Health In Tech (HIT) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 12, 2026

CALL PARTICIPANTS

• Chief of Staff - Lori Babcock
• Founder and Executive Chairman - Tim Johnson
• Chief Executive Officer - Sanjay K. Shrestha
• Chief Financial Officer - Julia Qian

TAKEAWAYS

• Revenue -- $6.6 million, representing a decline from $8.5 million in the prior-year period due to timing of policy effective dates and a transition between insurance carriers.
• Full-Year Revenue Guidance -- Approximately 30 million, updated by management to reflect the current pace of execution ahead of the renewal and placement cycle.
• Revenue Pipeline -- $150 million in potential annualized revenue as of Oct. 30, 2026, with approximately 70% of the volume associated with anticipated policy effective dates on Jan. 1, 2027.
• Expected Pipeline Conversion Rate -- 3% to 7%, which management indicated would generate 9.3 million to 10.7 million in revenue for policies with effective dates between November 2026 and January 2027.
• Gross Margin -- 46.5%, down from 60.6% in the prior year, reflecting the introduction of a predesigned self-funded health plan model that includes additional direct service costs.
• Adjusted EBITDA -- Negative $3.9 million, compared with positive $1 million in the third quarter of 2025, driven by lower revenue and increased operating investments.
• Net Loss -- $7.1 million, or $0.11 per basic and diluted share, which included a one-time $5.3 million credit loss provision.
• Provision for Credit Loss -- $5.3 million, comprising $2.4 million for legacy administration receivables, $1.9 million related to carrier transition reconciliations, and $900,000 for a loan receivable write-off.
• Cash Position -- $10.1 million as of Sept. 30, 2026, compared with $7.7 million at the end of 2025, supported by capital raising activities and improved collections.
• Operating Cash Flow -- Negative $1 million in the third quarter, representing a 68% improvement in cash burn from the first quarter of 2026.
• Contracted Revenue -- $32.7 million for the first nine months of 2026, with 24.4 million already recognized as GAAP revenue through the end of the third quarter.
• eDIYBS Fee Revenue -- $20.04 million for the first nine months of 2026, remaining essentially flat compared with $19.99 million in the prior-year period.
• Underwriting Model Revenue -- $3.37 million for the first nine months of 2026, declining from $5.83 million in the previous year due to the compression of premium-based fees.
• Distribution Network -- 984 brokers, third-party administrators, and agency partners, representing approximately 15.9% growth year over year.
• Platform Placed Value (PPTV) -- $91.8 million as of Sept. 30, 2026, which measures the total contract value of plans on the platform including premiums and fees.
• Sales and Marketing Expenses -- $2.1 million, compared with $1 million in the prior year, driven primarily by variable-based payouts to third-party agency partners.
• General and Administrative Expenses -- $3.1 million, a reduction from $3.5 million in the prior-year quarter, reflecting corporate cost discipline and workforce optimization.
• Research and Development Expenses -- $900,000, up from $200,000 in the prior year, due to accounting requirements that categorize early-stage platform planning as an expense rather than capitalized software.
• Software Development Investment -- $1.8 million for the first nine months of 2026, reflecting the company's ongoing commitment to platform enhancement.
• Target Gross Margin -- 45% to 50% for coming quarters, as the company continues to deliver integrated health plan solutions to customers.

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RISKS

• Shrestha stated, "Product commercialization has required more time Bringing additional carrier capacity online has taken longer than expected," noting that these delays pushed the financial contribution of several initiatives beyond original expectations.
• Shrestha warned that actual pipeline conversion depends on several external factors, including underwriting, pricing, broker and employer decisions, carrier capacity, and successful policy placement.
• Qian noted that the $5.3 million credit loss provision included a $1.9 million charge for bad debt related to ongoing reconciliations with a former carrier.

SUMMARY

Health In Tech, Inc. (NASDAQ:HIT) reported third-quarter results characterized by a leadership transition and a strategic focus on commercializing new technology initiatives. Management reported the appointment of Sanjay K. Shrestha as Chief Executive Officer, while founder Tim Johnson transitioned to Executive Chairman to focus on long-term innovation and product development. The company stated that 2026 has been an investment-focused period, with efforts directed toward expanding distribution networks and preparing the HitRix and HitChain platforms for commercial launch. Financial performance was impacted by delays in carrier onboarding and a substantial credit provision, though leadership noted sequential improvements in operating cash flow. Management indicated that the immediate priority is reaccelerating the core business by improving the conversion of its $150 million annualized revenue pipeline into contracted business for the 2027 renewal cycle.

• The company expects to launch the minimum viable product for HitRix, an AI-powered large group insurance marketplace, in the first quarter of 2027 to automate fragmented broker workflows.
• Management stated that the 3-year rate stabilization program aims to provide employers with health care cost predictability, with the first end-to-end program launch targeted for the end of 2026.
• HitChain, a blockchain-enabled claims administration platform, is scheduled for an initial minimum viable product launch during the second half of 2027 to address administrative inefficiencies in claims processing.
• Qian reported that total technology spending remained broadly consistent year over year, although more costs were recognized as research and development expenses due to the current phase of the development cycle.
• Management indicated that it is evaluating strategic acquisitions and partnerships to complement the existing technology platform and accelerate growth as part of an ongoing 2027 strategic review.
• The company reported $30.5 million in revenue already secured for the full year 2026, providing a baseline of visibility heading into the final quarter.

INDUSTRY GLOSSARY

• eDIYBS: The enhanced "do it yourself" benefit system, a cloud-based SaaS platform for generating health insurance quotes for small to medium-sized businesses.
• HitRix: An AI-powered document intelligence platform designed to modernize the quoting and underwriting process for large group insurance.
• HitChain: A blockchain-enabled platform designed to automate health care claims administration and provider payments.
• Medical Stop Loss: Insurance that protects self-funded employers against catastrophic or unpredictable claims.
• MGU (Managing General Underwriter): A specialized type of insurance agent or broker that has been granted underwriting authority by an insurer.
• TPA (Third Party Administrator): An organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity.
• PPTV (Platform Placed Value): A metric measuring the aggregate contract value of insurance plans on the company's platform, including premiums and administrative fees.

Full Conference Call Transcript

Operator: Good afternoon, ladies and gentlemen, and welcome to Health and Tech's Third Quarter 26 Earnings Conference Call. All participants are currently in listen-only mode. After the prepared remarks, we will open the call for questions. As a reminder, today's conference call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to Lori Babcock, Chief of Staff. Lori, please go ahead.

Lori Babcock: Thank you, operator, and good afternoon, everyone. Welcome to Health and Tech's Third Quarter 26 Earnings Call. Joining us today are Tim Johnson, our Founder and Executive Chairman Sanjay K. Shrestha, our Chief Executive Officer and Julia Qian, our Chief Financial Officer. The details of our results are in today's earnings release and are related Form 10 Q to be filed with the SEC. Both will be available on our Investor Relations website at healthintech.investorroom.com. Where a replay of this call will also be posted. Before we continue, please note that today's discussion includes forward looking statements under the safe harbor provision of the federal securities laws.

These statements reflect our current expectations and involve risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release and SEC filings for the applicable risk factors. We undertake no obligation to update these statements except as required by law. We may also discuss non GAAP measures, including adjusted EBITDA. The relevant definitions and reconciliations to GAAP measures will be provided in our earnings release. With that, I turn the call over to Tim.

Tim Johnson: Thanks, Lori. Before we discuss our business performance and outlook, I would like to take a moment to highlight an important leadership transition at Health and Tech and formally introduce Sanjay K. Shrestha as our new Chief Executive Officer. Since founding Health and Tech, my vision has been to transform the health insurance industry through technology, innovation, and vertical integration. Over the years, we have built a differentiated technology platform designed to simplify complex processes. Improve efficiency, and create greater transparency across the health insurance marketplace. As we look towards the next chapter of our growth, I believe the company has reached an important stage in its evolution.

While innovation and technology development will always remain central to our business, our next phase requires an even greater emphasis on commercial execution, operational scalability, business expansion, and the ability to capitalize on strategic growth opportunities. That is the rationale behind our leadership transition. By separating the roles of executive chairman and chief executive officer, we are creating a leadership structure that allows us to dedicate greater focus and resources to 2 equally important priorities, continuing to innovate and build for the future while accelerating execution and scaling the business we have established. My role as executive chairman, I will remain actively involved in shaping the company's long term strategy. Advancing technology innovation and guiding product development.

I will also continue to leverage my industry experience and relationships to identify emerging opportunities and help position health and tech for long term success. Sanjay, as CEO, will lead our day-to-day operations and be responsible for driving commercial execution strengthening our organizational capabilities, scaling our existing business, and improving overall operating performance. Importantly, Sanjay will also lead our efforts to identify and evaluate potential strategic acquisitions, partnerships, and other business expansion opportunities. We believe that combining organic growth with disciplined strategic acquisitions could provide additional avenues to expand our capabilities strengthen our market position and create meaningful long term value for our shareholders. Sanjay brings extensive experience in public company leadership, capital markets, corporate strategy, and business development.

Having previously served on our board and worked closely with our leadership team, he already has a strong understanding of our business technology, and the opportunities ahead. I believe his experience and capabilities complement my own and that together, we can strengthen health and tech's ability to translate our innovation and strategic vision into sustainable business growth. I also want to emphasize that my transition to executive chairman is not a step away from health and tech. My commitment to the company, our employees, our partners, and shareholders remains as strong as ever.

This transition allows me to focus more of my time and energy on long term strategy, innovation, and the next generation of products, opportunities while Sanjay provides dedicated leadership to execute and scale our business. Ultimately, this is about building a stronger Health and Tech. 1 with leadership capacity to innovate, execute, expand, and pursue opportunities that enhance long term shareholder value. I am excited about this next chapter and confident in the leadership team we are building. With that, it is my pleasure to welcome Sanjay K. Shrestha as chief executive officer of Health and Tech. Sanjay, turn it over to you.

Sanjay K. Shrestha: Thank you, Tim, and good afternoon, everyone. It is a pleasure to join you today for my first earnings call as chief executive officer of Health and Tech. I would like to use this opportunity to share my perspective on the business. The opportunities ahead of us, and importantly, the priorities I believe will be critical to translating those opportunities into sustainable growth and long term shareholder value. Having served on Health and Tech's board and subsequently as a strategic adviser, I have had the opportunity to develop a strong understanding of the company's technology, business model, industry relationship, and long term potential.

Stepping into the CEO role, however, provides an even closer perspective on our day-to-day operations, commercial execution, and opportunity to strengthen our performance. And 1 thing that has become very clear to me, we believe health and tech has built a strong foundation. Our key focus and strategic priority now is to translate that foundation into scalable commercial growth and stronger financial performance. And then as it relates to 2026, it is really the year of investment. And building for the future. Now let me begin by putting 2026 into perspective. Again, as I said, this has been an important year of investment and capability building for health and tech.

We have invested in expanding our sales and distribution network, strengthening relationship with brokers, carrier, managing general underwriter, MGUs and strategic partners and continuing to develop the underlying technology that supports our marketplace. At the same time, we have advanced several significant initiatives including recently launched HitRix, HitChain, and our 3-year rate stabilization program. Each of these initiatives address substantial market opportunities in the area of the health care insurance ecosystem where we believe there has been limited technological innovation. Our objective has not been solely to maximize near term revenue, We have been building the technology distribution relationship, financial infrastructure, and product capabilities that we believe can support a much larger and more diversified business over time.

That said, we recognize that certain initiatives frankly, have taken longer than originally anticipated. Product commercialization has required more time Bringing additional carrier capacity online has taken longer than expected. And coordinating the multiple participants required to launch some of our newer product has introduced additional complexity. As a result, the financial contribution from several important initiative has been pushed beyond our original expectations. I want to be very clear We are not satisfied with our current revenue performance. Investment is necessary, but investment alone does not create value for all stakeholders. Ultimately, those investments needs to be translated into customer adoption, transaction volume, revenue growth, and improved financial performance.

This is the standard by which we intend to measure our progress going forward. Throughout my career, I have been fortunate enough to have worked with businesses where the market opportunity was substantial. But realizing that opportunity required aligning commercial execution operational discipline, organizational capabilities, and capital allocation. I have substantial operating experience scaling new product from incubation to meaningful commercial scale, building first-of-a-kind large scale process plant, and large scale renewable assets on a global basis.

I shared that experience not to suggest that health and tech will follow the same trajectory or the timeline, but because I have seen firsthand what becomes possible when a compelling business opportunity is supported by the right strategy, people, execution capabilities, and disciplined capital allocation. And based on that, my first priority is to be laser focused on reaccelerating our core business to improve outcome for all stakeholders. Which includes our carrier partners, MGUs, brokers, third party administrator, and more importantly, our clients who are looking for attractive and economical health coverage. I will discuss in more detail our newer initiative that we believe will offer substantial future opportunity.

I believe it is important to reiterate that we have an existing core business with meaningful commercial activity and a growing network of distribution partner. We are focused on execution and reaccelerating this business as we look into 2027. Our existing platform and MGU-related solutions support the medical stop loss market, including employers across small and large group segments. These offerings provide an established commercial foundation upon which we believe we can expand. Just to put some numbers in context, as of 10/30/2026, our platform had approximately $150 million in potential annualized revenue associated with coding activity for policy with anticipated effective dates in November of 20 sixth December 26, and January 203 thousand.

Approximately 70% of that pipeline was associated with 01/01/2027 anticipated policy effective date, and we expect coding activity for that period to continue developing. I want to emphasize that this pipeline represents potential business opportunities. Not contracted or recognized revenue. Actual conversion will depend on underwriting, pricing, broker and employer decisions, carrier capacity, and successful policy placement. For me, this creates a clear and immediate execution. We need to focus on converting qualified opportunities into bound policies, and ultimately recognize revenue. That means working more proactively with brokers, distribution partners, carriers, and MGUs to identify and resolve obstacles that may delay or prevent conversion.

We are placing greater emphasis on active pipeline management stronger follow through, improved coordination, and accountability throughout the coding and placement process. Rather than measuring success simply by the volume of opportunities entering the platform, we need to focus on how effectively those opportunities progress through the commercial process. This includes tracking conversion rates, identifying bottlenecks, strengthening partner engagement, and improving the overall efficiency of underwriting and policy placement. We also see opportunity to better integrate the product and capabilities within our broader ecosystem. Our existing eDIYBS and eDIYBS platform MGU-related solution, HitRix, and 3-year rate stabilization program address complementary needs across the self funded insurance marketplace.

Together, they create opportunities to serve a broader range of employers, strengthen partner relationship, and potentially capture additional value throughout the insurance distribution and underwriting process. Our goal is to make it easier for our partners to conduct business through health intent and to build a marketplace that becomes increasingly valuable as participation and transaction activity grows. This is where I believe disciplined commercial execution can have a meaningful impact on our near term performance. Our priority number 2, is really focused on commercializing and accelerating our new growth initiatives. As we remain focused on driving our base business, we are equally excited about moving our newer product and strategic initiative from development into commercialization.

We believe there are 3 of those strategic initiatives that have potential to meaningfully expand our addressable market. And diversify and complement our future revenue opportunity. Our 3-year rate stabilization program, HitRix, and HitChain. Let me briefly walk you through each of them, their commercial potential, and where we are in the development cycle. 3 year rate stabilization program. I want to spend a little bit more time on our 3-year rate stabilization program because it represents a particularly compelling opportunity and involves a sophisticated structure that requires careful coordination among multiple participants. Traditionally, employers face annual uncertainty, many of you know, in the health care insurance cost.

For a self funded employer, this can create significant challenges in budgeting, financial planning, and managing health care expenditures. Our 3-year stabilization program is designed to address that challenge through an innovative structure connecting employers, insurance carriers, capital market participants, financial institution, trust and distribution partner. The objective is pretty straightforward. To provide employers with greater predictability in their health care insurance cost over a 3-year period. For employers, this program is designed to deliver greater budget certainty and improve visibility into health care expenses. For participating insurance carrier, it offers the opportunity to establish longer term customer relationship and evaluate insurance exposure over a 3-year horizon subject to defined underwriting parameters and risk management safeguards.

For investors, the structure complements notes supported by credit enhancement from a financial institution, with scheduled principal and interest payments governed by the transaction documents. HealthInTech's role is to serve as a technology and administrative platform connecting these participants. We coordinate program administration, documentation, communication collection, and integration with the financial and insurance underwriting process. Our distribution partners manage employer relationships and coordinate the insurance underwriting process. As you can appreciate, successfully launching a program of this complexity required precise coordination across insurance underwriting, financial structuring, capital markets execution, regulatory requirements, and technology infrastructure. That complexity also illustrates the importance of disciplined implementation.

We have already secured our client under a medical stop loss agreement and are working towards the capital market launch. The program financing associated with this initial client remains subject to final structuring and market condition. Beyond this transaction, we believe there is substantial market interest and opportunity in the program. Importantly, any program financing amount and pipeline value should not be confused with revenue to Health and Tech. Our immediate objective and our goal is to complete the first end to end program launch by the end of 2026. Successful initial transaction will establish an important operational and commercial foundation for broader deployment.

Looking into 2027, our focus will be on converting qualified pipeline opportunity into contracted programs and expanding adoption through our distribution partner. While the timing and ultimate conversion of this opportunity will depend on underwriting, contractual, financing, and execution requirement, we believe this program has the potential to become a meaningful new business line for health and tech over the next several years. The second initiative under our new product line, HitRix, AI powered large group insurance marketplace. Our second major initiative is this, an AI powered platform designed to modernize the quoting, underwriting submission, and placement process for large employer health plans. Today, large group insurance placement remain highly fragmented and manually intensive.

Brokers routinely manage substantial volume of employee census data historical claim information, plan documents, and supporting underwriting materials across multiple formats and system. They must prepare submission for different insurance carrier and MGUs track responses, compare proposal, and coordinate the placement process. This creates considerable administrative work inefficiencies and delays. HitRix is designed to transform that workflow. Using AI powered document intelligence, the platform can ingest extract, normalize, and structure information from files brokers already receive, reducing the need for manual data entry and repetitive formatting. It then enables broker to manage submission across multiple carriers and MGUs, track market activity, organize proposals, and compare alternatives within a unified environment.

The objective is to allow brokers to spend less time managing documents and spreadsheets and more time advising their clients and growing their business. What makes HitRix particularly compelling is its integration with health and tech broader underwriting and marketplace infrastructure. Rather than functioning simply as a document management or a submission tool, HitRix is designed to connect data processing, market access, analytics, underwriting workflow, and transaction execution. We believe this position us to address a large existing market where billions of dollars in annual premium are supported by workflows that remain heavily dependent on manual processes. Equally important, we are not bringing this product to market without an established distribution foundation.

As of 09/30/2026, our ecosystem included 984 brokers, third party administrator, and agency partner representing almost 16% year over year growth. These are relationship we have invested years in building. As we introduce HitRix, we have an opportunity to offer additional capabilities to partners who already understand our marketplace, and business model. We also see an opportunity to deepen our relationship with participating carriers and MGUs expand market access, and support more efficient policy placement. Over time, as transaction activity increases, HitRix could also generate a growing base of structured underwriting and placement data supporting future analytics, automation, and AI enabled capabilities.

Our current objective is to launch the minimum viable product in the first quarter of 2027 and progressively expand its capabilities and commercial adoption throughout the year. Now let me touch on HitChain, which we believe is transforming health care claims administration. This is our major third initiative as our new product launch. HitChain addresses another significant source of inefficiency in the health care system, the administrative complexity associated with claims processing, reconciliation, and provider payments. The US health care system incurs substantial administrative cost with industry estimates placing the broader health care administration opportunity in the hundreds of billions of dollar annually. We believe blockchain enabled verification.

Combined with AI powered automation has the potential to significantly improve the speed transparency, and efficiency of certain claims administration process. HitChain is designed to connect health care providers third party administrator, employers, and other authorized participants through secure verifiable data, and transaction workflows. For hospitals, clinics, and other health care provider, the opportunity is to shorten payment reduce reconciliation requirements, and improve working capital efficiency. Our longer term vision is to reduce certain payment process that traditionally take weeks to a much shorter settlement period, potentially approaching next day settlement where the necessary conditions are met. For the TPAs, the platform is intended to automate aspects of claims administration, improving processing efficiency, and reduce manual intervention.

For employers, HitChain could provide greater transparency into claims activity, more timely access to information, and opportunities to benefit from faster payment arrangements and improved cost management. We believe the combination of AI driven processing, and verifiable transaction infrastructure offers a meaningful opportunity to modernize part of the health care payment ecosystem. Our objective is to launch an initial minimum viable product during the second half of 2027, As with our other new initiatives, our focus is on validating the technology, establishing the necessary ecosystem relationship, and creating a clear path towards commercialization. Taken together, these 3 initiatives illustrate the breadth of opportunity we see ahead of HealthInTech.

But the most important point is we are moving from a period primarily focused on building new capabilities towards 1 increasingly focused on building those capabilities to market. And generating measurable commercial results. And finally, my 3rd and somewhat of an obvious priority is to strengthen operational discipline and financial performance. This is--it is pretty critical how we operate the business and allocate capital. We have invested significantly in technology. Product development, sales capabilities, and infrastructure. As a result, our operating cost structure reflects the investment we have made to support future growth. Going forward, we need to be increasingly disciplined about where we deploy resources and how we measure the returns on those investment.

The question I will be asking are straightforward. What are we generating the greatest commercial return? Which initiatives are positioned to contribute most meaningfully to revenue and profitability? Where do we need additional capabilities to accelerate execution? And where can we improve efficiency? Simplify processes, or redeploy capital to higher value opportunities. This is not about cutting our way to growth. It is about building an organization where investment decisions operating priorities, and financial outcomes are closely aligned. We will also be focused on strengthening our organizational capabilities improving accountability, and establishing clearer performance metrics across the business. On the financial side, working capital management, cash flow, and capital allocation will remain important priorities.

We have seen sequential improvement in operating cash use from first quarter to the second quarter of 26, which is encouraging However, we recognize that continued improvement will require disciplined execution and careful management of our financial resources. As we commercialize our new products and expand our existing business, we will evaluate the appropriate level of investment, the timing of capital deployment, and the potential return associated with each opportunity. In addition to organic growth, we will evaluate strategic acquisition, investments, and partnership that would complement our technology platform, strengthen our market position, expand our capabilities, and or accelerate our growth strategy. We will be disciplined in evaluating those opportunities.

With a focus on strategic fit execution risk, capital requirements, and long term shareholder value creation. Our objective is not growth for its own sake. It is to build a business capable of generating sustainable growth, improving profitability, and delivering attractive returns on invested capital. As I look ahead, I am encouraged by the opportunity in front of us. But I am equally focused on the work required to realize them. HealthInTech established an innovative technology foundation developed meaningful industry relationship, and invested in several initiatives that we believe address significant market opportunity. The next phase is all about execution.

In the near term, that means improving conversion across our existing business, continuing to bring our 3-year rate stabilization program to market, and maintaining disciplined operational and financial management. As we move into 2027, our priorities would include scaling HitRix, advancing HitChain, expanding our distribution capabilities, and evaluating strategic growth opportunity that can further strengthen the business while simultaneously remaining laser focused on reaccelerating our existing base of business. We will measure our progress not simply by the size of the market we address, or the opportunities in our pipeline, but by our ability to convert those opportunity into revenue, operating performance, cash generation, and long term shareholder value.

I am very excited to work closely with Tim, our board, and the entire HealthInTech team as we move into the next chapter. Now before I turn it over to Julia, let me just kind of talk about should you all expect for the remainder of 2026, and how are we thinking about 2027? As you saw in our press release, we updated our full year 2026 revenue outlook to approximately $30 million For the balance of 2026, our focus is really on execution ahead of the renewal and placement cycle.

We want to get brokers using the products expand participation from underwriting partners, work through the opportunities already in front of us, and be better positioned as those policy effective dates come around. As we move into 2027, we believe there is an opportunity for these initiatives to make a more meaningful contribution. that is our current view. But I also want to put an important qualifier around it. I have been the CEO only for a short time here, and this is still an ongoing review. Some of the priorities, sequencing, and capital decision may change as we learn more. I am not presenting a finalized 2027 plan today.

What I would like to do is come back to investor with a more detailed discussion of our operating priorities, and how we intend to measure progress when we report our full year 2026 results subject, of course, to completing that review. Look, I think there is a lot to work with here. We have technology that is been built. Product that will address real problems, and relationship across the self funded market. But we have got to turn those assets into more consistent commercial results and we have got to do it with the right financial discipline. that is what I am focused on.

Tim will continue to spend his time on innovation and the longer term direction of the platform as he touched on. My job is to connect that vision to operating decisions that we can move this business forward. I look forward to working with the team and keeping you updated as that work progresses. With that, it is my pleasure to turn it over to Julia.

Julia Qian: Thank you, Sanjay. Good afternoon, everyone. We believe our reported result in this quarter do not yet reflect the opportunity we are building towards. I want to help bridge the gap. By starting with forward looking metrics that show where the commercial activities on our platform actually stand today. And then talking through what sits underneath the reported number. Let me begin with our forward revenue visibility. Contracted revenue which represents revenue that is already contractually committed under active in force policy. But that has not yet been fully recognized on the GAAP accounting principle. That totaled $32.7 million for the first 9 months of 2026. Of that, 24.4 million has already been recognized as GAAP revenue.

Through September 30, 2026. Before the enrollment adjustment and the refund liability, and with 6.1 million scheduled to be recognized in fourth quarter and 2.2 million flow into 2027 per GAAP accounting. We have already secured 30.5 million of 2026 revenue. With the remaining 2.2 million providing a visibility as a starting point for 2027. Beyond what is already contract, our pipeline revenue presents policies currently in the coding or binding stage plus policies that have been contracted since quarter end. Stood at $1.56 thousand million as of our October 30, 2026. Those are the codings are for policies for the 3 months only. November this year, December this year, and January next year.

Obviously, with January, it is about 70% of our total current pipeline, of which the 2.6 million is already contract in December. And the contract in October. Excuse me. And the remaining 153.8 million carries expected conversion rate of 3% to 7%. It would generate 9.3 million to 10.7 million revenue just for these 3 months policies. And our platform placed the value or PPTV which measures the aggregate contract revenue, contract value of the plans on our platform, including premium client fund, and then administrative fees. Stood at a 91.8 million as of September 30. I want to put this number in context. Our sales pipeline grew meaningfully driven by full completion of onboarding new carrier.

And entering the peak season of our sales cycle for. Which is December and the January effective date policies. Now the next step is laser focused to drive conversion rate of our pipeline revenue, turns out into the contractual revenue, as Sanjay mentioned. Our distribution channel rely on close collaboration between our internal sales team and our network of broker partners. As we introduce new product and expand our marketplace capabilities, making sure our brokers fully understand these solution and how to bring them to the market become increasingly important. Following the recent launch of the HitRix, we are placing great emphasis on internal sales training and the broker education to strengthen the collaboration.

Our goal is to equip our team to better support the brokers throughout the submission and the placement process helping move more opportunity towards completed the placement. As we enter the year end renewal season, we believe these efforts together with the broader carrier participation and help to improve the conversion rate of our existing pipeline revenue to the contracted business and, ultimately, will be the revenue for us to recognize for the GAAP accounting. Our distribution footprint also continue to expand as we invest. We ended the quarter with 984 distribution partners. Compared with 849 year ago. It is approximately a 15.9% year over year increase.

Which tell you the broker TPA and the agency network now bring the business into our platform continues to grow. Even so, these transition periods is a little bit slowed. Now turning to reported GAAP revenue. Total revenue for third quarter was 6.6 million compared with $8.5 million a year ago. And for the first 9 months of this year, revenue was $23.4 million compared with $25.8 million last year. Our eDIYBS fee revenue which is earned on the per enrolled employee per month basis across our platform was essentially unchanged year over year over year on the 9-month-- first to 9 months basis at 20.04 million. Compared with $19.99 million in the prior year period.

Our underwriting model revenue which is our ICE subsidiary, and as a certain other percentage of our carrier, premium declined more sharply to 3.37 million for the first 9 months of 2026 compared with 5.83 million a year ago. In other words, our largest revenue line, the enrolled based eDIYBS fee, hold essentially steady year over year even through the carrier transition. The compression in the reported revenue was concentrated in the premium based IC, rather than the broad weakness across the business. So the pressure on the reporting revenue reflects timing of recognized revenue, and the carrier transition that is our view is now substantially behind us.

Gross margin for the third quarter, was 46.5% compared with 60.6% a year ago. And for the first 9 months of 2026, was 49.1% compared with 65.1% of the prior year. As mentioned in last quarter beginning in the January 2026 we introduced a predesigned self funded health plan that combine our platform capability with additional services, including plan administration provided by TPA and their vendors, under these expanded service model the related TPA and vendor fees are including in our cost of revenue. As a result, we are now delivering a more comprehensive solution to our customer but also incurring additional direct service cost. Which has contributed to the year-over-year decline the gross margin.

Even though the underlying economics of the business have not been changed, And we see these as the trade-off we make. As we expand our service offering and then make it easier for broker and the employers to access a more integrated solution. We believe our gross margin would maintain in the range of 45% to 50% in the coming quarters. Turning to operating expenses. Total operating expenses for the third quarter was $1.5 million compared with $4.7 million a year ago. a $6.8 million $6.8 million year over year increase. Was mainly driven by a provision charge of 5.3 million in the higher sales of the marketing expenditures of $1 million.

With tech development expenses up $700 thousand partially offset by the savings in G&A reduction of 300 thousand starting with sales and the marketing. Sales and marketing expenses were $2.1 million for the quarter, compared with $1 million a year ago. The increase is mainly entirely the variable basis in nature. The larger driver is tied to our expanding distribution channels with the third party agencies. Which are variable based payout. The fixed component of the sales and the marketing expenditure remains disciplined, consistent, mainly flat. The part of the increase is mainly going to variable base of the agency fee. General and administrative expenses were $3.1 million for the quarter compared with $3.5 million a year ago.

And the $10.1 million for the first 9 months of 2020 compared with 10.5 million year prior year. For the both quarter and the 9 months period, G&A actually came in slightly below last year. Which reflect the discipline across management across our corporate function. With the mix operating division expenses decreased year over year as a result of workforce optimizations initiative we have been implementing, partially offset by the higher division cost because of stock based compensation. Taken altogether, this demonstrate our commitment to manage our cost base We will continue to invest in what matters for us for the long term. Now the provision for the credit loss. Was 5.3 million.

This is very substantial. that is why it is. You can look at the total expenses increase. So for the first. For this quarter, 5.3 million and the 6.1 million for the first 9 months. Compared to the last year, which is now. that is the meaning the part of the increase. These represent the single biggest drivers. I want to talk about these a little bit more in the detail. The provision reflects the management's update assessment on the creditability of our current book. So 2.4 million reflect the deferred administration surplus receivable associated with a legacy arrangement which we took a full allowance.

1.9 million of the bad debt expenditure related to accounts receivable connecting to the carrier transition reconciliation still in progress. $900 thousand related to the loan receivable write off. As we take a priority for focus on The US market, We are no longer to focus on the overseas market. With this limitation we are taking this charge. As we looking at the future, use this as a right discipline for us to heading into the leadership transition. And the fresh strategy plan. Research and development expenses were 900 thousand compared with $200 thousand a year ago. This increase reflects the compensation shift rather than us step up in overall technology investment.

If you look at our total technology spend, meaning expenditure of R&D plus capitalization of the software development together, the total is broadly consistent year over year. What changed is where it sits on the financial statement. What is the balance sheet on the p and l. Our development activity during 2026 has been weighted more towards gathering business requirements, identifying features, and evaluating alternatives as we scope our next generation platform and the AI empowered capability. On the GAAP accounting, these early stage planning and evaluations do not meet the criteria for capitalization. And extend the flow through the income statement as R&D expenses.

So the increase on R&D line reflect where we are in the development cycle, not the overall increase in the total technology spend. That brings me to the profitability adjusted EBITDA. For the quarter was negative 3.9 million compared with positive $1 million a year ago and for the first 9 months 2026 was negative 6.6 million compared with positive 3.8 million in the prior year period. Net loss for the quarter was 7.1 million which including $5.3 million onetime credit provision, as I just talked through. That which means $0.11 per basic and diluted share with net income of 500 thousand or $0.01 per diluted share. in the prior year quarter.

For the first 9 months, the net loss was $11.2 million which included $6.1 million of the onetime credit loss provision. Or $0.18 per basic and diluted share. Compared with net income of 1.6 million or $0.03 per diluted share in the prior year period. Excluding the onetime provision, the remaining year-over-year decline reflect a lower revenue due to the timing of the policy effective dates when we have the carrier transitioning. The plan administration service cost is tied to our new self funded plan administration service launched in January. This year, and I will continued investment in the sales marketing and distribution All the investments we have to make in the this year will support the long term growth.

And financing related to charge tied to this capital raise we completed. We are completing this quarter. Turning to cash flow. Our operating cash flow has improved every single quarter this year. We had a negative $3.3 million of operating cash in the first quarter then negative $2.9 million in the second quarter. And then the negative $1 million in the third quarter. As we continue to improve the operating cash flow burn, quarter by quarter, representing approximately 68% reduction from the first quarter to the third quarter.

The sequential improvement in the third quarter was driven by a collection on the accounts receivable, improvement of accounts receivable in fact accounts payable pay down through the third quarter also generating working capital improvement, not a cash preservation story. For the first 9 months of 2026 as a whole, operating cash burn was 7.3 million. We expected a further improvement in operating cash flow as we commercialize the new service and the product in 2027. We invested 1.8 million in software development during the first 9 months of the 2026, reflecting our continued commitment in the platform investment. Turning to the balance sheet, we ended the quarter with $10.1 million cash and cash equivalent.

Compared with $7.7 million at the end of 2025 after absorbing the $7.3 million operating cash used and the 1.8 million of the software investment through the first 9 months. Our cash position is approximately $2.5 million higher today than it was entering the beginning of the year. The headline message is that we build the capital base we need, and we are entering 2027 from a stronger balance sheet position than we enter 2026. With multiple new products that has completed major development and are targeted to be commercialized in 2027 we are confident that 2027 will be very different year. To close, this was a transitional quarter and a transitional year.

And the reported numbers reflect the 3 things happened at the same time. The carrier timing dynamics. We described the last quarter and on this call. A business mix shift that compressed gross margin without changing the underlying economics. And the balance sheet, we continuously monitor very close. So our distribution network expanded by approximately 15.9%. All our operating cash flow continuously improve. By approximately 68% from the first quarter to the third quarter of the year. Our cash position entered the quarter higher than it was at the start of the year. We build the balance sheet capabilities to support our continued execution. As Sanjay mentioned, we are completing a comprehensive review of 2027 under his leadership.

And we expect to come back to the market at next quarter earnings call to provide a more detailed view on what 2027 will look for HealthInTech. With that, I now turn the call back to Sanjay.

Sanjay K. Shrestha: Thank you, Julia. And again, before we open it up for Q&A, I just want to emphasize that we are not satisfied with weaker revenue and higher expenses. We believe in the opportunity ahead of us, but the responsibility to turn that opportunity into result is ours. We know the market will measure us by the progress we deliver in the coming quarters, We welcome that. And we look forward to updating you with our results. With that, let's turn it to the operator to start Q&A.

Operator: Thank you. We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. Press star then 1. At this time, we will pause momentarily to assemble the roster. The first question will come from Allen Klee with M Group. Please go ahead.

Allen Klee: So I just want to understand a little about the revenue being down year over year. I understand that like some of your initiatives got pushed out But in the core, like, small market, would you how much of it is due to would you say just that your carrier was not available? Or is there a change in the competitive environment? Or something to do with execution Just a little more color on that would be helpful.

Julia Qian: So, Alan, I can take this question. Julia, CFO of the company, thank you. it is a great question. So we adding on a new carrier this year, which resulting a temporary delay of the onboarding then because partially a lot of the setup in the system, the new carrier needed to come see. Really slowed down. Temporary slowed down the intake of the business including convert to the business from the code. to contractual revenue. So as you can see, the pipeline we have, a very substantial pipeline building up. it is really towards. it is really the timing once we are onboard is when the new character come on, that would be the transition period, any.

All the service vendor take a much longer time. Than we anticipated in the single words is. That certain period of time, the sales was very, very slow because a lot of things the system should have taken care of it. Have to do additional manual process to make sure compensate for the slow implementation of adding on the carrier for the system. Now with this substantially completed, we should have. We are looking at this comeback to the expected trajectory of being processed and made through the system by a normal speed. Thank you.

Allen Klee: Okay. And then this provision for credit losses, I think I just need to understand this a little bit. The Your accounts receivable as of the end of June 26 was 8.5 million and you took a write down of $5.3 million so over half of your receivables Could what about it Explain it again of why it was so big, and then is there any reason why is it going to change that we do not have to worry about this in the future?

And then also, just I do not know if it is due to taxes or what, but if I look at, like, your add backs in adjusted EBITDA, you are not you are adding back lower amount than the 5.3 million. And why is that? Thank you.

Julia Qian: Thank you. So when we look at the provision of accounts receivable, we really took down a few things. It is the provision total is 2.5 million, which including of the provision of the plus admin and the receivables. So plus admin is about 1.9 million, and the rest is the receivables. The receivable is aging based. As I mentioned, because of the adding on the new carrier, and the old carrier pay us a little bit slower. When we look at the. A lot of massive reconciliation need to happen before the policy year end. So the aging is getting longer. Around the GAAP accounting, very prudent perspective, we take that provision.

Also, the surplus asset, the main cost is the same thing. We are taking provision. So total is 2.5. Then the other is the provision for the loan receivables Roughly, it is about 800 thousand. $1.8 million, we also took as provision. That was the arrangement we had before the company went public. And we also disclosed with various documentation on the case and the cues. When we are looking at the data with advanced, to the agency, help us to do the overseas market development, particularly in London and UK. And it given the market dynamic condition and the economic change, and we want to focus on our operations in The US.

So instead of the balance of the loan and we decide to not pursue the opportunity despite there are opportunity being introduced. So we choose to take that as a write off. Total of the 1 time write off together is about 3.5 million. Okay.

Allen Klee: You know what? Some of these. My questions are minutiae. But for your 3-year rate plan, is there a way to think on average how much higher premium rate is someone would pay than if they just did a 1 year policy?

Sanjay K. Shrestha: Yeah. So let me jump in on that. Right? So love to come and talk to you about that in a little bit more detail when we report our Q4 numbers because as we touched on the call, we are literally knee deep, if you would, right now. We already have a customer We are working with a placement agent. So, given that we are in the midst of all that, so us at least a quarter here, and we will be happy to share with you a more detail once we actually are able to get 1 of these products. Launched in the market with the bond investors.

Allen Klee: Okay. May I ask 1 other question, if Please. Like, when you are with the new initiatives of the 3 you mentioned, do you think that business can be added with them throughout the year? Or is it much you think it is going be much more weighted on kind of enrollment seasons of later in the year?

Sanjay K. Shrestha: So, as I mentioned, we are really going through a deep dive of, putting together our plan for 2027 right now, but and we will obviously give you a lot more when we report our Q4 numbers. But just on a high level, as we touched on the call earlier, right, where Hitrix is really probably Q2 opportunity at the earliest since that is adding some contribution and new customer. HitChain, I think it is really a second half 2027 kind of the cadence you should think about based on what we see right now.

And as we go through more deeper, I mean, you know, we will be more than happy to update you and you know, keep you apprised of how things are unfolding. And as it relates to 3-year paper, 1 of our goal is to hopefully place the first product in the market before the year is over. And look, we are heading into Thanksgiving. Fully aware of the fact that then comes Christmas, so the market needs to be stay open. Plus or minus a month can always be a factor in things like this, but that is really how we are thinking about it.

But 1 thing I do want to emphasize here, though, right, I mean, these are things that are obviously going to reenergize the business, help with the reacceleration of the growth. But our primary focus frankly, is to really how to get our base business back growing given the pipeline we have, and we are spending a lot of time really thinking through do you improve the conversion rate, how do you really grow that base business meaningfully as we go into 2027. But again, give us 1 more quarter, and we can articulate some more specific on that.

Allen Klee: Okay. Thank you so much.

Sanjay K. Shrestha: Thank you.

Operator: The next question will come from George Sutton with Craig Hallum. Please go ahead.

George Sutton: George. Thank you. Welcome to Sanjay. Thank you, sir. I have got a thousand questions, but I am going to limit it to 3. First, on the 3-year, lock product. Can you just give us an update on the financing structure? Is that set yet? Are you still working through that? And when would we expect to have a full financing structure in place?

Julia Qian: Let me take that 1, Julia, for Yeah. So, George, I can take that 1. I think for the 3-year product we shared, we have the first client there is 2 parts. 1 is medical insurance, which is already completed and in terms. Turn to the notes on the capital market it is been progressing. And probably the end of the year, we are thinking. It could be improved months or slip over the months because it is a heading the holiday season. it is kind of very hard to predict. You have to think about this as a bundled solution in terms of the insurance plus the capital market. Insurance part is already done.

And the capital market has been progressing. So we already substantially complete the insurance part. However, for the official launch, the capital markets need to be done, then we can announce the launch. that is why we are laser focused to push that product forward. With a very substantial pipeline. it is about the 3-year. We want to make sure that is get done right. Okay. that is relevant. Yeah.

Sanjay K. Shrestha: Let me just add 1 more thing to that as Julia said. Right? I mean, what we are trying to opt optimize here is not the speed. Because, this is a very innovative product. It has such a big benefit to the employer, right, to a carrier. And a new product coming in the market with a good rating. Right? So we just wanna make sure that the first placement is done right. So that when we are actually launching even a larger, bigger product and opportunity in 2027. Hopefully, becomes a little bit of a rinse and repeat kind of an approach.

So if the first 1 takes a little longer, our approach right now is we gotta make sure that it is done in absolutely the right way, but it is really. You know, relatively speaking, it is a complex product. Right? Has not been done before. So that is really why we are taking probably even a little bit more time and prioritizing better execution rather than just speed.

George Sutton: Understand. So, relative to HitRix, do you have an A-rated carrier that is, providing a backstop on this yet.

Sanjay K. Shrestha: I can take that 1 too. And, Tim, please add if I miss anything here. So we are actively working on that, George, as you can imagine. And, since I am now 3 weeks into the job, I would not want to give you the exact timeline of when we think we are gonna get that done, but rest assured that is absolutely in the top 3 priority of what we wanna accomplish here. But just to give you another sense, right, we are also trying to continue to grow our base business with or without even the A-rated carrier, if you would.

We are also trying to be very mindful of that. there is a lot of volume of business to be done. But look, getting an A-rated carrier is obviously a very big focus for us and, not just for HitRix, right, even to grow our large scale business even on our core business side. So I am dying to give you a timeline, but, give us a month or so here, and we are really working very diligently on making sure that this gets done the right way.

Because I know we have talked about this many times before, and the last thing I want to do on my first earnings call as the CEO of the company is give you a timeline and not meet that. But this is really a very top priority for us at this point in time.

Tim Johnson: Yeah. And, George, yeah. So, George, you have to think about it that we are agnostic to the carriers because this is a complete transformation as to how brokers work with them. We will make. We will send and, initiate new submission processes with any carrier. it is the carrier that the broker chooses. So the process that we use that is what makes it so unique and special about it. We do not care which carrier they wanna work with. We just improve the process and the entire timeline with which they can get it to the market, get the proposal back, compare it, and sell it. it is a 100% automated. Understand.

George Sutton: Okay. Final question. Relative to pipeline revenue, so I like that Sanjay is coming in from the outside because an insider like Tim and Julia says, historically, we have had a 3% to 7% conversion rate. I would hope Sanjay comes in and says, well, that means we are not converting 93 to 97%. How do we have a dramatic change to that number?

Sanjay K. Shrestha: George, let me maybe jump in here. Right? it is interesting you bring that up. As a matter fact, I just had a call about that yesterday. And, clearly, we need to improve our conversion rate. It used to be a bigger number, even not too long ago. And I could not agree more with you, but I am not prepared to commit to a number. as of right now in terms of what the target is going to be. But we hear you loud and clear, and that is why I touched on, from a 3 priority perspective, right?

Priority 1 is really how do you get that base business back on growth path in a meaningful way given the pipeline? it is all about converting the bigger chunk of that pipeline into revenue, and that is gonna really put us in a pretty good spot. So that is really focus number 1, frankly. So I agree with you, but before I give you a number, as I said, right, really going through a deep dive on everything here. You know, what is working. Again, we have a great platform. We have a great opportunity set ahead of us.

We just got to do a lot of blocking and tackling to really get 2 thousand and 7 2027 to be substantially better than, you know, the transition year we have had here in 2026.

George Sutton: Can I just quickly ask Tim you know, using those historical 3% to 7% rates, with the improvement in the technology I assume there is room to meaningfully improve that over time? Is that a fair assessment, or is there something structural that maybe I am missing in that equation?

Tim Johnson: No. We need to take a more active approach at looking at everything in the system. But the, you know, the way I look at it, George, is the way I think I am really. You have I have explained it before is it is a system Should we have more sales based upon the volume coming in? Sure. The 3% and 7, I used to I used to complain to everybody about how low that was because that is the rest of the market. What we are doing is making it way more convenient to make the sales happen. In terms of not happening, we have to get more aggressive with our brokers Why are they not happening?

We need to start better communication with them to make sure that we can get that number up there.

George Sutton: Alright. Perfect. Thanks, guys.

Sanjay K. Shrestha: Thanks, George.

Operator: The next question will come from Marla Marin with Zacks. Please go ahead.

Marla Marin: Thank you. So following up on some of the conversation in the Q&A, you talked about the goal is to convert a greater amount of opportunities into pipeline and then from pipeline into contracted revenue. And I think a couple of the things you cited as ways to do that is greater interaction with some of your distribution partners and brokers and deepening relationships with them. You think that you have the. An adequate in house team at the moment in order to accomplish that, or should we expect to see continued or some, an uptick in investment in expanding the personnel.

Sanjay K. Shrestha: So, Tim, I will start, and please add if I miss anything. So thank you for that question. So look, again, we are going through strategic evaluation of everything. But as I sit here today and based on what I see, I think we have got some excellent folks in our organization that really know what they are doing. And I think, we have had the year where there is been so many things that, frankly did not play out as we had anticipated. So as we sit here right now, could we add more sales team if that actually is going to generate more revenue? Sure. That is a great return on our invested capital. Right?

But I do not think it is a wholesale change, if you would, in terms of what we need to do it is really more about getting more organized, tracking things, making sure things are closing on time, and frankly pushing everybody, including me and all the executive team, not just the people that are in the sales department or the underwriting department or managing the third party administrator. it is really the entire team effort where, we are gonna really continue to push hard. But I really do not think at this point in time we need to do any kind of a wholesale change if you would.

And if we add a few more additional bodies that are gonna be calling a lot more brokers, brokers and things like that, we will certainly evaluate that. And as a matter of fact, we are literally in the midst of evaluating some of those proposals and plans, how much that would help Is that something we need to do? When do we do that? So, again, it is not a wholesale change. it is probably more of a tweak and few additional ads if that is what it takes for us to really be able to deliver on that.

Julia Qian: Okay. Yeah. I just want to add on 1 thing. I think this year, 2026, we have built a lot of functionality and changes in the system. And we mentioned the factors averages 307%, the closing ratio. With the system should be doing much better like we did before. it is just a function of the training of the broker, training of the users. Right? So once you have system push out, you also need to have people to really know how to use. How to use that. And that is always a little bit of curve.

So the combination of the focus and the salespeople to get there, to communicate to the broker, to improve the training, and just, you know, blocking and tackling. Those are the discipline, you know, execution. Rather than adding more people. it is more discipline. Yep. Absolutely. Okay.

Operator: Hope that answers your question.

Marla Marin: Yes. Very comprehensive answer. Thank you. I appreciate it. So I am switching topics here. And, Sanjay, you have mentioned in this in your prepared remarks and in the Q and A that you have been in your current role now for all of, 20 plus days. there is a lot. A lot going on. So you also mentioned or the company mentioned in the prepared remarks that there is in addition to organic initiatives, there is a potential opportunity for some strategic M&A. To complement organic growth But there is an awful lot going on right now in terms of focusing on executing against the existing opportunities. I am just wondering if you have a.

To give us a sense of is there already a bit of a pipeline of potential M&A opportunities? Are there early conversations at this point? Or are we talking about something further down the road?

Sanjay K. Shrestha: It depends. it is how long I am gonna respond to that probably. Right? But look, if a really compelling opportunity comes along, we will obviously evaluate that. But is that a part of my 30, 60, 60, or a 90 day plan to immediately move on that? Probably not. For the next 90 days, it is really hunker down focus on driving the core business, focus on ideally positioning all of our new initiatives really spend a lot of time getting our 3-year product launch. Right?

And, but, look, I think, given the, you know, lack of, frankly, disruption in the broader healthcare insurance space, If there are opportunities that come our way that makes a lot of sense, then we will certainly evaluate that. But, at this point in time, you know, that is why I said, if a compelling opportunity comes along, we would certainly entertain, but we are not necessarily going out and saying, hey, gee, let's go see who we can buy here in the next 60 days.

Marla Marin: M. Okay. Great. Thanks. And then my last question. it is a housekeeping 1. And I completely understand your reluctance to give us any kind of, to commit to any kind of timing or cadence for 2027. Or revenue outlook that makes total sense. But given that, you know, we are talking about really bringing some of these initiatives to market in 2027. Are you confident at this point that you will be in a position to meet what is, you know, generally the industry sales cycle. In time in order to really benefit from some of the initiatives in 2027?

Sanjay K. Shrestha: Well, that is the goal. Right? And I think the goal is to obviously get back on the growth track. And, the only thing that we just want to make sure when we articulate what that is going to be that, we are really spending a bit more time and digging a little deeper if you would. We are already doing that. You know, what I have seen so far as, you know, I used to be on the board, so I am familiar with all the great things that company has done. I served as an advisor as well.

So now coming in as a CEO of the company, and really focusing on a day-to-day, there is a lot of great things here. Right? it is really more about blocking and tackling, getting the base business back on track and growth. All these new initiatives. So the goal is to get on the growth. The question really that we are trying to dissect here is what is that rate of growth that is gonna allow us to really get to that path of profitability, EBITDA positive, the whole 9 yards. But that is why I am really hesitating to sort of pin down the number or even give you a range.

So given, I think, a bit of a transitional year that we have gone through, but the goal is to obviously get back on the growth track in 2027 is the best I can give you at this point in time.

Marla Marin: Okay. Thanks very much.

Sanjay K. Shrestha: Thank you. Thank you.

Operator: Seeing no more questions in the queue, let me turn the call back to Lori Babcock for the closing statement.

Lori Babcock: Thank you all again for joining us today. This concludes the call. You may disconnect.

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