Shares in digital mental health platform Kooth PLC (AIM:KOO) rose 6% after a positive update on uptake for its California app, Soluna.
Usage has surged to over 117,000 users by the end of May, up more than 50% from February levels, suggesting the company is comfortably on track, and possibly ahead of meeting its annual targets.
Stifel said the growth now covers 2% of the eligible population, just shy of the 2.3% target Kooth is aiming to hit by year-end.
With just 19,000 more users needed, that looks achievable even with a slower summer ahead.
Backing from the state government also appears solid, with California’s 2025–26 budget now finalised.
Analysts remain upbeat on Kooth’s potential to expand into new states, helped by strong app store ratings and signs of sustained cash generation.
The UK business, meanwhile, is due a platform refresh later this year.
Valuation remains a key part of the investment case. Stripping out its £21.8m year-end cash pile, Kooth trades on 14.3x forecast earnings for 2025, falling to just 7.4x in 2026, even after factoring in higher marketing spend.
Stifel expects the business to stay profitable and cash generative, with forecast free cash flow yields of 4.9% and 6.6% over the next two years. The broker reiterated its ‘buy’ rating.
The shares rose 10.72p to 197.22p.