8-K: Health In Tech Q3 Revenue Soars 90% on Platform Expansion

Health In Tech announced strong third-quarter 2025 financial results, with revenue up 90% year-over-year and significant growth in enrolled employees and distribution partners.

Summary

• Total revenues for Q3 2025 reached $8.5 million, marking a 90% increase year-over-year.
• Nine-month revenues totaled $25.8 million, already 132% of the full-year 2024 total.
• Adjusted EBITDA for Q3 2025 was $1.0 million, up 49% year-over-year.
• Nine-month Adjusted EBITDA reached $3.8 million, representing 167% of the full-year 2024 total.
• Pre-tax income for Q3 2025 was $0.6 million, a 48% increase year-over-year.
• Nine-month pre-tax income was $2.1 million, 238% of the full-year 2024 total.
• The number of billed enrolled employees (EEs) grew to 25,248, an increase of 7,654 EEs year-over-year.
• The distribution network expanded to 849 partners (Brokers, TPAs, Agencies), up 57% year-over-year.
• Cash balance stood at $8.0 million as of September 30, 2025.
• Launched an upgrade to the eDIYBS platform to serve large employer groups (150+ employees), reducing underwriting time from months to approximately two weeks.
• Signed a non-binding Letter of Intent (LOI) with AlphaTON Capital to co-develop HITChain, a blockchain-powered claims platform targeting the $300 billion+ U.S. claims market.
• Announced plans to host the first Independent InsurTech Summit during the 2026 World Economic Forum week in Davos, featuring prominent industry leaders.

Sentiment

Score: 8

Explanation: The filing reports strong financial growth across key metrics, including significant increases in revenue, adjusted EBITDA, and pre-tax income, alongside strategic business developments like platform expansion and a blockchain partnership. While gross margins saw a slight decline, the overall operational and financial performance indicates robust positive momentum and future potential.

Positives

• Total revenues increased by 90% year-over-year to $8.5 million in Q3 2025.
• Nine-month revenues of $25.8 million already exceed 132% of full-year 2024 revenue.
• Adjusted EBITDA grew by 49% year-over-year to $1.0 million in Q3 2025.
• Nine-month Adjusted EBITDA of $3.8 million is 167% of full-year 2024 total.
• Pre-tax income increased by 48% year-over-year to $0.6 million in Q3 2025.
• Nine-month pre-tax income of $2.1 million is 238% of full-year 2024 total.
• Billed enrolled employees increased by 7,654 year-over-year to 25,248.
• Distribution partners (Brokers, TPAs, Agencies) expanded by 57% year-over-year to 849.
• Successful expansion of the eDIYBS platform to serve large employer groups (150+ employees), significantly increasing the addressable market and accelerating underwriting processes.
• Strategic partnership with AlphaTON Capital to develop HITChain, a blockchain-powered solution for claims administration, addressing a substantial market inefficiency.
• Strong cash balance of $8.0 million as of September 30, 2025.
• Accounts receivable, net, reduced by $0.1 million year-over-year to $0.9 million.

Negatives

• GAAP gross margin decreased to 60.6% in Q3 2025 from 78.0% in Q3 2024.
• Nine-month GAAP gross margin decreased to 65.1% in 2025 from 79.8% in 2024.

Risks

• Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from expectations.
• Specific risks and uncertainties are detailed in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission.

Future Outlook

Health In Tech anticipates continued growth driven by the expansion of its distribution network and the adoption of its technology across new channels. The company is focused on extending the speed and scalability of its underwriting into the midand large-employer market and exploring blockchain-enabled solutions to modernize claims administration, aiming to position itself at the frontier of decentralized healthcare infrastructure.

Management Comments

• Tim Johnson, CEO: "Our third quarter highlights the accelerating strength of our distribution ecosystem and the solid foundation we've built this year. Revenue reached $8.5 million, up 90% year over year, bringing nine-month revenue to $25.8 million—already 132% of full-year 2024 revenue. This growth reflects the continued expansion of our broker, TPA, and agency network, which is now translating directly into sustained revenue momentum as our technology gains adoption across new distribution channels."
• Tim Johnson, CEO: "In September, we launched large-employer underwriting within eDIYBS, allowing brokers to generate quotes for groups of 150 or more employees in as little as two weeks—versus the industry timeline of often three months. This capability is a significant milestone, extending the speed and scalability of our small-business underwriting into the midand large-employer market."
• Tim Johnson, CEO: "We also remain focused on solving one of the most costly inefficiencies in U.S. healthcare—claims administration, which costs the industry more than $300 billion annually. Our non-binding LOI with AlphaTON Capital marks a strategic step toward exploring blockchain-enabled solutions that can modernize this process."
• Julia Qian, CFO: "We delivered another quarter of strong financial performance. Revenue grew 90% year over year and profit increased 48%, reflecting both operational strength and disciplined execution. We continue to balance growth with strategic investments in technology and enhanced platform capabilities—initiatives that reinforce our leadership position and support sustainable long-term performance."

Industry Context

Health In Tech operates in the rapidly evolving Insurtech sector, leveraging AI and exploring blockchain technology to address inefficiencies in the healthcare and insurance industries. The expansion of its eDIYBS platform to large employers and the strategic move into blockchain-enabled claims administration (HITChain) align with broader industry trends towards digital transformation, automation, and cost reduction in healthcare. The focus on a $300 billion+ claims market highlights a significant opportunity for disruption, positioning the company at the forefront of decentralized healthcare infrastructure. The hosting of an InsurTech Summit at Davos further solidifies its role in shaping industry dialogue.

Comparison to Industry Standards

• The company's eDIYBS platform's ability to generate quotes for groups of 150 or more employees in as little as two weeks significantly outperforms the industry standard timeline, which is often three months.
• The initiative to develop HITChain aims to address the U.S. claims administration market, which costs the industry over $300 billion annually, indicating a focus on a major industry inefficiency.

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, revenue growth, and strategic initiatives that could drive future value.
• Employees: Potential positive impact from company growth and strategic investments in technology, possibly leading to expansion and new opportunities.
• Customers (employers and insurance carriers): Positive impact from enhanced platform capabilities (eDIYBS upgrade for large groups, faster underwriting) and potential future benefits from HITChain in claims administration (lower costs, faster processing, transparency).
• Brokers, TPAs, and Agencies (partners): Positive impact from an expanding network and improved platform tools that streamline sales and service processes.
• Creditors: Improved financial health and cash position could enhance creditworthiness.

Next Steps

• Co-develop HITChain, a blockchain-powered claims platform, with AlphaTON Capital.
• Host the first Independent InsurTech Summit during the 2026 World Economic Forum week in Davos, with additional panels to be announced.
• Continue to expand the broker, TPA, and agency network.
• Further adoption of technology across new distribution channels.
• Balance growth with strategic investments in technology and enhanced platform capabilities.

Key Dates

Recommendation

The company demonstrates exceptional growth in revenue (90.4% YoY), Adjusted EBITDA (49.4% YoY), and pre-tax income (47.6% YoY) for Q3 2025, with nine-month figures significantly surpassing prior year and full-year 2024 results. Strategic initiatives, such as expanding the eDIYBS platform to large employers and the non-binding LOI to develop a blockchain-powered claims platform (HITChain) targeting a $300B+ market, indicate strong future growth potential and market disruption. Despite a slight dip in GAAP gross margin, the overall operational strength, disciplined execution, and leadership's focus on innovation and market expansion position Health In Tech favorably for sustained long-term performance. These factors suggest a strong upside potential for investors.

Keywords

Insurtech, Healthcare Technology, AI, Blockchain, Financial Results, Earnings, Q3 2025, Health Insurance, Claims Administration, eDIYBS, AlphaTON Capital, HITChain, Nasdaq: HIT