STUART, Florida — November 12, 2026 -- Health In Tech, Inc. (Nasdaq: HIT) swung to a third-quarter net loss of $7.1 million from net income of $0.5 million a year earlier. It also lowered its 2026 revenue outlook to about $30 million, according to unaudited results for the quarter ended September 30, 2026. A $5.3 million provision for credit losses makes up about 75% of the Q3 loss, by FairsOnline's calculation.
Revenue fell 22% in Q3 while distribution partners grew 15.9%
Q3 revenue was $6.6 million, down from $8.5 million in Q3 2025, a drop of about 22%. Nine-month revenue was $23.4 million against $25.8 million a year earlier, down about 9%. Over the same period, the number of distribution partners (brokers, third-party administrators and agencies) reached 984 as of September 30, 2026, up 15.9% year over year. That works out to about 849 a year earlier, or roughly 135 net additions.
The nine-month net loss was $11.2 million, against net income of $1.6 million in the first nine months of 2025. The provision for credit losses totaled $6.1 million over nine months, so about 87% of it fell in Q3. Adjusted EBITDA was a loss of $3.9 million in Q3 and $6.6 million over nine months. Cash stood at $10.1 million on September 30, 2026.
Health In Tech blames a carrier transition for the lower 2026 revenue outlook
The company now expects full-year 2026 revenue of approximately $30 million, which it describes as modestly below 2025 revenue. It says the delayed start of certain new policies after a switch to a new carrier extended underwriting and onboarding timelines. It says this moved revenue from some new business into 2027 rather than losing it, and that the carrier transition is substantially complete.
Against nine-month revenue of $23.4 million, a $30 million year implies fourth-quarter revenue of about $6.6 million, level with Q3. Contracted revenue of $32.7 million for the first nine months includes $24.4 million already recognized, before an enrollment adjustment and refund liability. It also includes $6.1 million due in Q4 2026 and $2.2 million in 2027. The $6.1 million equals roughly 92% of the implied Q4 figure. The company did not disclose the prior outlook figure it replaced.
Pipeline of $156.4 million converts to $7 million to $13 million at the company's own rates
Pipeline revenue was $156.4 million as of October 30, 2026. Of that, $2.6 million was contracted after quarter end and $153.8 million is in quoting or binding status. The company expects a 3% to 7% conversion rate on that remainder. By FairsOnline's calculation, that yields $4.6 million to $10.8 million, or $7.2 million to $13.4 million including the contracted $2.6 million. Platform Placed Plan Value was $91.8 million as of September 30, 2026.
CEO Sanjay Shrestha said reported performance "has not yet fully reflected the potential of our platform." He named quote-to-bind conversion as the immediate priority.
Sanjay Shrestha became CEO on October 20, 2026 and started a cost and capital review
Shrestha, a former board director and strategic advisor to the board, took over effective October 20, 2026. Founder Tim Johnson moved to Executive Chairman, covering long-term strategy, technology and product development. Shareholders elected Tim Cortes as an independent director at the November 10, 2026 annual meeting.
Shrestha says he has started a review of commercial operations, organizational capabilities, cost structure and capital allocation. The company says it will also evaluate acquisitions and partnerships, and expects to give a more detailed update with full-year 2026 results.
The company launched HitRix, a broker marketplace for large-group self-funded stop-loss placement, in September 2026. It has secured its first client for the Three-Year Rate Stabilization Program, which carries a 36-month contract term against 12 months for standard self-funded policies. The company targets an initial launch by year-end 2026.