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Highlight 

  • Checkit delivered a 65% improvement in adjusted LBITDA in H1 FY26, supported by £3 million in cost savings.

  • Annual Recurring Revenue increased to £14.0 million, with underlying growth of 5% on a constant currency basis.

  • Two large US customers renewed on three-year contracts worth £5 million in total, strengthening revenue visibility.

Checkit plc (LSE:CKT), the automated monitoring platform for operational leaders, has announced its unaudited results for the six months ended 31 July 2025 (H1 FY26). The company reported progress in improving margins, controlling costs, and advancing towards profitability, supported by efficiency measures and renewed customer commitments.

Financial and Operational Performance

During the first half, Checkit delivered a 65% improvement in adjusted LBITDA, narrowing the loss to £0.5 million compared with £1.4 million in H1 FY25. This was primarily driven by the completion of a cost reduction programme in June 2025, which generated £3 million in annualised savings.

Gross profit margin improved to 71% from 68% in the prior year period, reflecting operational efficiency gains.

Annual Recurring Revenue (ARR) increased by 3% on a constant currency basis to £14.0 million, up from £13.8 million in H1 FY25 (£13.6 million at constant currency). Adjusted for the reduction of £0.4 million from a large US customer scaling back unused services, underlying ARR grew by 5% on a constant currency basis.

Recurring revenue rose 6% to £6.6 million, while total revenue increased 3% to £6.9 million, compared with £6.3 million and £6.7 million respectively in H1 FY25.

Twelve-month rolling adjusted net revenue retention (NRR) stood at 104%, and gross revenue retention (GRR) at 93%, versus 109% and 95% in H1 FY25.

Two major US customers renewed on new three-year contracts with a combined value of £5 million, providing multi-year revenue visibility.

The company closed the half year with £2.7 million in cash, compared with £5.1 million as of 31 January 2025.

Technology and Product Development

Checkit continued to integrate artificial intelligence (AI) across its product development, resulting in improved productivity and faster feature delivery. This application of AI has also supported cost efficiencies, contributing to the company’s broader margin improvement strategy.

Outlook

The Board reiterated its expectation that full-year results will be in line with market forecasts, citing the benefits of the ongoing cost reduction programme and disciplined financial management.

Checkit remains focused on achieving adjusted EBITDA profitability and cash flow breakeven during calendar year 2026. The company continues to prioritise growth opportunities while maintaining operational efficiency and cost control.