Kooth revenue doubles, adjusted EBITDA rises sevenfold
By Josh White
Date: Tuesday 15 Apr 2025
(Sharecast News) - Kooth shares were surging on Tuesday morning, after it reported a doubling of annual revenue to £66.7m for 2024, driven by rapid growth in its US operations, particularly the rollout of its Soluna digital mental health platform across California.
The AIM-traded mental health platform operator said the strong performance helped lift adjusted EBITDA to £15.8m, a near sevenfold increase from the prior year.
Soluna had reached 75,000 young people across all 58 California counties by the end of February, with daily usage rates in the first quarter quadrupling those of 2024.
The company said it also expanded its US footprint with a new pilot contract in New Jersey and the launch of a Medicaid-funded pilot with Aetna Better Health in Illinois.
Annual recurring revenue matched total revenue at £66.4m, reflecting the subscription-based model of its core services.
In the UK, Kooth said it maintained its position as the largest single access provider of youth mental health support for NHS England, renewing key contracts in Cornwall and the Isle of Man despite challenging macroeconomic conditions.
Group net revenue retention rose to 100%, up from 85% in 2023.
The group closed the year with £21.8m in net cash, up from £11m a year earlier, following strong operational cash generation and prudent cost management.
A £1.5m share buyback was completed after the year-end.
Looking ahead, Kooth said it expected continued growth in the US, particularly in California, where user numbers and engagement continued to rise.
It was also planning further investment in its proprietary technologies, and aimed to bring the Soluna platform to the UK market.
While the UK operating environment remained complex due to policy uncertainty, Kooth said its business model and international momentum positioned it well for further growth in 2025.
The company also announced that Kate Newhouse would succeed Tim Barker as chief executive officer following the 2025 annual general meeting, with both serving as co-CEOs in the interim.
"As we reflect on 2024, we can be clear that Kooth has had an exceptional year," said co-chief executive officer Kate Newhouse.
"This has been achieved with a particular focus on delivering, building, launching and growing services for people across the UK and US, founded on our key purpose of building mentally healthier populations, leaving no one behind.
"Following the launch of Soluna in California we have made great strides, reaching 75,000 young people across all 58 counties by the end of February 2025."
Newhouse said that in the UK, despite "persistent" macroeconomic headwinds, Kooth successfully retained the majority of its contracts, grew several services and "demonstrated our credibility" in clinical efficacy and safety.
"The strength of Kooth's strategy and service delivery model have created the strong foundations which stand us in good stead to meet the increasing international demand for digital mental health services."
At 1145 BST, shares in Kooth were up 14.89% at 150.5p.
Reporting by Josh White for Sharecast.com.
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