FY26 Trading Update

Checkit PLC

19 February 2026

 

Checkit plc

("Checkit" or the "Company")

FY26 Trading Update

Cash generation and EBITDA profit in the second half

Checkit plc (AIM: CKT), the automated monitoring and operational intelligence platform for frontline-led organisations, provides an update on trading for the year ended 31 January 2026 based on unaudited management accounts ("FY26").

Highlights

·    Full year Adjusted EBITDA² at break-even, ahead of market expectations, following delivery of £4.0m of annualised cost savings

·    Positive Adjusted EBITDA² of £0.5m in H2 FY26

·    Net cash of £3.0m at year end (£2.7m at 31 July 2025), ahead of market expectations, reflecting a cash-generative H2

·    Annual Recurring Revenue¹ ("ARR") of £14.3m, a fall of 1%, but up 2% at constant currency, with underlying ARR growth of 5% excluding a single large US customer reduction, as announced in the Company's interim results

·    Recurring revenue increased to 96% of total revenue

Financial Summary

£m	31 January 2026 FY26	31 January 2025 FY25	Percentage change
Group revenue	13.7	14.1	(2%)
Recurring revenue - percentage of revenue	96%	94%	2%
ARR1	14.3	14.4	(1%)
Constant currency ARR1	14.3	14.0	2%
Adjusted EBITDA2	0.0	(2.3)	100%
Net cash	3.0	5.1	(41%)

Operational and Commercial Update

In FY26 management prioritised profitability, cash generation and quality of revenue. The delivery of break-even Adjusted EBITDA for the full year, combined with a profitable and cash-generative second half, marks a significant inflection point for the Group.

ARR performance reflects active portfolio management and includes the impact of a £0.4m ARR contraction from one large US customer, as announced at the Interim Results. Excluding this item, underlying ARR grew by 5% at constant currency, supported by renewal activity. Contract durations also increased across approximately a quarter of the revenue base, enhancing forward revenue visibility and overall revenue quality.

Total revenue declined modestly due to lower non-recurring revenue, while recurring revenue increased, further improving the quality and visibility of earnings.

Outlook

The Group enters FY27 with a materially lower cost base, improved operational discipline and a high quality pipeline compared with the prior year. In the year ahead, the Group will continue to refine its resource allocation, with increased emphasis on its core platform, which the Board believes offers the strongest long-term value opportunity for shareholders.

Investment focus is now shifting towards growth initiatives, including the rollout of a new user interface and continued development of the platform's operational intelligence capabilities, while maintaining tight financial discipline.

Kit Kyte, Chief Executive Officer, commented:

"FY26 was a pivotal year for Checkit. We completed a structural reset of the business, delivered Adjusted EBITDA break-even ahead of market expectations and generated cash in the second half. Importantly, we have strengthened the quality of our recurring revenue base through long-term renewals and disciplined commercial decision-making.  With a lower cost base and a strong pipeline, we enter FY27 positioned to pursue growth."

NOTES

¹    Annual Recurring Revenue is defined as the annualised value of contracted recurring revenue from subscription services as at the period end, including committed but yet to commence annual recurring revenue. Constant currency comparatives are calculated using exchange rates prevailing at 31 January 2026.

²    Adjusted EBITDA is the profit on operating activities before depreciation and amortisation, share based payment charges and non-recurring or exceptional items.

Enquiries:

Checkit plc		[phone]
www.Checkit.net
Kit Kyte (Chief Executive Officer)
Kris Shaw (Chief Financial Officer)
Singer Capital Markets (Nominated Adviser & Broker)		[phone]
Shaun Dobson / Peter Steel / James Fischer
Yellowstone Advisory (Investor Relations)		[phone]
Alex Schlich		[e-mail]

 

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