Fri, May 9, 8:48 PM (2 days ago)
**Health In Tech, Inc. (HIT, NASDAQ: HIT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue Growth:** HIT reported a 56.4% year-over-year (YoY) increase in total revenues, reaching $8.0 million for Q1 2025, up from $5.1 million in Q1 2024. This growth was driven by a 17% increase in enrolled employees and strong demand for new product offerings. - **Profitability:** Net income surged to $498,592 for Q1 2025, compared to $100,536 in Q1 2024. The company's gross profit margin was 66.8%, down from 80.7% in the previous year, due to increased cost of revenues. - **Cash Flow:** Operating cash flow was positive at $527,353 for Q1 2025, a significant improvement from the negative $680,212 in Q1 2024. However, investing activities used $703,475, primarily for software development. - **Balance Sheet:** Total assets increased to $21.3 million, with cash and cash equivalents at $7.6 million. Total liabilities rose to $7.2 million, while stockholders' equity increased to $14.2 million. **Key Metrics and Trends:** - **Revenue Breakdown:** Revenues from underwriting modeling (ICE) increased by 31.8% YoY, while revenues from fees grew by 69.5% YoY. The company's service fees are billed on a per enrolled employee (PEPM) basis. - **Operating Expenses:** Sales and marketing expenses decreased as a percentage of revenue, while general and administrative expenses increased slightly. Research and development expenses decreased due to the capitalization of development costs. - **Seasonality:** The company's business is affected by seasonal patterns, with usage of its underwriting and quoting platform peaking during the common renewal of health plan policies in December and January. - **Uncertainties:** HIT faces risks related to customer concentration, supplier concentration, and the potential delisting of its securities from the Nasdaq due to its stock price falling below the minimum requirement. **Future Operations and Impact:** - **Growth Strategy:** HIT plans to continue investing in technology and innovation to drive advancements in automation and enhance operational efficiency. The company aims to expand its network of brokers, TPAs, and other third-party agents. - **Partnerships:** HIT announced a strategic collaboration with DialCare to integrate virtual care solutions into its self-funded health plan offerings. - **Board Appointment:** Sanjay Shrestha was appointed to the Board of Directors, bringing extensive leadership experience in scaling platform-based businesses and driving growth. **Ticker:** HIT