Health In Tech Announces Second Quarter 2025 Financial Results

Revenues of $9.3 million, up 86% YoY; The first-half year revenues of $17.3 million, 89% of full year 2024. Adjusted EBITDA of $1.6 million, up 134% YoY; The first-half year adjusted EBITDA of $2.8 million, 1.2 times full year 2024. Cash balance of $8.1 million. , /PRNewswire/ -- Health In Tech (Nasdaq: HIT), an Insurtech platform company backed by third-party AI technology, today announced its financial results for the second quarter ended June 30, 2025. Financial Highlights for the Second Quarter and First-Half of 2025: Revenues. Total revenues were $9.3 million, up 86% YoY. The first-half year revenues of $17.3 million, 89% of FY2024 total. Billed Enrolled Employees. The number of billed enrolled employees (EEs) was 24,839, an increase of 5,738 EEs YoY. Distribution. The number of Brokers, Third-party Administrator ("TPAs") and Agencies expanded to 778 partners, up 87% YoY. Pre-tax income. Pre-tax income was $0.8 million, more than doubled YoY; The first-half year pre-tax income of $1.5 million, 1.7x of FY2024. Adjusted EBITDA. Adjusted EBITDA was $1.6 million, up 134% YoY; The first-half year adjusted EBITDA of $2.8 million, 1.2x of FY2024. Cash. Cash balance was $8.1 million as of June 30, 2025. Accounts receivable, net. Accounts receivable balance was $1.3 million as of June 30, 2025, reduced $0.2 million YoY. "We delivered another strong quarter of profitable growth, with total revenue reaching $9.3 million—up 86% year over year—and first-half revenues already at 89% of our full-year 2024 total," said Tim Johnson, CEO of Health In Tech. "Our distribution network has expanded to 778 partners—an 87% increase year over year—reflecting our strategic focus on growing beyond traditional broker channels. We've established partnerships with TPAs offering technology-driven solutions, regional healthcare benefit providers, and service platforms that support small businesses. This approach is broadening our market reach and delivering greater value to our customers. The 30% increase in billed enrolled employees and strong adoption across our network underscore the demand for our differentiated services and offering." Mr. Johnson added, "What's particularly exciting is that many of our partners are now using our platform to bundle healthcare insurance with their existing services, enabling them to serve small business employer better by offering integrated, end-to-end solutions. Our AI-powered platform is easy to implement and highly intuitive, making it an ideal tool for partners seeking efficiency and scalability. With a broader distribution footprint and multiple new relationships in place, we're confident in our ability to maintain strong growth momentum through the rest of the year." "We're pleased with our second quarter results, which reflect strong execution and disciplined financial management across the business," said Julia Qian, CFO of Health In Tech. "Q2 revenue reached $9.3 million, bringing first-half revenue to $17.3 million—already 89% of our full-year 2024 total—driven by continued strategic expansion of our distribution network and strong customer acquisition. Adjusted EBITDA for the quarter was $1.6 million, up 134% year over year, with first-half adjusted EBITDA reaching $2.8 million—1.2 times our full-year 2024 result. First-half pretax income represented 8.8% of revenue, a nearly 300 basis point improvement year over year, demonstrating our ability to maintain expense discipline and allocate resources effectively to drive top-line growth. Supported by a solid $8.1 million cash position, we remain focused on investing in high-impact initiatives and advanced technology solutions that scale efficiently and sustain profitable growth.". Recent Business Developments and Highlights Verdegard Administrators: an integrated, concierge-level TPA, owned by MedImpact, the largest independent pharmacy benefit manager (PBM) in the U.S., managing prescription benefits for over 20 million members and processing tens of billions in annual drug transactions. This partnership will enable us to reduce costs for small businesses. Unified Health Plans: a premier TPA recognized for its extensive provider network across Kansas. It has extensive provider network and focuses on controlling cost drivers and improving care quality. Unified dominates several niche business sectors in Kansas. The partnership with HIT will bring healthcare insurance solutions to the business members. HILB Group, one of Insurance Journal's Top 25 ranked U.S. insurance brokers with over 2400 employee across more than 125+ branch locations in all 50 States. It partners with HIT to co-develop and distribute smarter, more transparent self-funded health benefit solutions to a much broader base of small and mid-size employers. Baily Insurance, established in 1880, in its fourth -generation ownership. The agency has over 200 years of combined team experience. Licensed advisors partnering with multiple Carriers. Baily is a co-founder and key broker partner in Fusion Health Plans that provides better care services and tech-enabled solution. The collaboration with HIT will deliver faster underwriting, administration, and scalability. Conference Call Details Health In Tech will host a conference call to discuss the financial results for the second quarter of 2025 on July 21, 2025, at 5:00 p.m. (ET). To participate in our live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants). A live audio webcast will be available via the Investor Relations page of Health In Tech's website at https://healthintech.com/. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days. Non-GAAP Financial Information This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. Use of Forward–Looking Statements Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity. About Health In Tech Health In Tech (Nasdaq: "HIT") is an Insurtech platform company backed by third-party AI technology, which offers a marketplace that aims to improve processes in the healthcare industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, and TPAs. Learn more at healthintech.com. Health In Tech, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Revenues from underwriting modeling (ICE) $2,090,576 $1,639,105 $4,442,560 $3,423,740 Revenues from fees 7,223,273 3,363,385 12,886,273 6,703,681 SMR 7,223,273 2,595,545 12,886,273 5,128,467 HI Card - 767,840 - 1,575,214 Total revenues 9,313,849 5,002,490 17,328,833 10,127,421 Cost of revenues 3,003,979 974,727 5,663,564 1,964,638 Gross profit 6,309,870 4,027,763 11,665,269 8,162,783 Operating expenses Sales and marketing expenses 1,226,738 974,522 2,316,993 2,017,730 General and administrative expenses 3,775,453 1,816,679 7,022,218 3,815,873 Research and development expenses 582,609 701,626 1,120,330 1,461,822 Total operating expenses 5,584,800 3,492,827 10,459,541 7,295,425 Other income (expense): Interest income 108,198 31,339 193,564 55,651 Interest expenses - (165,000) - (330,000) Other income - - 118,399 - Total other income (expense), net 108,198 (133,661) 311,963 (274,349) Income before income tax expense $833,268 $401,275 $1,517,691 $593,009 Provision for income taxes (202,637) (63,268) (388,468) (154,466) Net income $630,631 $338,007 $1,129,223 $438,543 Net income per share Basic $0.01 $0.01 $0.02 $0.01 Diluted $0.01 $0.01 $0.02 $0.01 Weighted average common stocks outstanding Basic 55,382,395 51,769,358 55,003,233 51,769,358 Diluted 55,632,357 51,769,358 57,004,070 51,769,358 Health In Tech, Inc. Consolidated Balance Sheets (Unaudited) June 30, 2025 December 31, 2024 Assets Current assets Cash $8,138,166 $7,849,248 Accounts receivable, net 1,281,131 1,647,103 Other receivables 3,854,834 500,252 Deferred offering costs 66,500 - Prepaid expenses and other current assets 1,513,017 787,161 Total current assets 14,853,648 10,783,764 Non-current assets Software 5,519,110 3,962,461 Loans receivable, net 847,993 815,995 Operating lease - right of use assets 173,896 206,269 Long-term prepaid expenses 783,603 - Total non-current assets 7,324,602 4,984,725 Total assets $22,178,250 $15,768,489 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued expenses $4,327,475 $1,858,840 Income taxes payable 34,944 205,253 Operating lease liabilities - current 71,418 66,881 Other current liabilities 955,743 - Total current liabilities 5,389,580 2,130,974 Non-current liabilities Deferred tax liabilities 262,129 328,676 Operating lease liabilities - non-current 102,938 139,811 Total non-current liabilities 365,067 468,487 Total liabilities 5,754,647 2,599,461 Stockholders' equity Common stock, $0.001 par value; Class A Common stock 150,000,000 shares authorized, 44,679,664 and 42,914,870 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 44,679 42,915 Common stock, $0.001 par value; Class B Common stock 50,000,000 shares authorized, 11,700,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 11,700 11,700 Additional paid-in capital 11,296,605 9,173,017 Retained earnings 5,070,619 3,941,396 Total stockholders' equity 16,423,603 13,169,028 Total liabilities and stockholders' equity $ 22,178,250 $15,768,489 Health In Tech, Inc. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $630,631 $338,007 $1,129,223 $438,543 Adjustments to reconcile net income to net cash provided by operating activities: Write-off of accounts receivable 5,990 - 5,990 - Amortization expense 135,983 134,787 271,966 269,574 Provision for refund liability 175,698 - 955,743 - Deferred tax expenses (benefits) (32,074) 754 (66,547) (59,316) Amortization of debt discount - 165,000 - 330,000 Interest income (15,999) (15,999) (31,998) (31,998) Stock-based compensation expense 707,963 - 1,201,134 - Changes in operating assets and liabilities: Accounts receivable, net 823,480 556,793 359,982 777,895 Other receivables 134,954 382,279 (3,354,582) 619,372 Prepaid expenses and other current assets 813,510 (1,737) (204,241) (91,725) Long-term prepaid expenses (357,666) - (357,666) - Operating lease right of use assets and liabilities, net 18 623 37 1,247 Accounts payable and accrued expenses (1,150,600) (70,229) 2,269,897 (1,555,558) Income taxes payable (390,612) (223,737) (170,309) (111,705) Net cash provided by operating activities 1,481,276 1,266,541 2,008,629 586,329 CASH FLOWS FROM INVESTING ACTIVITIES: Development of software (909,897) (93,962) (1,613,372) (227,356) Net cash used in investing activities (909,897) (93,962) (1,613,372) (227,356) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of deferred offering costs (8,250) (368,910) (106,339) (612,120) Net cash used in financing activities (8,250) (368,910) (106,339) (612,120) Increase (decrease) in cash 563,129 803,669 288,918 (253,147) Cash, beginning of the period 7,575,037 1,359,534 7,849,248 2,416,350 Cash, end of the period 8,138,166 2,163,203 8,138,166 2,163,203 Supplemental disclosures of cash flow information: Cash paid for interest $- $- $- $- Cash paid for income taxes $625,323 $286,252 $625,323 $325,487 Summary of noncash investing and financing activities: Accrued deferred offering costs included in accounts payable and accrued expenses $- $220,961 $- $220,961 Accrued development of software included in accounts payable and accrued expenses $265,243 $25,817 $265,243 $25,817 Issuance of Class A common stock for service $1,037,984 $- $1,037,984 $- Adjusted EBITDA Reconciliation (Unaudited) For Three Months Ended June 30, For Six Months Ended June 30, 2024 2025 2024 2025 Net income $ 338,007 $ 630,631 $438,543 $1,129,223 Interest (income) expenses 133,661 (108,198) 274,349 (193,564) Depreciation and amortization 134,787 135,983 269,574 271,966 Income tax expense 63,268 202,637 154,466 388,468 Stock-based compensation expense - 707,963 - 1,201,134 Total net adjustments 331,716 938,385 698,389 1,668,004 Adjusted EBITDA $ 669,723 $1,569,016 $1,136,932 $2,797,227 Components of Operating Results Revenues While we generate our revenue primarily from small employers and insurance carriers, we grow our business primarily from offering solutions that streamline sales processes, enhance service delivery, and reduce the sales cycle duration for TPAs, MGUs, and Brokers. We offer our services through our three subsidiaries. Program services provided by SMR and MGU activities provided by ICE (including eDIYBS) are interdependent, as they cannot function effectively without being combined. Services provided by HI Card are an optional add-on to our other services, and cannot be offered on a standalone basis. Brokers that utilize the program services on behalf of the small employer provided by SMR and MGU activities provided by ICE, are not obligated to utilize our HI Card service. Currently ICE does not offer underwriting services as a standalone service. In the future, we may consider offering it as a standalone service. Cost of revenues Cost of revenues primarily consists of infrastructure costs to operate our platform such as hosting fees and fees paid to various third-party partners for access to their technology, services and amortization expenses of our capitalized internal-use software related to our platform. We mainly outsource captive management services and data services from the third-party companies. Our internal proprietary system seeks to consistently improve underwriting and services results through machine learning and data feeds. The captive management activities include introducing new carriers, conducting due diligence on carriers, conducting feasibility studies to determine the viability to be a stop-loss carrier on the platform, negotiating terms and contracts, coordinating audit requests, managing relationship with unrelated carriers and their regulators and auditor firms to ensure that our risk associated with our service offerings is minimized. Sales and marketing expenses Sales and marketing expenses primarily consist of personnel-related costs including salaries, stock-based compensation expense, benefits and commissions cost for our sales and marketing personnel. Sales and marketing expenses also include the costs for advertising, promotional and other marketing activities, as well as certain fees paid to various third-party for sales and customer acquisition. General and administrative expenses General and administrative expenses primarily consist of personnel-related costs and related expenses for our executives, finance, legal, human resources, technical support, and administrative personnel as well as the costs associated with professional fees for external legal, accounting and other consulting services, insurance premiums. Research and development expenses Research and development expenses primarily consist of personnel-related costs, including salaries, stock-based compensation expense and benefits for our research and development personnel. Additional expenses include costs related to the software development, quality assurance, and testing of new technology, and enhancement of our existing platform technology. Adjusted EBITDA Adjusted EBITDA represents our net income before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. We exclude certain non-recurring or non-cash items when calculating Adjusted EBITDA, and we believe this approach provides a more meaningful measure by offering a clearer view of our underlying operational performance. Financial Results Summary (Unaudited） ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change Total revenues $ 9.3 $ 5.0 86.2 % $ 17.3 $ 10.1 71.1 % GAAP gross margin 67.7 % 80.5 % -12.8 % $ 67.3 % $ 80.6 % -13.3 % Income before income tax expense $ 0.8 $ 0.4 107.7 % $ 1.5 $ 0.6 155.9 % Adjusted EBITDA $ 1.6 $ 0.7 134.3 % $ 2.8 $ 1.1 146.0 % Investor ContactInvestor Relations:[email protected] SOURCE Health In Tech WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Health In Tech Announces Second Quarter 2025 Financial Results

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