Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health and Tech second quarter 2026 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 would like to turn the conference over to Ms. Lori Babcock, Chief of Staff for the company, Ms. Babcock, please proceed.

Thank you, operator, and hello, everyone. Welcome to Health and Tech's second quarter 2026 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 10Q recently 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 Liquidation Form Act of 1995. 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 quarterly report on Form 10-Q for the period ended June 30, 2026, 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 during our call today. Except as expressly required by the federal securities law, 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. 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 now turn the call over to our CEO, Mr. Tim Johnson.

Thanks, Lori, and good afternoon, everyone. We appreciate you joining us today. Before I get into the quarter, I want to take some time to reiterate, because I think it's important for everyone on this call to understand exactly what kind of company we are building. Health & Tech is a young and very dynamic company. We are still early in our journey, but we operate with a business model, a technology foundation, and a market opportunity in front of us that we believe will continue to drive enterprise value for the company. That is not about next quarter. It is a statement about the architecture and foundation of this business. And I want to spend some time explaining why we believe that, because I think it matters more than any single quarter's revenue print. Let's start with the macro picture. We are living through the most consequential technology shift in enterprise software in a generation. Every industry that is historically run on manual, paper-based, relationship-only processes is being rebuilt around artificial intelligence and insurance and self-funded health insurance specifically is one of the most underdeveloped, most opaque corners of the broader economy. As we've discussed before, self-funding health plans are estimated to generate around 20% to 30% savings for business employers through actively managing vendors and customizing its health plans. It represents nearly $1 trillion self-funded insurance market. distributed through more than 1 million insurance brokers nationwide, and today our platform works with 933 of them. That is a fraction of 1% of the addressable distribution universe. Most AI implementations you read about in the news today are bolted onto legacy systems, built to automate a single task or wrapped around a call center. That is not what we have built. We have built a marketplace that is connecting brokers, and others. I want to direct something not every company that says AI has actually built something differentiated. A lot of passes for AI in the Financial Services and Insurance Today is a thin layer of automation on top of decades-old infrastructure. What we have built in health and tech goes well beyond that. Our platform doesn't just speed up a form, it ingests census data, parses experience data automatically, enables the carrier to build its specific underwriting criteria in system, in real time, and returns a bindable execution-ready quote in a fraction of the time it takes using legacy tools. That is fundamentally different value proposition than what brokers have access to historically. And it is a fundamentally different value proposition than most of what our would-be competitors have brought to the market. I want to spend time here to talk about our Chief Technology Officer. Sri Rajagopalan and the engineering team he has built Sri spent the majority of his career at SAP and IBM, two of the largest enterprise software companies in the world, leading enterprise architecture and large-scale platform engineering for global mission-critical systems. That is exactly the caliber of technical leadership a company like ours needs as we scale from a promising platform serving hundreds of brokers to critical infrastructure serving thousands of brokers, larger carriers, and larger employer groups. Under Sri's leadership and through our partnership with Sikkim and Amazon Web Services Advanced Tier Service Partner, we have spent this year upgrading the front and back end architecture of our platform, consolidating quoting, underwriting, administration, and analytics in a single unified environment and building the data infrastructure that will allow us to layer in increasingly sophisticated AI capabilities without having to re-architecture the platform every time we do it. That is the kind of investment that doesn't always show up in a single quarter's income statement, but it's exactly the kind of investment that determines whether a platform company can actually scale or whether it's hitting a ceiling. We do not intend to hit a ceiling. I'm also proud of what this has translated into for our distribution partners in practice. In the second quarter, we grew our distribution partner network to 933 brokers, Third-party administrators and agencies are up nearly 20% from a year ago. And we've rolled out a significant platform update that included enhanced census insights, expanded large group quoting functionality, automated experience data parsing, AI-driven risk insights, and direct broker-to-underwriter messaging inside the platform itself. Brokers are telling us in real time that this is changing how they work. The adoption curve is the leading indicator for everything else we are going to talk about today. Now I want to spend a meaningful amount of time on why we are changing how we talk about our business, because I think this is a single most important thing for investors to understand about where health and tech is today. For the last several quarters, we have talked about health and tech primarily as a revenue growth story. And to be fair, we earned that framing. but a revenue growth story on its own undersells what is actually happening inside the business. And frankly, we believe it paints a limited picture quarter to quarter because of how GAAP revenue recognition and reacts with the way our policies are actually sold and onboarded. Here's the reality. This is not a company we believe should be judged quarter by quarter on a single reported revenue line. This is a young, still evolving platform business. continuing to establish itself in the small cap world with a business model that generates contractually locked in revenue well ahead of when that revenue actually gets recognized on our income statement. When we sell a policy, we don't recognize that revenue all at once. It gets recognized ratably month by month over the 12 to 36 months life of that policy. That means the revenue we report in any given quarter is really a lagging indicator of the underlying momentum of the business. In our review, the leading indicator, the one that actually tells you where this company is headed, is what we've contracted and what we've sold, and what is already locked in and simply waiting to be recognized. That is precisely what happened this quarter, and I want to explain it plainly rather than let anyone read more into a single number than they should. During the second quarter, we onboarded a new carrier partner. And as part of that onboarding, the effective dates of a number of policies, policy placements shifted into subsequent quarters. That timing shift is the primary reason our reported gap revenue for the second quarter came in at 8.1 million, down from 9.3 million a year ago. I want to be unambiguous. This was not a demand problem. This was a churn problem. and was not a platform problem. It was a timing factor tied to onboarding a new carrier into our platform. The very kind of carrier expansion that we discussed in last quarter is core to our long-term growth strategy because more carriers means more underwriting choice, better pricing outcomes for employers and higher conversions for our brokers. This is exactly why we believe contracted revenue and pipeline revenue are metrics that actually help tell you what's happening inside of Health and Tech. And it's why you should expect us to highlight these metrics from this point forward. Contracted revenue, meaning revenue that is contractually committed under active policies and that simply has not yet been recognized under GAAP, totaled $32.3 million for the first half of 26. Beyond what's already contracted, our pipeline revenue, policies currently in quoting or binding status, plus policies contracted since quarter end stood at 66.3 million as of July 31st this year. Julia is going to walk you through the details in a moment because I want to spend more of our time today on where business is going, not rehashing a single quarter. Let me talk about what's coming because this is where I think the growth story really comes into focus. Excuse me. We made a genuine proof point this quarter on our three-year rate stabilization program. We contracted, secured our first employer group under that program, taking it from concept to a live bound plan. This is an important milestone as we advance toward the program's anticipated launch in the capital markets. The program is designed to provide budgetary certainties for healthcare costs often the second largest expense on the P&L for many corporations. For large enterprises, particularly governmental agencies and municipalities, multi-year budget certainty is well received compared to the potential for unpredictable annual healthcare cost types. We are certainly engaged, currently engaged in several high profile government organizations evaluating participation and we expect to provide additional updates in the coming months We also remain on track to officially launch Hittrix in the second half of this year. This platform is genuinely new because Hittrix is not an incremental feature update. We believe it is the first true marketplace built for large group self-funded stop-loss market, which is a segment defined by claims data complexity, multiple managing general underwriters, and carriers competing for business. and a manual fragmented process that has not meaningfully changed in decades. To put this in context, eDevs, our existing platform, serves the small group market where the process is very different. The small groups market itself is highly concentrated with only a handful of stop loss carriers. Hittrix, conversely, is purposely built for large groups. generally 100 lives on plan and above where the underwriting process is fundamentally different and the marketplace opportunity is much larger. Citrix introduces several first of their kind capabilities to this market. Proprietary data parsing that transforms hours of broker preparation into minutes. A competitive marketplace that lets brokers efficiently reach an unlimited number of underwriters simultaneously. Real-time comparison and analytics tools that no other platform in the market offers today and a buy-now function that can compress what has historically been a weeks-long negotiation into a single-day close. It is a marketplace distinct from anything we have brought to the platform to date, and we believe it opens up a meaningful new growth avenue for this company. We expect and look forward to sharing more at launch. I also want to set the stage for how we intend to fund the next phase of growth. I want to close my remarks the way I opened them. Health and Tech is a fast-growing young company. We have a technology foundation built by world-class engineering team, a business model that generates real contractually locked in revenue well ahead of recognition, a distribution network that is growing nearly 20% year over year, and a market opportunity measured in the hundreds of billions of dollars where our current penetration remains below 1 tenth of 1%. We believe the combination of these four key things should help us continuously drive the enterprise value of the company. That is the story we are building, and I could not be more excited about where this is headed. Before Julia walks through the financials, let me give you a little bit more on how our distribution engine performed this quarter. To put a finer point on the partner number I mentioned earlier, We ended the second quarter at 933 distribution partners, brokers, third-party administrators, and agencies, up 19.9% from 778 a year ago. That growth came from the same way it has all year, through a capital-light, partner-driven model where our in-house team focuses on onboarding and activating partners rather than selling directly into the employer account. That's what allows us to keep growing our distribution footprint with a linear increase in fixed costs. The carrier onboarding that affected the timing of some of this quarter's revenue is a good example of the tradeoff we were willing to make. Short term, it shifted some policy effective dates into later quarters. Long term, it gives our brokers more underwriting choice on the same employer groups, which we believe improves close rates and strengthens retention. We will make that trade every time. We continue to see this industry as a relationship driven today, but structurally underserved by technology. And that is the gap we intend to keep closing through direct broker engagement, industry conferences, and a platform that keeps getting easier for brokers to use and harder for them to walk away from. With that, I will now turn it over to Julia.

Thank you, Tim, and good afternoon, everyone. I'm going to keep my remarks focused and brief because Tim has already worked you through certain of the consideration around these quarters number. I want to use my time simply to talk through the figures itself through lenses of the metrics we introduced the last quarter. Contracted revenue and the platform placed the plan value because those are the numbers we believe quietly, holistically reflect on the health of these Business. Contracted revenue means the revenue that is contractually committed under the active policies that simply has not been recognized on the GAAP accounting. There are total $32.3 million for the first half of 26. Of that, $17.3 million was already recognized as the GAAP revenue in the first half of this year. with the remaining $14 million expected in the second half of this year and $1 million in 2027. Beyond what already contract, our pipeline revenue policies, current encoding or binding stage or plus the policy contracted single quarter end stood at $66.3 million as of July 31st, of which $1.9 million was contracted. the remaining 64.4 million with an expected conversion rate of 15% to 40%. Now with five more months remaining in 2026, the expanded sales team will continue to sell, to expand its pipeline revenues through adding more brokers, TPAs, and our distribution partners. Together, this number, I would encourage you to assess for the future revenue visibility. And they underpin our decision to reaffirm four-year 2026 revenue guidance of $45 million to $50 million. That is real forward revenue visibility extend well into next year. And we believe it provides a more extensive picture than just a single quarter top line print can tell you. now running to platform-placed plan value, or PPPV, which represents the aggregate contractual value of the self-funded stop-loss plan placed through our platform, including premium, current funding, and administrative fee. Measures are overall each plan's full contractual term. PPPV stood at $84 million as of June 30, 2026. I want to be clear. that PPPV is a measurement of platform transaction value, not an indicator of own revenue or take rate. On reported gap revenue, total revenue for the second quarter was 8.1 million, down 13.5% from 9.3 million in the second quarter of last year. As Tim explained, these decreases reflect the timing of the new carrier onboarding that has shifted certain policy effectively into the future period, not a change in underlying demand. The onboarding of a new carrier and the certain related performing transfer between the carrier were designed to provide great options and flexibility to our employer customer. As a result, the number of accounts received or AI days in the first half of the year was 55 days versus 20 days in the first half of 2025. which is not uncommon to us. We have ample experience and the track record of managing accounts receivability. For example, there were 42 days accounts receivability in 2023 and then we bring down to 29 in 2024 and further down 14 accounts receivability in 2025. So it's a remarkable change in the improvement once the carrier will start to work with us. We actively manage these financials as well. For the first six months of 2026, total revenue was $16.8 million compared to $17.3 million for the first half of the year last year. Turning to the profitability, adjusted EBITDA was negative $1.3 million for the quarter, and the next year 2.6 million for the first half of the year compared to the positive EBITDA 1.6 million and the 2.8 million respectively. In the prior year period, net loss for the quarter was 2.5 million or 0.04 per diluted share compared to net income of 0.6 million or 0.01 per diluted share and the net loss For the same period, the net loss was $1.4 million for the first half of 26 or 0.07 per diluted share compared to the net income of $1.1 million or 0.02 per diluted share. These reflect our continued planned investment in sales, marketing, and technology to support long-term growth consistent with what we have described entering into this year. Our total operating expenses for the quarter was $7.3 million compared to $5.6 million for the same period of time last year. Sales and marketing expenses were $2.2 million compared to $1.2 million for the same period last year. As we continue to invest in expanding our distribution footprint, the sales expanding has been increased. General and administrative expenses was $4.3 million compared to $3.8 million for the same period last year. And the research and development expenses were in $0.9 million, and we capitalized $0.8 million on the software development cost compared to $0.6 million and $0.9 million respectively for the same period of last year, reflecting continued investment in our technology platform under Sri's leadership. Pending to our balance sheet. We ended the quarter with $6.5 million in cash and cash equivalent and $11.8 million in working capital compared to $8.1 million in cash and cash equivalent and $9.5 million in working capital a year ago. Operating cash used improved to $2.9 million in the second quarter compared to $3.3 million in the first quarter, reflecting continued discipline in working capital management. total assets at the quarter end were 29.6 million and total stockholder equity was 19.4 million compared to 22.2 million and 16.4 million respectively for the same period of last year. Our balance sheet remains healthy and positioned to execute on our product and development plan. In summary, this was a quarter of continued deliberate investment The GAF revenue number reflects a timing shift, not a change in the trajectory for the business. And we believe contracted revenue, platform-placed revenue are clear windows into where the company is actually heading. We also reported pipeline revenue give you more visibility of where the company, the trajectory is. With that, now I turn it back to Lori.

Thank you, Julia and Tim, for these prepared remarks. And now we would like to open the call up to our community for any questions they might have.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 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 then 2. and our first question for today will come from George Sutton with Craig Hallam. Please go ahead. Thank you.

Hi, guys. So, Tim, a lot of this confusion on the timing, I think, relates to a stop loss carrier change you made and you were really improving the capabilities that your customers would have with a stop loss carrier going forward and the ratings involved.

Can you just kind of walk through that outcome? You may be on mute.

Sorry, guys. I was on mute. Yeah. Good to talk to you, George. Thanks for the question. So understanding how insurance carriers are rated and even stop-loss carriers have a rating, certain brokers around the country, especially the bigger ones, we call them the alpha houses, they require to, under their corporate charter, to only write business with A carriers. and we weren't with a carrier that they were admitted they just didn't have an A rating so we are changing carriers that financially can support an A rating and we hope to have that done in the next I don't know in the next 30 days probably at the far end we're very close I was on the phone with them earlier so we can pick up more business with larger brokers that are requiring that rating and that's one of the reasons why we switched.

And just help us understand the impact of having that A rating and what that might mean broadly for the business opportunity.

Yeah, I mean, Zain, our chief growth officer, is sitting on the sideline with a lot of business that people want to put with us. It's a significant amount of business. So I would say that, you know, our projections, we try to be conservative in our projections, but it will bump our projections at least slightly. I don't know, 20% to 30% higher if we can get an A-carrier. It just depends on how fast you get it because the sales cycle takes a while. Once you start talking to a broker and then a client, as we're coming up in January, January is our biggest time of the year by far. Most effective dates are in January. So we will, yeah, we're going to pick up a lot more business. And I'm trying to not be too direct with that answer. I don't think I'm supposed to be on here.

Yeah, so George, I want to add on a little bit, right, because the small group is really normally people pay less attention of the category of the carrier, which we add on one more. That's also the reason. Even the pipeline revenue we reported, it's all not relating to adding on more A carrier, which we're also working on. So just give a little bit of background. Our software, we talk about Heatrix, is really real market in the large group. So not only just that we expand dramatically our addressable market, but also that means we can offer the total completed solution, including the small employers and the medium and the large employers. So that would dramatically change how our business outlook is when we have a pipeline revenue. We do not even include that part.

Now, on the Hittrix platform, which I understand is a dramatic improvement on what exists out there today, can you just talk about how quickly you think you can bring users on that platform? What do you think that does for the business once it's up and running?

Good question. Well, the existing 933 brokers are automatically, because we're, as I said in the discussion we just had, they're all going to get access to it immediately, which means, and Julia's pointed out, it's the larger market space. And they can now market to multiple MGUs at a, you know, as easy as it was to create a submission on the small group side. This marketplace that we've created is just not out there today. So all 933 brokers that are on it and TPAs and other access distribution points will have immediate access in the next, it's supposed to be launched coming up and I'm looking at my calendar in the next two, three weeks. So that'll come on. We're doing our UAT testing and everything right now. and we already know some other people who want to use it, some MGU's that are waiting to get it. We've done lots of demos. We have a demo page we created and we're doing demos for everybody now, so there's a lot of excitement on that product.

Okay, then lastly for me, the three-year stabilization program, that's something we're very excited about and see great applicability, particularly in municipal governments, for example. Can you just give us a sense of what that pipeline looks like and what the feedback's been since you signed this first customer?

Yeah, I can tell you the pipeline, one of our partners in the program, Ascend, the actuary who helped create and build this program, they've hired specific salespeople for it. We have trained our sales guys on it. The anticipation in the word is that we'll probably have about 30 submissions a month or more. And these are large, as you can imagine. They're municipalities, government agencies, counties, cities, all the, you know, everything in between. They're not small. So our pipeline is already, I can't tell you who we're talking to. You would know everybody that we're already talking to and they are, yeah, they're cities that everybody on this call would know for sure. Some probably live in them. So it's a big opportunity that's coming in really fast.

Beautiful. Thanks, guys.

Thanks, George.

The next question will come from Alan Klee with Maxim Group. Please go ahead.

Yes, hi. Hope everyone's well. When you were talking about the change in the insurance rating. Did you make a comment that you thought that impacted your results by a certain amount, not having that? I'm not sure.

Yeah, because a lot of our growth in the large and small, I mean, we call them alpha. The bigger brokerage firms, they don't write anything. They won't be able to participate in our programs if we don't have an aid carrier. It's just in their charter and it's... People say it's in their E&O policy. There's different reasons for it. But that's why we're going to grow if we can get that aid carrier on. The faster we can get an aid carrier on, the sooner we can start picking up more business from those alpha houses.

Yeah. As a former Moody's senior analyst covering an insurance company, I appreciate the value of the higher ratings. But did you make a statement that it hurt the particular quarter? to Pew by a certain amount? Or was it more like going forward it has this opportunity?

It's more going forward. Yeah, so we clearly mentioned on the call because of the adding additional carrier. It's not the amount problem. It's the shifting, right? Because now within the new income carriers and the preparation and the old carriers, that's the reason we're reporting even the pipeline revenue to see in the Woodlands Pipeline here, it's a timing shift. As you know, for the GAAP accounting, it's really based on the amortization upon effective day. When you shift a quarter, some of the revenue is going to shift a quarter to the next year. It just affects even you can sell the most you can sell. So that's why we reported the pipeline revenue when we're looking at, you know, we have five more months to continue to sell. so the revenue itself already gave people pretty good indication on this year and what a possibility and the range and the beyond.

Okay, and how do you feel about your preparation with your offerings and having the time to educate the brokers and the clients for the big The amount of renewals at the end of the year. Do you feel like you're going to be fully able to work on that?

That's a very good question. So I never feel like I have enough time just between us. But, you know, this time frame right now, it needs to come out because everybody's starting to market their one-one business. They go out with the larger groups. That's what Hittrix is. So that's a new product for them. I wish that it could have been done six months ago. I want my tech built yesterday. I always do. But we're going to, by 1-1, we'll have a lot more opportunity running through it because of Hittricks. Again, I wish I could have built it a year ago. It just takes time to get it done. But right now we have sufficient time to get into that space because everybody's just now getting their groups out and everybody's starting to look at them, how they're running, what are they doing, and we'll be We're hitting it right, just right. I mean, again, I wish it was done three months ago, but we're hitting it at the right time right now. It's so easy to use. The people already using our system, they're going to see a better look, a better feel, a better flow, and really it's just point, click, and drag and drop. We've made it so easy for them to submit the opportunity in the system. Yeah. There should be no real training on it, people who are already using it. The new people, it's really quick. We do a lot of demos every day.

That's great. And then if you could just help me understand the path to getting to your guidance a little. You said that contracted revenues that's going to show up in the second half you believe is going to be $14 million. And then you said pipeline revenues. based on conversion rates could be three to eight. So if you add those two pieces up, that gets you to 17 to 22 million. And then in the first half, you did 17 million. So if you add both of them up, you're not quite at the 45. So what is, is it just new business in addition that, as you mentioned, pipeline? Or what gets you to the, from what I just said, to the,

Yeah, that's a great question, Alan. What you're looking at is as of June and one month of the pipeline. That's getters, right? So we have five more months to continue to sell, to continue to build the pipeline, to convert to the business. So that's the reason we even give the range to look at that. And our conversion rate is the range of about 15% to 40%. So when you do these calculations, and clearly we were adding on more salespeople with five more months to go. These numbers you provided do not have five more months, the sales. The pipeline we built is as of July.

That makes perfect. That's what I thought. Thanks. And then maybe I know as you use more referral partners, which is essentially some sales and marketing for you, your gross margin goes down, but you benefit in other ways. Is So your gross margin this quarter was like 48.7% compared to like 51.4% in the first quarter. Is it reasonable to think that that may kind of stay at a lower level than it had been like in the past based on this quarter?

Yes. So when we offer the plan and work with various partners, it inevitably there will be the compromise of the gross margin. That's trade-off of spending through our distribution partner. But the leases I want to point that these is very assets light of distribution. We do not have these people on payroll fixed. So it's really go through whatever we can grow quickly with very little investment we have into the sales team. So we don't have all the sales team sell for us, but through the partner. And they also, in future, we should be seeing when we have heat checks offer in the market, we have a different way. There will be a mix of the gross margin, which should be around the range of 45% to 50% of the gross margin. Still pretty healthy considerably for our sectors.

Okay, so 45 to 46% in the future is what you're thinking? Is that what I heard?

Yes.

Okay, great. And one last question. On the three-year stabilization, which I'm praying my company will do it this next year. That's a science question. If a lot of that's going to municipalities, where Remind me, government year ends, is that like September? When are the year ends for a lot of these that kind of the focus is to try to win a lot of this?

Yeah, typically they all run towards the year end as well. A lot of them are in July. But to be honest with you, the people we're talking to, none of these effective dates that we're talking to right now, I don't know if they're because we really don't talk to them a lot about their effective date on their stop-loss policy. They're more concerned about figuring out how to do this faster and get it above their existing one. Even if it's in place today, because we're agnostic to the carrier, even the effective date, but it really, you know, even the effective date of their policy, it really works better if you do have it that way. But some of the people we're talking to, you know, it's just math and we can figure out how to move it around.

That's great. That's exciting. Okay. Thank you. Keep it up.

The next question will come from M. Moran with Zacks. Please go ahead.

Thank you. So I wanted to drill down a little bit on some of what you've already discussed during the Q&A, which is the difference between contracted revenue and pipeline revenue. And pipeline has reached the stage where you've already provided a quote were some other element that revolves around actual commitment. So is it fair to think that if you do get this new partner that you've been talking about, that could have a significant impact on the pipeline revenue and then the conversion?

Yes, that's absolutely yes. And I want to remind everybody again, this pipeline revenue is as of July. So when we continue to execute and adding the A carrier more, you should see a much higher pipeline and also the higher conversion rate. So the pipeline revenue means there are the employer plan proposal being coded, some at different stage of implementation, some in the stage of being reviewed. these are really representing a huge part of the opportunity run through our system and obviously contracted revenue means through the effective day it's already contracted and the policy bonded and everything is signed. So we are really commissioned to recognize all the revenue through the effective day of the next either 12 months or 36 months depends on the in terms of the policy.

Okay, that's helpful. And can you also give us a sense of what you would say the sales cycle is, how long it takes to get to that stage where something is placed in the pipeline revenue category? I'm thinking that it doesn't just happen on day one when an inquiry is made or when there's outreach. It takes a little while before you actually get to that stage, and it doesn't happen with every touchpoint. So do you have a sense of how long that process takes?

I wouldn't ask you to address that question.

Yeah, so depends on the size of the group. Appreciate the question. Small groups, small groups, they'll make a decision in a day. If it's a larger group, you're right. The conversation takes longer with talking about plan designs, carriers, everything that goes into it. Some of the smaller groups, and you can see that from the business that we have, our brokers are writing new business daily through simple conversations because of the way we set it up. They already have their plan designs and everything in there. It's really just point and click. All the options are taken away from them. It's just easier for them to pick the cost versus, what PBM, what TPA, all these other things. So the larger groups, yeah, it's a 90-day turn probably from a conversation. The smaller guys, I mean, I've got producers that walk around with their computer and walk into a company and they'll sell it right while they're sitting there talking to them because the machine can quote it that fast.

Okay, thank you. That's helpful. And then those are quantitative numbers. I mean, you can actually identify where a contract or potential contract is in the process. You've touched upon this already in the Q&A, as well as I think in the prepared remarks. If you were to give us a sense of the kind of feedback you're getting, given all of the improvements you made to the platform and your new products that are coming online. If you would give us a sense of the kind of positive feedback you're seeing, can you try to put some, not numbers around it, but where do you think that might go over the next year or two in terms of taking up some of these pipeline and contract figures?

I'll let Julia answer that. I'll get myself in trouble.

Okay. Can you just reform your question again so I could?

Yes. Yes. So the numbers you've provided and, you know, termed contracted and pipeline, those are quantifiable. You have a certain number of potential contracts that are already in the stage where you're providing a quote or where it's moving forward. But given how early days, would it be right to think that if you were to give us a number that was not quantifiable but that was qualitative, in terms of the feedback you're getting from your partners, from the brokers, and even from the market. If you would give us a sense of the feedback that you're getting, the number, the qualitative number, could grow significantly over the next, I don't know, several quarters.

Yes, that's right. So one thing I want to just re-emphasize, the control revenue is the revenue we already contract fund effective day in the last six months right so it's actual sales it's not something is going to sell well be sold it is contrast down is sold we are collecting revenue for doing the 12 months or 36 months yes the with the new anticipate the platform launch and the carrier ad A-rated, you should be able to see the pipeline revenue increase because the pipeline revenue with reporters is end of July. So we have five more months to building. The matter of fact, if you ask me and at the end of the August now, the revenue will be dramatically different, improved. Also, there will be some of the pipeline convert to sales and the 66 million of the pipeline When we do this earnings call, we already have $1.9 million already inked to the contract. So with the sales cycle, it's about three months for the large group, and we can ink the contract earlier. We have effective day in September, maybe October, but the contract is already signed. So those are included in the pipeline because it's not on the financial reporting period, then we're just able to saying this is a pipeline 60.6 million, and then 1.9 is already sold. The rest is being sold with a conversion rate. When we look at a conversion rate, we look back what is the conversion rate, actual conversion rate from January to June, then we know the range. The low end is 15, the high end is 40, but with all the improvements, that would drive two things. One is the pipeline will continue to build. There's five more months to go for the year. And the conversion rate should be a little bit higher because now we're offering a paper solution there are other employees really like to enter into. So if I give some of the commentary about the trajectory of the business, this is a conservative review we're looking at. The pipeline will be growing and the conversion rate will be higher. Okay, got it.

Yeah, the feedback is from the demos because, again, the product's getting launched here in the next 15, 20 days. You know, if we're talking about hit tricks, the three-year one's already out there, but the hit tricks one, if that's what you're talking about, the feedback is great. We're really selling a lot of convenience here, and it's making the brokers' lives easier to do their job, and that's what they like about it.

That is what I was trying to get at. The contracted revenue is already in hand. The pipeline revenue, there'll be a conversion rate, which, you know, could be significant. But beyond that, you know, there's probably, you know, pre, before it even hits that stage of pipeline revenue, there's a lot of feedback that you're getting right now from partners. A lot. Right. And I'm just trying to gauge, you know, you've mentioned that it's positive. I'm just trying to gauge, you know, What it could mean to that pipeline as it develops going forward. That was it, and I think you answered that. And then my last question is, you know, you mentioned a couple of times that there are five more selling months in a year. Just remind us, please, in terms of the seasonality of your, you know, the selling of these products. Are we in a heavier selling period now in the back half of the year?

It will pick up in November and December for the small group, for sure. Excuse me. Yeah, for sure, because when the ACA happened, there was a lot of groups that moved because they wanted to get grandfathered in years ago before January 1st, so they'd have to pay the price for the ACA plans and everything else. So we have a lot of business in November and December, but between now and then, it'll be moderate on the small group, you know, They can change, and they do frequently change or pull themselves out of fully insured, but it isn't as high as July, for example, June and July. August is a down month, but yet we had a, you know, I think our August was, I don't remember what our August was, to be honest, at this time, but I know our September was pretty good, and it's starting to pick up now as we transition to this new carrier.

Okay, thank you.

And this will conclude our question and answer session. I would like to turn the conference back over to Mr. Johnson for any closing remarks. Please go ahead.

Thanks, operator, and thanks to everybody for joining us today. Before we close, I'd like to leave you with this. Health and Tech was not built to be a marginally better version of how self-funded health insurance has always been sold. We built this company to replace a process that has been flow opaque and expensive for employers for decades. And we're doing exactly that every single day at scale. Every quote our platform generates in minutes instead of weeks, every carrier we add widen competitive pricing, every plan we streamline into a single transparent framework, that is real money staying in the pockets of businesses and employees who trust us with their health care plans. Collectively, our platform has already helped employers avoid hundreds of thousands of dollars in unnecessary costs, and as we scale into larger employer groups and expand our carrier network, that number grows with us. This team knows how to execute. We have grown this business profitably. We have built and shipped technology most companies our size couldn't attempt, and we have done it with capital discipline every step of the way. We are not asking you to take our growth story on faith. We are asking you to look at what we've already built and to measure us against what we do next. We are just getting started. Thank you all for continued partnership and trust. We look forward to updating you again next quarter.

With that, I'll turn it over to Lori for the closing statement.

This is all the time that we have for today. This concludes the Health and Tech Q2 2026 Investor Earnings Conference call. We encourage our community to continue to reach out to us, and we can answer any questions that you have individually. You can send your questions to us at ir.healthandtech.com. We would like to thank our listeners, shareholders, analysts, and others who have taken the time to listen to our earnings call. We urge you to refer to our latest SEC filing for any information that you need. This call will be available from our website in the Investors section, and you will find the link there. To be alerted to news, events, and other information in a timely manner, we recommend following us on all of our social media channels. Sign up to our newsletter and explore our website at www.healthandtech.com. Thank you everyone for participating and listening to the call today.

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