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Highlights

  • Checkit Shares gained 6.57% on 19 February 2026, extending yearly gains to 22.6%.
  • Company’s FY26 Adjusted EBITDA reached break-even, ahead of expectations
  • H2 FY26 delivered positive Adjusted EBITDA of GBP 0.5m.
  • ARR declined 1% to GBP 14.3m, but rose 2% at constant currency
  • Net cash stood at GBP 3.0m at year end following cash-generative second half.

Checkit plc (LSE:CKT) shares climbed 6.67% to GBX 18.40 during the morning session on 19 February 2026 following the release of its FY26 trading update. The stock has advanced ~38.87% over the past six months and remains up ~22.67% over the past year, reflecting sustained investor confidence.

The FY26 update reflects a transitional year for the company, marked by improved profitability and cash generation, although headline revenue showed a modest decline.

Profitability Reset Takes Centre Stage

For the year ended 31 January 2026, the company reported full-year Adjusted EBITDA at break-even, a marked improvement from the prior year’s loss and ahead of market expectations. The second half of FY26 delivered positive Adjusted EBITDA of GBP 0.5m, reflecting operational tightening and delivery of GBP 4.0m in annualised cost savings.

This represents a significant turnaround compared with FY25, where Adjusted EBITDA stood at negative GBP 2.3m. The shift to break-even performance signals a material improvement in operating efficiency.

Net cash on 31 January 2026 stood at GBP 3.0m, compared with GBP 5.1m in the prior year, but improved from GBP 2.7m at the half-year stage, supported by cash generation in the second half.

Revenue Softness, But Recurring Mix Improves

Group revenue for FY26 was GBP 13.7m, down 2% from GBP 14.1m in FY25, primarily due to lower non-recurring revenue. However, recurring revenue increased as a proportion of total revenue to 96%, up from 94% in FY25, enhancing earnings visibility.

Annual Recurring Revenue (ARR) stood at GBP 14.3m, representing a 1% decline year-on-year. On a constant currency basis, ARR rose 2%. Management highlighted that underlying ARR growth was 5% at constant currency, excluding a GBP 0.4m ARR reduction from a single large US customer announced earlier in the year.

Contract durations were also extended across approximately a quarter of the revenue base, further strengthening forward revenue visibility and revenue quality.

Strategic Focus Shifts Toward Growth

During FY26, management prioritised profitability, cash discipline and revenue quality. With a structurally lower cost base in place, the company now enters FY27 with renewed emphasis on growth initiatives.

Investment focus is shifting toward the core platform, including rollout of a new user interface and continued development of operational intelligence capabilities. While growth initiatives are set to increase, the board has indicated that financial discipline will remain central to execution.

Investor Takeaway

The FY26 update presents a balanced picture. While total revenue declined modestly and ARR saw a slight contraction, profitability improved materially, with full-year break-even EBITDA and a cash-generative second half marking an operational inflection point.

Today’s share price rise suggests investors are responding to the improved profitability profile and strengthened recurring revenue mix, even as top-line growth remains subdued

FAQs

  1. Why did Checkit’s share price rise on 19 February 2026?

Shares rose 7.25% following the company’s FY26 trading update, which reported full-year Adjusted EBITDA at break-even and positive second-half profitability.

  1. Did revenue grow in FY26?

No. Group revenue declined 2% year-on-year to GBP 13.7m, largely due to lower non-recurring revenue.

  1. How did ARR perform?

ARR fell 1% to GBP 14.3m, but increased 2% at constant currency and grew 5% on an underlying basis excluding one large US customer contraction.