Health In Tech, Inc.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
HIT$0.56-3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001213900-25-073712
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001213900-25-109379
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 118 previous paragraphs and 118 current paragraphs.
74 unchanged; 32 reworded; 12 added; 9 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
eDIYBS Upgrade: Expanded HIT’s Enhanced Do-It-Yourself Benefit System to serve 150+ employee groups. This upgrade significantly increases HIT’s addressable market and accelerates large-group underwriting from months to about 2 weeks, extending the same speed and scalability that transformed small-business underwriting into the mid- and large-employer market. It marks a major step forward in how health plans aredesigned, quoted, and delivered at scale.
Current report
AlphaTON Capital: Signed a non-binding strategic Letter of Intent to co-develop HITChain, a blockchain-powered claims platform built on The Open Network (TON). The partnership positions HIT at the forefront of decentralized claims infrastructure, targeting efficiency gains in the $300B+ U.S. claims market.
Current report
2026 Davos Summit: Announced to host HIT’s first Independent InsurTech Summit during the World Economic Forum week in Davos. The event will convene global leaders across insurance, healthcare, and technology. The first panel,“AI and Institutional Resistance - CEOs Driving Change in Legacy Sectors,” will feature TIME CEO Jessica Sibley and HIT CEO Tim Johnson. Additional panels will be announced in the coming months, highlighting HIT’s expanding influence in shaping global industry dialogue.
Current report
SIIA 2025 Conference: Showcased upgraded eDIYBS to thousands of industry leaders. The event expanded broker engagement and reinforced HIT’s reputation as a leader in AI-powered self-funding solutions, demonstrating real-time quoting capabilities and platform flexibility.
Current report
No revenues were generated from HI Card, provided as an optional service, for the three months ended September 30, 2025, compared to $0.7 million for the same period in 2024. We made strategic decisions to temporarily pause HI Card beta testing and prioritize tech resource toward enhancing eDIYBS that drives immediate higher revenue. This disciplined allocation of resources has strengthened our near-term growth trajectory while positioning HI Card for a more robust relaunch. We currently expect to resume HI Card development toward the end of 2025 or early in the first quarter of 2026.
Current report
Sales and marketing expenses increased by $0.5 million to $1.0 million for the three months ended September 30, 2025, from $0.5 million for the three months ended September 30, 2024. As a percentage of revenue, sales and marketing expenses remained stable at 11.3% for the three months ended September 30, 2025, compared to 11.4% for the same period in 2024. Our channel-partnership model continues to drive revenue growth without the need for a large in-house sales force.
Current report
General and administrative expenses increased by $1.6 million to $3.4 million for the three months ended September 30, 2025, from $1.8 million for the three months ended September 30, 2024. The overall increase was primarily attributable to the expenses associated with being a public company of $1.1 million, including D&O insurance, board compensation, investor relations, etc. However, as a percentage of revenue, general and administrative expenses remained stable at 40.7% for the three months ended September 30, 2025, compared to the same period in 2024. This stability as a percentage of revenue was because the ratio impact of costs associated with being a public company were offset by improved operating leverage in our operations division.
Current report
Comparison of Nine Months Ended September 30, 2025 and 2024
Current report
As the services provided by SMR and ICE are delivered as an interdependent and integrated solution, we evaluate their performance based on the total revenues generated. Revenues from underwriting modeling generated from ICE increased 17.8% to $5.8 million, compared to $5.0 million for the same period in 2024, reflecting expanding adoption of our solutions. Revenues from fees generated from SMR increased 170.9% to $20.0 million, compared to $7.4 million for the same period in 2024. Revenues from fees continue to outpace revenues from underwriting modeling as more employers prioritize higher-quality coverage and enhanced service offerings.
Current report
No revenues were generated from HI Card, provided as an optional service, for the nine months ended September 30, 2025, compared to $2.3 million for the same period in 2024. We made strategic decisions to temporarily pause HI Card beta testing and prioritize tech resource for enhancing eDIYBS that drives immediate higher revenue. This disciplined allocation of resources has strengthened our near-term growth trajectory while positioning HI Card for a more robust relaunch. We currently expect to resume HI Card development toward the end of 2025 or early in the first quarter of 2026.
Current report
As a percentage of revenue, general and administrative expenses increased slightly to 40.6% for the nine months ended September 30, 2025, from 38.6% for the same period in 2024. The increase in the percentage of revenue was primarily attributable to expenses associated with being a public company, the impact of which was partially offset by improved operating leverage in our operations division.
Current report
In September 2025, the FASB issued ASU 2025-05 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. The new standard is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is allowed. The new standard may be applied prospectively, retrospectively, or via a modified prospective transition method. Currently, we are assessing the potential impact of this guidance on our condensed consolidated financial statement disclosures.
Removed paragraphs (9)
Previous report
Verdegard Administrators: an integrated, concierge-level TPA, owned by MedImpact, the largest independent pharmacy benefit manager (PBM) in the U.S., managing prescription benefits for over 20 million members and processing tens of billions in annual drug transactions. This partnership will enable us to reduce costs for small businesses.
Previous report
Unified Health Plans: a premier TPA recognized for its extensive provider network across Kansas. It has extensive provider network and focuses on controlling cost drivers and improving care quality. Unified dominates several niche business sectors in Kansas. The partnership with HIT will bring healthcare insurance solutions to the business members.
Previous report
HILB Group, one of Insurance Journal’s Top 25 ranked U.S. insurance brokers with over 2400 employee across more than 125+ branch locations in all 50 States. It partners with HIT to co-develop and distribute smarter, more transparent self-funded health benefit solutions to a much broader base of small and mid-size employers.
Previous report
Baily Insurance, established in 1880, in its fourth -generation ownership. The agency has over 200 years of combined team experience. Licensed advisors partnering with multiple Carriers. Baily is a co-founder and key broker partner in Fusion Health Plans that provides better care services and tech-enabled solution. The collaboration with HIT will deliver faster underwriting, administration, and scalability.
Previous report
Appointment of Former U.S. Ambassador Edward McMullen to Advisory Board
Previous report
On April 30, 2025, we announced that Edward T. McMullen Jr., former U.S. Ambassador to Switzerland and Liechtenstein, was appointed to our advisory board. Mr. McMullen brings extensive experience in diplomacy, public affairs, and economic policy, having previously strengthened U.S.-Swiss relations and participated in global forums such as the World Economic Forum in Davos. His strategic insight and deep network across government and industry will support Health In Tech’s efforts to modernize healthcare insurance infrastructure and advocate for efficient, transparent solutions at both state and national levels.
Previous report
Sales and marketing expenses were $1.2 million for the three months ended June 30, 2025, a modest increase from $1.0 million for the three months ended June 30, 2024. However, as a percentage of revenue, sales and marketing expenses declined to 13.2% for the three months ended June 30, 2025, compared to 19.5% for the same period in 2024. The reduction was primarily due to strong revenue growth – specifically driven by the increasing demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.
Previous report
Comparison of Six Months Ended June 30, 2025 and 2024
Previous report
General and administrative expenses increased by $3.2 million to $7.0 million for the six months ended June 30, 2025, from $3.8 million for the six months ended June 30, 2024. As a percentage of revenue, general and administrative expenses increased slightly to 40.5% for the six months ended June 30, 2025, from 37.7% for the same period in 2024.
Reworded paragraphs (32)
Previous wording
As of June 30, 2025, we had clients in 41 states, with our services and platforms actively utilized by 520 brokers, 10 Third-Party Administrators (TPAs), and 248 additional third-party agencies. Our stop loss insurance policies for self-funded benefits plans were sold to 942 business clients with 24,839 employees. Notably, in the first half of 2025, we achieved 71% year-over-year revenue growth compared to the same period in 2024, while maintaining healthy profitability.
Current wording
As of September 30, 2025, we had clients in 42 states, with our services and platforms actively utilized by 579 brokers, 12 Third-Party Administrators (TPAs), and 258 additional third-party agencies. Our stop loss insurance policies for self-funded benefits plans were sold to 910 business clients with 25,248 employees. Notably, in the first nine months of 2025, we achieved 77% year-over-year revenue growth compared to the same period in 2024, while maintaining healthy profitability.
Previous wording
As of June 30, 2025, the number of enrolled employees reached 24,839, representing a 30% increase from 19,101 in the same period of 2024. This growth reflects strong market demand and the expanded adoption of our self-funded health plan solutions.
Current wording
As of September 30, 2025, the number of enrolled employees reached 25,248, representing a 44% increase from 17,594 in the same period of 2024. This growth reflects strong market demand and the expanded adoption of our self-funded health plan solutions facilitated by continued channel expansion through brokers, TPAs, and agencies.
Previous wording
Adjusted EBITDA represents our net income before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. Please refer to “Results of Operations*”*in this item for a discussion of the limitations of adjusted EBITDA and reconciliations of adjusted EBITDA to net income, the most comparable GAAP measurements, respectively, for the three and six months ended June 30, 2025 and 2024. We exclude certain non-recurring or non-cash items when calculating Adjusted EBITDA, and we believe this approach provides a more meaningful measure by offering a clearer view of our underlying operational performance.
Current wording
Adjusted EBITDA represents our net income before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. Please refer to “Results of Operations*”*in this item for a discussion of the limitations of adjusted EBITDA and reconciliations of adjusted EBITDA to net income, the most comparable GAAP measurements, respectively, for the three and nine months ended September 30, 2025 and 2024. We exclude certain non-recurring or non-cash items when calculating Adjusted EBITDA, and we believe this approach provides a more meaningful measure by offering a clearer view of our underlying operational performance.
Previous wording
As of June 30, 2025, the balance of cash and cash equivalents was $8,138,166, representing a modest increase compared to $7,849,248 as of December 31, 2024.
Current wording
As of September 30, 2025, the balance of cash and cash equivalents was $8,023,613, representing a modest increase compared to $7,849,248 as of December 31, 2024.
Previous wording
As of June 30, 2025, net accounts receivable decreased by $365,972 to $1,281,131, from $1,647,103 as of December 31, 2024. This reduction mainly resulted from process enhancements and automation of our accounts receivable (AR) system.
Current wording
As of September 30, 2025, net accounts receivable decreased by $778,475 to $868,628, from $1,647,103 as of December 31, 2024. This reduction mainly resulted from process enhancements and automation of our accounts receivable (AR) system.
Previous wording
As of June 30, 2025, the balance of other receivables increased by $3,354,582 to $3,854,834, from $500,252 as of December 31, 2024. This increase was mainly attributable to the purchase of Deferred Administrative Surplus for $3,481,684 on March 18, 2025.
Current wording
As of September 30, 2025, the balance of other receivables increased by $3,370,854 to $3,871,106, from $500,252 as of December 31, 2024. This increase was mainly attributable to the purchase of Deferred Administrative Surplus for $3,481,684 on March 18, 2025.
Previous wording
As of June 30, 2025, the balance of software increased by $1,556,649 to $5,519,110, from $3,962,461 as of December 31, 2024. This increase was mainly attributable to a $1,828,615 investment in new software development, partially offset by a $271,966 increase in accumulated amortization for the six months ended June 30, 2025.
Current wording
As of September 30, 2025, the balance of software increased by $2,220,230 to $6,182,691, from $3,962,461 as of December 31, 2024. This increase was mainly attributable to a $2,951,949 increase in the expansion of eDIYBS systems completed in September 2025, partially offset by a $489,947 increase in accumulated amortization for the nine months ended September 30, 2025.
Previous wording
As of June 30, 2025, the balance of total liabilities increased by $3,155,186 to $5,754,647, from $2,599,461 as of December 31, 2024. This increase was driven by a $631,682 payable related to the purchase of Deferred Administrative Surplus in March 2025, as well as the increased accounts payable and accrued expenses reflecting the expansion of our business scale. Notably, the first-half 2025 revenues have reached approximately 89% of full-year 2024 revenues, which led to higher liabilities in line with operational growth.
Current wording
As of September 30, 2025, the balance of total liabilities increased by $2,997,420 to $5,596,881, from $2,599,461 as of December 31, 2024. This increase was driven by the higher accounts payable and accrued expenses reflecting the expansion of our business scale. Notably, the first nine months of 2025 revenues have reached approximately 132% of full-year 2024 revenues, which led to higher liabilities in line with operational growth.
Previous wording
As of June 30, 2025, the balance of total stockholders’ equity increased by $3,254,575 to $16,423,603, from $13,169,028 as of December 31, 2024. This increase was mainly attributable to our net income and stock-based compensation. Please refer to our Condensed Consolidated Statements of Changes in Stockholders’ Equity for additional information.
Current wording
As of September 30, 2025, the balance of total stockholders’ equity increased by $3,989,935 to $17,158,963, from $13,169,028 as of December 31, 2024. This increase was mainly attributable to our net income and stock-based compensation. Please refer to our Condensed Consolidated Statements of Changes in Stockholders’ Equity for additional information.
Previous wording
Total revenues for the three months ended June 30, 2025 reached $9.3 million, up 86.2% from $5.0 million in the same period of 2024. This growth was primarily driven by strong demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.
Current wording
Total revenues for the three months ended September 30, 2025 reached $8.5 million, up 90.4% from $4.5 million in the same period of 2024. This growth was primarily driven by strong demand for our new product offerings facilitated by continued channel expansion through brokers, TPAs, and agencies.
Previous wording
This growth was supported by a 30% increase in total billable enrolled employees, which rose to 24,839 as of June 30, 2025, compared to 19,101 for the same period in 2024. Revenues from underwriting modeling increased 27.5% to $2.1 million, compared to $1.6 million for the same period in 2024, reflecting expanding adoption of our solutions.
Current wording
This growth was supported by a 44% increase in total billable enrolled employees, which rose to 25,248 as of September 30, 2025, compared to 17,594 for the same period in 2024.
Previous wording
Revenues from fees increased 114.8% to $7.2 million, compared to $3.4 million for the same period in 2024. Revenues from fees continue to outpace revenues from underwriting modeling as more employers prioritize higher-quality coverage and enhanced service offerings.
Current wording
As the services provided by SMR and ICE are delivered as an interdependent and integrated solution, we evaluate their performance based on the total revenues generated. While revenues from underwriting modeling generated from ICE decreased by $0.1 million to $1.4 million, this decline was more than offset by a $4.8 million increase in revenues from fees generated from SMR, leading to a net increase in the revenues from the integrated solution. Revenues from fees continue to outpace revenues from underwriting modeling as more employers prioritize higher-quality coverage and enhanced service offerings.
Previous wording
Cost of revenues increased by $2.0 million to $3.0 million for the three months ended June 30, 2025, from $1.0 million for the three months ended June, 2024. As a percentage of revenue, cost of revenues increased to 32.3% for the three months ended June 30, 2025, from 19.5% for the same period in 2024.
Current wording
Cost of revenues increased by $2.3 million to $3.3 million for the three months ended September 30, 2025, from $1.0 million for the three months ended September 30, 2024. As a percentage of revenue, cost of revenues increased to 39.4% for the three months ended September 30, 2025, from 22.0% for the same period in 2024.
Previous wording
Research and development expenses decreased by $0.1 million to $0.6 million for the three months ended June 30, 2025, from $0.7 million for the three months ended June 30, 2024. As a percentage of revenue, research and development expenses decreased to 6.3% for the three months ended June 30, 2025, from 14.0% for the same period in 2024.
Current wording
Research and development expenses decreased by $0.5 million to $0.2 million for the three months ended September 30, 2025, from $0.7 million for the three months ended September 30, 2024. As a percentage of revenue, research and development expenses decreased to 2.8% for the three months ended September 30, 2025, from 16.1% for the same period in 2024.
Previous wording
The decrease was primarily attributable to the capitalization of development costs related to the buildout of eDIYBS 3.0. During the six months ended June 30, 2025, our IT remained focused on enhancing features for this next-generation platform.
Current wording
The decrease was primarily attributable to the capitalization of development costs related to the buildout of eDIYBS 3.0. During the three months ended September 30, 2025, our IT focused on deployment and feature enhancement phases for this next-generation platform. The expansion of eDIYBS systems to serve groups with more than 150 employees was completed in September 2025.
Previous wording
Income before income tax expense increased by $0.4 million to $0.8 million for the three months ended June 30, 2025, from $0.4 million for the three months ended June 30, 2024. This increase was primarily attributable to our strong revenue growth and disciplined cost management.*** ***
Current wording
Income before income tax expense increased by $0.2 million to $0.6 million for the three months ended September 30, 2025, from $0.4 million for the three months ended September 30, 2024. This increase was primarily attributable to our strong revenue growth and disciplined cost management.
Previous wording
Provision for income taxes increased by $0.1 million to $0.2 million for the three months ended June 30, 2025, from $0.1 million for the three months ended June 30, 2024. The increase in provision for income taxes was attributable to the increased income before income taxes, primarily driven by our strong revenue growth and disciplined cost management.*** ***
Current wording
Provision for income taxes increased by $0.12 million to $0.15 million for the three months ended September 30, 2025, from $0.03 million for the three months ended September 30, 2024. The increase in provision for income taxes was attributable to the increased income before income taxes, primarily driven by our strong revenue growth and disciplined cost management.
Previous wording
Adjusted EBITDA increased by $1.7 million to $2.8 million for the six months ended June 30, 2025, from $1.1 million for the six months ended June 30, 2024. As a percentage of revenue, adjusted EBITDA improved to 16.1% for the six months ended June 30, 2025, from 11.2% for the same period in 2024. The increase in adjusted EBITDA was primarily attributable to robust revenue growth, driven by strong demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.
Current wording
Adjusted EBITDA increased by $0.3 million to $1.0 million for the three months ended September 30, 2025, from $0.7 million for the three months ended September 30, 2024. As a percentage of revenue, adjusted EBITDA decreased to 11.8% for the three months ended September 30, 2025, from 15.0% for the same period in 2024. The decrease in adjusted EBITDA was primarily due to the increase in cost of revenues, mainly driven by higher captive management fees related to the new products and new channels launched in July 2024.
Previous wording
Total revenues for the six months ended June 30, 2025 reached $17.3 million, up 71.1% from $10.1 million in the same period of 2024. This growth was primarily driven by strong demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.
Current wording
Total revenues for the nine months ended September 30, 2025 reached $25.8 million, up 77.0% from $14.6 million in the same period of 2024. This growth was primarily driven by strong demand for our new product offerings facilitated by continued channel expansion through brokers, TPAs, and agencies.
Previous wording
This growth was supported by a 30% increase in total billable enrolled employees, which rose to 24,839 as of June 30, 2025, compared to 19,101 in the same prior last year. Revenues from underwriting modeling increased 29.8% to $4.4 million, compared to $3.4 million for the same period in 2024, reflecting expanding adoption of our solutions.
Current wording
This growth was supported by a 44% increase in total billable enrolled employees, which rose to 25,248 as of September 30, 2025, compared to 17,594 in the same prior last year.
Previous wording
Cost of revenues increased by $3.7 million to $5.7 million for the six months ended June 30, 2025, from $2.0 million for the six months ended June 30, 2024. As a percentage of revenue, cost of revenues increased to 32.7% for the six months ended June 30, 2025, from 19.4% for the same period in 2024.
Current wording
Cost of revenues increased by $6.1 million to $9.0 million for the nine months ended September 30, 2025, from $2.9 million for the nine months ended September 30, 2024. As a percentage of revenue, cost of revenues increased to 34.9% for the nine months ended September 30, 2025, from 20.2% for the same period in 2024.
Previous wording
Sales and marketing expenses were $2.3 million for the six months ended June 30, 2025, a modest increase from $2.0 million for the six months ended June 30, 2024. However, as a percentage of revenue, sales and marketing expenses declined to 13.4% for the six months ended June 30, 2025, compared to 19.9% for the same period in 2024. This reduction was primarily due to the strong revenue growth – specifically driven by the increasing demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.
Current wording
Sales and marketing expenses increased by $ 0.8 million to $3.3 million for the nine months ended September 30, 2025, from $2.5 million for the nine months ended September 30, 2024. However, as a percentage of revenue, sales and marketing expenses declined to 12.7% for the nine months ended September 30, 2025, compared to 17.3% for the same period in 2024. This reduction was primarily due to our channel partnership model, which continues to drive revenue growth without the need for a large in-house sales force.
Previous wording
The overall increase in general and administrative expenses for the six months ended June 30, 2025 was primarily attributable to the increased public company costs of $1.4 million, including audit, legal, and investor relations expenses etc. An additional $0.6 million was associated with stock-based compensation expenses, and the remainder of the increase reflected higher personnel-related expenses.
Current wording
General and administrative expenses increased by $4.8 million to $10.4 million for the nine months ended September 30, 2025, from $5.6 million for the nine months ended September 30, 2024. The overall increase in general and administrative expenses for the nine months ended September 30, 2025 was primarily attributable to the increased expenses associated with being a public company of $2.5 million, including D&O insurance, board compensation, investor relations, media outreach, etc. An additional $0.6 million was associated with stock-based compensation expenses, and the remainder of the increase reflected higher personnel-related expenses.
Previous wording
Research and development expenses decreased by $0.4 million to $1.1 million for the six months ended June 30, 2025, from $1.5 million for the six months ended June 30, 2024. As a percentage of revenue, research and development expenses decreased to 6.5% for the six months ended June 30, 2025, from 14.4% for the same period in 2024.
Current wording
Research and development expenses decreased by $0.8 million to $1.4 million for the nine months ended September 30, 2025, from $2.2 million for the nine months ended September 30, 2024 As a percentage of revenue, research and development expenses decreased to 5.3% for the nine months ended September 30, 2025, from 14.9% for the same period in 2024.
Previous wording
The decrease was primarily attributable to the capitalization of development costs related to the buildout of eDIYBS 3.0. During the three months ended June 30, 2025, our IT remained focused on enhancing features for this next-generation platform.
Current wording
The decrease was primarily attributable to the capitalization of development costs related to the buildout of eDIYBS 3.0. During the nine months ended September 30, 2025, our IT remained focused on enhancing features for this next-generation platform. The expansion of eDIYBS systems to serve groups with more than 150 employees was completed in September 2025.
Previous wording
Income before income tax expense increased by $0.9 million to $1.5 million for the six months ended June 30, 2025, from $0.6 million for the six months ended June 30, 2024. This increase was primarily attributable to our strong revenue growth and disciplined cost management.*** ***
Current wording
Income before income tax expense increased by $1.1 million to $2.1 million for the nine months ended September 30, 2025, from $1.0 million for the nine months ended September 30, 2024. This increase was primarily attributable to our strong revenue growth and disciplined cost management.
Previous wording
Provision for income taxes increased by $0.2 million to $0.4 million for the six months ended June 30, 2025, from $0.2 million for the six months ended June 30, 2024. The increase in provision for income taxes was attributable to the increased income before income taxes, primarily driven by our strong revenue growth and disciplined cost management.*** ***
Current wording
Provision for income taxes increased by $0.3 million to $0.5 million for the nine months ended September 30, 2025, from $0.2 million for the nine months ended September 30, 2024. The increase in provision for income taxes was attributable to the increased income before income taxes, primarily driven by our strong revenue growth and disciplined cost management.
Previous wording
Adjusted EBITDA increased by $0.9 million to $1.6 million for the three months ended June 30, 2025, from $0.7 million for the three months ended June 30, 2024. As a percentage of revenue, adjusted EBITDA improved to 16.8% for the three months ended June 30, 2025, from 13.4% for the same period in 2024. The increase in adjusted EBITDA was primarily attributable to robust revenue growth, driven by strong demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.
Current wording
Adjusted EBITDA increased by $2.0 million to $3.8 million for the nine months ended September 30, 2025, from $1.8 million for the nine months ended September 30, 2024. As a percentage of revenue, adjusted EBITDA improved to 14.7% for the nine months ended September 30, 2025, from 12.4% for the same period in 2024. The increase in adjusted EBITDA was primarily attributable to robust revenue growth, driven by strong demand for our new product offerings facilitated by continued channel expansion through brokers, TPAs, and agencies.
Previous wording
Net cash provided by operating activities increased by $1.4 million to $2.0 million for the six months ended June 30, 2025, compared to $0.6 million for the same period in 2024. The increase was primarily due to the growth in revenues and process improvements and the automation of our accounts receivable (AR) system. Cash provided by operating activities for the six months ended June 30, 2025, principally resulted from our net income of $1.1 million, $2.3 million in adjustments for non-cash items primarily related to amortization, provision for refund liability and stock-based compensation expense, and offset by $1.4 million of cash used to fund changes in working capital, including a decrease in accounts receivable of $0.4 million, an increase in other receivables of $3.4 million, an increase in prepaid expenses and other current assets of $0.2 million, an increase in long-term prepaid expenses of $0.4 million, an increase in accounts payable and accrued expenses of $2.3 million and a decrease in income taxes payable of $0.1 million.
Current wording
Net cash provided by operating activities remained stable at $2.7 million for the nine months ended September 30, 2025, compared to the same period in 2024. Cash provided by operating activities for the nine months ended September 30, 2025, principally resulted from our net income of $1.6 million, $4.3 million in adjustments for non-cash items primarily related to amortization, provision for refund liability and stock-based compensation expense, and offset by $3.2 million of cash used to fund changes in working capital, including a decrease in accounts receivable of $0.8 million, an increase in other receivables of $3.4 million, an increase in prepaid expenses and other current assets of $0.7 million, an increase in long-term prepaid expenses of $0.2 million, an increase in accounts payable and accrued expenses of $2.0 million, a decrease in income taxes payable of $0.2 million and a decrease in other current liabilities of $1.5 million.
Previous wording
Cash provided by operating activities for the six months ended June 30, 2024, principally resulted from our net income of $0.4 million, $0.5 million in adjustments for non-cash items primarily related to amortization and amortization of debt discount, and offset by $0.3 million of cash used to fund changes in working capital, including a decrease in accounts receivable of $0.8 million, a decrease in other receivables of $0.6 million, a decrease in accounts payable and accrued expenses of $1.6 million and a decrease in income taxes payable of $0.1 million.
Current wording
Cash provided by operating activities for the nine months ended September 30, 2024, principally resulted from our net income of $0.8 million, $0.8 million in adjustments for non-cash items primarily related to amortization, deferred tax benefits, amortization of debt discount and interest income, and $1.1 million of cash provided by changes in working capital, including a decrease in accounts receivable of $1.3 million, a decrease in other receivables of $1.2 million, an increase in prepaid expenses and other current assets of $0.2 million, a decrease in accounts payable and accrued expenses of $1.1 million and a decrease in income taxes payable of $0.1 million.
Previous wording
Cash used in investing activities increased by $1.4 million to $1.6 million for the six months ended June 30, 2025, compared to $0.2 million for the same period in 2024. The primary use of cash used in investing activities for the six months ended June 30, 2025 and 2024 were both related to the development of our internal-use software, reflecting our continued investment in enhancing all our technology platforms.
Current wording
Cash used in investing activities increased by $2.1 million to $2.4 million for the nine months ended September 30, 2025, compared to $0.3 million for the same period in 2024. The primary use of cash used in investing activities for the nine months ended September 30, 2025 and 2024 were both related to the development of our internal-use software, reflecting our continued investment in enhancing all our technology platforms.
Previous wording
Cash used in financing activities was $0.1 million for the six months ended June 30, 2025, compared to $0.6 million for the same period in 2024. The primary use of cash used in financing activities for the six months ended June 30, 2025 and 2024 were both related to the payments of deferred offering cost for our public offering.
Current wording
Cash used in financing activities decreased by $2.9 million to $0.2 million for the nine months ended September 30, 2025, compared to $3.1 million for the same period in 2024. The decrease was primarily driven by a $2.1 million repayment of notes payable during the 2024 period, which did not recur in 2025. Cash used in financing activities for the nine months ended September 30, 2025 consisted primarily of payments of deferred offering cost for our public offering.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
General and administrative expenses increased by $2.0 million to $3.8 million for the three months ended June 30, 2025, from $1.8 million for the three months ended June 30, 2024. As a percentage of revenue, general and administrative expenses increased slightly to 40.5% for the three months ended June 30, 2025, from 36.3% for the same period in 2024.
Previous report — wording carried elsewhere
The overall increase in general and administrative expenses for the three months ended June 30, 2025 was primarily attributable to the increased public company costs of $0.8 million, including audit, legal, and investor relations expenses etc. An additional $0.3 million was associated with stock-based compensation expenses, and the remainder of the increase reflected higher personal-related expenses.
Previous report — wording carried elsewhere
Revenues from fees increased 92.2% to $12.9 million, compared to $6.7 million for the same period in 2024. Revenues from fees continue to outpace revenues from underwriting modeling as more employers prioritize higher-quality coverage and enhanced service offerings.