Checkit plc (LSE:CKT) has posted strong financial progress for the first half of fiscal year 2026, highlighted by a 65% improvement in adjusted LBITDA and an increase in gross profit margin to 71%. The company also delivered £3 million in annualized cost savings and achieved a 3% rise in revenue, even after reduced service demand from a major U.S. customer.
Operationally, Checkit renewed contracts with two large U.S. clients and expanded the use of artificial intelligence within its product suite, driving both higher efficiency and lower costs. Management reaffirmed that the business remains on track to achieve EBITDA profitability and reach cash flow breakeven by 2026, supported by a healthy sales pipeline and ongoing focus on cost discipline.
Despite this momentum, the company’s stock continues to face challenges due to negative profitability and cash flow, which weigh heavily on financial performance metrics. Technical indicators point to limited momentum, and valuation remains under pressure given the negative price-to-earnings ratio. While the CEO’s decision to increase his personal stake is a positive sign, it does not materially change the broader investment outlook.
About Checkit plc
Checkit is a technology company specializing in automated monitoring and augmented workflow management. Delivered through a subscription-based platform, its solutions enable operational leaders to make data-driven decisions across a range of industries including healthcare, biopharma, retail, facilities management, and franchised operations. The company operates in the UK, continental Europe, Australasia, and the United States.
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