Annual Recurring Revenue (ARR) grew 3% to £14.0 million on a constant currency basis
LONDON: Checkit plc (AIM: CKT), a provider of automated operational monitoring solutions, reported a significantly improved financial performance for the six months ended July 31, 2025, driven by cost reductions and increased use of artificial intelligence in product development.
The company posted a 65% improvement in adjusted LBITDA, narrowing losses to £0.5 million from £1.4 million a year earlier. This was supported by £3 million in annualised cost savings completed in June. Gross profit margin rose to 71%, up from 68% in the prior period.
Annual Recurring Revenue (ARR) grew 3% to £14.0 million on a constant currency basis. Excluding a £0.4 million ARR reduction from a large U.S. customer scaling back unused services, underlying ARR increased 5%. Recurring revenue climbed 6% to £6.6 million, while total revenue rose 3% to £6.9 million.
Twelve-month rolling adjusted net revenue retention stood at 104%, with gross revenue retention at 93%. Two major U.S. clients renewed contracts worth a combined £5 million over three years.
Cash reserves declined to £2.7 million from £5.1 million at the start of the year. However, the company cited improved productivity and reduced costs from AI integration as key drivers of operational efficiency.
CEO Kit Kyte said the company is focused on accelerating growth and remains confident in achieving adjusted EBITDA profitability and cash flow breakeven in calendar year 2026.
“The actions we’ve taken have strengthened our foundation,” Kyte said. “With a sharpened sales process and strong pipeline momentum, we’re optimistic about the future.”
The board expects full-year results to align with market expectations and continues to prioritize disciplined cost control.