Health in Tech (HIT) Q3 2025: Distribution Network Grows 57%, Unlocking Large Employer Market
Health in Tech’s third quarter saw a decisive expansion in its broker-driven distribution network, accelerating entry into the large employer segment and setting the stage for a multi-year growth runway. The launch of large group underwriting and a three-year rate hold program signal a bold shift in product scope, while the blockchain-based HitChain initiative targets industry-wide claims inefficiencies. With Q4 and Q1 poised for peak enrollment and program rollouts, investor focus will shift to execution in these new verticals and the pace of adoption among larger clients.
Summary
- Distribution Network Expansion: Broker and agency partners surged, driving broader market access and volume potential.
- Product Innovation Momentum: Launch of large employer underwriting and a three-year rate hold program addresses cost volatility and retention.
- Blockchain Claims Platform Initiative: HitChain partnership targets major administrative inefficiencies, positioning HIT as a tech-first disruptor.
Performance Analysis
Health in Tech delivered robust top-line growth, with revenue reaching $8.5 million for the quarter and nine-month revenue already surpassing the prior year’s full total. The company’s core business model leverages a channel partner approach—enlisting brokers, third-party administrators (TPAs), and agencies to distribute its digital insurance platform, eDIBS, to employers. This model enables rapid scaling without the overhead of a large in-house sales force, as evidenced by the 57% YoY increase in distribution partners to 849, which now drive real-time quoting and binding activity.
Operating leverage was apparent in the quarter, as adjusted EBITDA rose 49% YoY and operating expenses fell as a percentage of revenue (down to 55% from 68% YoY). The company’s ability to maintain sales and marketing spend while expanding reach highlights the efficiency of its channel model. Notably, the number of BILD, enrolled employees on the platform, grew by 7,654 YoY to 25,248, reinforcing the platform’s stickiness and growing market penetration. Cash flow from operations remained positive, and the balance sheet ended with $8 million in cash, supporting ongoing investment in technology and channel expansion.
- Distribution Channel Scale: Partner count up 57% YoY, amplifying sales reach and market visibility.
- Margin Expansion: Operating expenses as a percent of revenue improved by 13 percentage points YoY, reflecting cost discipline and tech leverage.
- Employee Enrollment Growth: Year-over-year increase in enrolled lives signals rising platform adoption and retention.
While some Q4 volume was pulled into Q3 due to early plan selection by employers, management expects continued YoY growth as the company enters its peak enrollment period, with Q4 revenue growth guided at approximately 50% YoY.
Executive Commentary
"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 and tech as a true insurance marketplace for business of all sizes."
Tim Johnson, Chief Executive Officer
"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 four-year 2024 total. These strong EBITDA performance demonstrate our ability to scale efficiency while maintaining the cost discipline."
Julia Chen, Chief Financial Officer
Strategic Positioning
1. Large Employer Market Entry
The launch of fully bindable large group underwriting on eDIBS enables brokers to quote and bind policies for groups of 150+ employees in as little as two weeks, compared to the industry standard of three months. This capability opens a new, higher-value segment and positions HIT as one of the few platforms serving both small and large employers seamlessly.
2. Three-Year Rate Hold Program
To address employer demand for cost predictability, HIT piloted a three-year rate hold program for large groups, allowing clients to lock in healthcare costs via a fixed remittance model. Backed by an A-rated stop-loss carrier, this program is designed to drive retention and win business from cost-sensitive clients like municipalities and large enterprises.
3. Blockchain Claims Processing (HitChain)
The non-binding LOI with AlphaTon Capital to develop HitChain, a blockchain-enabled claims platform, targets the $300 billion in annual administrative costs in U.S. healthcare. By decentralizing claims workflows, HIT aims to reduce fraud, accelerate processing, and create a transparent, auditable system of record for all participants—payers, providers, brokers, and employers.
4. Global Brand Elevation at Davos
Hosting the InsureTech Summit during the World Economic Forum will elevate HIT’s profile among global insurers, investors, and policymakers, reinforcing its role as a thought leader at the intersection of AI, insurance, and healthcare transformation.
Key Considerations
HIT’s Q3 was defined by a series of strategic moves that expand its addressable market and operational efficiency, but success will hinge on execution in new verticals and the adoption curve among large employers and partners.
Key Considerations:
- Channel Partner Leverage: The broker-driven model is showing network effects, but scaling quality and training across a diverse partner base remains a challenge.
- Large Group Adoption Ramp: Early quoting activity is up, but binding and revenue realization will lag due to long employer decision cycles.
- Retention and Stickiness: The three-year rate hold program, if successful, could materially increase client retention, but underwriting risk must be carefully managed.
- Blockchain Platform Execution: HitChain represents a major technical and go-to-market undertaking; success will depend on industry buy-in and integration with legacy systems.
- Visibility and Brand Build: Davos and conference-driven PR may catalyze enterprise partnerships, but the impact on near-term sales is uncertain.
Risks
Key risks include the operational complexity of scaling into large employer segments, underwriting risk associated with multi-year rate guarantees, and execution risk on the blockchain initiative. The company’s growth is also sensitive to regulatory shifts and timing of employer plan selections, which can cause quarter-to-quarter volatility. Successful realization of new programs and partnerships will be essential to maintain growth and margin momentum.
Forward Outlook
For Q4 2025, Health in Tech guided to:
- Revenue growth of approximately 50% year-over-year, reflecting timing shifts and peak enrollment activity.
For full-year 2025, management expects:
- Revenue of $32-33 million, representing about 70% YoY growth.
- Net income growth near 90% YoY, outpacing revenue expansion.
Management emphasized that Q4 will focus on major broker marketing initiatives, pilot program launches, and foundational work for 2026. The large employer underwriting and three-year rate hold programs will be fully launched in Q1 2026, with further updates on the HitChain blockchain project expected as the definitive agreement is finalized.
Takeaways
HIT’s Q3 performance signals a company in transition from niche insurtech to a broader, platform-based insurance marketplace.
- Distribution Flywheel: Partner expansion and platform enhancements are driving both top-line growth and operating leverage, but sustaining this momentum will require continued execution and retention.
- Product Differentiation: The three-year rate hold and blockchain claims initiatives are bold moves that could create lasting competitive advantage—if operational risks are managed and adoption ramps as planned.
- 2026 Watchpoints: Investors should monitor the pace of large employer adoption, the impact of new retention programs, and early traction for HitChain as key signals for long-term value creation.
Conclusion
Health in Tech’s Q3 marked a pivotal step in scaling its business model and expanding product reach, with strong financial execution and bold innovation bets. The company’s ability to convert pipeline into revenue and deliver on new program promises will define its trajectory into 2026.
Industry Read-Through
HIT’s entry into the large employer market and its focus on blockchain-enabled claims processing reflect broader industry trends toward digital transformation, administrative cost reduction, and value-based employer solutions. Competitors in the insurtech and health benefits space will face pressure to accelerate innovation as clients demand faster quoting, binding, and cost predictability. The shift toward long-term rate guarantees and decentralized claims workflows could redefine standards for retention, transparency, and operational efficiency across the insurance and healthcare sectors.