Shares in Kooth PLC climbed 10.1% to 136p after the provider of digital mental and behavioural health solutions said it expects adjusted EBITDA for 2025 to be ahead of market expectations, supported by disciplined cost control and front-loaded marketing spend in California.
Revenue for calendar 2025 is expected to be £63.3 million, down from £66.7 million in 2024, which the company said is "broadly" in line with expectations.
The lower top line reflects the impact of foreign exchange movements and a delay in signing a US contract, which has since been secured.
Chief executive Kate Newhouse said: “I am proud of the progress that Kooth has made through 2025, which has enabled us to reach over a quarter of a million people in need of support.”
The company has signed a new $2.6 million contract with a US state this month to provide services to up to 100,000 students.
In California, Kooth reported that it exceeded registration targets with over 144,000 users, 51,000 coaching sessions and 1.6 million messages exchanged via its Soluna platform.
The year ended with £21.5 million in cash and an undrawn $9.5 million facility.