Kooth PLC

Latest Results (10.09.2026):

Kooth PLC — Full year results for the year ended 31 December 2025 (covering Q4 2025 / FY2025): Kooth reported revenue of £63.3m (2024: £66.7m) with annual recurring revenue of £60.6m (2024: £66.4m). Adjusted EBITDA was £11.3m (2024: £15.8m) and operating profit £3.4m (2024: £9.2m). The Group finished the year with £21.6m cash, no debt and net assets of £31.6m. Management attributes the year‑on‑year revenue decline mainly to foreign‑exchange headwinds, reduced California product development revenue and timing of a Michigan contract (signed post‑period).

Revenue and ARR

Group revenue: £63.3m (2024: £66.7m). ARR: £60.6m (2024: £66.4m). Management cites a c.£3.3m negative FX impact on ARR plus a £1.7m reduction in California product development revenue; Michigan contract revenues were deferred to 2026 due to signing timing.

Profitability

Adjusted EBITDA: £11.3m (2024: £15.8m). Operating profit: £3.4m (2024: £9.2m). Profit after tax: £2.6m (2024: £8.0m). Basic EPS: £0.07 (2024: £0.22). Adjusted EBITDA was ahead of expectations despite revenue headwinds due to disciplined cost control and lower average headcount.

Margins and cost drivers

Gross profit £46.3m (2024: £52.0m) and gross margin 73.1% (2024: 77.9%). Margin decline principally reflected increased direct marketing investment in California (£8.1m vs £3.9m in 2024) to drive user acquisition and engagement, and a reduction in revenue from capitalisable product development.

Cash, balance sheet and liquidity

Cash at year‑end £21.6m (2024: £21.8m). Net assets £31.6m. No debt and an undrawn $9.5m working capital facility. Net cash inflow for the year was £0.3m; free cash flow after capex was a £1.2m inflow. A £1.5m share buyback completed in February 2025 and treasury share purchases of £1.483m were recorded in the year.

US performance and strategic wins

US revenue £46.1m (2024: £48.7m). Soluna (California youth platform) exceeded performance targets with over 144,000 young people registered by end‑2025. Kooth secured a New Jersey renewal during 2025 and a new $2.6m Michigan state contract signed post‑period (recognition in 2026).

Retention, churn and customer metrics

Group net revenue retention (constant currency) 96% (2024: 100%); reported NRR including FX 91%. UK revenue £17.2m (2024: £18.0m) and UK NRR improved to 96%. Reported churn in 2025 was £1.4m (lower than prior year).

Tax, FX and one‑offs

Tax charge £1.8m; effective tax rate rose to 40.3% (2024: 18.5%) mainly due to a reclassification of R&D incentives (RDEC) and permanent differences from share‑based payments. The Group recorded a realised foreign exchange loss of £0.6m and highlights material FX exposure (c.74% revenues USD denominated), which drove a sizeable negative FX impact on ARR and revenue comparatives.

Outlook

Management expects 2026 revenue and adjusted EBITDA to be in line with market expectations while scaling the US footprint (California, New Jersey, Michigan), launching Soluna in the UK in H2 2026, continuing product/AI investment, and pursuing a State Alliance model to build sustainable long‑term growth.