10-K: Health In Tech Reports Strong 71% Revenue Growth in 2025

Health In Tech, Inc. announced robust financial performance for fiscal year 2025, driven by significant revenue growth and expanded platform adoption, despite pausing HI Card development.

Summary

• Total revenues increased by 71% to $33.3 million in 2025 from $19.5 million in 2024.
• Net income grew to $1.28 million in 2025 from $0.67 million in 2024.
• Adjusted EBITDA increased by 81% to $4.11 million in 2025 from $2.27 million in 2024.
• The number of enrolled employees (EEs) increased by 23% to 22,515 as of December 31, 2025.
• The eDIYBS platform's expansion to serve large employers was completed in September 2025.
• HI Card beta testing was temporarily paused in 2025 to prioritize eDIYBS platform enhancement, with development expected to resume in Q1 2026.
• The company purchased collection rights for Deferred Administrative Surplus totaling $17.4 million for $3.48 million in March 2025, and $3.1 million for $1.65 million in December 2023.
• A credit loss expense of $377,587 was recognized in 2025 related to the 2023 Deferred Administrative Surplus purchase.
• The company appointed several new executive officers: Chief Strategy Officer, Chief AI & Marketing Officer, Chief Growth Officer, Chief Information Security Officer, and Chief Technology Officer.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, marked by significant revenue and profit growth, efficient operations, and strategic technology investments. The temporary pause in HI Card development is a minor setback, offset by the robust performance of the core eDIYBS platform and overall market expansion.

Positives

• Total revenues increased by 71% year-over-year to $33.3 million in 2025.
• Net income increased to $1.28 million in 2025 from $0.67 million in 2024.
• Adjusted EBITDA grew by 81% to $4.11 million in 2025, with Adjusted EBITDA as a percentage of revenue increasing to 12.3% from 11.7%.
• The number of enrolled employees (EEs) increased by 23% to 22,515 as of December 31, 2025, indicating strong market penetration and growth.
• The eDIYBS system expansion to serve large employers was completed in September 2025, broadening the addressable market.
• Sales and marketing expenses decreased as a percentage of revenue (from 16.2% to 12.6%), reflecting improved efficiency through a channel partnership model.
• General and administrative expenses decreased as a percentage of revenue (from 43.5% to 41.0%), indicating improved operating leverage despite increased public company costs.
• The company maintained profitability while experiencing significant growth.
• Accounts receivable turnover period improved to 14 days in 2025 from 29 days in 2024 due to process enhancements and automation.
• The HI Performance Network (HPN) now provides direct Medicare contracts in 50 states with 1,317,732 licensed providers as of December 31, 2025.
• The company has a dedicated management team with over 30 years of industry experience.
• The eDIYBS platform can medically underwrite insurance policies and produce bindable quotes within approximately two minutes for small employers, significantly faster than traditional methods.
• Approximately 80% of bindable quotes are provided solely using AI without further manual review.

Negatives

• HI Card beta testing was temporarily paused in 2025, resulting in no revenue from HI Card for the year, compared to $2.99 million in 2024.
• Cost of revenues increased significantly by $8.4 million to $12.4 million in 2025, and as a percentage of revenue, increased to 37.2% from 20.8% in 2024, primarily due to higher captive management fees for new products and channels.
• Cash and cash equivalents decreased slightly to $7.67 million in 2025 from $7.85 million in 2024.
• Other receivables, net, increased substantially by $2.97 million to $3.47 million in 2025, mainly due to the purchase of Deferred Administrative Surplus.
• A credit loss expense of $377,587 was recognized in 2025 related to the 2023 purchase of Deferred Administrative Surplus, indicating challenges in collection.
• The company made interim payments of $3.0 million to a carrier in connection with a variable consideration adjustment, subject to final reconciliation in May 2026, which reduced revenue from underwriting modeling services.
• Research and development expenses not associated with software development decreased by $1.2 million, and as a percentage of revenue, from 14.4% to 4.7%, which could indicate a shift in R&D focus or reduced investment in certain areas.

Risks

• Success and growth depend on retaining and expanding the network of brokers, TPAs, MGUs, carriers, and other third-party agencies.
• Failure to accurately perform underwriting actuarial reviews and adjustments to underwriting tools could increase health plan costs and negatively impact the eDIYBS platform's reputation and financial results.
• A decrease in the number of members utilizing platforms or subscribed services would decrease revenue.
• Insurance products and services are subject to complex and evolving regulatory obligations, and failure to comply could result in significant expenses, diversion of management time, or removal of products from the platform.
• Changes or developments in the U.S. health insurance markets, including the potential for a single-payer or government-run health insurance program, could materially and adversely harm the business and operating results.
• Failure to comply with applicable privacy, security, and data laws, regulations, and standards, including with respect to third-party service providers that utilize sensitive personal information on the company's behalf, or applicable consumer protection laws, could materially and adversely affect the business, reputation, results of operations, financial position, and cash flows.
• Limited operating history makes it difficult to evaluate current business performance, model implementation, and future prospects.
• Risks are associated with outsourcing services and functions to third parties, including potential disruptions, data security incidents, and reliance on cloud infrastructure providers like Amazon Web Services (AWS).
• Inability to integrate and manage information systems effectively could disrupt operations.
• Potential involvement in costly and time-consuming litigation and regulatory actions.
• Reliance on the experience and expertise of the founder/Chief Executive Officer, senior management team, highly-specialized technology and insurance experts, key technical employees, and other highly skilled personnel.
• Cyber-attacks or privacy/data security breaches that disrupt information systems or operations, or result in the dissemination of sensitive personal or confidential information, could lead to increased costs, exposure to significant liability, adverse regulatory consequences, reputational harm, and loss of business.
• Customers' sensitive, proprietary, or confidential information could be leaked, disclosed, or revealed as a result of or in connection with employees', personnel's, or vendors' use of generative AI technologies, or AI models could create incomplete, inaccurate, or otherwise flawed outputs or biased risk profiles.
• Real or perceived errors, failures, or bugs in systems, website, or app could impair operations, damage reputation and brand, and harm business and operating results.
• Failure to secure, protect, or enforce intellectual property rights could harm the business, results of operations, and financial condition.
• The use of open-source software in services and solutions may expose the company to additional risks and harm intellectual property rights.
• The company might require additional capital to support business growth.
• Class A Common Stock price may be volatile or may decline regardless of operating performance, and investors may not be able to resell shares at or above the initial public offering price.
• The dual-class structure of common stock has the effect of concentrating voting control with the Chief Executive Officer and Chief Financial Officer for the foreseeable future, which will limit the ability of other investors to influence corporate matters.
• The dual-class structure may have an unpredictable effect on the market of Class A Common Stock, potentially leading to exclusion from certain indices.
• The company does not intend to pay dividends on Class A Common Stock for the foreseeable future.
• Future sales or availability of Class A Common Stock or rights to purchase Class A Common Stock, including pursuant to equity incentive plans, or other equity securities or securities convertible into Class A Common Stock, could result in additional dilution of the percentage ownership of stockholders and could cause the stock price of Class A Common Stock to decline.
• Management team has limited experience managing a public company.
• The obligations associated with being a public company require significant resources and management attention, and the company has and will continue to incur increased costs as a result of becoming a public company.
• Failure to establish and maintain effective internal control over financial reporting and disclosure controls and procedures could lead to inaccurate financial results or untimely reporting.
• Anti-takeover provisions in governing documents and under Nevada law could make an acquisition of the company more difficult, limit attempts by stockholders to replace or remove current management, and depress the market price of Class A Common Stock.
• An active trading market for Class A Common Stock may not be sustained.
• If operating and financial performance in any given period does not meet the guidance provided to the public, the market price of Class A Common Stock may decline.
• As a controlled company within the meaning of the Nasdaq listing rules, the company may follow certain exemptions from corporate governance requirements that could adversely affect shareholders.

Future Outlook

The company plans to continue expanding its unified insurance marketplace by increasing carrier and distribution partner participation, initially focusing on healthcare and then broadening into additional insurance verticals like Property & Casualty and workers' compensation. It intends to deepen vertical full services integration, grow sales distribution through broker agencies, and develop additional AI-enabled claims processing and reporting capabilities. The company also plans to offer data analytics services to insurance carriers to support cost containment and decision-making. HI Card development is expected to resume early in the first quarter of 2026.

Management Comments

• Our mission is to change the non-transparent $5.3 trillion healthcare industry with innovation that removes friction and complexities with vertical integration, process simplification, automation, and digitalization.
• HIT was founded on the belief that self-funded benefits plans and stop loss insurance should be simple and streamlined with significant transparency.
• With over 30 years of industry experience of our management team, we understand the complexities of the healthcare insurance market, and we know how to integrate the multifaceted aspects of the industry.
• We founded HIT to solve these problems and to provide small businesses with access to the high-quality, low-cost health care plans that are originally only available to large corporations.
• We seek to integrate all aspects of self-funded benefits plans and stop loss insurance for small businesses with 10-100 employees, and larger sized businesses with over 100 employees.
• We made strategic decisions to temporarily pause HI Card beta testing and prioritize tech resource to enhance eDIYBS platform which offers integrated services by SMR and ICE and delivers greater financial and process impacts. This disciplined allocation of resources has strengthened our near-term growth trajectory while positioning HI Card for a more robust relaunch. We currently expect to resume HI Card development early in the first quarter of 2026.
• Our management team has in-depth know-how in the insurance industry with significant experience in senior positions at large insurance healthcare businesses and entrepreneurship roles.
• We believe that our future success largely depends upon our continued ability to attract and retain highly skilled employees.
• Much of our success is rooted in the diversity of our teams and our commitment to inclusion.

Industry Context

StockSavvy.ai notes that Health In Tech operates within the rapidly growing and evolving U.S. healthcare market, which reached $5.3 trillion in 2024. The company's focus on self-funded health plans and stop-loss insurance for small to mid-sized businesses addresses a historically underserved segment, as 41% of small firms (10-199 workers) do not offer health benefits. The industry is characterized by high costs, lack of transparency, and inefficient manual processes, which HIT aims to disrupt with its AI-enabled platform. Competitors include large established insurance carriers like UnitedHealth Group, Cigna, CVS Health, Elevance Health, and Humana, which generally offer broader solutions and have greater financial resources. HIT differentiates itself by focusing on speed, efficiency, and technology integration rather than assuming underwriting risk directly. The company's growth strategy aligns with the increasing adoption of self-funded arrangements, which represented 67% of covered workers in 2024.

Comparison to Industry Standards

• The eDIYBS platform's ability to produce bindable quotes in approximately two minutes for small employers significantly outperforms traditional manual quoting models, which can take several days to two weeks or even three months, based on broker feedback.
• Approximately 80% of bindable quotes are provided solely using AI, unlike many competitors who require manual review after initial AI-backed quotes.
• The HI Performance Network (HPN) provides direct Medicare contracts in 50 states with 1,317,732 licensed providers, offering a broad network comparable to or exceeding many traditional PPO networks.
• The company's 71% year-over-year revenue growth from 2024 to 2025 is robust, especially when compared to the overall U.S. health care spending growth of 7.2% in 2024, indicating strong market penetration and competitive advantage in its niche.
• The improvement in accounts receivable turnover from 29 days in 2024 to 14 days in 2025 demonstrates superior operational efficiency compared to industry averages for claims processing.

Management Changes

Corporate Governance

Legal Proceedings

• The company is not party to any material legal proceedings. From time to time, it may be involved in litigation matters incidental to the ordinary course of business, which can have an adverse impact due to defense and settlement costs, diversion of resources, and other factors.

Related Party Transactions

• No related party transactions occurred during the years ended December 31, 2025 and 2024. No related party balances existed as of December 31, 2025 and 2024.

Stakeholder Impact

• Shareholders: Potential for continued growth and increased shareholder value due to strong financial performance and strategic expansion. However, dilution risk from future equity offerings and concentrated voting control with CEO/CFO due to dual-class structure. No dividends expected in the foreseeable future.
• Employees: Continued focus on attracting and retaining highly skilled employees with competitive compensation and equity ownership opportunities. New executive appointments indicate growth and potential for career advancement.
• Customers (Employers): Access to more affordable and flexible self-funded health plans, potential for significant cost and time savings through digital underwriting and claims management. Expanded eDIYBS capabilities for larger employers.
• Brokers/TPAs/Agencies: Expanded network and platform offerings aim to improve efficiency, speed, and client experience, potentially increasing their business volume and effectiveness.
• Carriers: Enhanced underwriting and administrative functions through ICE, potentially leading to more efficient policy placement and risk management.
• Healthcare Providers: HI Performance Network (HPN) provides direct Medicare contracts, potentially streamlining billing and patient access.

Next Steps

• Expand participation across carriers and distribution partners in the unified insurance marketplace.
• Broaden the marketplace into additional insurance verticals, including Property & Casualty (P&C) and workers' compensation.
• Deepen vertical full services integration by expanding one-stop vendor management and administrative services.
• Continue growing sales distribution through broker agencies.
• Develop additional AI-enabled claims processing and reporting capabilities.
• Offer data analytics services to insurance carriers.
• Resume HI Card development early in the first quarter of 2026.
• Final reconciliation and true-up for a variable consideration adjustment related to a carrier relationship is expected in May 2026.
• The company will continue to monitor and upgrade internal controls as necessary.
• The company plans to expense domestic research and development costs starting in 2025 and accelerate amortization of previously capitalized R&E costs, not applying retroactive treatment to prior tax periods.

Key Dates

Recommendation

The company demonstrates robust financial health with significant year-over-year revenue growth (71%) and increased profitability (90% net income growth, 81% Adjusted EBITDA growth). Its core AI-enabled eDIYBS platform is expanding its market reach to larger employers and driving operational efficiencies, as evidenced by improved sales and marketing leverage and faster accounts receivable turnover. While there are risks associated with reliance on third-party AI and the temporary pause of HI Card development, the strategic focus on core platform enhancement and market expansion, coupled with a strong management team, positions the company for continued growth in the underserved self-funded health plan market. The current valuation, considering the growth trajectory and market opportunity, suggests a 'buy' recommendation for investors seeking exposure to an innovative InsurTech player.

Keywords

InsurTech, Health Insurance, Self-Funded Health Plans, Stop-Loss Insurance, AI-enabled Platform, eDIYBS, HI Card, Medical Underwriting, Healthcare Technology, Corporate Wellness, Employee Benefits, Risk Management, SaaS, Small Business Health Insurance, SEC Filing, 10-K, Financial Performance, Revenue Growth, Adjusted EBITDA, Corporate Governance, Cybersecurity, Artificial Intelligence Governance