10-Q · May 14, 2026
Health In Tech, Inc. (HIT) reported Q1 2026 results with revenue of $8.77 million, reflecting a 9.4% increase year-over-year from $8.01 million. The company reported a diluted EPS of -$0.18, compared to $0.12 in the…
Earnings analysis · 10-Q
HIT earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
HIT's Q2 2026 operating trends improved materially from Q1: revenue held at approximately $9 million, gross margin rose to 67.8% from 51.4%, operating margin returned to 7.8% from negative 24.6%, and diluted EPS…
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HIT's Q2 2026 operating trends improved materially from Q1: revenue held at approximately $9 million, gross margin rose to 67.8% from 51.4%, operating margin returned to 7.8% from negative 24.6%, and diluted EPS improved to $0.01 from negative $0.03. However, revenue and profitability were broadly unchanged year over year, and the company is relying on a costly and potentially dilutive financing arrangement of up to $20 million. The filing also adds a material underwriting-accuracy risk and confirms that no SEPA proceeds had been received as of the filing date.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $0.01
What stood out
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Revenue Held Near $9 Million
Revenue was approximately $9 million in Q2 2026, broadly flat sequentially versus $9 million in Q1 2026 and versus $9 million in Q2 2025.
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Gross Margin Rebounded Sequentially
Gross margin improved to 67.8% from 51.4% in Q1 2026, a 16.4 percentage-point sequential increase, but remained slightly below 67.8% in Q2 2025.
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Operations Returned to Positive Margin
Operating margin improved to 7.8% from negative 24.6% in Q1 2026, a 32.4 percentage-point sequential improvement, and was unchanged from 7.8% in Q2 2025.
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EPS Improved Sequentially
Diluted EPS improved to $0.01 from negative $0.03 in Q1 2026 and was unchanged from $0.01 in Q2 2025.
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Financing Provides Potential Liquidity
The company entered into a standby equity purchase agreement providing access to up to $20 million, with prepaid advances of up to $15 million expected in tranches of $7 million, $3 million and up to $5 million.
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Capital Available for Expansion
Management stated that net financing proceeds are intended for sales and distribution expansion, technology and product development, operations and working capital.
What to watch
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Underwriting Accuracy Risk Added
The newly added risk factor states that inaccurate underwriting procedures could increase health-plan costs and pricing and cause reputational harm to the eDIYBS platform. The filing specifically identifies growth dependence on accurate underwriting and relationships with brokers, TPAs, carriers, MGUs and other agents.
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Expensive Convertible Financing
The financing carries 8.75% annual interest, increasing to 18% upon certain defaults, and requires scheduled installment payments beginning 60 days after issuance with a 4% payment premium in some circumstances.
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Material Potential Share Dilution
The SEPA permits issuance of up to $20 million of common stock and convertible notes, subject to an exchange cap of 13,100,378 shares, representing approximately 19.99% of outstanding Class A and Class B stock. This creates substantial potential dilution.
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Financing Proceeds Not Yet Received
As of the filing date, the company had received $0 in proceeds and issued $0 of common shares or promissory notes under the SEPA, while the first expected $7 million tranche remained subject to specified conditions.
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Insider Selling Overhang
The company granted its CFO a Rule 10b5-1 plan covering sales of up to 946,395 Class A shares, while the Chief Growth Officer's plan covers up to 220,000 shares.
Management's outlook
The provided filing text does not include quantitative revenue or EPS guidance. The prior analysis cited full-year 2026 revenue guidance of $45 million to $50 million, but this filing excerpt does not state whether that outlook was maintained.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.