By M. Marin
READ THE FULL HIT RESEARCH REPORT
Expanding network, reach, product suite and TAM
Health in Tech (NASDAQ:HIT), an insurtech operating an AI-powered online marketplace platform to facilitate and improve employers’ ability to obtain health insurance, is expected to report 3Q25 results within the next few weeks. The company recorded strong momentum through 1H25, and we expect this trend to continue in 3Q25, particularly as HIT continues to expand its reach, broaden its offering suite as HIT continues to deepen and broaden its product offering and engage with new and existing customers, and extend its target market.
Specifically, the company continues to expand its network and reach. For example, HIT’s distribution network expanded 87% year-over-year by 2Q25 to 778 partners, reflecting the company’s strategy to extend the network beyond traditional broker channels, according to management, including partnerships with Third-party Administrators (TPAs), regional healthcare benefit providers, and service platforms supporting small businesses, combined with rising adoption. Highlights of new business affiliations include Verdegard Administrators, Unified Health Plans, Hilb Group, and Baily Insurance.
Verdegard Administrators is an integrated TPA that is owned by MedImpact, which is a leading pharmacy benefit manager (PBM). MedImpact manages prescription benefits for more than 20 million members, according to HIT, which expects the partnership to help it lower expenses for small businesses. Unified Health Plans has a broad provider network across Kansas. Hilb Group ranks among the top 25 U.S. insurance brokers, according to Insurance Journal. The partnership is expected to expand HIT’s reach to provide self-funded health benefit solutions to a broader network of small and mid-size employers. The affiliation with Baily Insurance, a co-founder and partner in Fusion Health Plans, which provides cost-effective tech-enabled solutions, is another expected positive for HIT.
The number of enrolled employees (EEs) insured via its platform — considered a critical indicator of growth and market penetration — reached 24,839 EEs billed for various services in 2Q25, up about 30% compared to 2Q24 EEs. The company believes the increase in billed EEs also reflects that HIT is expanding its market reach and seeing strong adoption across its growing network.
We forecast 3Q25 revenue of $7.0 million compared to $4.5 million in 3Q24. Revenue grew an impressive 86% year-over-year to $9.3 million in 2Q25, compared to $5.0 million in 2Q24. Revenue in just the first half of 2025 equals almost 90% of total full year 2024 revenue. We lower our gross margin forecast to levels consistent with 2Q25.
Strengthening offering to lower costs, complexity & timeline of securing access to healthcare for SMEs and larger employers
Importantly, while HIT continues to expand its offerings and reach for SMEs (the small and medium-sized enterprises), its legacy target addressable market (TAM) and the majority of U.S. firms according to the U.S. Small Business Association (SBA), the company believes the HIT platform can also make it easier for larger organizations to obtain insurance plans that are appropriate for their organizations. Reflecting interest it has generated to date, HIT is optimistic about the prospects for its AI-powered solutions for mid-sized and larger businesses.
HIT recently introduced a key expansion of its Do-It-Yourself Benefit System (eDIYBS) to extend eDIYBS capabilities to the mid- and large-employer market and reduce quoting timelines significantly. With this upgrade, brokers who work with organizations with 150 or more employees can upload claims files easily, and HIT’s AI technology capabilities process the data quickly to generate bindable quotes for both small and large-employer segments.
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