UK's Checkit returns to adjusted EBITDA profit on cost cuts

Checkit

21/04/2026 07:10

Overview

UK operational intelligence platform's FY26 revenue fell 2% to £13.7 mln as non-recurring sales dropped

Adjusted EBITDA turned positive at £0.3 mln after £4 mln in annualised cost savings

Company previously announced a Formal Sale Process on 26 March 2026; process remains ongoing

Outlook

Checkit to retire legacy product and launch next-generation solution in FY27

Company aims to accelerate high-quality ARR growth and deeper enterprise penetration in FY27

Formal Sale Process remains ongoing; no certainty any offers will be made or concluded

Result Drivers

COST REDUCTION PROGRAMME - Co attributed improved profitability to £4 mln in annualised cost savings, including headcount and operating expense reductions

RECURRING REVENUE FOCUS - Shift toward subscription-based recurring revenue increased recurring revenue to 96% of total, offsetting decline in non-recurring sales

CUSTOMER CONTRACT CHANGES - Underlying ARR grew 5% excluding impact of a large US customer reducing unused services

Company press release: ID:nRSU2075Ba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Net Income
-GBP 2.80 mln
FY EBIT
-GBP 2.60 mln
FY Gross Profit
GBP 9.90 mln
FY Operating Expenses
-GBP 9.80 mln


Analyst Coverage

Wall Street's median 12-month price target for Checkit PLC is GBp22.00, about 8.3% below its April 20 closing price of GBp24.00

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)