HIT

Health In Tech is a genuine, scaling InsurTech rather than a story stock: revenue jumped 71% to $33.3M in FY2025 after a flat FY2023→FY2024 ($19.2M→$19.5M), and the inflection was driven by fee revenue (SMR fees of $26.5M, up from $9.8M) rather than the slower underwriting/ICE line ($6.9M). Critically, it carries the growth with real cash economics: operating cash flow of $3.13M (+44%), adjusted EBITDA of $4.11M (12.3% margin), net income of $1.28M (+91%), and a clean balance sheet — $7.67M cash, liabilities/equity of just 0.35x, and no meaningful debt (FY2024's $495K interest expense is gone). The MD&A's operating footprint backs the durability: clients in 40 states, 583 brokers, 12 TPAs, 263 agencies, and 795 business clients covering 22,515 employees, plus new CTO/CGO hires and an AWS/Ciklum AI build-out aimed at scaling distribution.

Valuation is the supportive leg. At $1.01 the headline P/E of 50.5 looks rich, but that's a GAAP optics problem — net income of $1.28M is actually below the $1.57M of stock-based comp, so EPS understates cash earnings. On the metrics that matter for a sub-$60M name, it's reasonable: P/S of 1.7x against 71% growth, and an enterprise value of roughly $49M ($56.4M cap less $7.67M cash) against $4.11M adjusted EBITDA is ~12x — undemanding if even half this growth rate persists. That asymmetry — cheap on sales/EBITDA with a debt-free balance sheet and a 22,515-employee installed base to renew and upsell — is what tips a speculative microcap into a buy.