risk if investors focus on GAAP revenue timing and Q2 revenue contraction.
The filing includes multiple new datapoints: Q2 revenue and net loss, contracted and pipeline revenue levels, and a quantified expected GAAP revenue recognition range for 2026-2027 based on stated conversion assumptions. However, it is not a surprise beat/miss narrative with explicit consensus comparisons in the text, so magnitude is uncertain.
Market effects
As an AI-enabled InsurTech platform, HIT’s disclosed pipeline conversion and distribution-partner growth can influence how traders price early-stage insurtech revenue visibility and GAAP timing risk.
No clear regional spillover beyond US-listed small-cap insurtech sentiment.
Limited, as the disclosure is company-specific and not tied to global macro or cross-border regulation in the provided text.
Counterpoint
Investors may overreact to GAAP revenue timing and Q2 contraction, while the larger contracted revenue book and quantified pipeline-to-contracted conversion could support stronger forward GAAP recognition in 2H 2026 and 2027.
Key entities
- companyHealth In Tech, Inc.
AI-enabled InsurTech platform company reporting Q2 2026 results and reaffirming 2026 revenue guidance.
- productHitRix
Next-generation marketplace platform expected to launch in 2H 2026, expanding AI use across the self-funded stop-loss ecosystem.
- programThree-Year Rate Stabilization Program
Employer-focused stop-loss pricing program; company says it secured its first employer group and expects capital-markets launch updates.
