Earnings call transcript: Health In Tech Q3 2025 sees 90% revenue growth

Health In Tech Inc. (HIT) reported substantial growth in its third-quarter earnings, with revenue surging by 90% year-over-year to $8.5 million. Earnings per share (EPS) met expectations at $0.01. Despite the lack of an earnings surprise, the company's stock saw a 4.1% increase in aftermarket trading, reflecting investor optimism about its strategic initiatives and future growth prospects.

Key Takeaways

• Health In Tech achieved a 90% increase in Q3 revenue, reaching $8.5 million.
• The company's operating expenses decreased to 55% of revenue from 68% the previous year.
• Health In Tech introduced significant product innovations, including a blockchain initiative and AI-driven services.
• Stock price rose by 4.1% in aftermarket trading, indicating positive market sentiment.

Company Performance

Health In Tech demonstrated robust performance in Q3 2025, with a notable 90% increase in revenue compared to the same period last year. The company's strategic focus on reducing operating expenses and enhancing operational efficiency has resulted in a significant reduction in costs, now comprising 55% of revenue, down from 68% a year ago. This improvement highlights the company's ability to scale effectively while maintaining profitability.

Financial Highlights

• Revenue: $8.5 million, a 90% increase year-over-year
• EPS: $0.01, meeting forecasts
• Adjusted EBITDA: $1 million, a 49% YoY increase
• Pre-tax income: $0.6 million, a 48% YoY increase
• Cash position: $8 million in cash and cash equivalents

Earnings vs. Forecast

Health In Tech's Q3 earnings per share aligned with analyst forecasts at $0.01, resulting in no earnings surprise. The consistency in meeting expectations reflects the company's stable financial management and strategic foresight. Despite the lack of a positive earnings surprise, the growth in revenue and operational improvements were significant contributors to the positive market reaction.

Market Reaction

Following the earnings announcement, Health In Tech's stock experienced a 4.1% increase in aftermarket trading, reaching $3.03. This rise indicates investor confidence in the company's future prospects, driven by its innovative product launches and strategic initiatives. The stock's movement is notable given its position within a 52-week range of $0.51 to $7.59, showcasing potential for further growth.

Outlook & Guidance

Looking ahead, Health In Tech anticipates a 50% year-over-year revenue growth in Q4. The company projects full-year 2025 revenue to be between $32 million and $33 million, with net income growth close to 90%. These projections underscore the company's commitment to expanding its market presence and leveraging its innovative capabilities.

Executive Commentary

"We are laying the foundation for an AI-enabled multi-program healthcare insurance marketplace," stated Julia Qian, CFO. This sentiment was echoed by CEO Tim Johnson, who emphasized the company's pioneering efforts in blockchain technology, saying, "The decentralization of that where anybody can join this blockchain... has not been done before in such a scale." Dustin Plantholt, Chief AI and Marketing Officer, added, "Legacy sectors like healthcare, finance, and insurance are where AI meets its toughest tests and delivers its greatest rewards."

Risks and Challenges

• Rising healthcare costs may impact market dynamics and Health In Tech's pricing strategies.
• Shifting enrollment patterns could affect revenue timing and cash flow.
• The competitive landscape in healthcare insurance remains intense, with larger players potentially posing challenges.
• Macroeconomic pressures, such as inflation and regulatory changes, could influence operational costs and strategic decisions.

Q&A

During the earnings call, analysts inquired about the company's early-stage entry into the large employer market and the potential of its blockchain claims processing platform. Health In Tech's executives highlighted the expansion of broker relationships through innovative products and addressed the deferral of opportunities in pharmacy benefit management, indicating a strategic focus on core strengths and future growth areas.

Full transcript - Health In Tech Inc (HIT) Q3 2025:

Conference Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech Third Quarter of 2025 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please proceed.

Lori Babcock, Chief of Staff, Health In Tech: Thank you, Operator, and hello, everyone. Welcome to Health In Tech's third quarter of 2025 earnings conference call. Joining us today are Mr. Tim Johnson, Chief Executive Officer; Mr. Dustin Plantholt, Chief AI and Marketing Officer; and Ms. Julia Qian, Chief Financial Officer. Full details of our results can be found in our earnings press release and in our related Form 10-Q to be filed with the SEC. These documents will be available on our Investor Relations website at healthintech.investorroom.com. As a reminder, today's call is being recorded, and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These statements are based on information available as of today and involve risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our quarterly report on Form 10-Q for the period ended September 30, 2025, to be filed with the SEC. Please review the forward-looking and cautionary statements section at the end of our earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. We undertake the obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events. We may also refer to certain financial measures not in accordance with generally accepted accounting principles, such as adjusted EBITDA for comparison purposes only.

Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. With that, I now turn the call over to our CEO, Mr. Tim Johnson. Tim?

Tim Johnson, Chief Executive Officer, Health In Tech: Thank you, and good afternoon, everyone. I appreciate you joining us today. I'm pleased to share our third-quarter results, which were well aligned with our expectations as we continue to invest in strategic channel partners and rapidly expand our distribution network. At a high level, we delivered another quarter of strong revenue growth. Revenue reached $8.5 million, up 90% year-over-year, bringing nine-month revenue to $25.8 million compared to $19.5 million for the full year of 2024. This momentum was driven by the continued expansion of our sales distribution network. The number of brokers, TPAs, and agencies grew to 849 partners, up 57% year-over-year. As more brokers and agencies adopt our eDIBS platform, we're seeing more quotes bound and sold in real time. By the end of the third quarter, the number of billed-enrolled employees reached 25,248, an increase of 7,654 employees year-over-year.

The third quarter is typically a development and deployment period for us, a time to introduce new programs and features. Most notably, we completed beta testing and officially launched the large employer underwriting capability with our enhanced eDIBS platform. This is a major milestone that scales our reach across the full employer spectrum, positioning Health In Tech as a true insurance marketplace for businesses of all sizes. The new capability enables brokers to generate fully bindable quotes for groups of 150 or more employees in as little as two weeks compared to the industry norm of about three months. This advancement dramatically expands our addressable market and establishes Health In Tech among the few platforms serving both small and large employers seamlessly. Soon after the launch, we showcased this innovation at the SIIA National Conference in October 2025, one of the most influential events in the self-insurance industry.

Our participation there helped accelerate national exposure and strengthen broker relationships, key catalysts for future growth. As we look to the fourth quarter and into Q1 2026, we're entering our peak enrollment period when employers review or switch their healthcare coverage. Recent market uncertainty and rising healthcare costs have created mixed timing patterns, with some employers making early plan selections in late Q3, while others are delaying decisions into January. As a result, we delivered much better year-over-year growth in Q3 and anticipating sales volume shift from Q4 into Q1, but still expect healthy year-over-year overall growth. To help employers navigate cost volatility, we're testing a new program offering a three-year rate hold, a solution that provides predictable, stable pricing over a multi-year period.

The program allows groups with 150 or more employees to lock in healthcare costs for three years through a fixed remittance model backed by an A-rated stop-loss carrier. It brings real value to clients looking for cost stability amid rising medical expenses, while also strengthening our relationships with brokers and TPAs. By providing cost certainty amid rising medical expenses, we're giving brokers and TPAs powerful retention tools and helping employers plan long-term with greater confidence. We completed initial testing in October and plan to fully launch the program in the first quarter of 2026. We believe it represents an innovative concept for the broader healthcare insurance market, and we're optimistic about its reception as we enter 2026. Beyond underwriting innovation, we're setting our sights on one of the largest inefficiencies in U.S. healthcare: claims processing, which consumes more than $300 billion annually in administrative costs and delays.

This quarter, we announced a non-binding letter of intent with AlphaTon Capital Corp to co-develop HitChain, a blockchain-enabled platform designed to bring real-time visibility, accuracy, and accountability to claims workflows across the ecosystem. Under this LOI, both companies plan to contribute distinct strengths. Health In Tech brings domain expertise in insurance and healthcare data standards, established broker and carrier relationships, proven go-to-market channels, and leadership in health technology design. AlphaTon Capital contributes blockchain development, expertise on the open network, smart contract architecture, cybersecurity, stablecoin integration for secure payments, and capital resources for enterprise-scale deployment. Together with AlphaTon's blockchain infrastructure and Brittany Kaiser's leadership in data ethics, we are building HitChain, a decentralized and verifiable claims system aimed at compressing timelines, eliminating duplication, reducing costs, and creating a transparent system of record for payers and providers alike.

By combining insurance domain expertise with blockchain innovation, Health In Tech is positioned at the forefront of decentralized healthcare insurance technology infrastructure, a market opportunity of meaningful scale and long-term impact. Lastly, we're thrilled to share that Health In Tech will host the InsureTech Summit at Davos during the World Economic Forum Week in January 2026. This event will convene global thought leaders to discuss AI technology and transformation of critical business sectors, including healthcare and insurance. With that, I will now turn it over to Dustin, who will walk through our latest marketing and partnership innovations in greater detail. Dustin?

Dustin Plantholt, Chief AI and Marketing Officer, Health In Tech: Thank you, Tim, and good afternoon, everyone. As Tim mentioned, we will take Health In Tech to the center of the global innovation stage by hosting our very first independent InsureTech Summit on January 20, 2026, during the week of the annual World Economic Forum in Davos, Switzerland. Now, it's interesting because the World Economic Forum, which is held each year in Davos, is really considered one of the world's most prestigious gatherings of global leaders across business, government, academia, and civil society. It serves as a powerful platform for shaping global, regional, and industry agendas. This year, Health In Tech will be among the organizations leading that dialogue. Our summit will feature a curated lineup of panels on artificial intelligence, digital transformation in healthcare, and blockchain-enabled system reform, all focused on redefining how technology can drive transparency, efficiency, and equity across the $4.5 trillion healthcare economy.

The first session we've announced, AI and institutional resistance, CEOs driving change in legacy sectors, brings together TIME CEO Jessica Sibley alongside our very own CEO, Tim Johnson, for a dynamic discussion on how top executives are embedding AI within large traditional organizations. This dialogue won't be just about innovation. It's going to highlight the leadership mindset and operational courage required to modernize industries that have historically resisted change. Our second session, First Ladies: Backing Women Who Build, will feature Lady Sherry Blair, founder of the Sherry Blair Foundation for Women. The panel will spotlight global leaders advancing women's entrepreneurship, leadership, and access to capital across industries, exploring how innovation, education, and technology can close gender gaps in business creation and economic opportunity. This aligns perfectly with Health In Tech's broader mission of expanding access and inclusion through technology-driven ecosystems.

Additional sessions focusing on other strategic themes will be announced in the next weeks and months ahead. Together, these sessions are going to elevate Health In Tech's visibility among insurers, investors, and yes, even policymakers, reinforcing our leadership in shaping conversations at the intersection of AI, healthcare, and financial inclusion. For investors, Davos represents a strategic inflection point, amplifying our institutional reach, strengthening our brand presence on the world stage, and showcasing how our technology and partnerships are modernizing the healthcare system here in the United States. As I've often said, legacy sectors like healthcare, finance, and insurance are where AI meets its toughest tests and delivers its greatest rewards. By leading these discussions, Health In Tech is demonstrating that responsible, data-driven innovation can scale sustainably while earning trust from both partners and regulators.

With that, I'll turn the call over to our Chief Financial Officer, Julia Qian, to walk you through the financial results in more detail. Julia?

Julia Qian, Chief Financial Officer, Health In Tech: Thanks, Dustin, and good afternoon, everyone. It's my pleasure to talk you through the financial results that underpin the strong operational achievement Tim just discussed. Our third quarter and the first nine months of 2025 reflect continued execution across all the business fronts. From expansion of our self-distribution network to launch new platform features, we are maintaining disciplined cost management and operational efficiency. Revenue performance. For the third quarter, total revenue reached $8.5 million, bringing year-to-year revenue growth to $25.8 million, presenting 132% of our full year 2024 total. This growth clearly demonstrates our accelerated momentum and the effectiveness of our strategic channel expansion through the broker, TPA, and agencies, combined with our strong customer acquisition activities. Profitability and operating leverage. Beyond the top line, our profitability matrix shows significant operating leverage. Adjusted EBITDA for the quarter was $1 million, up 49% year-over-year.

For the first nine months, adjusted EBITDA reached $3.8 million, or 167% of the full year 2024 total. This strong EBITDA performance demonstrates our ability to scale efficiency while maintaining the cost discipline. Pre-tax income for the quarter was $0.6 million, a 48% increase year-over-year. For the first nine months, pre-tax income totaled $2.1 million, or 2.4 times of full year 2024. Importantly, pre-tax income presented around 8% of the revenue. It's 135 basis points improved year-over-year, reflecting our consistent balance between the resource allocation for growth and the bottom-line profitability. Expenses management. On the expenses side, we continue to improve operating efficiency as we scale. Total operating expenses for the third quarter was $3.7 million, 55% of revenue, down from 68% in the same period last year.

For the first nine months, operating expenses represent 59% of revenue, an improvement of 12 basis points from 71% of the year ago. We continue to integrate AI-driven internal solutions to enhance process automation and reduce administration burden. Break this further down. Sales and marketing expenses were $1 million, or 11.3% of the revenue, essentially flat year-over-year. Our channel partner model continues to drive revenue growth without the need of a large in-house sales force. Generally, administrative expenses were $3.5 million, consisting of $1.3 million in operating cost, 14.9% of revenue, and $2.2 million in admin cost, 25.8% of revenue. The higher admin cost reflects the expenses associated with being a public company, including D&O insurance, board composition, investor relations, and median outreach. The research and development expenses declined to 2.8% of the revenue from 16% of the year ago.

Our tech results have shifted from the preliminary project maintenance phase, research phase, to heavy development phase deployment. Thus, the tech costs associated with the software development are capitalized. That's why you see the expenses reduced. Cash flow and the balance sheet. For the first nine months, we generated $2.7 million of positive cash flow from operations. We invested $2.4 million in technology development and $0.1 million in the capital markets activity, resulting in net positive cash flow of $0.2 million. We ended the quarter with a solid $8 million in cash and cash equivalent. Our collaboration with AlphaTon Capital also provides additional capital leverage for the HitChain initiative. With AlphaTon investment contribution, we expect to build this transformative blockchain, enable the first platform with minimum cash requirement from our end, which maximizes our capital efficiency.

As we enter the fourth quarter, we are navigating a period of market uncertainties related to rising healthcare costs and evolving regulatory dynamics. Some employees accelerated their plan selection decision into late Q3, which contributed to stronger than expected performance in the quarter. At the same time, other employees are shifting the purchase decision into January and early Q1 2026. Q4 is typically when we launch our major marketing broker initiatives and PR campaigns to build momentum for the peak sales season. In line with the strategy, we intentionally reinvest a portion of our gross profit into the market expansion activity to support continued long-term growth. We anticipate Q4 revenue growth of around 50% year-over-year, which reflects solid performance given these timing shifts. For the full year 2025, we are expecting to deliver around 70% year-over-year revenue growth, reaching an estimated $32-$33 million in revenue.

Importantly, full-year net income growth is expected to be near 90%, outpacing the revenue growth on a percentage basis. As we balance disciplined profitability with purposeful reinvestment, given our market share is less than 0.01% of the market potential, the long-term growth runway remains very substantial. Our strategy is to thoughtfully redeploy a portion of earnings to scale distribution, drive product adoption, and deepen our competitive position. As Tim mentioned, we began pilot testing our three-year rate hold program in late October, early November. This offering is very innovative and designed to provide portability for the employees and to manage the healthcare costs more effectively. This is very appealing to companies with a large number of employees. We will share more details with you upon full launch in Q1 2026. In summary, the third quarter marked a pivotal point of the technology progress and the product innovation.

The fourth quarter is focused on the market activities, program testing, and our year-end sales campaign, all of which position us for accelerated momentum heading into 2026. We are laying the foundation for an AI-enabled multi-program healthcare insurance marketplace that we can serve our employees with all sizes and segments. I now turn it back to the operator for Q&A.

Conference Operator: We will now begin the question-and-answer session. To ask a question, you may press Star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star, then 2. At this time, we will pause momentarily to assemble our roster. Our first question today is from Marla Marin with Zacks. Please go ahead.

Thank you. Good afternoon, everyone. This was obviously a strong quarter growth. I know you talked a little bit about some pull forward and maybe some timing differences versus general patterns in past years, but still, we're seeing very strong growth. You've been operating now for a very brief period in the large employer market. Is the response that you're seeing tracking along the lines that you had anticipated? Are there any things that you're seeing in that market that distinguish it from the small and medium market that you have traditionally looked at or focused on?

Tim Johnson, Chief Executive Officer, Health In Tech: Yeah. Hey, Marla. Thanks for the question. This is Tim. You're right. We really just got started. We haven't been able to see a trend yet because the process usually takes for our brokers to get established and trained on the system to where they're starting to use it. An effective date is usually about, at a minimum, at 60. It's usually 90-120 days out. Although the process has sped up and helped everybody help our distribution sources get their proposals and their quotes faster, we haven't seen them start to really bind anything yet because they're quoting groups that are further out from when we started, if that makes sense.

Yes.

We are seeing a lot more activity. It started at about two quotes a day. Now we're up to five quotes a day that our underwriter is able to get out. So big improvement from where it was.

Okay. Understood. Okay. Switching gears a little bit, your enrolled employees, that metric, which is one that I look at from quarter to quarter, as I'm sure others do, it continues to increase. I think in the past, you've talked about there's a level of stickiness with that number just because of difficulty sometimes in switching to other coverage providers or other solutions. Can you give us any color on whether or not you think that is true?

Julia Qian, Chief Financial Officer, Health In Tech: Yeah. That's Marla and Julia. I think that is a great question. That's why when we look at the three-year rate hold program, we are either further to enhance the retention because with these uncertainties, when the business can have a product with a flat rate for the three years, and really significantly change how the dynamic on the market. Yeah. The healthcare insurance product itself is already pretty sticky. With the speed and the benefits we offer, that's how we see we adding on more products make that even more sticky.

Okay. Got it. Last question from me. The blockchain initiative, I think, is very interesting. As you continue to innovate in this space and you continue to use technology to streamline processes and make things simpler for the customer base, in terms of blockchain right now, is there anyone else in the space that is using blockchain, or will this be something that you're going to be relatively amongst the lead innovators?

I would like Tim to address that.

Tim Johnson, Chief Executive Officer, Health In Tech: Yeah. Dustin, you can address that if you want. That'd be a good one for you.

Dustin Plantholt, Chief AI and Marketing Officer, Health In Tech: Yeah. I would love to. It is interesting, the space of healthcare and now putting these records on chain, but doing it in a way that it still remains de-identified so we do not have any compliance issues. We will really be the first at the scale that we will be launching the HitChain, bringing in an entire ecosystem over the next 12, 24, 36 months into HitChain. It has not been done at that level ever because of all the moving pieces that are involved. When we look at the problem, the friction point, Tim and I, our CEO, he and I discuss friction. The friction our providers feel, the friction that the hospital systems feel, even the friction at times the patients are feeling to be able to have a real-time ledger that they can track. I am excited over the next number of months. Mr.

Tim Johnson will be rolling out some of the areas that we see Health In Tech being able to receive revenue opportunities and also strategic growth, not just in North America. Our plan would be long-term that HitChain would be all over the planet, that we would become the number one in the healthcare blockchain, even at some point tokenization. I will throw it back to Mr. Tim Johnson, our CEO, because I can't reveal too much.

Tim Johnson, Chief Executive Officer, Health In Tech: Yeah. Marla, this type of product has been tried and failed by other people with considerably larger recognition than we are. We have brought, though, a much broader base of people that understand the A to Z effect of this. Everybody at Health In Tech and AlphaTon, they have experience in every function that has started from when somebody goes to the doctor to where that bill gets paid. Believe me, there are multiple entities in the middle of that and transactions that have to take place. By streamlining all that, as Dustin said, the decentralization of that where anybody can join this thing, this blockchain that we're calling HitChain, it has not been done before in such a scale. It has been done by single hospitals to manage their processes internally, but nothing where you decentralize it to the public like we are.

Okay. Thanks so much for the responses. I'll get back in queue or let someone else jump in.

Thanks, Marla.

Conference Operator: The next question is from James Lieberman with American Trust Investment Services. Please go ahead.

Thank you. I want to congratulate you on the terrific year of execution and the vision that you're putting in place. I wonder, can you share a little bit more about this three-year rate hold program for healthcare? How do you manage to do that, or is that your secret sauce and you'd rather not say at this time?

Tim Johnson, Chief Executive Officer, Health In Tech: Yeah. I guess this is public, you're right. We really don't want others to know how we're going about it from an underwriting perspective. I will tell you, though, that there has been a year's worth of work with multiple different financial institutions, bankers, underwriters, insurance carriers, distribution sources. In order for everybody to get comfortable with this, it has taken a lot of effort on everybody's part. Over a year now, we've been working on it. I apologize. I can't give you much more than that, but yeah.

No, I think it's kind of extraordinary. I commend you that you've been able to bring all the players together to even present that vision. Congratulations.

Yeah. Thank you.

Julia Qian, Chief Financial Officer, Health In Tech: Yeah. Tim, you just tune up to watching for the full launch news. Then we will have more detail than the time we do official full launch. It is really we combine the insurance sector expertise with carrier with various investment bank funds. It is just a lot to put together, I would say. You will find that they are all renowned institutions to join force to make this happen. We are very excited, but we will have more details to share with everybody and Q1 full launch.

Tim Johnson, Chief Executive Officer, Health In Tech: Thank you very much again.

Conference Operator: The next question is from Alan Klee with Maxim Group. Please go ahead.

Tim Johnson, Chief Executive Officer, Health In Tech: Hi. It's really great to see your degree of innovation. Following up on the three-year rate hold program, I think this could be really very powerful for employers to want this. It's kind of surprising that an insurance company would take that risk given the challenges and the changes that can happen with underwriting results. Was that maybe the hardest part to get over, how an insurance company could get comfortable to take a three-year risk?

Yeah. Alan, it was very challenging, but there's two sides to look at here. What insurance carriers like to do is get profitable business and hold it. In this case, that's what we're trying to do is make it profitable by implementing these medical management programs, some very strategically targeted programs where we're trying to manage every possible instance that can come up. If somebody has diabetes, we have a program for that. If somebody has another condition, we have very specific programs that manage these. Because, Alan, what you find is that a carrier will pick somebody up for a year and try to implement these things, but 12 months isn't enough to make an impact. If something happens, they don't have enough time.

Say it happens six months into the program, they don't have enough time to really make an impact and try to manage that condition, whatever it is, to get it back to where, one, where it probably is not, maybe it's not a profitable program, but it could be over time if you get enough time to get it under control. That's what we sold our carriers on, is the ability for us to manage those over time better than what we're able to do today.

That makes a lot of sense. And then for the claims processing, you're selling this. Who is your customer in this?

Customers are large employers, larger employees, 150 lives on their plan and greater. Like municipalities, for example, I use municipalities because they do not have a lot of money from their tax base, whatever that is, but they try to budget. Their budgeting money is very tight. When we can give them a three-year rate guarantee, municipalities and government entities love this type of product.

Right. Okay. I'm sorry, I didn't ask my question. I meant for the blockchain opportunity to manage claims processing, who are you selling that to?

That's going to be sold to everybody. If you've heard me speak in the past, Alan, everybody that touches healthcare, which is from the hospitals to the patients, the employers, the brokers, the third-party administrators, the networks, everybody in, not to use the term or beat the term up, in the chain of events, everybody will participate in this. The program, and again, I can't go into, I don't know where my line is drawn. I've given too much information, but everybody that touches it will benefit. There's a win-win in this for everybody. I have asked, people have asked me the question of how's that going to drive healthcare costs down? A large part of the healthcare cost is the administrative costs. And they're huge. As we talked about in this presentation, it was $300 billion. We're trying to cut that down dramatically.

We hope that that savings reflects back in the term of healthcare expenses paid out over time.

Conference Operator: Yeah. I'd like to also kind of add to that, Tim, and great explanation. I think that for those that have ever experienced issues when it comes to claims, the ideal kind of customer client that we see partnering with us are going to be insurance carriers, health plans, benefit administrators, companies that are processing potentially millions of claims a year or thousands or tens of thousands of claims. They're going to win with HitChain because of fewer fraudulent claims, faster processing, fewer disputes, faster collection, less overhead expenses, meaning we're driving operationally their costs down, and ultimately happier providers, which means Health In Tech wins, those that are within the ecosystem win. Yes, I can't give everything. I don't want to get ahead of myself. We have an enormous opportunity here.

We're hearing from large organizations around the world, including large hospital systems, that we are onto something. I'm excited to go on this journey with all of you in the future.

Julia Qian, Chief Financial Officer, Health In Tech: Yeah. Alan, once we work with AlphaTon, turn to from non-binding letter intent to the definitive agreement, at that point in time, we will be able to give an update in terms of the more detailed business model and all these above fronts and both Tim and Dustin mentioned about. It's just some of the very initial identified area we can benefit from. There are much more areas when we continue to discuss and discover the benefits, not only just the transparency, the speed, remove the redundancy, especially one client gets a process once, not multiple times, gets reviewed by different people, different organizations, manual work back and forth. Also there's opportunity to think about how the money movement, get paid, the payment part aside of process. There is really a lot of things we can do.

The most benefit for us overall is both parties contribute their strengths, and that has really minimum cash requirement from our end. We contribute our knowledge, and they have the funds, they have the technology and blockchain. Combine these both parties, we're going to create something very unique and big and benefit every participant on the chain.

Conference Operator: Julia, I think it's good to note because we have mentioned it in press releases regarding Ask Tim, our AI-driven benefits counselor that also will be unveiled in 2026 with a little bit of under the hood in Davos on January 20, 2026.

Julia Qian, Chief Financial Officer, Health In Tech: Yes.

You guys had mentioned in the last few months of some stuff that you're doing with pharmacy benefit management side to try to get lower drug costs. Any update on that?

Conference Operator: Julia?

Julia Qian, Chief Financial Officer, Health In Tech: Oh, Alan, I think we really do not have much more built out in terms of pharmacy benefit. Our focus this year is enhance the system, produce the new program, new product. While the PBM side of the opportunity has been evolving, there's very much to do with the market condition and who we partner with, just to present additional opportunity. For this year, and we're entering into November, when we look at really the enhanced eDIBS and the three-year rate hold and the end to the large size of the employer market, it is important for us. When we're looking to 2026, we might go back to check on what else we can build in terms of additional opportunities.

Tim Johnson, Chief Executive Officer, Health In Tech: Yeah. The current administration in the White House has, if you recently heard the press release and the conference that they had, they're looking for serious solutions. So putting our time and energy into it, if the government is going to step in as much as they are, and good for them, it could have been more of a waste of time. We thought our efforts would be better off focusing on the underwriting and claims piece that we just talked about.

Okay. Thank you. One of the things that you guys have focused on is your partners and how that's been helping to drive sales. Basically, you're getting your distribution through your partners. I think last quarter, one of the things that struck me is you were getting some of the larger insurance brokers also. Maybe if you could talk a little about your broker relationships and for the big renewal season, how you go about the process of focusing on that.

Yeah. We are growing our distribution sources because once they get to see the system, it's so convenient, so easy to use that it's making their lives easier so they can make more sales. What we term as our AlphaTon, the bigger brokerage firms around the country, products just like what we talked about with the three-year rate guarantee. Some of them have only focused on larger groups. Some of them do larger and smaller groups, but their primary focus is the larger group. With bringing a program like this three-year rate guarantee, rate stability program that we call it, that's what they're focused on. They are more excited than ever to get access to some of these products that we're bringing for the larger segment, the group segment.

Julia Qian, Chief Financial Officer, Health In Tech: Yeah. Alan, also, we very aggressively start to train the brokers. With all the large broker agencies, they have regional offices. They intend to just have a pilot office to test out, and then they roll out to the rest of the agencies in their different states. To us, it's not only just the numbers, but once we start with one agency and our sales team really go down to the implementation, the training, we should be able to see these things getting wrapped up. Not only just the number, actually, one agency can have hundreds of thousands, the other agency handful. Not only the agencies, but also how can we deepen our relationship, and our sales team has done a great job of providing training and looking at how the system, how easy the system is. We will see this continue accelerating our outreach.

Additionally, the event we're doing in Davos and led by Dustin and all other PR will continue to give us very good visibility in the market, attract more large agencies.

That's a good point. So the audience for the Davos conference will be kind of bigger players in the insurance tech area?

That's right. Like before, I think when the agency was a certain size, they are looking for more of the peers and where there's a significant event and the forum, they all can exchange their thoughts. Also, it's a perfect venue for us to improve our visibility without burning a lot of marketing dollars. We have been very disciplined in terms of the marketing and the PR, but we think this is a great opportunity for us.

Okay. Those are my questions. Thank you so much and congrats.

Tim Johnson, Chief Executive Officer, Health In Tech: Thanks, Alan.

Julia Qian, Chief Financial Officer, Health In Tech: Thank you.

Conference Operator: The next question is a follow-up. Excuse me. Pardon me. Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks.

Tim Johnson, Chief Executive Officer, Health In Tech: Thank you, Operator, and thank you all. I appreciate everyone joining the call today. If anyone has any follow-up questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping the dialogue open. Thanks, everyone.

Conference Operator: Thank you all again. This concludes the call. You may now disconnect.

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