Health In Tech, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Health In Tech, Inc. (HIT) performed this year. My goal is to explain their financial filings in plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Think of Health In Tech as a "digital architect" for small business health insurance. Most small businesses struggle with the high, fixed costs of traditional insurance. HIT helps them switch to self-funded plans, where the business pays for its own employees' medical claims directly, often saving money.

They make money in three ways:

• SMR (The Architects): They design health plans and networks, charging a recurring fee for every employee each month.
• ICE (The Engine Room): They use AI to assess risk and set insurance prices in minutes. This platform serves as the underwriting engine for their partner carriers.
• HI Card (The Hub): An optional tool giving employees and doctors 24/7 access to medical records and pricing, which lowers administrative work and claim costs.

2. How did they perform this year?

The company is growing quickly. Revenue jumped 71%, rising from $14.2 million in 2024 to $24.3 million in 2025. By the end of 2025, they supported 795 business clients and over 22,500 employees across 40 states. Their "secret sauce" is speed. While traditional insurance underwriting can take three months, their AI generates a quote in two minutes. This helps them win customers from slower, legacy providers.

3. Major wins and challenges

• The Win: They are making self-funded insurance accessible to small businesses. By automating complex paperwork, they now serve companies with as few as 10 employees. They also built a network of over 1.3 million healthcare providers, ensuring their plans offer the same coverage as traditional insurance.
• The Challenge: They act as a "middleman" and rely on third-party administrators (TPAs) to handle money and claims. Because HIT does not hold the insurance license or manage the bank accounts, they depend on these partners for service. If a TPA fails, clients may blame HIT and leave.

4. Financial health

HIT is profitable, reporting a profit of $3.8 million for the 2025 fiscal year. They earn a monthly service fee per employee plus underwriting fees of 3-5% of the total premium. As of December 31, 2025, they held $5.2 million in cash. While profitable, they keep a lean balance sheet, choosing to reinvest in AI development rather than holding a large cash reserve.

5. Key risks for investors

• Data Reliance: Their AI is only as good as its data. If partners restrict access to claims data, or if the AI misprices a plan, the company may have to cover the shortfall or lose their carrier partnerships.
• The "Small Business" Bet: Their model relies on small businesses taking on the risk of self-funding. If the economy dips, these businesses may return to traditional insurance to avoid the volatility of self-funded claims, causing HIT’s client base to shrink.
• Complexity: Because they rely on brokers and TPAs, they lack total control over the customer relationship. They rely on just 12 primary TPAs for 80% of their volume. Losing a major partner would cause a significant, immediate drop in revenue.

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Investor Takeaway: Health In Tech is a high-growth, profitable company that is successfully using AI to disrupt the small business insurance market. When considering an investment, weigh their impressive 71% revenue growth against their reliance on a small number of third-party partners and the inherent risks of the self-funded insurance model.