KOOTH PLC - Full year results for the year ended 31 December 2025

Kooth PLC’s (KOO:AIM) FY2025 investor update highlights a year of consolidation following strong prior growth, reinforcing its position as a scalable, high-margin, recurring revenue digital mental health platform. Revenue declined modestly to £63.3m (FY2024: £66.7m), primarily due to FX headwinds and reduced product development income, while maintaining robust gross margins of 73% and delivering adjusted EBITDA of £11.3m (c.17.5–18% margin), ahead of market expectations. The business remains profitable, cash generative, and debt-free, with nearly 100% contracted recurring revenue underpinning strong revenue visibility. Operationally, Kooth delivered against its growth strategy, achieving deep system integration in California—its largest market (~70% of revenue)—expansion into Michigan, contract renewal in New Jersey, and diversification of UK revenue streams beyond the NHS. The company continues to strengthen its order book and pipeline through its “state alliance model,” targeting population-scale contracts and diversified funding sources. Strategic investment in AI-driven product development and marketing is expected to enhance margins, operational efficiency, and long-term growth. With access to over 20 million users globally, strong clinical evidence, and a compelling economic value proposition, Kooth is well-positioned to capitalise on rising demand for digital mental health services. Management remains confident in its growth outlook, supported by a £1bn US addressable market, improving EBITDA margins, and a clear focus on scalable expansion and recurring revenue growth.