Q4 2025 Health In Tech Inc Earnings Call

March 25, 2026

Operator 2: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech Q4 and full year of 2025 earnings conference call. Currently, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please proceed.

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech Q4 and full year of 2025 earnings conference call. Currently, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please proceed.

Speaker #3: Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording today's call.

Speaker #3: If you have any objections, you may disconnect at this time. Now, I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please proceed.

Speaker #2: Thank you, Operator, and hello, everyone. Welcome to Health In Tech's fourth quarter and full year 2025 earnings conference call. Joining us today are Mr. Tim Johnson, Chief Executive Officer, and Ms. Julia Qian, Chief Financial Officer.

Lori Babcock: Thank you, operator, and hello, everyone. Welcome to Health In Tech's Q4 and full year of 2025 earnings conference call. Joining us today are Mr. Tim Johnson, Chief Executive Officer, and Ms. Julia Qian, Chief Financial Officer. Full details of our results can be found in our earnings press release and in our related Form 10-K filed with the SEC. These documents will be available on our investor relations website at healthintech.investorroom.com. As a reminder, today's call is being recorded and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Speaker #2: Full details of our results can be found in our earnings press release and in our related Form 10-K filed with the SEC. These documents will be available on our investor relations website at healthintech.investorroom.com.

Speaker #2: As a reminder, today's call is being recorded, and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor Provisions of the U.S.

Lori Babcock: As a reminder, today's call is being recorded and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Speaker #2: Private Securities Litigation Reform Act of 1995. These statements are based on information available as of today and involve risks and certainties and assumptions that could cause actual results to differ materially from those expressed or implied including those discussed in our annual report on Form 10-K for the period ended December 31, 2025.

Lori Babcock: These statements are based on information available as of today and involve risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our annual report on Form 10-K for the period ended December 31, 2025, filed with the SEC. Please review the forward-looking and cautionary statement section at the end of our earnings release for various factors that could cause actual results to differ materially from forward-looking statements made today during our call. Except as expressly required by federal securities laws, we undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events.

Speaker #2: Filed with the SEC. Please review the forward-looking and cautionary statements section at the end of our release earnings release for various factors that could cause actual results to differ materially from forward-looking statements made today during our call.

Speaker #2: Except as expressly required by federal securities laws, we undertake no obligation to update, and expressly disclaim the obligation to update, these forward-looking statements to reflect events or circumstances after the date of this call, or to reflect new information or the occurrence of unanticipated events.

Speaker #2: We may also refer to certain financial measures not in accordance with Generally Accepted Accounting Principles, such as adjusted EBITDA, for comparison purposes only. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release.

Lori Babcock: We may also refer to certain financial measures not in accordance with generally accepted accounting principles, such as Adjusted EBITDA for comparison purposes only. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. With that, I will now turn the call over to our CEO, Mr. Johnson.

Speaker #2: With that, I will now turn the call over to our CEO, Mr. Johnson.

Speaker #3: Thank you, Lori, and good afternoon, everyone. We appreciate you joining us today. 2025 was a pivotal year for Health In Tech. It marked our first year as a publicly company, but more importantly, it was our it was a year in which we demonstrated that our AI-enabled underwriting marketplace distribution-led growth model and technology platform can scale within a large under-penetrated self-funded health insurance market.

Tim Johnson: Thank you, Lori, and good afternoon, everyone. We appreciate you joining us today. 2025 was a pivotal year for Health In Tech. It marked our first year as a public company. More importantly, it was a year in which we demonstrated that our AI-enabled underwriting marketplace, distribution-led growth model, and technology platform can scale within a large, under-penetrated, self-funded health insurance market. For the full year 2025, revenue increased 71% to $33.3 million, reflecting strong execution across our core growth drivers. When we look at what drove this performance, three factors stand out, distribution expansion, platform advancement, and program innovation. First, distribution. Our business scales through distribution, with brokers and TPAs serving as the primary channel through which employers access self-funded health plans.

Speaker #3: For the full year 2025, revenue increased 71% to $33.3 million, reflecting strong execution across our core growth drivers. When we look at what drove this performance, three factors stand out: distribution expansion, platform advancement, and program innovation.

Speaker #3: First, distribution. Our business scales through distribution, with brokers and TPAs serving as the primary channel through which employers access self-funded health plans. As a result, the breadth and productivity of our distribution network are directly correlated with our growth trajectory.

Tim Johnson: As a result, the breadth and productivity of our distribution network are directly correlated with our growth trajectory. In 2025, we expanded our network to 858 brokers, TPAs, and agency partners, representing a 34% year-over-year increase. Importantly, we believe we remain at a very early stage of market penetration. There are approximately 1.1 million insurance brokers in the United States, and even over 800 distribution partners in our platform, our penetration remains well below 0.1%. Similarly, within an estimated $0.9 trillion self-funded healthcare market, our current scale represents only a fraction of the total addressable opportunity. The key takeaway is that while we deliver strong growth in 2025, we believe that the long-term runway for expansion remains substantial, particularly as we continue to scale distribution and increase engagement across our partner network. Second, platform development.

Speaker #3: In 2025, we expanded our network to 858 brokers, TPAs, and agency partners, representing a 34% year-over-year increase. Importantly, we believe we remain at a very early stage of market penetration.

Speaker #3: There are approximately 1.1 million insurance brokers in the United States, and even on our platform, our penetration remains well below one-tenth of 1%. Similarly, within an estimated $0.9 trillion self-funded healthcare market, our current scale represents only a fraction of the total addressable opportunity.

Speaker #3: The key takeaway is that, while we deliver strong growth in 2025, we believe that the long-term runway for expansion remains substantial—particularly as we continue to scale distribution and increase engagement across our partner network.

Speaker #3: Second, platform development. A core inefficiency in this industry is that underwriting remains highly manual, time-intensive, and difficult to scale—particularly in the large employer segment.

Tim Johnson: A core inefficiency in this industry is that underwriting remains highly manual, time-intensive, and difficult to scale, particularly in a large employer segment. In 2025, we expanded our Enhanced Do-It-Yourself Benefit Systems, or EDEBS, to support employers with over 100 employees, extending our capabilities beyond the small group market, where we initially established strong product market fit. This is a meaningful step up market. Larger group underwriting is characterized by long sales cycles, fragmented workflows, and significant operational friction. Our platform addresses these challenges by compressing underwriting timelines for larger employers with approximately 3 months to roughly 2 weeks, which enhances broker productivity, improves the client experience, and increases placement efficiency. We believe this speed and automation represent a durable competitive advantage, particularly as the market increasingly demands faster data-driven decision-making.

Speaker #3: In 2025, we expanded our Enhanced Do-It-Yourself Benefit systems, or EDIBs, to support employers with over 100 employees. This extended our capabilities beyond the small group market where we initially established strong product-market fit.

Speaker #3: This is a meaningful step-up market. Larger group and underwriting is characterized by long sales cycles, fragmented workflows, and significant operational friction. Our platform addresses these timelines for larger employers, reducing them from approximately three months to roughly two weeks, which enhances broker productivity, improves the client experience, and increases placement efficiency.

Speaker #3: We believe this speed and automation represent a durable, competitive advantage, particularly as the market increasingly demands faster, data-driven decision-making. Before I move on, I want to address one of the most important questions we hear from investors.

Tim Johnson: Before I move on, I want to address one of the most important questions we hear from investors. What is our AI advantage, and why is it not easily replicable? The short answer is that our advantage is not just the AI model itself. It is the combination of proprietary data, integrated workflow, and distribution. On data, we have been applying AI within our platform since 2021, well before AI became a headline theme. Because we operate within employer-sponsored insurance, we have built a HIPAA-governed data set tied directly to real underwriting activity, and plan design structures, rather than relying on generic or publicly available healthcare data. As employer groups renew over time, we continuously incorporate new cohorts and real-world outcomes, which allows our models to improve through ongoing feedback loops embedded in actual production environments.

Speaker #3: What is our AI advantage and why is it not easily replicable? The short answer is that our advantage is not just the AI model itself; it is the combination of proprietary data and integrated workflow and distribution.

Speaker #3: On data, we have been applying AI within our platform since 2021, well before AI became a headline theme. Because we operate within employer-sponsored insurance, we have built a HIPAA-governed dataset tied directly to real underwriting activity and plan design structures.

Speaker #3: Rather than relying on generic or publicly available healthcare data, as employer groups renew over time, we continuously incorporate new cohorts and real-world outcomes. This allows our models to improve through ongoing feedback loops embedded in actual production environments.

Speaker #3: On workflow, many solutions in the market focus on narrow point applications of AI—for example, automating a single administrative function or a discrete vendor process.

Tim Johnson: On workflow, many solutions in the market focus on narrow point applications of AI. For example, automating a single administrative function or a discrete vendor process. While those tools can provide incremental efficiency, they do not address the broader structural inefficiencies in the system. What we have built is a fully integrated platform that connects underwriting, plan design, stop loss administration, and vendor coordination in a single workflow. This enables brokers to move from quote to bindable execution-ready solution significantly faster while reducing fragmentation for employers. In other words, our AI is most valuable because it is embedded within an operating marketplace, not deployed as a standalone tool. On distribution, technology alone is not sufficient. Distribution is critical. We have established a growing network of brokers, TPAs, and carrier integrations actively using the platform, and that real-world usage drives continuous data generation, improves model performance, increases platform stickiness over time.

Speaker #3: While those tools can provide incremental efficiency, they do not address the broader structural inefficiencies in the system. What we have built is a fully integrated platform that connects underwriting, plan design, stop loss, administration, and vendor coordination in a single workflow.

Speaker #3: This enables brokers to move from quote to bindable execution-ready solution significantly faster, while reducing fragmentation for employers. In other words, our AI is most valuable because it is embedded within an operating marketplace, not deployed as a standalone tool.

Speaker #3: On distribution, technology alone is not sufficient. Distribution is critical. We have established a growing network of brokers, TPAs, and carrier integrations actively using the platform.

Speaker #3: And that real-world usage drives continuous data generation, improves model performance, and increases platform stickiness over time. As we scale, the data becomes richer, the workflow becomes more efficient, and the competitive advantage compounds.

Tim Johnson: As we scale, the data becomes richer, the workflow becomes more efficient, and the competitive advantage compounds. Third, program development. We continue to advance our Three-Year Rate Stabilization Program, which is designed to address one of the most persistent challenges in the employer-sponsored healthcare space, pricing volatility. Employers are increasingly focused on predictability, while brokers are seeking solutions to improve retention and simplify long-term planning. Our program is structured to provide greater pricing stability over a multi-year period, supported by a fixed remittance framework and stop loss protection. Strategically, we believe this offering can deepen client relationships, improve retention, and support expansion into larger employer segments where budgeting stability is a critical decision factor. Now let's talk about 2026 strategic priorities and outlook. As we move into 2026, our priorities remain focused on scaling the platform and accelerating adoption. First, we will continue to expand our distribution footprint.

Speaker #3: Third, program development. We continue to advance our three-year rate stabilization program, which is designed to address one of the most persistent challenges in employer-sponsored healthcare.

Speaker #3: Space. Pricing volatility. Employers are increasingly focused on predictability, while brokers are seeking solutions to improve retention and simplify long-term planning. Our program is structured to provide greater pricing stability over a multi-year period, supported by a fixed remittance framework and stop-loss protection.

Speaker #3: Strategically, we believe this offering can deepen client relationships, improve retention, and support expansion into larger employer segments, where budgeting stability is a critical decision factor.

Speaker #3: Now let's talk about 2026 strategic priorities and outlook. As we move into 2026, our priorities remain focused on scaling the platform and accelerating adoption.

Speaker #3: First, we will continue to expand our distribution footprint. Second, we're continuing to invest in platform development and AI capabilities, with a goal of evolving into a fully integrated marketplace that extends beyond underwriting to include claims administration, cost containment solutions, and broader plan management capabilities.

Tim Johnson: Second, we are continuing to invest in platform development and AI capabilities with the goal of evolving into a fully integrated marketplace that extends beyond underwriting to include claims administration, cost containment solutions, and broader plan management capabilities. In January 2026, we enhanced the platform to offer more than 100 pre-configured customized stop loss programs, translating complex underwriting and plan design into a scalable, repeatable framework. This drives shorter sales cycles, improved conversion visibility, and greater scalability while maintaining flexibility over the employer-specific needs. We are providing full year 2026 revenue guidance of $45 to 50 million, representing approximately 35% to 50% year-over-year growth. Our confidence is supported by our ability to compress time to revenue, enabling new features to scale within 1 to 2 quarters compared to 12 to 24 months in traditional insurance environments.

Speaker #3: In January 2026, we enhanced the platform to offer more than 100 pre-configured, customized stop-loss programs, translating complex underwriting and plan design into a scalable, repeatable framework.

Speaker #3: This drives shorter sales cycles, improved conversion visibility, and greater scalability, while maintaining flexibility over the employer-specific needs. We are providing full-year 2026 revenue guidance of $45 to $50 million, representing approximately 35% to 50% year-over-year growth.

Speaker #3: Our confidence is supported by our ability to compress time to revenue, enabling new features to scale within one to two quarters, compared to 12 to 24 months in traditional insurance environments.

Speaker #3: We are also strengthening our technology foundation through our partnerships with Ciklam and AWS Advanced Tier Service Provider. We are building more integrated, AI-driven platforms, and with that, I'll turn it over to Julia Qian, our CFO.

Tim Johnson: We are also strengthening our technology foundation through our partnerships with Ciklum and AWS Advanced Tier Services provider. We are building more integrated AI-driven platforms. With that, I'll turn it over to Julia Qian, our CFO.

Speaker #1: Thanks, Tim. Good afternoon, everybody. I appreciate you joining us today. I will work through our fourth quarter and full-year 2025 financial performance. Then we'll provide additional context around our operating model, margin profile, capital allocation priority, and ongoing product investments.

Julia Qian: Thanks, team. Good afternoon, everybody. I appreciate you joining us today. I will walk through our Q4 and the full year 2025 financial performance. Then we'll provide additional context around our operating model, margin profile, capital allocation priority, and ongoing product investments. Before continuing to the numbers, I want to briefly address seasonality and the timing dynamics. Employer decision cycles, particularly around the renewals, do not always align cleanly with the calendar quarter, which can create some variance in the quarter's results. As such, we believe year-over-year performance is a more meaningful way to evaluate the business rather than sequentially. On that basis, our trend remains strong throughout 2025. Importantly, our revenue model is contractually driven and recognized over a 12-month policy period, which supports forward-looking revenue visibility and an increased recurring revenue profile. Turning to our revenue now.

Speaker #1: Before continuing to the numbers, I want to briefly address seasonality and the timing dynamics. Employer decision cycles, particularly around the renewers, do not always align cleanly with the calendar quarter.

Speaker #1: Which can create some variance in the quarter's results. As such, we believe year-over-year performance is more meaningful to evaluate the business than rather than sequentially.

Speaker #1: So on that basis, our trend remains strong throughout 2025. Importantly, our revenue model is contractually driven and recognized over a 12-month policy period, which supports forward-looking revenue visibility and an increased recurring revenue profile.

Speaker #1: Turning to our revenue now. For the full year 2025, the total revenue increased 71% year-over-year to 33.3 million. In the fourth quarter, the revenue increased 53 million, increased—excuse me—increased 53% to 7.5 million.

Julia Qian: For the full year 2025, the total revenue increased 71% year over year to $33.3 million. In the fourth quarter, the revenue increased 53% to $7.5 million. This performance reflects continued adoption of our AI-enabled underwriting marketplace, supported by expansion in both distribution and enrolled employees. Our distribution network grew to 885 brokers, TPAs, and agencies, increased 34% year over year. Enrolled employees increased to 22,515, increased 23% year over year. As more partners onboard to the platform, we are seeing increased quoting activity, higher quote-to-bind ratio, and improved conversion efficiency, reinforcing the scalability of our model.

Speaker #1: Least performance reflects continued adoption of our AI-enabled underwriting marketplace, supported by expansion in both distribution and enrolled employees. Our distribution network grew to 885 brokers, TPAs, and agencies.

Speaker #1: Increased 34% year-over-year. Enrolled employees increased to 22,515, up 23% year-over-year. As more partners onboarded to the platform, we are seeing increased coding activity, a higher bindable ratio, and improved conversion efficiency.

Speaker #1: Reinforcing the scalability of our model. As Tim mentioned, we are providing full-year 2026 revenue guidance of $45 million to $50 million. That represents about 35% to 50% growth year-over-year.

Julia Qian: As Tim mentioned, we are providing full year 2026 revenue guidance of $45 million to $50 million, that representing about 35% to 50% growth year-over-year. This is supported by the visibility and how our recurring revenue flows through from the prior year and the remainder of the year, as well as the strong distribution and full deployment of our platform capability. When we look at the profitability, we continue to demonstrate operating leverage as the business scales. Adjusted EBITDA for the full year was $4.1 million, which is about 12.3% of the revenue, increased 81% year-over-year. Net income. Adjusted EBITDA, most comparable GAAP measure for the full year was $1.2 million, representing about 4% of the revenue, increased 91% year-over-year.

Speaker #1: Leases are supported by the visibility and how our recurring revenue flows through from the prior year and the remainder of the year, as same as the strong distribution and full deploy of our platform capability.

Speaker #1: When we look at the profitability, we continue to demonstrate operating leverage as the business scaled. Adjusted million, which is about 12.3% of the revenue.

Speaker #1: Increased 81% year-over-year. Net income adjusted EBITDA, the most comparable GAAP measure, for the full year was $1.2 million, representing about 4% of revenue. Increased 91% year-over-year.

Speaker #1: For the fourth quarter, adjusted EBITDA was $0.3 million, compared to $0.5 million in the prior year. Net income for the first quarter was negative $0.3 million, compared with negative $0.1 million in the prior year.

Julia Qian: For the Q4, Adjusted EBITDA was $0.3 million compared to $0.5 million the prior year. Net income for the Q1 was negative $0.3 million, compared with negative $0.1 million of the prior year. Our GAAP result and the reconciliation of the GAAP to non-GAAP measurement can be found in our earnings release. The Q1 reflects planned reinvestment in go-to-market initiatives, broker engagement, program development, along with the peak enrollment activity, as well as the investment supporting new product launches. Full year pre-tax income was $1.7 million. Q4 pre-tax loss was $0.4 million, reflecting the timing of the investment. Turning to the operating expenses. We continue to drive improved operating efficiency while maintaining disciplined investment in growth initiative.

Speaker #1: Again, our GAAP result and the reconciliation of the GAAP to non-GAAP measurement can be found in our earnings release. The first quarter reflects planned reinvestment in go-to-market initiatives.

Speaker #1: Broker engagement, program development, along with the peak enrollment activity, as well as the investment supporting new product launches. Full-year pre-tax income was $1.7 million.

Speaker #1: Fourth quarter pre-tax loss was $0.4 million. Reflect the timing of the investment. Turning to the operating expenses, we continue to drive improved operating efficiency while maintaining disciplined investment in growth initiatives.

Speaker #1: Total operating expenses were $19.4 million for the full year, representing 58% of revenue, a 16% improvement year-over-year. In the fourth quarter, operating expenses were $4.3 million, or 57% of revenue.

Julia Qian: Total operating expenses were $19.4 million for the full year, representing 58% of the revenue, a 16% improvement year over year. In the Q4, operating expenses was $4.3 million, 57% of the revenue. Breaking all this down, for the full year, sales and the marketing expenses was $4.2 million, about 13% of the revenue, reflecting our efficiency in the distribution-led go-to-market strategy. General and admin expenses was $13.7 million, 41% of the revenue, improved year over year as we scale. Research and development investment, including $3.2 million in the CapEx, capitalized the software development and $1.6 million expenses, representing approximately 5% of the revenue as we expense. Our R&D investment are focused on the platform expansion, underwriting automation, and scalability across the marketplace ecosystem.

Speaker #1: Breaking this down, for the full year, sales and marketing expenses were $4.2 million, about 13% of revenue, reflecting our efficiency in the distribution-led go-to-market strategy.

Speaker #1: General and admin expenses were $13.7 million, 41% of revenue, improved year-over-year as we scale. Research and development investment included $3.2 million in CapEx, capitalized software development, and $1.6 million in expenses.

Speaker #1: Representing approximately 5% of the revenue as we expense. Our R&D investment focused on the platform expansion, underwriting automation, and the scalability across the marketplace ecosystem.

Speaker #1: As we think about the growth beyond 2025, we are continuing to increase the high-value capability into our existing platform. We plan to initiate the beta testing of a new data-driven solution that integrates physiological and the current data to generate actionable value insights.

Julia Qian: As we think about the growth beyond 2025, we are continuing to increase the high value capability into our existing platform. We plan to initiate the beta testing of a new data-driven solution that integrates physiological and footprints data to generate actionable value insights. We believe this represent a very meaningful step forward in enhancing decision-making across underwriting and plan management. More broadly, this initiative reflect our strategy of building additional value-added service on top of already commercialized scalable platform, which we expect to support durability of the growth and increase operating leverage even further. AI remains a core investment initiative alongside our other programs. We believe that applying AI within a regulated employer-sponsored insurance environment can materially improve the speed, consistency, and decision quality across both underwriting and member-facing workflows. We will continue investing in AI-driven automation and underwriting support.

Speaker #1: We believe this represents a very meaningful step forward in enhancing decision-making across underwriting and plan management. More broadly, these initiatives reflect our strategy of building additional value-added services on top of an already commercialized, scalable platform, which we expect to support the durability of growth and increased operating leverage even further.

Speaker #1: AI remains a core investment initiative alongside our other programs. We believe that applying AI within a regulated employer-sponsored insurance environment can materially improve the speed, consistency, and decision quality across both underwriting and member-facing workflows.

Speaker #1: We will continue investing in AI-driven automation and underwriting support, while maintaining appropriate human oversight where it matters most. From a financial perspective, when these investments are directed along with our model, they support faster adoption, higher retention, improved efficiency, and ultimately great operating leverage as we scale.

Julia Qian: We are maintaining appropriate human oversight where it matters most. For financial perspectives, when these investments are directly aligned with our model, they support a faster adoption, higher retention, improved efficiency, and ultimately great operating leverage as we scale. Turning to the cash flow and the balance sheet. For the full year 2025, we generated +$3.1 million of operating cash flow. Accounts receivable days reduced to 14 days in 2025 from already very efficient 29 days in 2024, demonstrating the predictability and efficiency of cash collection in our business model. We invested $3.2 million in platform development, the software part, and through our work generated a positive cash flow from operations. Ending the year with $7.7 million in cash and cash equivalents. With that, I now turn back to the operator for Q&A.

Speaker #1: Turning to the cash flow and the balance sheet. For the full year 2025, we generated $3.1 million of positive operating cash flow. Accounts receivable days reduced to 14 days in 2025 from an already very efficient 29 days in 2024.

Speaker #1: We demonstrated the applicability and efficiency of cash collection in our business model. We invest $3.2 million in platform development—the software part—and through our generated positive cash flow from the operations.

Speaker #1: At the end of the year, with $7.7 million in cash and cash equivalents. With that, I now turn back to the operator for Q&A.

Speaker #2: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then 1 on your touch-tone phone.

Operator 2: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster. The first question will come from Alan Klee with Maxim Group. Please go ahead.

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster. The first question will come from Alan Klee with Maxim Group. Please go ahead.

Speaker #2: If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star, then 2.

Speaker #2: At this time, we will pause momentarily to assemble our roster. And the first question will come from Alan Klee with Maxim Group. Please go ahead.

Speaker #3: Yes, hi. Good quarter. I wanted to start with your larger employer offering, which you've rolled out. Could you give us kind of the feedback you've gotten?

Alan Klee: Yes. Hi. Good quarter. I wanted to start with your larger employer offering, which you've rolled out. Could you give us kind of the feedback you've gotten out and kind of what you're hearing from your partners that are involved in selling it? Thank you.

Allen Klee: Yes. Hi. Good quarter. I wanted to start with your larger employer offering, which you've rolled out. Could you give us kind of the feedback you've gotten out and kind of what you're hearing from your partners that are involved in selling it? Thank you.

Speaker #3: How and what kind of things are you hearing from your partners that are involved in selling it? Thank you.

Speaker #4: Thank you. I can take that. Yes, he can talk about the business part, and I can talk about the financials. So, we announced the entry to the larger employee space last year.

Julia Qian: Thank you.

Tim Johnson: Sure, Alan.

Julia Qian: I can take that.

Tim Johnson: Okay, go ahead.

Julia Qian: Yeah, Tim can talk about the business part, and I can talk about the financials. We announced the entry to the large employer space last year, and the financials is not as it's a very fresh on the financials in 2025 is reported, because that is starting on the Q3 and officially launched this September, and you will see more benefits in 2026. Tim can answer business-related question.

Speaker #4: And the financial is not—it's very fresh on the financials in 2025. It's reported because that's the starting of the Q3, and the officially launched, the September.

Speaker #4: And you will see more benefits in 2026. So Tim can answer business-related questions.

Speaker #5: Yeah, as Julia said, the sales cycle on those are pretty long, so we're just now really starting to pick up some sales through it.

Tim Johnson: Yeah. As Julia said, the sales cycle on those are pretty long, so we're just now really starting to pick up some sales through it, the speed through it. We have a product launch coming up at the end of next month where it really helps speed the process up for the large groups. Right now, we just agreed to underwrite large groups, bring them in to make sure that we had a really good process, and then the system that we've built is coming out next month. We've tested it a lot with a lot of brokers and internally, and the speed with which it's performing is really helpful for anybody that uses it.

Speaker #5: The speed through it. We have a product launch coming up at the end of next month, where it really helps speed the process up for the large groups.

Speaker #5: Right now, we just agreed to underwrite large groups, bring them in to make sure that we had a really good process. And then the system that we've built is coming out next month.

Speaker #5: We've tested it a lot, with a lot of brokers and internally. The speed with which it's performing is really helpful for anybody that uses it.

Speaker #3: Okay, thank you. And then for the three-year rate stabilization offering, which is extremely valuable in today's market, what is the feedback? You're in beta right now.

Alan Klee: Okay. Thank you. For the Three-Year Rate Stabilization offering, which is extremely valuable in today's market, what is the feedback? You're in beta right now, so anything you can say about the feedback and how you're thinking about the potential interest and when that interest. I know you said H2, but any thoughts of how that might, how you think about the inflection of how that might ramp?

Allen Klee: Okay. Thank you. For the Three-Year Rate Stabilization offering, which is extremely valuable in today's market, what is the feedback? You're in beta right now, so anything you can say about the feedback and how you're thinking about the potential interest and when that interest. I know you said H2, but any thoughts of how that might, how you think about the inflection of how that might ramp?

Speaker #3: So, what—how do you—anything you can say about the feedback, and how you're thinking about the potential interest, and when that interest—I know you said second half, but any thoughts of how that might—how you think about the inflection of how that might ramp?

Speaker #5: Yeah, it's really an attention grabber for government entities, municipalities—these entities that rely on budgeting heavily. So they have to understand, through a tax base, what they've got to budget for.

Tim Johnson: Yeah. It's really an attention grabber for government entities, municipalities, these entities that rely on budgeting heavily. They have to understand through a tax base, you know, what they got to budget for. When you can do that for 3 years, there are a lot of cities, states, governments, and counties. They're all interested in looking at it. We're right now just starting to put together some information, so we can gather some of their submission data, start to put some programs together for them, making sure that it looks right and fine-tune it. There's a lot of attention around it.

Speaker #5: So, when you can do that for three years, there are a lot of cities, states, governments, counties—they're all interested in looking at it.

Speaker #5: And we're, right now, just starting to put together some information so we can gather some of their submission data, start to put some programs together for them, making sure that it looks right, and fine-tune it.

Speaker #5: So there’s a lot of attention around it. We, seriously, we just got to start it a month, month and a half ago. And where we could go out and talk about it with our partner, that is our insurance carrier, that was putting it up.

Tim Johnson: Seriously, we just got it started a month and a half ago, and where we could go out and talk about it with our partner that, our insurance carrier that was putting it up and we're working with. There's a lot of attention around it. You're right, we haven't really started the quoting process yet where we've got so much going on that we can put some business on the books.

Speaker #5: And we're working with—so there's a lot of attention around it. But you're right, we haven't really started the quoting process yet. We've got so much going on that we can't put some business on the books.

Speaker #4: Yeah, so Alan, that is exactly what we said before. We anticipate it's going to go well. The beta test—a lot of traction—should be officially launched, announced with all the party partners involved, second half of the year.

Julia Qian: Yeah, Alan, that is exactly what we said before. We anticipate it's going to go well. The beta test, a lot of traction. It should be officially launched, announced, with all the partners involved H2. I think it's pretty still on track. Yeah, we try to see whether we can do a Q3. Hopefully, the end of Q2 and the beginning of Q3. This is something we are looking at.

Speaker #4: I think it's pretty still on track. We try to see whether we can do a Q3, third quarter. Hopefully, the end of second quarter and the beginning of third quarter.

Speaker #4: This is something we are looking at.

Alan Klee: Maybe just following up on my first two questions. What are your thoughts in terms of the amount of renewals you think will be available for both the large employer and the Three-Year Rate Stabilization? Do you think that most of it will come more at the end of 2026 when plans renew, or do you think that there's a good opportunity kind of in H2 2026?

Speaker #3: Maybe just following up on my first two questions. With most, what are your thoughts in terms of the amount of renewables you think will be available for both the large employer and the three-year rate stabilization?

Allen Klee: Maybe just following up on my first two questions. What are your thoughts in terms of the amount of renewals you think will be available for both the large employer and the Three-Year Rate Stabilization? Do you think that most of it will come more at the end of 2026 when plans renew, or do you think that there's a good opportunity kind of in H2 2026?

Speaker #3: Do you think that most of it will come more at the end of 2026 when plans renew, or do you think that there's a good opportunity kind of in the second half of 2026?

Speaker #4: So, Alan, today we are not in the large group business. So, right, most of our business is with small and medium-sized groups. We only started last year, in September.

Julia Qian: Alan, today we do not in the large group business. Right? Most of our business is a small, medium-sized group. We only start last year, September, and when we have functionality going on, and then we start to pick up some pace this year. We don't really have a renewal from any prior year business book, but we can see that we gain the market share and from other places. We get a new customer. Those will be all new customers. Three year

Speaker #4: And when we have functionality going on, and then we start to pick up some pace this year. So we don't really have a renewal from any prior year business book, but we can see we gained the market share from other places.

Speaker #4: So we get a new customer. Those will be our new customers. Three-year, both three-year in the large group.

Alan Klee: I'm sorry.

Allen Klee: I'm sorry.

Julia Qian: Both three years of group.

Speaker #3: Yeah. But what I meant is that plans do like if most plans renew like in January, does that mean that there won't be a lot that will be available that you can sell to?

Alan Klee: Yeah, what I meant is that plans like, if most plans renew, like, in January, does that mean that there won't be-

Allen Klee: Yeah, what I meant is that plans like, if most plans renew, like, in January, does that mean that there won't be-

Julia Qian: Oh.

Alan Klee: A lot that will be available.

Allen Klee: A lot that will be available.

Tim Johnson: Yes.

Alan Klee: you could sell to?

Allen Klee: you could sell to?

Speaker #5: Yes, you're correct. So July 1 and January 1 are especially important for municipalities on their effective dates. They start on July and January, so again, we're probably not going to get a lot of business on July.

Tim Johnson: You're correct. July 1 and January 1 are the, especially for municipalities on their effective dates, they start on July and January. Again, we're probably not gonna get a lot of business on July with the municipalities, and that we'll pick up some other clients, but January is clearly gonna be the biggest effective date for us on that.

Speaker #5: With the municipalities in that, we'll pick up some other clients. But January is clearly going to be the biggest effective date for us on that.

Speaker #3: Okay, that's great. And then just one more, then I'll get back in the queue. You mentioned you initiate beta testing of physiological data and claims data.

Alan Klee: Okay. That's great. I'll ask one more, then I'll get back in the queue. You mentioned you initiate beta testing of physiological data and claims data to get insights. Could you just expand about that a little more?

Allen Klee: Okay. That's great. I'll ask one more, then I'll get back in the queue. You mentioned you initiate beta testing of physiological data and claims data to get insights. Could you just expand about that a little more?

Speaker #3: To get insights, could you just expand on that a little more?

Speaker #4: Yes, so physiologic data is when people wear the devices to track the physiologic information—the heart rate and the blood pressure, or at least.

Julia Qian: Yes. Physiologic data is when people wear the devices to track their physiologic information, you know, the heart rate and the blood pressure release. We have as a claims data, a lot of associates with individuals health information. When we get the data, hopefully can produce insights. We just get this started beta test for this year. That is something the product will look watch for. It can be very interesting. On data part, it will help the user and to get the more additional insights of the correlation, their health condition versus their medical condition. We just get it beta test, and we will share with the market in due course.

Speaker #4: And then we will have, as claims data, a lot of associates with individuals on health information. So, when we get the data, hopefully, it can produce insights. We just get the start and the beta test for this year.

Speaker #4: That is something the product will watch for. It can be very interesting on the data part. It will really help the user and help to get more additional insights of the correlation between their health condition versus their medical condition.

Speaker #4: So we just get the beta test, and we will share with the market the due cost.

Speaker #3: Okay. Thank you so much.

Alan Klee: Thank you so much.

Allen Klee: Thank you so much.

Speaker #5: Again, if you have a question, please press star and then one. The next question will come from M. Maren with Zachs. Please go ahead.

Operator 2: Again, if you have a question, please press star and then one. The next question will come from M. Marin with Zacks. Please go ahead.

Operator: Again, if you have a question, please press star and then one. The next question will come from M. Marin with Zacks. Please go ahead.

Speaker #4: Thank you. So, I'm wondering—you’re talking a little bit about your entrance now into the large organizations' spectrum of sales. And the sales cycle, as you said, is long.

M. Marin: Thank you. So, I'm wondering, you know, you're talking a little bit about, you know, your entrance now into the large organizations spectrum of sales. The sales cycle, as you said, is long. Do you expect that there'll be any difference versus smaller organizations in terms of stickiness or retention? Or from what you know about the overall industry, do you think it will be pretty much comparable to what you've already experienced in your business?

Speaker #4: Do you expect that there'll be any difference versus smaller organizations in terms of stickiness or retention? Or, from what you know about the overall industry, do you think it'll be pretty much comparable to what you've already experienced in your business?

Speaker #5: Yeah, I think that the stickiness will come because of the ease of use of the system—the tool, DIBS. It is extremely easy and efficient.

Tim Johnson: Yeah. I think that the stickiness will come because the ease of use of the system, the tool, eDIYBS, it is extremely easy and efficient. It's easier for a broker to provide a submission to an underwriter through the system. The system uses a lot of AI technology to organize all of that and parses the data into an organized fashion for the underwriter. It's a layup for the underwriter to, when they eventually comes out the other end of the system to underwrite, to do their job, which is all they wanna do. So once we can show that the turnaround time on, one, getting the information in, understanding the information, and then getting a proposal back, we're really trying to reduce that timeframe significantly.

Speaker #5: The brokers get—it's easier for a broker to provide a submission to an underwriter through the system. The system uses a lot of AI technology to organize all of that and parses the data into an organized fashion for the underwriter.

Speaker #5: It's a layup for the underwriter to, when it eventually comes out to the other end of the system, to underwrite, to do their job—which is all they want to do.

Speaker #5: So, once we can show that the turnaround time on, one, getting the information in, understanding the information, and then getting a proposal back—we're really trying to reduce that timeframe significantly.

Speaker #5: And if you're in this business, you know that a lot of times it takes a long time for various reasons. But the system that we have built—we really think we can dramatically, I say we're going to easily cut it in half, if not more.

Tim Johnson: If you're in this business, you know that a lot of times it takes a long time for various reasons. The system that we have built, we really think we can dramatically, I say we're gonna easily cut it in half, if not more.

Speaker #4: Okay. And so, I know it's very, very early in the process because you've just really completed the beta testing not that long ago.

M. Marin: Okay. I know you know it's very early in the process because you just really completed the beta testing not that long ago. But, are you surprised at the level of interest or potential interest that you're you know expecting or seeing in you know your pipeline amongst that sector of the overall customer base?

Speaker #4: But are you surprised at the level of interest, or potential interest, that you're expecting or seeing in your pipeline amongst that sector of the overall customer base?

Speaker #5: Yeah. We were just talking about that earlier today, in fact. The way that we have positioned ourselves, and the people that we are already talking to about it—just trying to get feedback and do all to get through all the beta internally—my underwriter can now look at and quote up to 20 groups in a week.

Tim Johnson: Yeah. We were just talking about that earlier today, in fact. The way that we have positioned ourselves and the people that we are already talking to about it, just trying to get, you know, feedback to get through all the beta. You know, internally, my underwriter can now look at and quote up to 20 groups in a week. She used to be able to do that in a month, and now she does it in a week. Conversations like that around other people in that space, in the underwriting space, they are very excited to see it and test it out. Yeah, we hope it's gonna be a big splash.

Speaker #5: She used to be able to do that in a month, and now she does it in a week. And just conversations like that around other people in that space, in the underwriting space—they're very excited to see it and test it out.

Speaker #5: So yeah, we hope it's going to be a big splash.

Speaker #4: Okay, and switching gears a little bit, I think over the past several quarters, you've announced a number of different partnerships or business affiliations to expand the services you can offer.

M. Marin: Okay. Switching gears a little bit, you know, I think over the past several quarters, you've announced a number of different partnerships or business affiliations to expand the services you can offer or expand distribution. Do you have an ongoing pipeline of other potential affiliations that you're looking at and considering in order to further expand your service offerings?

Speaker #4: Or expand distribution. Do you have an ongoing pipeline of other potential affiliations that you're looking at and considering in order to further expand your service offerings?

Tim Johnson: Yeah. The tool itself has really expanded who we traditionally thought our market was. Now, besides just brokers and TPAs using the system to quote groups, we're looking at other industries or other vendors within our industry that want to use the tool because it makes their job even easier. You know, we're all in this business, and we designed the product to help us because we underwrite, we do all these things. It's expanding beyond just us to where other people wanna use the tool. That kind of goes back to my other answer on the other question you asked. Yeah, it's expanding a lot.

Speaker #5: Yeah. The tool itself has really expanded who we traditionally thought our market was. So now, besides just brokers and TPAs using the system to quote groups, we're looking at other industries or other vendors within our industry that want to use the tool because it makes their job even easier.

Speaker #5: We're all in this business, and we designed the product to help us because we underwrite. We do all these things, but it's expanding beyond just us to where other people want to use the tool.

Speaker #5: And that kind of goes back to my other answer on the other question you asked. But yeah, it's expanding a lot.

Speaker #4: Yeah. It's multiple. We're looking at these as multiple different legs to grow for the company. So, in terms of self-distribution, just to remind everybody, it's 1.1 million of the sales agents in the country.

Julia Qian: Yeah. That is multiple. We looked at this as a multiple different leg to grow for the company. In terms of sales distribution. Just reminding everybody, it's 1.1 million of the sales agent in the country, and we only scratch the surface. Whatever works, we'll continue to build a highly functional sales team, continue to acquire broker, provide education. One part of we are entering into the large group space will help us to get a larger broker, brokerage house because the more product offers, the more stickiness, people more inclined to deal with one system to use it. This is a part of the strategy for us to offer more service and try to get more broker on board. We don't have some particular list because we now consider our entire universe is 1.1 million.

Speaker #4: And we only scratch the surface. So whatever works, we'll continue to build a high-functional sales team, continue to acquire brokers, provide education. One part of what we are aiming to do in the large group space will help us to get the larger brokerage houses, because the more products offered, the more stickiness—people are more inclined to deal with one system and use it.

Speaker #4: So, this is a part of the strategy for us to offer more services and try to get more brokers on board. We don't have some particular list because now, consider our entire universe is 1.1 million.

Speaker #4: And there's a particular—we have particular things that we think about, and where our high-functional salesperson has the most other relationships, that way.

Julia Qian: We have particular things we need to think about and where our highly functional salespeople have the most relationships start with. We would go down the list of the rest of the country really don't have particular things. Additionally, the new functionality we're building, we're surprised to see it can be offered as additional sales generate more revenue as the capabilities are needed by other users as well.

Speaker #4: Then we would go down the list of the rest in the country, really don't have particular things. In addition, the new functionality we're building will—surprisingly—to see it can be offered as additional sales, generate more revenue, as the capability or needed by other users as well.

M. Marin: Which would also further enhance your operating leverage, you think?

Speaker #4: Which would also further enhance your operating leverage, you think?

M. Marin: Which would also further enhance your operating leverage, you think?

Speaker #3: Yes, definitely. And look, when we started that, I often say we are the Amazon selling in the bookstore. And to sell the books in our bookstore.

Julia Qian: Yes, definitely. Look, when we start that, I often say we are the Amazon selling the bookstore and sell the bookseller or bookstore. We realize people really like to put the store online. We're like, okay, now well, a lot of functionality we're developing for our own use, internal use, because we are part of the customer zero using the functionality, deal with the manual process, make automation, make that easier, simpler, use AI. We realize a lot of company like ours on the market, they also suffer from the manual process. We can offer that as the service, additional service.

Speaker #3: And then we realized people really like to put the store online. So we're like, "Okay." Now a lot of functionality with the development for our own internal use, because we are part of the customer zero using the functionality to deal with the manual process—make automation, make that easier, simpler, use AI. And then we realized a lot of companies like us on the market, they also suffer from the manual process.

Speaker #3: Then we can offer that as an additional service.

Speaker #4: Okay, thanks so much. Thanks for taking my questions.

M. Marin: Okay, thanks so much. Thanks for taking my questions.

Speaker #2: The next question is a follow-up from Alan Klee of Maxim Group. Please go ahead.

Operator 2: The next question is a follow-up from Alan Klee of Maxim Group. Please go ahead.

Operator: The next question is a follow-up from Alan Klee of Maxim Group. Please go ahead.

Speaker #6: Yes. Hi. You talked about how you want to expand to roll out cost containment and claims paying. Is the business model here, kind of what you said, that you're the store and these are the different things that get added, and you would take a fee or a percent? How do you envision your partnering with other firms, and/or how do you envision how you get paid on it?

Alan Klee: Yes. Hi. You talked about how you want to expand to roll out cost containment and claims paying. Is the business model here that kind of what you said like you're the store and these are the different things that get added, and you would take like a fee or a percent of... How would... Have you envisioned like you're partnering with other firms and or how do you envision how you get paid on it?

Allen Klee: Yes. Hi. You talked about how you want to expand to roll out cost containment and claims paying. Is the business model here that kind of what you said like you're the store and these are the different things that get added, and you would take like a fee or a percent of... How would... Have you envisioned like you're partnering with other firms and or how do you envision how you get paid on it?

Speaker #4: So, Alan, we are building—we are the marketplace. So, today, the marketplace does two things: create self-funded products, self-funded programs, and put programs together.

Julia Qian: Alan, we are the marketplace. Today, the marketplace does two things, create self-funded product, self-funded program, and put program together, and also does underwriting and to bundle together just through AI process. In the near future, the marketplace function expanded, and then we will offer that as the service for other carrier, other MGU, other people want to come to the marketplace, not just purchase a product. They also want to use the functionality, doing their underwriting. They want to create their customized product. These are the things we're thinking about, which we already get quite a lot of traction. It has not launched currently, has not launched this year, has not in the business model last year.

Speaker #4: And also does the underwriting and the bundle together through the AI process. So, in the near future, as the marketplace function expands, we will offer that as a service for other carriers, other MGUs, and other people who want to come to the marketplace—not just to purchase the product.

Speaker #4: They also want to use the functionality during their underwriting. They want to create their customized product. So these are the things we're thinking about, which we already get quite a lot of traction on.

Speaker #4: It’s not have not launched currently, has not launched this year. Has not in the business model last year. But with more and more tractions, we think we will make that a variable in very near future.

Julia Qian: With more and more transactions, we think we will make that available in very near future. We have not thought about the pricing because there are so many different pricing we can charge you. We can have a, you know, a set pricing. We can have a different feature, different pricing. There are so many ways people willing to pay different functionality. Since this has not been launched and we have not finalized the pricing. We have a lot of ideas through the conversation with potential customers.

Speaker #4: We have not thought about the pricing because there are so many different prices we can charge, too. We can have a set pricing. We can have different features, different pricing.

Speaker #4: There are so many ways people willing to pay different functionality. So since this has not been launched and we don't find we have not finalized the pricing.

Speaker #4: We have a lot of ideas through the conversation with potential customers.

Speaker #6: Okay. And you announced a partnership on the prescription side, I think. Well, could you talk about what that can do for your offering?

Alan Klee: Okay. You announced a partnership on the prescription side, I think. Or well, could you talk about what that can do to, for your offering? What I'm referring to is Verdegard Administrators.

Allen Klee: Okay. You announced a partnership on the prescription side, I think. Or well, could you talk about what that can do to, for your offering? What I'm referring to is Verdegard Administrators.

Speaker #6: What I'm referring to is a vertical art administrators.

Speaker #5: Oh, yeah. They're a TPA. They just happen to be owned by a PBM. So it's just another distribution source for us.

Tim Johnson: Oh, yes.

Julia Qian: And the-

Tim Johnson: They're a-

Julia Qian: Sorry. Go ahead.

Tim Johnson: They're a TPA. They just happen to be owned by a PBM. It's just another distribution source for us.

Speaker #4: Yeah.

Julia Qian: Yeah.

Speaker #6: Okay, so on the prescription side, that's not an area of focus right now, I assume, right?

Alan Klee: Okay. On the prescription side, that's not an area of focus right now, I assume, right?

Allen Klee: Okay. On the prescription side, that's not an area of focus right now, I assume, right?

Speaker #5: Not really. I mean, we're going to do what we can to manage drug costs. But, as you recently saw, the government is stepping in to try to make some corrections.

Tim Johnson: Not really. I mean, we're gonna do what we can to manage drug costs, but as you recently saw, the government stepping in to try to make some corrections. It's kind of in flux right now. We don't wanna commit to anything and then have something taken away from us. We're just gonna sit back and watch what happens for a while.

Speaker #5: So it's kind of in flux right now. We don't want to commit to anything and then have something taken away from us. So we're just kind of going to sit back and watch what happens for a while.

Speaker #6: Okay, that makes sense. Any feedback on the conference you held in Davos, and any relationships that you got out of it, or just thoughts on how it went?

Alan Klee: Okay. That makes sense. Any feedback on the conference you held in Davos and any relationships or that you got out of it or just thoughts on how it went?

Allen Klee: Okay. That makes sense. Any feedback on the conference you held in Davos and any relationships or that you got out of it or just thoughts on how it went?

Speaker #5: Yeah, I thought it went great. We met a lot of good people. Those relationships are still fruitioning. We're trying to figure out how do we take advantage of all of them.

Tim Johnson: Yeah. I thought it went great. We met a lot of good people. Those relationships are still fruitioning. We're trying to figure out how do we take advantage of all of them. Yeah, we got a lot of good attention from that. A lot of people still talking about it, in fact.

Speaker #5: Yeah, we got a lot of good attention from that. A lot of people are still talking about it, in fact.

Speaker #6: Okay. And maybe lastly on the AI side, just in terms of how you're looking to apply it in 2026, what would you say the biggest initiatives are or will be?

Alan Klee: Okay. Maybe lastly on the AI side, any, just in terms of kind of how you're looking to apply it in 2026, what would you say the biggest initiatives are, will be?

Allen Klee: Okay. Maybe lastly on the AI side, any, just in terms of kind of how you're looking to apply it in 2026, what would you say the biggest initiatives are, will be?

Speaker #5: The biggest initiatives for AI in ’26?

Tim Johnson: The biggest initiatives for AI in 2026?

Speaker #6: Yeah. Yeah.

Alan Klee: Yeah. Yeah.

Allen Klee: Yeah. Yeah.

Tim Johnson: It's gonna be continually improving our own processes. Like I said, we're really the proof of concept for a lot of these things, and we test it before we, you know, take it out. Our system continually needs improvement. We're talking about the claims, I wanna clarify. Those are the stop loss claims. Those are not first dollar TPA claims that we're looking at. We're looking at how MGUs intake claims, how we can use AI to make that more efficient because it's a very manual process. Everything we touch, we're looking at applying AI to it to see if we can solve the issue by speeding it up or eliminating intervention by having people get in the middle of it.

Speaker #5: It's going to be continually improving our own processes. So as we—like I said, we're really the proof of concept for a lot of these things.

Speaker #5: And we test it before we take it out. But our system continually needs improvement. We were talking about the claims. I don't want to clarify.

Speaker #5: Those are the stop-loss claims. Those are not first-dollar TPA claims that we're looking at. We're looking at how MGUs intake claims—how can AI be used to make that more efficient, because it's a very manual process.

Speaker #5: So, everything we touch, we're looking at applying AI to it to see if we can solve the issue by speeding it up or eliminating intervention by having people get in the middle of it.

Speaker #5: There are all sorts of different ways that we're looking at AI. But it's improving that entire process of getting information: how you get it, when you get it, what you do with it, where it goes, where it's stored, and how fast I can get access to it.

Tim Johnson: There's all sorts of different ways that we're looking at AI, but it's improving that entire process of getting information, how you get it, when you get it, what you do with it, where it goes, where it's stored, and how fast can I get access to it?

Speaker #6: Okay, great. Thank you so much.

Alan Klee: Okay, great. Thank you so much.

Allen Klee: Okay, great. Thank you so much.

Speaker #5: Thanks, Alan.

Tim Johnson: Thanks, Alan.

Speaker #2: Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks.

Operator 2: Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks.

Operator: Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks.

Speaker #5: Okay. Thank you, operator. And I thank all of you. I appreciate everyone joining the call today. If anyone has any follow-up questions, please do not hesitate to reach out to us.

Tim Johnson: Okay. Thank you, operator, and I thank all of you. I appreciate everyone joining the call today. If anyone has any follow-up questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping dialogue open. Thanks, everyone.

Speaker #5: We appreciate your interest and look forward to keeping dialogue open. Thanks, everyone.

Operator 2: Thank you all again. This concludes the call. You may now disconnect.

Operator: Thank you all again. This concludes the call. You may now disconnect.

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