Half Year Results

Business highlights

• Continued expansion of the US footprint across three states (California, New Jersey, Michigan) now enabling access to in-the-moment, evidence-based care for 20.2 million people.
• Strong performance of Soluna in California, with 187,000 registrations by 30 June 2026 and independent academic evaluation validating significant, sustained improvements in the wellbeing of all service users. Soluna is now embedded as a core part of the infrastructure of the Californian Behavioural Health landscape.
• Retained leading market position in the UK, with the successful launch of Soluna allowing for greater alignment with user and customer needs.
• Strengthened strategic differentiation through ‘Gold’ certification from the American Psychological Association (APA Labs) and continued clinical accreditations, creating a robust competitive advantage.

Financial Highlights

• Reported revenue of £30.8m (2025: £32.1m) with the impact of a £0.7m negative foreign exchange (FX) movement together with a £0.8m planned tapering of California product development revenue and reduced UK revenue of £0.3m, offset by £0.5m from a Michigan contract win. On a constant currency basis ¹, revenue decreased 2% over the prior period.
• Reported ARR increased £1.2m to £62.9m (2025: £61.7m) with the Michigan contract win and a £1.5m positive FX impact offset by a reduction in California product development revenue (£1.5m) and UK churn albeit at a lower level than prior periods. On a constant currency basis² ARR decreased by £0.3m to £61.4m.
• Gross margin increased by 11.3ppt to 74.1% (2025: 62.8%), reflecting a tapering of marketing spend following accelerated investment during the prior period. Likewise, adjusted EBITDA increased to £5.3m (2025: £2.6m).
• Profit after tax of £2.0m (2025: £1.3m loss).
• Strong balance sheet with net cash of £23.1m (2025: £15.3m) to support Kooth’s long-term strategy and growth.

Strategic update

• California Integration: Soluna entered its fourth year of delivery, having now reached over 187,000 registrations. A joint state-level health-education directive encouraging integration across every school district has further embedded Soluna within the State, supported by inclusion of the programme in Governor Newsom’s Legacy Report. Funding stability has been reinforced following the announcement of a balanced State budget across 2026-27 and 2027-28.
• Footprint Diversification: Operational footprint now spans three US states, with the successful mobilisation of Michigan contributing £0.5m of revenue in the period.
• Soluna UK launch: Successfully soft-launched Soluna in the UK through August and September, with service users safely migrated between platforms across all UK contracts. Soluna has been warmly received by commissioners and users alike. Contracts with the Department of Work and Pensions to support NEETs (young people not in education, employment, or training) are now in the launch phase.
• Board Strength: Welcomed Dr. James A. Polo, Chief Medical Officer of Optum Behavioral Health, to the Board as an independent Non-Executive Director in May 2026.

Outlook

• Commercial Acceleration: Focus on pipeline conversion for state contracts in H2 2026. 2025 pipeline opportunities still in play and starting to convert 2026 state pipeline supported by legislative focus and expanded available funding source for youth mental wellbeing highlighted by the social media settlements in the US.
• Alliance Model: Sowing the seeds for a multi-payer Alliance Model to expand our commercial US pipeline beyond current state contracts, with positive results expected in 2027. UK government focus on NEETs, coupled with our early contract wins in this area and product configurability enabled by the Soluna launch, provides strong foundations for diversification of the payer in the UK.
• Product Evolution: Evaluating strategic product expansions to address youth economic inactivity, developing our under-13 teletherapy product (Kismet), and integrating further AI innovation across the continuum of care.
• While it is too early to form a definitive view, we are optimistic that the recent Meta $18bn multi state settlement will elevate youth mental health on state agendas and help provide a supportive funding environment as we continue to advance our state pipeline.

Financial outlook

• The Group expects to deliver underlying results broadly in line with expectations for the year before the potential impact of foreign exchange movements³.
• We have a strong balance sheet with £23.1m of net cash and an undrawn $9.5m working capital facility to enable long-term investment to maintain our market-leading position and accelerate growth. We expect to increase investment in H2 to further embed Soluna into the California behavioral health infrastructure and ensure we are well-placed to seize emerging opportunities.

Kate Newhouse, Chief Executive Officer of Kooth, said:

“As we celebrate our 25th anniversary, 2026 has been truly significant. We are growing in the US; independent evaluation and accreditation underpins the strength and impact of the work that we do and is showcased in our successful delivery across California; and bringing Soluna back to the UK marks a moment of celebration as our investment in growth and product development comes full circle.

The foundations that we committed to strengthening in 2025 are now well-established and bearing fruit, with growth in profit and EBITDA demonstrating that it is possible to deliver on outcomes while remaining disciplined on costs and building long-term value for our customers and shareholders.

The durability of our approach to delivery and strategic growth is crucial: with these strong foundations in place, we remain well-placed to accelerate our mission to build mentally healthier populations, leaving no-one behind.”

Financial headlines

Chief Executive’s Review

Overview

I am pleased to report on our performance for the first half of 2026, a period that represents another major strategic step for Kooth. We have experienced continued success across the state of California where Soluna has established itself as a core part of the behavioural health support infrastructure, launched Soluna in the UK, and extended our service to the State of Michigan. We are now enabling access to in-the-moment, evidence-based care for 20.2 million people.

Our financial results for the period reflect the underlying strength and operating leverage of our business model. Reported gross profit increased by 13% to £22.9m, driving our gross margin to 74.1% (H1 2025: 62.8%). This significant expansion is a direct result of our disciplined approach, normalising direct service user marketing costs in California following accelerated investment in the prior year. Adjusted EBITDA rose by 102% to £5.3m (H1 2025: £2.6m), and pleasingly we recorded a profit after tax of £2.0m, recovering from a £1.3m loss in H1 2025. Our debt-free balance sheet remains exceptionally strong, with net cash increasing to £23.1m (H1 2025: £15.3m), providing us with the financial resilience and strategic flexibility to maintain our market-leading position and capitalise on future growth opportunities.

Strategic Update

Our market-leading position has been built on a clear, simple premise: the ability to effectively reach and engage young people, providing whole-population, universal access to safe, trusted, evidence-based digital mental health support, ensuring that individuals can access self-guided, peer, or professional clinical support at the immediate point of need.

To sustain this leadership and help scale our global ambitions, we have continued to strengthen our leadership team and commercial infrastructure. In May 2026, we were delighted to welcome Dr. James A. Polo to the Board as an independent Non-Executive Director. A board-certified Child & Adolescent Psychiatrist with more than 25 years of experience across the US provider, payer, and government sectors, James serves as the Chief Medical Officer of Optum Behavioral Health within the United Healthcare Group. His deep domain expertise and passion for technology-enabled clinical solutions will be highly valuable as we scale. Additionally, the appointment of our new Chief Commercial Officer, Fred Bendana, joining from Cigna Group where he worked with government, health plan and employer clients as Executive Leader with Evernorth Health, has brought increased rigour and capacity to the commercial team, positioning us to accelerate our pipeline velocity in both major territories.

California

Our landmark Soluna contract in California has entered its fourth year of delivery under the Department of Health Care Services (DHCS). The platform continues to show exceptional traction, reaching over 187,000 registrations by 30 June 2026 (30 June 2025: over 130,000) and delivering clinical and operational outcomes at a scale rarely seen in digital health.

The credibility of our underlying clinical effectiveness model was reinforced in H1 2026. In March 2026, an independent evaluation published by the Lab for Scalable Mental Health at Northwestern University demonstrated clear, statistically significant, and sustained improvements in wellbeing outcomes for youth utilising Soluna. This academic validation is supported by the American Psychological Association (APA Labs), which awarded Soluna its prestigious ‘Gold’ certification during the period. These milestones, alongside our existing URAC, BACP and PIF tick (Patient Information Forum UK) accreditations, ensure that our users, commissioners, and health partners can have absolute confidence that Soluna is safe, clinically robust, and meets the highest risk management benchmarks.

As California moves toward its November 2026 Governor election, Soluna has been recognised as a core behavioural health pillar in Governor Gavin Newsom's Legacy Report. Furthermore, the DHCS’s own Impact Report, published in April 2026, revealed that Soluna and BrightLife Kids have reached more than 500,000 children, youth, and families across all 58 California counties since launch, completing over 112,000 coaching sessions with a remarkable 98% user satisfaction rate. Crucially, in March 2026, the California Department of Education, the California Health and Human Services Agency, and the DHCS issued a joint directive encouraging all Local Educational Agencies (LEAs) to integrate Soluna into their school wellness strategies. This deep integration, coupled with a balanced California state budget for the 2026/7 and 2027/8 fiscal years, provides us with high confidence in our contractual arrangements and funding stability - and continued success in California is a key priority for the business.

New Jersey & Michigan

Building on our performance in California, we are setting down roots across other US states. In New Jersey, we continue to deliver steady user registration growth under our renewed contract, exceeding our local advocacy and integration targets.

In Michigan, we successfully mobilised our new statewide contract, which contributed £0.5m of recurring revenue during the first half of the year.

Wider US (Broadening the Pipeline)

Conversion of the state pipeline in H2 2026 is a key area of focus. US state leaders remain deeply concerned about the real-world impact of youth mental health challenges on health, academic, social and economic outcomes. This issue is receiving heightened attention as legislators increasingly scrutinise the safety of general-purpose AI platforms and the negative impact of social media on youth mental health, while recognising the urgent need for equally accessible but critically safe, moderated digital therapeutic spaces, like Soluna. The recent Meta $18 billion multi state settlement should provide a favourable funding environment at a state level to invest in services that meet this need.

To capitalise on this environment, we are ensuring that our state focused work is a priority whilst actively diversifying our go-to-market strategies and continuing to lay the groundwork for our “Alliance Model” that we have previously outlined, to broaden our US pipeline beyond solely state-funded contracts. This model is designed to expand our funding sources by integrating our Soluna platform with additional public payers such as counties, large school districts and prior legal settlement funds, as well as Medicaid and commercial health plans. By creating a "networked continuum of care," government funding unlocks population-wide access, and other localised partners fund more targeted or intensive clinical support. Development of these partnerships is now well underway, with conversion to revenue anticipated in future periods.

United Kingdom

In the United Kingdom, Kooth has maintained its position as the clear market leader and the largest digital mental health provider for under-18s. Post-period end, in September 2026, we achieved a major operational milestone with the successful launch of the Soluna platform in the UK, timed to coincide with the start of the new school year. This migration ensures a more streamlined and global approach to product development, marketing and engineering capacity, as we shift toward a global product rather than different platforms for each geography.

The migration of our UK users and commissioners from the legacy Kooth platform to Soluna has been successful and well-received by NHS, government partners and users alike. Soluna introduces advanced usability, technology and product capabilities into our home market, providing commissioners with enhanced real-time outcome reporting and superior product flexibility to drive user engagement. Soluna is increasingly embedded as a 'digital front door'—a critical stepping stone to school-based support or youth services. High-profile independent government policy reviews published in the period have called for precisely this type of open-access, non-diagnostic, and flexible model of support. This strategic alignment has already yielded success, with Kooth securing Department for Work and Pensions contracts to provide tailored support for young people Not in Education, Employment, or Training (NEETs), demonstrating how we can help youth re-engage with education and the workforce.

Looking Ahead

Our strategic foundations are now firmly established; we are now operating on a scalable, profitable, and cash-generative basis.

Looking ahead, we are confident in our current market position and additionally see significant growth opportunities to accelerate growth in the UK and the US. Beyond converting and growing existing State and Alliance Model pipelines, we are keen to remain at the forefront of addressing unmet needs through expanding our product portfolio. This includes more intensive support for communities where mental ill health is a barrier to participation in education or skills, reaching younger age groups, and greater use of AI across services, in line with our ethical AI approach.

The Need is Greater than Ever

As we celebrate Kooth’s 25th anniversary, our mission to build mentally healthier populations and leave no one behind for a more productive future remains as vital and urgent as ever. I am constantly reminded of the profound, life-changing impact of our work—whether it is helping a young person share a worry with a trusted professional or supporting them to build the resilience needed to return to school or work.

Our clinical and academic research continues to validate that Kooth's services enable young people to thrive. Whether in Cornwall or Newark, Fresno or Southampton, Ayr or Detroit, we remain passionately dedicated to providing safe, accessible, and life-changing mental health support for the next generation.

Chief Financial Officer’s Review

Kooth delivered results for the first half of 2026 consistent with the Board's expectations. Our performance was defined by the transition from a phase of accelerated investment in H1 2025 to a period of consolidation and operational efficiency. While reported revenue was impacted by FX headwinds and planned product development tapering, our underlying business health remains strong, characterised by margin expansion and robust cash generation

Key Performance Indicators

To provide a clearer view of our H1 2026 performance, the following tables summarise our key metrics compared to prior periods. We use a balanced set of financial and non-financial key performance indicators (KPIs) to assess delivery against our strategic objectives and to monitor the long-term health of the business.

Over the last five years the Group delivered a compound annual growth rate (CAGR) in revenue of over 30%, reflecting the successful scaling of our platform and expansion into the US market.

Revenue

Revenue represents income recognised from the delivery of contracted services during the period and is a primary indicator of market demand and contractual scale.

The £1.3m decrease from 2025 (2% on a constant currency basis) is primarily attributable to a £0.7m FX impact, a £0.8m planned tapering of California product development revenue, and a £0.3m reduction in UK revenue due to contract churn. These were partially offset by the new Michigan contract win (£0.5m).

Annual Recurring Revenue

Annual recurring revenue (ARR) is the annualised value of customers engaged or closed as at the period end and provides forward-looking visibility of the revenue base entering the new financial period. This is used by management to monitor the long-term revenue growth of the business.

Reported ARR increased to £62.9m (2025: £61.7m), including a £1.5m positive FX impact.

On a constant currency basis, ARR decreased £0.3m with the new Michigan contract win offset by the impact of the planned tapering of the California product development revenue (£1.5m) and UK churn albeit at a lower level than prior periods.

Gross Margin

Gross margin represents gross profit as a percentage of revenue. Direct costs comprise practitioner delivery costs and direct service user marketing expenditure.

The 11.3ppt increase from the prior period reflects lower direct service user marketing expenditure in California which was accelerated in H1 2025.

Adjusted EBITDA

Adjusted EBITDA represents earnings before interest, tax, depreciation and amortisation, adjusted for share-based payments and realised foreign exchange movements.

The definition was refined in H2 2025 to exclude realised foreign exchange differences, reflecting increased GBP:USD volatility which became material in the prior period with a loss of £1.0m (H1 2026: £0.1m). Adjusted EBITDA for H1 2025 has been restated to reflect this definition. Adjusted EBITDA increased by 102% to £5.3m (H1 2025: £2.6m). This growth reflects strong user engagement in California and a reduction in direct marketing spend compared to the accelerated investment period in H1 2025.

Cash

Cash and liquidity remain key indicators of financial resilience and strategic flexibility as well as provide comfort to customers from a vendor risk perspective.

The cash position at the end of the period was strong at £23.1m (H1 2025: £15.3m). The increase derives from strong working capital management and cash generated from operations over the last twelve months.

Population coverage

The total number of people who have access to the Kooth service is a good indicator of our accessibility. This is determined as the population within the contracted age range of each of our contracts that are

live at the period end.

The increase from the prior period is driven by population growth within our existing UK contracts as a result of updated ONS statistics as well as the Michigan contract win.

Number of users

The number of users represents the individuals who register on our Kooth, Soluna and Qwell platforms. As a result of accelerated investment in digital marketing in H1 2025 to support success in California, Soluna experienced a spike in registrations in that period. H1 2026 represents expected registration rates in line with the normalising of marketing investment.

Revenue

The Group’s revenue remains highly predictable, with 100% recurring revenue (H1 2025: 99%).

On a constant currency basis, revenue decreased 2% over the prior period and Annual Recurring Revenue (ARR) decreased by 0.5%. Reported revenue decreased £1.3m to £30.8m (H1 2025: £32.1m) predominantly driven by a £0.8m reduction in California product development revenue and £0.7m negative FX impact, offset by a new client win in Michigan (£0.5m).

ARR at the period end was £62.9m (H1 2025: £61.7m). Net revenue retention (NRR), measured by the total value of on-going ARR at the period-end from clients in place 12 months earlier as a percentage of the opening ARR from those clients, for the period to 30 June 2026 was 99% (H1 2025: 100%) reflecting the California revenue reduction and UK churn. On a constant currency basis this was 96%.

US Revenue in H1 2026 was $30.2m/£22.5m (H1 2025: $30.6m/£23.4m), all of which was recurring revenue (comprising income invoiced for services that are repeatable, consumed and delivered on a monthly basis over the term of a customer contract) with the decrease coming from California, offset by the Michigan contract win.

UK revenue decreased by 3.7% to £8.3m (H1 2025: £8.7m) reflecting churn, albeit at lower levels than the prior period, in UK contracts giving net revenue retention for the period to 30 June 2026 of 96% (H1 2025: 97%).

Gross Profit

Gross Profit increased by 13% from £20.2m to £22.9m with gross margin increasing to 74.1% (H1 2025: 62.8%) due to the reduction in direct service user marketing expenditure in California reflecting strong user engagement as we become more embedded in local systems and see organic growth in new and returning users. We expect to increase investment in H2 to solidify Soluna’s extension in California and ensure we are well-placed to seize emerging opportunities. This was offset by a small reduction in the UK following client churn and salary increases for practitioners just ahead of inflationary increases for UK clients.

Direct costs are both the costs of the practitioners directly involved in the delivery of our services, a total of 249 at the period-end (H1 2025: 253 heads) with reductions reflecting UK customer churn, and continued investment in promotion and marketing costs in California in support of raising user awareness and engagement, including hard to reach communities which were £3.5m (H1 2025: £7.2m).

Foreign currency impact

The strengthening of Sterling against the US Dollar during the period created a headwind for reported revenue though its transactional impact on the Group’s cash and operating profit remained minimal. With approximately 73% of Group revenues and 51% of expenses denominated in US Dollars, our reported financial performance is inherently sensitive to currency fluctuations. This translation effect negatively impacted reported revenue by £0.7m compared to the prior period. While US operating expenses provide a natural partial hedge, the Group's net exposure to foreign currency transaction risk was well-managed, resulting in a minor booked foreign currency loss of £0.1m (H1 2025: £1.0m loss). Post-period end, Sterling has remained strong; if this trend persists, we expect further translational headwinds to impact reported revenue and Adjusted EBITDA in the second half of the year.

Adjusted EBITDA

Adjusted EBITDA in the period increased from £2.6m to £5.3m. The definition was refined in H2 2025 to exclude realised foreign exchange differences, reflecting increased GBP:USD volatility which became material in the prior period with a loss of £1.0m (H1 2026: £0.1m). Adjusted EBITDA for H1 2025 has been restated to reflect this definition.

A £2.7m rise in gross profit and unchanged administrative expenses (excluding amortisation, depreciation, share based payments and realised foreign exchange movements), drove this growth. The increase in gross profit was a result of the significant investment in California direct marketing during H1 2025 which was not repeated in the current period. Administrative costs were well managed during the period in respect of marketing spend and consulting spend.

The total charge for share based payments in the period was £0.2m (H1 2025: £0.6m) with the decrease reflecting a lower number of awards made during the period and reassessment of vesting criteria. Within administrative expenses, depreciation and amortisation remained at £3.0m (H1 2025: £3.1m) owing to significant capital expenditure investment made in the US platform in previous years.

Taxation

The overall tax charge for the period was £0.7m (H1 2025: £0.5m credit). The increased charge from the prior period reflects increased profits before tax. Following the Group’s growth, we transitioned from

the Small and Medium Enterprise R&D scheme to the Research and Development Expenditure Credit (RDEC). Consequently, R&D incentives are now recognised as other income (£0.2m) within the statement of profit and loss and other comprehensive income, rather than as a direct reduction to the corporation tax charge as in the previous period (H1 2025: £0.0m).

Profit after tax

The Group profit after tax for the period was £2.0m (H1 2025: £1.3m loss). Basic earnings per share were 5p (H1 2025: 3p negative). Diluted earnings per share were 5p (H1 2025: 3p negative).

Balance Sheet

The strength of the Group's balance sheet with net assets of £34.3m (30 June 2025: £27.4m) and net cash of £23.1m, and high levels of recurring revenue provide the Group with resilience and capacity to execute its strategic priorities, including US expansion, AI-enabled product development and continued clinical investment.

Contract assets increased to £4.1m at the period end (30 June 2025: £0.8m), primarily driven by the timing of invoices raised on the California and Michigan contracts.

Cash flow and financing

Cash inflow during the six months was £1.4m (H1 2025: £5.7m outflow). Cash inflows from operating activities of £3.6m (H1 2025: £2.6m outflow) and interest income of £0.5m (H1 2025: £0.3m) offset the £2.7m investment in our platforms (H1 2025: £2.0m) and gives a net cash position at 30 June 2026 of £23.1m (H1 2025: £15.3m). The Group remains debt free and maintains an undrawn $9.5m working capital credit facility.

The increase from H1 2025 derives from working capital management and cash generated from operations of £12.9m over the last twelve months, offset by investment in our platforms (£5.1m), tax payments on prior year profits (£0.4m) offset by positive FX movements (£0.4m) on the translation of currency balances.

Forward-looking statements

Certain statements in this half year report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

Dividends

The Group’s intention in the short to medium term is to invest in order to deliver capital growth for shareholders. The Board has not recommended an interim dividend payment in respect of the six months ended 30 June 2026 (2025: £nil) but may do so in future years.

Sanjay Jawa

Chief Financial Officer

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2026

Condensed Consolidated Balance Sheet

As at 30 June 2026

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2026

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2026