**Summary of Checkit PLC Interim Results for H1 FY26 (Six Months Ended 31 July 2025)**
Checkit PLC, an automated monitoring platform for operational leaders, reported significant improvements in financial performance for the first half of FY26, with further growth expected in the second half. Key highlights include
**Financial Performance**
Adjusted LBITDA improved by 65% to £0.5 million (H1 FY25: £1.4 million), driven by £3 million in annualised cost savings.
Gross profit margin increased to 71% (H1 FY25: 68%).
Annual Recurring Revenue (ARR) grew by 3% to £14.0 million (constant currency), with underlying ARR growth of 5% excluding a £0.4 million reduction from a large US customer scaling back unused services.
Recurring revenue increased by 6% to £6.6 million, and total revenue rose by 3% to £6.9 million.
Twelve-month rolling adjusted net revenue retention (NRR) was 104%, and gross revenue retention (GRR) was 93%.
**Operational Highlights**
Two large US customers renewed contracts for three years with a combined value of £5 million.
Cash at the half-year was £2.7 million (31 January 2025: £5.1 million).
Increased use of AI in product development improved productivity, enabling faster time-to-market for new features and cost reduction.
**Outlook**
The cost reduction program completed in June 2025 has strengthened the path to profitability.
The Board expects full-year results to align with market expectations and remains focused on growth, operational efficiency, and cost control.
The Company is on track to achieve adjusted EBITDA profitability and cash flow breakeven in calendar year 2026.
**CEO’s Statement**
CEO Kit Kyte highlighted resilience in challenging market conditions, with ARR and revenue growth driven by existing customer expansion.
Renewals with major US customers and a high-quality pipeline position the company for future growth.
AI integration in product development and a focus on operational efficiency are key strategic priorities.
**Financial Summary**
Revenue£6.9 million (H1 FY25: £6.7 million).
Adjusted LBITDA£(0.5) million (H1 FY25: £(1.4) million).
Net cash£2.7 million (31 January 2025: £5.1 million).
Checkit remains committed to its strategy of becoming a leader in augmented workflow management, targeting verticals like healthcare, biopharma, and retail, while leveraging AI to enhance its platform and drive sustainable growth.