Checkit flags break-even adjusted EBITDA
By Josh White
Date: Thursday 19 Feb 2026
(Sharecast News) - Checkit said on Thursday that it delivered break-even adjusted EBITDA for the year ended 31 January and generated cash in the second half, as cost savings and a shift towards higher-quality recurring revenue offset a modest decline in total sales.
The AIM-traded provider of automated monitoring and operational intelligence software reported full-year revenue of £13.7m, down 2% from £14.1m in 2025, reflecting lower non-recurring revenue.
Recurring revenue increased to 96% of total revenue from 94% a year earlier.
Annual recurring revenue was £14.3m, down 1% year on year, but up 2% at constant currency.
Excluding a £0.4m ARR contraction from a single large US customer announced at the interim results, underlying ARR grew by 5% at constant currency.
Contract durations increased across around a quarter of the revenue base, enhancing forward revenue visibility.
Adjusted EBITDA was £0.0m for the 2026 financial year, compared with a loss of £2.3m in FY25, and £0.5m positive in the second half.
The group delivered £4.0m of annualised cost savings during the year.
Net cash as at 31 January was £3.0m, up from £2.7m on 31 July, reflecting a cash-generative second half, though down from £5.1m at the end of FY25.
Management said FY26 marked a significant inflection point, with a focus on profitability, cash generation and revenue quality.
The company said it entered FY27 with a lower cost base and a strengthened pipeline, and intends to increase emphasis on its core platform, including the rollout of a new user interface and further development of its operational intelligence capabilities, while maintaining financial discipline.
"FY26 was a pivotal year for Checkit - we completed a structural reset of the business, delivered Adjusted EBITDA break-even ahead of market expectations and generated cash in the second half," said chief executive Kit Kyte.
"Importantly, we have strengthened the quality of our recurring revenue base through long-term renewals and disciplined commercial decision-making.
"With a lower cost base and a strong pipeline, we enter FY27 positioned to pursue growth."
At 1208 GMT, shares in Checkit were up 4.35% at 18p.
Reporting by Josh White for Sharecast.com.
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