Liquidity is under pressure as evidenced by a -42.0% free cash flow margin and a $2.1 million outflow from working capital changes during 2026Q1.
| Cash from Operations | -712.79K | 3.13M | 2.18M | 1.53M | 782.75K |
| Operating CF Margin % | - | 9.4% | 11.17% | 7.98% | 13.57% |
| Operating CF Growth % | -595.74% | 44% | 42.34% | 95.32% | - |
| Net Income | -808.03K | 1.28M | 670.48K | 3.96M | -243.34K |
| Depreciation & Amortization | 1.17M | 900.58K | 541.14K | 339.3K | 0 |
| Stock-Based Compensation | 1.44M | 1.57M | 468.49K | 0 | 566.04K |
| Deferred Taxes | -21K | 429K | -93.3K | 133.98K | 9K |
| Other Non-Cash Items | 3.52M | 4.19M | 432.88K | -16K | 0 |
| Working Capital Changes | -6.01M | -5.23M | 156.52K | -2.89M | 451.06K |
| Change in Receivables | -1.48M | -2.44M | 1.77M | -2.94M | -716K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 374.8K | 2.36M | -851.96K | 2.15M | 449.95K |
| Cash from Investing | -2.78M | -3.13M | -836.75K | -1.94M | -1.22M |
| Capital Expenditures | -490.74K | 0 | -900.75K | -1.14M | -1.22M |
| CapEx % of Revenue | 1.44% | 9.57% | 4.62% | 5.98% | 21.13% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - |
| Other Investing | -2.29M | -3.13M | 64K | -800K | 0 |
| Cash from Financing | 6.25M | -187.39K | 4.09M | 1.34M | 1.88M |
| Debt Issued (Net) | 0 | 0 | -2.15M | 1.65M | -74.09K |
| Equity Issued (Net) | 6.38M | 23.43K | 8.21M | 0 | 2M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -133.47K | -210.82K | -1.98M | -306.12K | -46.97K |
| Net Change in Cash | 2.75M | -179.49K | 5.43M | 928.4K | 1.44M |
| Free Cash Flow | -1.2M | -56.11K | 1.28M | 384.52K | -436.63K |
| FCF Margin % | -3.53% | -0.17% | 6.54% | 2.01% | -7.57% |
| FCF Growth % | -162.9% | -104.4% | 231.7% | 188.07% | - |
| FCF per Share | -0.02 | -0.00 | 0.02 | 0.01 | -0.01 |
| FCF Conversion (FCF/Net Income) | 1.49x | 2.45x | 3.25x | 0.62x | 9.82x |
| Interest Paid | 0 | 0 | 0 | 2.05K | 4.57K |
| Taxes Paid | 830.73K | 830.73K | 558.52K | 479.21K | 0 |
Liquidity constraints from scaling
As reported in quarterly financial statements, the relationship between net income and operating cash flow has become increasingly volatile, with the OCF/NI ratio reaching 2.09 in 2026Q1, suggesting that reported earnings are failing to capture the underlying cash burn required to support current operational expansion.
The persistent divergence between accounting profits and cash generation indicates that the company's accrual-based earnings may be masking significant cash outflows related to operational scaling. Investors should monitor whether this gap reflects temporary timing differences in claims processing or a more structural inability to convert service revenue into realized cash.
Based on the provided cash flow data, the free cash flow margin has deteriorated significantly, falling to -42.0% in 2026Q1, which highlights the company's struggle to achieve self-sustaining cash generation while aggressively pursuing market share within the small-to-medium business captive insurance segment.
The trajectory of free cash flow suggests that the business model is currently capital-intensive, requiring substantial cash outlays that exceed the cash generated from core operations. This trend warrants further investigation into whether the company can reach a cash-flow-positive state without necessitating external financing or dilutive capital raises.
According to recent SEC filings, working capital changes have consistently acted as a drain on cash, with a $2.1 million outflow in 2026Q1 alone, indicating that the company's rapid growth is placing significant pressure on its ability to manage receivables and payables efficiently.
The recurring negative impact of working capital changes suggests that the company is likely extending credit or facing delays in collecting fees from its employer groups. This cash-intensive growth cycle appears to be consuming the company's limited cash reserves, potentially limiting its operational flexibility in the near term.
As indicated by the financial data, the company's capital expenditure reached 4.1% of revenue in 2026Q1, reflecting a continued commitment to platform development that may be necessary to maintain the technical edge of the eDIYBS quoting engine against emerging competitive threats in the RBP space.
While the capital intensity appears moderate, the ongoing investment in software and infrastructure suggests that the platform requires constant maintenance and upgrades to remain functional. Analysts should evaluate whether these expenditures are truly growth-oriented or if they represent essential maintenance costs required to keep the platform competitive.
Quick answers to the most common questions about buying HIT stock.
Health In Tech, Inc. (HIT) generated $3.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Health In Tech, Inc. (HIT) reported negative free cash flow of $0.1M in 2025, indicating capital requirements exceeded cash from operations.
Health In Tech, Inc. (HIT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.