Checkit PLC (AIM:CKT) shares traded up in Thursday's trade, rising 4.35% to 18p, after it told investors it had delivered a “structural reset” in FY26, landing break-even adjusted EBITDA for the year and turning profitable on that measure in the second half as cost savings flowed through.
The AIM-listed automated monitoring and operational intelligence group reported £0.5m positive adjusted EBITDA in H2, helping it end the year with £3.0m net cash, which it said was ahead of market expectations and reflected a cash-generative second half.
Top-line momentum was steadier than the headline suggests. ARR slipped 1% to £14.3m on a reported basis but rose 2% at constant currency, and Checkit said underlying ARR was up 5% at constant currency when excluding the impact of a single large US customer reduction flagged at the interim stage. Recurring revenue increased to 96% of total revenue, while group revenue edged down 2% to £13.7m as non-recurring revenue softened.
“FY26 was a pivotal year for Checkit… With a lower cost base and a strong pipeline, we enter FY27 positioned to pursue growth,” as the company shifts investment towards growth initiatives including a new user interface and further development of its operational intelligence capabilities," said chief executive Kit Kyte.