Health In Tech (HIT) Q2 2026 earnings summary

Executive summary

• Platform investments and technology upgrades, including AI-driven solutions, are enabling scalable growth and efficiency in self-funded health insurance for SMBs, with no plan or underwriting risk exposure as revenue is generated from administrative fees and stop-loss underwriting.

• Distribution partner network expanded to 933 brokers as of June 30, 2026, up 19.9%–34.8% year-over-year, reflecting strong adoption and reach.

• Revenue recognition lags underlying business momentum due to GAAP accounting; contracted and pipeline revenue are now highlighted as key metrics.

• Launch of the Three-Year Rate Stabilization Program and upcoming HitRix platform are expected to open new growth avenues, especially in large group and government sectors.

• Leadership is highly aligned with significant ownership, and the business operates in a large, under-penetrated market with a scalable, fee-driven model.

Financial highlights

• Q2 2026 GAAP revenue was $8.1 million, down 13.5%–14% from Q2 2025; first half 2026 revenue was $16.8 million, down from $17.3 million in the prior year period.

• Adjusted EBITDA was -$1.3 million for Q2 and -$2.6 million for the first half, versus positive $1.6 million and $2.8 million last year.

• Net loss for Q2 2026 was $2.5 million ($0.04/share), and for the first half was $4.1 million, compared to net income of $0.6 million and $1.1 million in the prior year.

• Gross margin for Q2 2026 was 48.7%–49.9%, down from 67.3%–67.7% in Q2 2025.

• Cash and equivalents at quarter-end were $6.5 million; working capital $11.8 million.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $45 million–$50 million, supported by contracted and pipeline revenue visibility.

• Contracted revenue as of June 30, 2026, was $32.3 million; pipeline revenue as of July 31, 2026, was $66.3 million, with an expected conversion rate of 15%–40%.

• Revenue is expected to recover in the second half of 2026 as the new carrier transition completes, with seasonality expected to drive higher sales in November and December.

• Continued investment in technology and sales expansion is supported by a new $20 million Standby Equity Purchase Agreement (SEPA) signed in August 2026.