Revenue reached $8.8 million in 2026Q1, though gross margins have significantly contracted from their 81.8% peak in 2023Q4 to 51.4% due to rising service costs.
| Sales/Revenue | 34.08M | 33.33M | 19.49M | 19.15M | 5.77M |
| Revenue Growth % | 52.29% | 70.99% | 1.77% | 231.93% | - |
| Cost of Goods Sold | 13.99M | 12.39M | 4.05M | 2.3M | 334.19K |
| COGS % of Revenue | - | 37.18% | 20.79% | 12.03% | 5.79% |
| Gross Profit | 20.09M | 20.94M | 15.44M | 16.85M | 5.44M |
| Gross Margin % | 58.95% | 62.82% | 79.21% | 87.97% | 94.21% |
| Gross Profit Growth % | - | 35.61% | -8.36% | 209.95% | - |
| Operating Expenses | 21.2M | 19.41M | 14.45M | 13.46M | 5.23M |
| OpEx % of Revenue | - | 58.24% | 74.13% | 70.31% | 90.64% |
| Selling, General & Admin | 19.25M | 17.84M | 11.64M | 11.46M | 4.44M |
| SG&A % of Revenue | - | 53.53% | 59.7% | 59.84% | 76.87% |
| Research & Development | 1.95M | 1.57M | 2.81M | 2M | 794.62K |
| R&D % of Revenue | - | 4.71% | 14.44% | 10.47% | 13.77% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.11M | 1.53M | 989.9K | 3.38M | 205.58K |
| Operating Margin % | -3.26% | 4.59% | 5.08% | 17.66% | 3.56% |
| Operating Income Growth % | - | 54.4% | -70.74% | 1545.62% | - |
| EBITDA | 57.69K | 2.43M | 1.53M | 3.72M | 205.58K |
| EBITDA Margin % | 0.17% | 7.29% | 7.86% | 19.44% | 3.56% |
| EBITDA Growth % | -96.57% | 58.65% | -58.87% | 1710.66% | - |
| D&A (Non-Cash Add-back) | 1.17M | 900.58K | 541.14K | 339.3K | 0 |
| EBIT | -1.17M | 1.67M | 1.38M | 3.42M | 205.58K |
| Net Interest Income | 392.03K | 409.92K | -372.12K | 38.8K | -4.57K |
| Interest Income | 392.03K | 409.92K | 122.89K | 40.86K | 0 |
| Interest Expense | 0 | 0 | 495K | 2.05K | 4.57K |
| Other Income/Expense | 31.77K | 145.73K | -100.9K | 38.8K | -4.57K |
| Pretax Income | -1.08M | 1.67M | 889K | 3.42M | 201.01K |
| Pretax Margin % | -3.16% | 5.02% | 4.56% | 17.87% | 3.48% |
| Income Tax | -270.57K | 395.33K | 218.52K | 945.24K | 121.27K |
| Effective Tax Rate % | 25.09% | 23.61% | 24.58% | 27.62% | 60.33% |
| Net Income | -808.03K | 1.28M | 670.48K | 2.48M | 79.74K |
| Net Margin % | -2.37% | 3.84% | 3.44% | 12.93% | 1.38% |
| Net Income Growth % | -175.62% | 90.74% | -72.93% | 3005.84% | - |
| Net Income (Continuing) | -808.03K | 1.28M | 670.48K | 2.48M | 79.74K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 367.77K |
| EPS (Diluted) | -0.01 | 0.02 | 0.01 | 0.05 | 0.00 |
| EPS Growth % | -196.95% | 62.6% | -73.14% | - | - |
| EPS (Basic) | - | 0.02 | 0.01 | 0.05 | 0.00 |
| Diluted Shares Outstanding | 57.35M | 57.74M | 53.66M | 54.07M | 54.07M |
| Basic Shares Outstanding | 57.35M | 55.84M | 67.05M | 54.07M | 54.07M |
| Dividend Payout Ratio | - | - | - | - | - |
Margin compression from scaling
According to the provided quarterly income statements, Health In Tech achieved significant top-line expansion, with revenue reaching $8.8 million in 2026Q1, reflecting a robust growth trajectory that underscores the successful adoption of its eDIYBS quoting engine within the competitive small-to-medium business captive insurance market segment.
The company's revenue growth appears to be driven by aggressive transactional volume, though the recent deceleration in quarterly growth rates warrants close monitoring. Investors should consider whether this expansion is sustainable or if it reflects a temporary surge in new employer group acquisitions that may face future retention challenges.
As reported in the financial data, gross margins have contracted from a peak of 81.8% in 2023Q4 to 51.4% in 2026Q1, suggesting that the costs associated with claims advocacy and network management are rising faster than the company's ability to scale its automated software-based revenue streams.
This compression indicates that the firm's reference-based pricing model may be becoming increasingly labor-intensive as it scales. The shift suggests that the platform's initial high-margin software profile is being diluted by the operational realities of managing complex provider disputes and member support requirements.
Based on the income statement history, operating income has failed to scale alongside revenue, with the company reporting a negative 24.6% operating margin in 2026Q1, indicating that SG&A expenses are currently outpacing the gross profit generated by the firm's core insurance technology platform.
The lack of operating leverage suggests that the company is in a high-cost customer acquisition phase that is not yet yielding economies of scale. Analysts should investigate whether the current SG&A burden is a permanent feature of the business model or a temporary investment in market share.
Financial filings reveal that the recent introduction of stock-based compensation, which reached $366.6K in 2026Q1, is beginning to weigh on net income, complicating the assessment of the company's underlying profitability as it transitions from a zero-SBC environment to a more conventional corporate structure.
The emergence of stock-based compensation suggests a shift in management's approach to talent retention, which may mask the true cash-based operational performance. Investors should monitor these non-cash charges to determine if they represent a significant dilution risk or a necessary cost for maintaining the firm's technical competitive advantage.
While revenue growth remains strong, the sharp decline in operating margins to negative territory in 2026Q1 raises concerns regarding the long-term viability of the reference-based pricing model, particularly if provider resistance and litigation costs continue to escalate within the firm's HI Performance Network.
Short-term growth may be masking underlying friction costs that could lead to significant employer churn if savings targets are not met. The market may be overestimating the scalability of this model, failing to account for the localized and advocacy-heavy nature of healthcare reimbursement that software alone cannot solve.
Quick answers to the most common questions about buying HIT stock.
For fiscal year 2025, Health In Tech, Inc. (HIT) reported total revenue of $33.3M. This represents a 477.6% increase compared to $5.8M in 2022.
Health In Tech, Inc. (HIT) is profitable, generating $1.3M in net income for the fiscal year ending 2025 with a net profit margin of 3.8%.
Health In Tech, Inc. (HIT) reported an operating income of $1.5M, resulting in an operating profit margin of 4.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Health In Tech, Inc. (HIT) generated $20.9M in gross profit for the year, representing a gross profit margin of 62.8%. This demonstrates the company's core pricing power and production efficiency.