Wellhub employees: Don’t leave six figures on the table

Wellhub employees - Your equity could be one of the most valuable parts of your compensation package, or one of the easiest to lose out on if you don’t plan ahead.

With Wellhub’s global growth and recent rebrand from Gympass, speculation about a future IPO is growing, underscoring the company’s mission to “make every company a wellness company”. If and when that happens, the people who planned ahead will win. The people who waited may watch a big chunk of their upside disappear to taxes.

💡 The decisions you make now could determine how much of your equity you actually keep.

Exercising your options early could help you:

• Reduce your tax burden
• Maximize your post-tax gains
• Gain flexibility before and after an IPO

What happens when Wellhub files for an IPO?

In the lead-up to an IPO, a company’s Fair Market Value (FMV) often rises, and that directly impacts your stock options.

As the FMV increases:

• Exercising your options becomes more expensive
• Your total potential tax bill grows
• Waiting too long could limit your ability to plan strategically

Now is the time to consider exercising, while the FMV is still relatively low.

Meet Megan: A Wellhub Employee

Let’s imagine Megan, a Senior Product Manager, joined Wellhub in 2020.

• Salary: $250K
• 20,000 ISOs at a $10.54 strike
• Lives in California. Married, files jointly

Key valuation numbers:

• 409 Valuation: $16.13/share
• Hypothetical exit: $50/share (last round was $30/share)

For this case study, we’re also assuming Megan is able to sell her shares at $50 per share—a 28% premium to Wellhub’s most recent preferred price of $39. That’s not a guaranteed IPO price, but we think it’s a reasonable estimate based on how many high-growth companies are priced relative to their last funding round. The actual price could be higher or lower depending on market conditions.

💡 Want to see how things change at a different exit price? You can sign up for Secfi’s tools and run your own personalized scenarios using your actual strike price, number of options, and estimated sale price.

Assuming the FMV continues rising in the lead-up to an IPO, employees who exercise now can establish a lower cost basis and potentially qualify for long-term capital gains tax treatment—helping reduce their future tax burden. On the other hand, waiting until the IPO to do a cashless exercise could result in significantly higher ordinary income taxes on the difference between the FMV and the strike price.

Why People Miss This

• “I don’t have the cash.”
• “I’ll figure it out when we IPO.”
• “Taxes are complicated — I’ll deal with it later.”

The problem? By the time IPO is announced, it may be too late to act. AMT (Alternative Minimum Tax) can hit you with a surprise bill if you wait until shares are worth more 

Key takeaways

• Exercising early may reduce your tax burden (smaller “spread” now vs. later).
• Long-term capital gains treatment could significantly improve outcomes.
• Waiting exposes you to higher taxes, lock-ups, and market uncertainty.
• At today’s FMV of $16.13, we believe the math favors acting before IPO.

The cash problem & the solution

Exercising early can be expensive. That’s where Secfi’s non-recourse financing comes in:

✔ Exercise without tying up personal savings

✔ If the stock doesn’t increase, you owe nothing

✔ Reduce AMT surprises with a personalized strategy

What's your next move?

Wellhub’s growth shows no signs of slowing down, and when the company eventually goes public, things could move quickly. Making a plan now ensures you’re ready when the time comes, whether that means exercising early, understanding your tax exposure, or preparing for liquidity.

We’re ready to help Wellhub employees evaluate their options, navigate tax implications, and access financing so they can make the best decision for their equity before an IPO changes the game.