REG - Checkit PLC - FY26 Trading Update

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RNS Number : 5804T  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 EBITDA(2) at break-even, ahead of market
expectations, following delivery of £4.0m of annualised cost savings

·    Positive Adjusted EBITDA(2) 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 Revenue(1) ("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  31 January 2025  Percentage change

                                            FY26             FY25
 Group revenue                              13.7             14.1             (2%)
 Recurring revenue - percentage of revenue  96%              94%              2%
 ARR(1)                                     14.3             14.4             (1%)
 Constant currency ARR(1)                   14.3             14.0             2%
 Adjusted EBITDA(2)                         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                                                  +44 (0) 1223 643313
 www.Checkit.net (http://www.checkit.net/)
 Kit Kyte (Chief Executive Officer)
 Kris Shaw (Chief Financial Officer)
 Singer Capital Markets (Nominated Adviser & Broker)          +44 (0) 20 7496 3000
 Shaun Dobson / Peter Steel / James Fischer
 Yellowstone Advisory (Investor Relations)                    +44 (0) 203 951 8907
 Alex Schlich                                                 alex@yellowstoneadvisory.com (mailto:alex@yellowstoneadvisory.com)

 

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