Checkit (LSE:CKT) reported that it achieved adjusted EBITDA break-even for the year ended 31 January 2026, outperforming market expectations after delivering £4.0 million in annualised cost savings. The company generated positive EBITDA and cash flow in the second half, reflecting tighter cost control and improved operational execution.
Annual recurring revenue (ARR) declined 1% year on year to £14.3 million, but increased 2% on a constant currency basis. Excluding the previously announced contract reduction from a major U.S. customer, underlying ARR rose 5%, signalling stabilisation and modest organic growth. Total revenue dipped 2% to £13.7 million, largely due to lower non-recurring income. However, recurring revenue accounted for 96% of total revenue, and longer average contract terms enhanced visibility and earnings quality.
With a leaner cost base entering FY27 and a strengthened operating framework, Checkit plans to redirect resources toward growth initiatives within its core platform. These include launching a new user interface and expanding its operational intelligence capabilities, while continuing to enforce disciplined financial management.
The company’s near-term outlook benefits from positive technical momentum and supportive corporate developments, including recent share purchases by the CEO and CFO that signal management confidence. Nonetheless, profitability metrics and valuation considerations remain key areas for investors to monitor.
More about Checkit plc
Checkit plc is an AIM-listed software provider specialising in automated monitoring and operational intelligence solutions for frontline-focused organisations. Its subscription-based platform supports compliance, safety and operational efficiency, with an increasing emphasis on recurring revenue streams and longer-term customer contracts to improve predictability and long-term value creation.
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