Checkit (LSE:CKT) returned to adjusted EBITDA profitability from continuing operations in the first half ended 31 July 2026, as the company reduced costs and simplified its operating structure.
The AIM-listed intelligent operations software provider reported adjusted EBITDA of £0.3 million from continuing operations, compared with a loss in the prior-year period.
Recurring revenue increased 4%, with recurring revenue representing 97% of total sales during the period.
Annual recurring revenue also increased on a constant-currency basis despite Checkit retiring a legacy product. The company said the move removed lower-margin annual recurring revenue as well as a separate cost centre, allowing it to focus investment and resources on a single cloud-based platform.
Checkit Sets Two-Year Value-Creation Framework
Checkit has established a two-year framework focused on maintaining EBITDA profitability, increasing cash generation and improving net and gross revenue retention.
The company said its plans include disciplined investment in its unified platform and go-to-market capabilities.
Checkit also intends to increase its focus on medical markets while narrowing its priorities within the retail sector. Its medical operations include customers and applications across the UK NHS, US plasma collection, private hospitals, diagnostics and biotechnology.
Formal Sale Process Ends Without Transaction
The company has ended its formal sale process after it did not receive an offer that management considered acceptable.
Checkit said the process provided validation of its technology and customer base. Following the conclusion of the process, the company plans to concentrate on its standalone strategy, including its medical-market activities and simplified operating model.
Management is targeting sustainable growth and operating leverage through its recurring revenue base, cost structure and investment in its cloud platform.
About Checkit
Checkit provides an intelligent operations platform designed for organisations with frontline operations. Its cloud-based technology connects sensors with enterprise quality-management systems and is used to monitor operating conditions, manage frontline workflows and support compliance requirements in regulated environments.
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