Health In Tech — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $6.6 million, a decrease from $8.5 million in Q3 2025; nine-month 2026 revenue was $23.4 million, down from $25.8 million in the prior year period.
• Contracted revenue totaled $32.7 million for the first nine months of 2026, with $24.4 million recognized as GAAP revenue; $6.1 million and $2.2 million are expected to be recognized in Q4 2026 and 2027, respectively.
• Net loss for Q3 2026 was $7.1 million ($0.11 per diluted share), compared to net income of $0.5 million ($0.01 per diluted share) in Q3 2025; the loss included a $5.3 million provision for credit losses.
• Net loss for the first nine months of 2026 was $11.2 million ($0.18 per diluted share), compared to net income of $1.6 million ($0.03 per diluted share) in the prior year period; the loss included a $6.1 million provision for credit losses.
• Adjusted EBITDA was $(3.9) million for Q3 2026 and $(6.6) million for the first nine months of 2026.
• Cash balance was $10.1 million as of September 30, 2026.
• Platform Placed Plan Value (PPPV) was $91.8 million as of September 30, 2026.

Guidance and Future Outlook:

• The Company revised its full-year 2026 revenue outlook to approximately $30 million, which is modestly below 2025 revenue.
• The revenue revision reflects delayed commencement of certain new policies due to a carrier transition, shifting anticipated revenue contribution into 2027.
• Management expects to provide a more detailed update on strategic priorities when reporting full-year 2026 results.
• The Company aims to accelerate policy onboarding, improve conversion rates, and translate its existing pipeline into revenue growth in 2027.

Business Segments and Product Lines:

• Distribution partners (brokers, TPAs, and agencies) reached 984 as of September 30, 2026, an increase of 15.9% year over year.
• Pipeline revenue as of October 30, 2026, was $156.4 million, including $2.6 million contracted subsequent to quarter end; the remaining $153.8 million represents policies in quoting or binding status with an expected conversion rate of 3% to 7%.
• HitRix, an AI-powered broker-first marketplace for large-group self-funded stop-loss insurance, was launched in September 2026.
• The Three-Year Rate Stabilization Program has secured its first client, with an initial launch targeted by year-end 2026.
• Existing platforms include eDIYBS, SMR, HitRix, HitChain, and the Three-Year Rate Stabilization Program.

Market and Competitive Landscape:

• The Company focuses on improving quote-to-bind conversion to translate marketplace activity into placed policies and recognized revenue.
• The carrier transition temporarily extended underwriting and onboarding timelines but has been substantially completed.
• The Company is prioritizing disciplined execution to establish a foundation for converting its pipeline into future commercial growth.

Risks and Challenges:

• Reported financial performance has not yet fully reflected the potential of the platform.
• The business faces risks related to leadership transition, including the ability to successfully integrate new management and retain key personnel.
• Challenges include the ability to identify, negotiate, finance, complete, and integrate acquisitions or strategic transactions.
• Risks exist regarding the ability to obtain funding, maintain Nasdaq listing compliance, and the success and timing of product development.
• Potential risks include cybersecurity incidents, use of third-party AI, regulatory compliance, and competition.

Management Commentary and Tone:

• Sanjay Shrestha assumed the CEO role on October 20, 2026, following a comprehensive review of commercial operations, organizational capabilities, cost structure, and capital allocation.
• Founder Tim Johnson transitioned to Executive Chairman to focus on long-term strategy, technology innovation, and product development.
• Management's immediate priority is to improve quote-to-bind conversion, translate marketplace activity into placed policies, and strengthen overall financial performance.
• The objective is to transform the company into a scalable, commercially successful, and financially disciplined business that creates sustainable long-term shareholder value.
• Management intends to evaluate strategic acquisitions, partnerships, and other expansion opportunities to accelerate growth.

Other Key Points:

• Sanjay Shrestha was appointed CEO effective October 20, 2026; Tim Johnson transitioned to Executive Chairman.
• Tim Cortes was elected as an independent director at the November 10, 2026 Annual Meeting of Stockholders.
• The Company issued convertible notes payable, net of a $350,000 discount, generating $6.65 million in proceeds during the nine months ended September 30, 2026.
• Proceeds from the issuance of common stock in connection with a private investment in public equity financing totaled $6.38 million for the nine months ended September 30, 2026.
• Financing transaction costs of $799,630 were recorded for the nine months ended September 30, 2026.
• The Company recorded a provision for credit losses of $6.1 million for the first nine months of 2026.