Corporate News

Strong execution on strategy to deliver long-term and sustainable growth with a positive outlook for 2026

Exceeded performance targets in California with over 144,000 young people registered on Soluna by the end of 2025 with emerging evidence demonstrating real-world impact

US footprint now extends across three States, with UK market position maintained

Kooth (AIM: KOO), a leading provider of digital mental health services, announces audited results for the twelve months ended 31 December 2025. All figures relate to this period unless otherwise stated.

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Strategic and post-period end highlights

• Soluna is becoming embedded in California’s behavioural health system, demonstrating strong uptake and real-world impact
  • Exceeded performance targets with over 144,000 young people registered on Soluna by the end of 2025, representing 1-in-41 of the State’s eligible youth population
  • Established over 1,400 institutional and community partnerships with crucial youth-facing services across the State
  • Los Angeles County Board of Supervisors has now directed youth-serving county departments to integrate Soluna
  • A joint letter from California’s Health and Human Services Agency (CalHHS), Department of Health Care Services (DHCS) and Department of Education was sent to all Local Education Agencies (LEAs) underscoring Soluna’s vital role
  • Independent research demonstrates value: 90% of users say Soluna has helped them get the support they wanted; 88% who previously used urgent care reported fewer visits after using Soluna; almost 90% of youth-facing professionals perceived that Soluna had improved youth concentration in school
  • Evaluation of Soluna by The Lab for Scalable Mental Health at Northwestern University found significant and sustained improvements in psychological wellbeing
• US contract wins show growing recognition and value of Kooth’s services
  • Renewed New Jersey contract
  • New $2.6m contract with the State of Michigan, signed post-period
    
• Laid foundations for long-term sustainable growth
  • Embedded clear and ambitious strategy to drive long-term sustainable growth through State Alliance model, drawing on unique expertise, real-world dataset and proven ability to deliver at scale, with impact
  • Expanded service and technology capabilities to access a wider range of funding opportunities through the acquisition of Kismet Health
  • Further strengthened evidence base, with independent accreditation from highly-respected organisations, URAC in the US and the British Association for Counselling and Psychotherapy (BACP), and forthcoming regulatory approval offering independent validation of the safety, quality and efficacy of Kooth services
• Maintained market-leading position in the UK
  • Continues to be one of the largest individual national contributors to the NHS Mental Health Services Dataset access figures in commissioned areas
  • Secured several new services funded by diversified customers such as the Department of Work and Pensions

Financial Highlights

• 2025 revenue was £63.3m (2024: £66.7m), following a record year in 2024 in which revenues doubled. This figure reflects the impact of FX movements, a reduction in California product development revenues and delays in signing a contract with the State of Michigan, for which revenues will now be recognised in the current financial year
• Annual recurring revenue in 2025 was £60.6m (2024: £66.4m) falling £3.3m due to FX movements and a £1.7m reduction in product development revenue from California
• Group net revenue retention on a constant currency basis was 96% in 2025 (2024:100%)
• Adjusted EBITDA was ahead of expectations at £11.3m in 2025 (2024: £15.8m) and reflects continued investment in key growth drivers, including investment in direct user marketing in California in H1 2025
• Strong balance sheet with £21.6m of cash (£21.8m in 2024) following the completion of a £1.5m share buyback in February 2025 and no debt. Kooth maintains an undrawn working capital facility of $9.5m

 Outlook

• Scaling US footprint with a sustained focus on embedding Soluna in California, New Jersey and Michigan, delivering proven impact at scale
• Driving growth of a strong, diverse and bipartisan state pipeline while leveraging the State Alliance model to build on trusted reputation and extend and diversify Kooth’s service offering and funders within State ecosystems
• Launching Soluna in the UK (expected in H2 2026), enabling closer alignment with user and customer requirements and driving economies of scale
• Continued investment in ethical AI strategy and product development, rooted in clinical best practice, benefiting from the structural advantage Kooth has in the current AI regulatory environment
• Remaining future-focused when seeking opportunities to strengthen service offer and capabilities through strategic partnership or acquisition

Kate Newhouse, Chief Executive Officer of Kooth, commented:
“As we mark Kooth’s 25th anniversary, I am incredibly proud of our strong execution in 2025 – and our continued commitment to making safe and effective mental health support more accessible. With over a quarter-century of evidence and experience, we now provide access to mental health support to over 20 million people across the US and UK.

“Following a record year in 2024, we evolved our strategy in 2025 and have been successfully executing against this. We exceeded performance targets in California, with Soluna reaching over 144,000 young people; delivered strong system integration; and now have independent, real-world evidence that demonstrates Soluna’s positive impact for individuals and their communities. These achievements have enabled the Group to secure additional promising wins – our first US contract renewal in New Jersey and a new contract with the State of Michigan. Meanwhile, in the UK, we are expanding our services to capture new funding opportunities, as demonstrated by our work with the Department of Work and Pensions to help young people with mental health needs secure and sustain employment.

“We remain resolutely focused on delivering against our strategy, alongside ensuring that our customers and the people that use our services receive the highest level of support. We will continue to execute on our pipeline and seek to access new funders. With our robust balance sheet and evidence-based approach, Kooth is well positioned to make a tangible difference to the lives of millions more people across the UK and US for years to come.”

 

Enquiries:

Kooth plc	investorrelations@kooth.com
Kate Newhouse, CEO
Sanjay Jawa, CFO
Stifel, Nominated Adviser & Joint Broker	+44 (0) 20 7710 7600
Ben Maddison, Fred Walsh, Erik Anderson, Ben Good
Canaccord Genuity, Joint Broker	+44 (0)20 7523 8000
Simon Bridges, Harry Gooden, Elizabeth Halley-Stott
FTI Consulting, Financial PR	Kooth@fticonsulting.com
Ben Atwell, Sam Purewal, Lucy Molloy

 

About Kooth plc:

Kooth (AIM:KOO) is a global leader in digital mental and behavioural health, providing safe, effective care to over 20 million people across the UK and US. For more than 20 years, Kooth has pioneered scalable solutions that deliver immediate, direct, universal access to mental health support.

Our platforms — Kooth, Qwell, and Soluna — combine self-guided tools, safe peer communities, and professional therapeutic support, all clinically robust and independently accredited. Kooth holds URAC accreditation in the US and is the longest standing digital mental health provider to hold UK-wide accreditation from the British Association of Counselling and Psychotherapy (BACP), validating our commitment to quality, safety, and accountability across both markets.

Independent evaluations demonstrate a £3 return for every £1 invested, with measurable reductions in emergency visits and improved clinical outcomes. Kooth is the largest single access provider for mental health support for under-18s in England according to NHS England data for 2024/25. In California, our Soluna platform is the first statewide digital behavioural health solution designed for all youth ages 13-25.

The Company is executing on its strategic vision through expanded reach across a diversified customer base, while seeking opportunities to enhance and extend the service offer through acquisition, partnership, and product capabilities supported by responsible AI principles.

For more information, https://connect.kooth.com.

 

Chair's Statement

As we celebrate Kooth’s 25th anniversary, the need for our services has never been greater. In every market we serve, the rising tide of mental health issues is stifling individual potential, with the consequences extending far beyond the individuals and families directly affected and driving both social and economic challenges.

The Board and I remain confident that no other provider is better equipped to address this growing need than Kooth, which brings a track record of delivery, meaningful results, clinical rigour, and agility that is crucial in a rapidly changing market.

2025 was a pivotal year for Kooth, with significant progress toward a long-term and sustainable approach to growth.

There is now clear evidence that Soluna, Kooth’s digital mental health service for California’s youth, is becoming firmly established. The platform is reaching those communities with the greatest needs and crucially, independent data confirms that Soluna is delivering significant and sustained improvements in clinical outcomes.

Promising signs of growth can be seen as Kooth expands in the United States, securing its first US renewal with the State of New Jersey and signing a new contract with the State of Michigan. In the UK, the Company identified new funding opportunities, with commercial partnerships beyond the NHS bolstering stability.

This growth enables Kooth to make a real impact for the 20 million people with access to the Company’s services, generating a social and economic dividend that benefits families, workplaces, healthcare systems, and wider communities.

Despite these successes, this year Kooth is reporting a decline in revenue from £66.7m in 2024 to £63.3m. While this is due in part to the impact of foreign exchange movements and the wider geopolitical climate’s impact on contracting cycles — factors well outside the Company’s control —  it is nonetheless disappointing given Kooth’s momentum and prior year’s revenue growth.  

The Board supports the Executive Team's strategic vision and shares the view that sustained focus on the success of current contracts is the best path to secure future growth. In 2025, that meant disciplined prioritisation: deepening execution within state-sponsored contracts rather than pursuing parallel opportunities such as school districts, universities, and managed care channels that, while viable, would have stretched finite bandwidth and diverted from the focus required to deliver the credibility and foothold Kooth needs as the foundation for sustainable expansion.

The impact of this focus can be seen in the Company being awarded URAC accreditation and in the growing body of evidence — amassed in partnership with independent researchers — that Soluna is on track to become the gold standard for youth behavioural health platforms. Success in California lays the groundwork for future commercial expansion.

Encouragingly, broader financial performance underscores the increasing discipline and maturity of the business. The adjusted EBITDA of £11.3m — ahead of market expectations — is reflective of a year in which Kooth successfully balanced prudent capital allocation with a significant expansion of US operations, both in terms of user acquisition, system integrations, and clinical hours delivered.

As we look forward, the Board and I are confident that Kooth’s strategic direction, leadership, and execution capability is stronger than ever, with a clear vision for the years ahead.

Peter Whiting
Non-Executive Chair

 

Chief Executive Officer’s Review

As we celebrate Kooth’s 25th anniversary, I want to reflect on both our current performance and our long-term trajectory.

For a quarter of a century, Kooth has existed to solve a problem that traditional mental health systems struggle with: reaching people who need help but can't access it.

The core of what we do is simple.

Through digital-first, population-wide services, we make safe and effective mental health support more accessible to everyone.

By enabling children, young people, and adults to improve their mental health and build the skills they need to tackle life’s challenges, we help them meet their personal goals - from staying in school to launching a career - and build healthy relationships with friends, family and their communities.

We do this at scale, serving over 20 million people across the US and UK, and backed by a significant body of research that demonstrates the impact of our unique approach.

Across the world, we are facing a crisis where mental health needs are holding a generation back from developing fulfilling relationships, succeeding in learning and employment, and making plans for their future.

This isn’t just a personal tragedy. This growing unmet need is generating immense costs for healthcare systems and stunting economic growth. Traditional, face-to-face care is too expensive and inflexible to solve this at scale, and few emerging technologies are proven to be safe, effective, and accessible at the point of need.

This is what sets Kooth apart.

We remain focused on addressing this crisis by leveraging the reach of digital technology to widen access to support, balanced with a steadfast commitment to clinical safety, evidence, and transparency.
Our vision of a future where safe and effective mental health support is accessible to all – without exception – continues to guide our strategy and the pivotal choices we have made this year.

Kooth’s performance in 2025

This year we are reporting a modest decline in year-on-year revenue, which reflects the continued impact of foreign exchange movements and lengthy sales cycles and contract cycles.

While I would have preferred to report revenue growth this year, 2025 follows a period of unprecedented growth in which revenue doubled. As such, our focus has been on sustaining the momentum of that expansion, recognising that building a resilient and scalable business is what will ultimately drive long-term impact for the people using our services, and value for our shareholders

In our Half-Year Report, we set out our strategic approach: the State Alliance Model

This requires a focus on securing sustainable, state-wide contracts that generate wider social outcomes. These partnerships enable us to provide support across entire populations, with Kooth platforms embedded in health, education, and other public services.

Subject to complex legislative and budget cycles, these high-profile contracts require front-loading of resources. By their nature, they involve longer lead times and can be sensitive to external macroeconomic factors beyond our immediate control.

Despite their longer development cycles, state contracts provide a launchpad for long-term value. Initial state or regional funding secures universal access, from which we can then layer on more specialised services for other payers, such as health plans, school districts, colleges or employers. This approach effectively diversifies our revenue base, ensuring our growth is both multifaceted and less dependent on a single commissioning partner.

This approach prioritises long-term stability over short-term revenue growth. Our goal is not to be the fastest-growing provider in the market. Instead, we focus on securing the long-term durability of the business, building on a proven record of trust, safety, and evidence of impact.

Against this backdrop, I am pleased to report that we made significant progress in 2025. Our strategic approach is being validated by key contract wins, a maturing evidence base, and the emergence of favourable market tailwinds that support our long-term vision.

In the US, our footprint is evolving as we shift from market entry to established and impactful social infrastructure

In line with our vision to become deeply embedded in California’s behavioural health ecosystem, we invested significant organisational resources to build awareness and achieve integration across the State, exceeding performance targets and with independent evaluation of Soluna demonstrating truly groundbreaking results (detailed further in Strategic Progress).

As an illustration of our growing impact and the importance of system work, in November the Board of Supervisors for Los Angeles – the State’s most populous county with a population of 10 million (exceeding that of 40 other states) – passed a motion directing all youth-serving departments in the county to report on how they are promoting and integrating Soluna as a mental health and wellness resource for county youth.

In October, we were pleased to announce the successful renewal of our partnership with the State of New Jersey, one of the largest and most densely populated states in the US. The successful transition of this service between Governor’s administrations, with support from the Department of Children and Families, demonstrates the value of our team’s work on the ground.

In January 2026, we secured a new state contract in Michigan. As a state with a population of 10 million spread across nearly 97,000 square miles, Michigan presents exactly the challenge traditional services cannot solve: how to reach young people in rural communities as effectively as those in Detroit or Ann Arbor.

Kooth remains a crucial part of the UK’s mental health infrastructure

Kooth's market position remains strong in the UK with 14 new contracts and an increasingly diverse pipeline to target new customers, with new services funded by the Department of Work and Pensions to support young people with mental health needs get back into education, employment or training launching across the West Midlands, South Yorkshire and Cambridgeshire and Peterborough Combined Authorities.

The launch of Soluna in the UK in 2026 will allow for greater economies of scale and cross-market development across the business, building upon recent investment and product evolution to serve US audiences. With engineering and regulatory work now well-advanced, this new platform will facilitate closer alignment with evolving NHS and UK Government priorities and policy to strengthen our position in the UK market.

Kooth’s future growth is underpinned by robust research, evidence-led innovation and enhancing our capabilities

Our evolved strategy encompasses more than our commercial model.

We are also focused on expanding the scope of the services we provide – without compromising the safety and effectiveness of the care we deliver. This evolution drove our acquisition of Kismet Health, a specialised paediatric digital health platform that will better enable us to support children under 12 and their families. Kismet’s play-based technology supports even earlier intervention, leveraging digital tools to address mental health issues in partnership with clinicians, parents and caregivers.

While rapid proliferation of unregulated generative AI tools is reshaping the digital mental health market - and mental health itself - the industry is facing growing scrutiny. Trust in our sector is increasingly defined by demonstrable outcomes and safety protocols, a reality that aligns perfectly with Kooth’s foundational principles of evidence and clinical integrity.

We welcome this scrutiny, and it is why we continue to invest in robust, independent evaluation of our services, including a research partnership with the world-leading Lab for Scalable Mental Health at Northwestern University, led by Dr Jessica Schleider - which has found significant and sustained improvements in wellbeing across all users. And it is why we formalised our approach to adopting AI across our business and in our services, measuring success in terms of service effectiveness, not simply engagement or growth, and aligning closely and contributing to emerging regulatory frameworks.

Global regulators including the FDA and MHRA have recently stepped up scrutiny of digital mental health tools. In this climate, Kooth’s clinical foundation serves as a profound differentiator; our AI strategy is underpinned not by general-purpose web scraping, but by a hard-to-replicate dataset of over six million safeguarded interactions and 2.5 million clinical case notes. This proprietary data enables us to develop models - such as our risk detection tools that are grounded in real-world clinical pathways.

Outlook: building value through impact

While this report serves to detail our commercial performance, the ‘business’ of mental health is never abstract. We support people often underserved or overlooked by traditional behavioural or mental health services. Those struggling quietly, waiting too long, or falling between the gaps of fragmented and disjointed healthcare systems.

When these people access the safe, effective care provided through our population-wide services, the outcomes are tangible.

These outcomes drive our work and sustain our business. Services that deliver demonstrable impact become indispensable to the individuals, communities and ecosystems that rely upon them. It is my firm belief - reinforced by Kooth’s 25 year heritage - that building these enduring partnerships is the most effective way to secure sustainable, long-term revenue.

In 2025, we had a deliberate focus on discipline and integrity; we strengthened our operational foundations and refined our strategy. This measured approach positions us for continued and significant growth ahead.

This year, we remain laser focused on executing against our State Alliance Model, and are continuing to progress a strong and increasingly diverse pipeline. Meanwhile, we will maintain a high standard of delivery for our existing clients and progress towards an expected H2 2026 launch of Soluna in the UK which will bring us an enhanced market position and economies of scale across the business.

We will continue our investment in ethical AI strategy and product development, rooted in clinical best practice, and remain future-focused in seeking opportunities to strengthen service offer and capabilities through strategic partnership or acquisition.

As we maintain our focus on long-term growth, we anticipate that revenue and adjusted EBITDA for 2026 will be in line with current market expectations.

With a robust balance sheet, a strong pipeline, and a quarter-century of evidence and experience at our core, we remain uniquely equipped to break down the barriers to mental wellbeing. The work continues.

Kate Newhouse
Chief Executive
 

Chief Financial Officer’s review

Delivering disciplined investment and operational resilience

Kooth delivered results broadly in line with market expectations, reflecting a year of disciplined investment and operational focus. Performance was impacted by foreign exchange movements following GBP appreciation against USD and by accelerated investment in direct user marketing in California to support long-term growth.

Revenue

The Group’s revenue remains highly predictable, with 99% recurring revenue (2024: 100%).

While revenue declined modestly year-on-year at £63.3 million (2024: £66.7 million), this follows a period of exceptional expansion, including revenue doubling in 2024 and reflects the continued impact of foreign exchange movements and lengthy sales and contract cycles. On a constant currency basis, revenue decreased 2.7% over the prior year and Annual Recurring Revenue (ARR) decreased 3.7%. Reported ARR decreased by 9% to £60.6 million (2024: £66.4 million), predominantly driven by a £3.3 million negative FX impact.

In 2025, management prioritised building a resilient and scalable business to drive long-term impact for the people using our services, and value for our shareholders.

Geographically, US revenue decreased to £46.1 million (2024: £48.7 million) 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). This decrease was broadly £1.6m of foreign exchange movements and a £2m reduction in California revenue, resulting from lower contractual product development activity in 2025, offset by £1.1m of revenue generated from a new contract in New Jersey.

UK revenue decreased by 4% to £17.2 million (2024: £18.0 million). Whilst the number of contracts uplifting upon renewal rose to 54% (2024: 45%) these gains were offset by £1.4 million of churn primarily due to a lack of funding to continue pilot contracts and contract reductions following consolidations.

Group net revenue retention (NRR) on a constant currency basis was 96% (2024: 100%). Including FX impact, reported NRR was 91%. Within the UK, there was an increase to 96% (2024: 92%) reflecting a reduction in churn in 2025 (£1.4 million) vs. the prior year (£2 million).

NRR remains a key indicator of contract durability and embedded customer relationships. This is measured by the total value of ongoing ARR at the year end from customers in place at the start of the year as a percentage of the opening ARR from those clients. 
 
Gross profit

Gross profit reduced by 11% to £46.3 million (2024: £52.0 million) with the gross margin decreasing to 73.1% (2024: 77.9%) due to planned investments made in direct marketing to drive engagement with service users in California. Gross margin continues to benefit from California revenues that included a contribution to platform development. These platform costs are capitalised in the Statement of financial position and amortised within the Statement of profit and loss and other comprehensive income. In 2025 this had a positive impact on gross margin of 4%.

Direct costs are the costs of the practitioners directly involved in the delivery of our services, a total of 241 at the year-end (2024: 268 heads) with reductions reflecting UK customer churn and staff turnover in the US, and direct marketing costs in California in support of raising user awareness and engagement, including hard to reach communities which were £8.1 million (2024: £3.9 million)

Foreign currency impact

The US Dollar/GBP exchange rate has had a significant effect on results for the year under review during which the Group had approximately 74% of revenues and 50% of expenses denominated in US Dollars. The Group’s exposure to foreign currency risk resulted in a realised foreign currency loss of £0.6 million. In the prior year the effect of foreign exchange movements was immaterial.

Operating profit

The Group’s operating profit for the year was £3.4 million (2024: £9.2 million). The reduction reflects lower gross profit driven by revenue decline and increased California marketing investment, partially offset by lower average headcount and operating efficiencies.
 
Administrative expenses

Excluding depreciation, amortisation, share-based payments and realised FX movements, administrative expenses decreased by £1.3 million (3.6%) year-on-year, demonstrating the Group’s ability to exercise cost discipline while continuing to invest in growth.

On a constant currency basis, administrative expenses decreased by £0.6 million. This was primarily driven by a strategic shift in the US, where increased investment in direct marketing within direct costs allowed for a reduction in engagement-related personnel overheads. This overall decrease was achieved despite a £0.3 million headwind in the UK resulting from higher employer National Insurance contributions following the rate and threshold changes in April 2025.

Adjusted EBITDA

Adjusted EBITDA decreased from £15.8 million to £11.3 million, with the £5.7 million decrease in gross profit partly offset by a £1.3 million decrease in administrative expenses (excluding amortisation, depreciation, share based payments and realised FX movements). The decrease in gross profit is a result of a reduction in revenue and increased investment in direct user marketing costs offset by savings from a lower average headcount in the year.

Adjusted results are prepared to provide a more comparable indication of the Group’s core business performance by removing the impact of non-trading items that are reported separately.

Adjusted results exclude items as set out in the consolidated statement of profit and loss and below. In addition, the Group also measures and presents performance in relation to various other non-GAAP measures, such as annual recurring revenue and revenue growth.

Adjusted results are not intended to replace statutory results. These have been presented to provide users with additional information and analysis of the Group’s performance, consistent with how the Board monitors results.

 

£'m		2025	2024
Operating Profit		3.4	9.2
Add Back:
Depreciation and Amortisation		6.2	5.4
Share based payment expense		1.1	1.2
Foreign exchange		0.6	-
Adjusted EBITDA		11.3	15.8

 

Share-based payments are adjusted to reflect the underlying performance of the group as the fair value is impacted by market volatility that does not relate directly to trading performance. The total charge for share-based payments in the year was £1.1 million (2024: £1.2 million). Realised foreign exchange movements are adjusted for the first time in 2025 as they now have a material effect on the numbers reported and do not correlate directly to trading performance.

Taxation

The Group’s corporation tax charge for 2025 was £1.8 million (2024: £1.8 million), primarily driven by taxable profits within our US operations. While the absolute charge remained flat, the effective tax rate (ETR) increased to 40.3% (2024: 18.5%) reflecting two principal factors.

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 (£0.3 million) within the statement of profit and loss and other comprehensive income, rather than as a direct reduction to the corporation tax charge as in previous years (2024: £0.5 million) this accounting reclassification accounts for a significant portion of the ETR increase.

Second, a permanent difference arose in respect of share-based payment charges. Tax relief on equity awards is limited to the intrinsic value of awards at the point of vesting; where the share price at vesting is below the grant-date fair value, no deduction is available for the shortfall. Given share price performance during the year, this gave rise to a non-deductible permanent difference equivalent to approximately 10 percentage points of the effective tax rate.

Cash

The Group continues to operate with a strong balance sheet and disciplined capital allocation framework. Net cash at year end was £21.6 million (2024: £21.8 million, £20.9 million constant currency), and the Group remains debt free. The $9.5m working capital facility remains undrawn, providing additional liquidity headroom.

Net cash generated from operating activities was £5.6 million (2024: £17.1 million). Free cash flow, after taking account of capital expenditure was a net inflow of £1.2 million in 2025 (2024: £10.2 million).

Overall, the Group had net cash inflow of £0.3 million (2024: £10.8 million) during the year which included the completion of a £1.5 million share buy back programme,  £1.4 million of corporation tax payments (2024: £0.6 million) due to the Group’s pre tax profit in the prior period and continued investment in our platforms.    

The Group’s liquidity position provides flexibility to fund organic growth, product development and selective strategic opportunities.
 
Capitalised development costs

The Group continued its investment in product and platform development in 2025 to support the enablement of new features for our service in California, further expansion in the US as well as development of the platform in the UK. Costs are a combination of internal and external spend. Where such work is expected to result in future revenue, costs incurred that meet the definition of software development in accordance with IAS 38, Intangible Assets, are capitalised in the statement of financial position and amortised over three years. During the year the Group capitalised £4.4 million in respect of software development (2024: £6.9 million) with the reduction reflecting the Soluna platform being substantially completed in the prior year. Amortisation of capitalised development costs was £6.0 million (2024: £5.2 million).

Investment in product and development continues to be significant to the Group and we expect capitalisation levels to increase modestly in 2026 as the UK Soluna rollout progresses.

Capital expenditure

Software and product development costs aside, the Group’s ongoing capital expenditure requirements remain modest at £0.1 million (2024: £0.1 million).
 
Capital and reserves

The strength of the Group's balance sheet with net assets of £31.6 million (2024: £29.8 million), high levels of recurring revenue and positive cash generation from operating activities provide the Group with resilience and capacity to execute its strategic priorities, including US expansion, AI-enabled product development and continued clinical investment.

Dividend policy

As outlined in previous reports, 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 a dividend in respect of the year ended 31 December 2025 (2024: £nil) but may do so in future years.

Sanjay Jawa
Chief Financial Officer

 

Consolidated statement of profit and loss and other comprehensive income

For the year ended 31 December 2025

	Note	2025		2024
		£'000		£'000
Revenue	4	63,286		66,744
Cost of sales	5	(17,004)		(14,757)
Gross profit		46,283		51,987
Administrative expenses	5	(42,891)		(42,831)
Operating profit		3,392		9,156
Analysed as:
Adjusted EBITDA		11,334		15,754
Depreciation & amortisation	12, 13, 14	(6,197)		(5,376)
Share based payment expense	6	(1,107)		(1,222)
Foreign exchange movement	5	(638)		-
Operating profit		3,392		9,156
Other income	7	261		-
Interest income	8	718		702
Profit before tax		4,370		9,858
Tax	9	(1,762)		(1,824)
Profit after tax		2,608		8,034
Other comprehensive income/(expense)
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences		(291)		244
Total comprehensive income for the year		2,317		8,278
Profit per share - basic (£)	10	0.07		0.22
Profit per share - diluted (£)	10	0.07		0.21

 

Consolidated statement of financial position

As at 31 December 2025

	Note	31 December 2025		31 December 2024
		£'000		£'000
Assets
Non-current assets
Goodwill	11	511		511
Development costs	12	8,464		10,124
Right of use asset	13	-		20
Property, plant and equipment	14	180		266
Deferred tax	15	401		1,244
Total non-current assets		9,556		12,165
Current assets
Trade and other receivables	16	5,088		8,733
Contract assets	17	3,040		292
Cash and cash equivalents	18	21,580		21,841
Total current assets		29,708		30,866
Total assets		39,264		43,031
Liabilities
Current liabilities
Trade payables	19	(693)		(2,683)
Contract liabilities	20	(1,553)		(3,781)
Lease liability	13	-		(23)
Accruals and other creditors	19	(4,545)		(5,264)
Tax liabilities	19	(881)		(1,526)
Total current liabilities		(7,672)		(13,277)
Net current assets		22,036		17,589
Net assets		31,592		29,754
Equity
Share capital	21	1,835		1,834
Treasury shares	21	(1,088)		(17)
Share premium account	21	23,444		23,444
P&L reserve		8,577		5,955
Share-based payment reserve	21	3,021		2,444
Capital redemption reserve	21	115		115
Merger reserve	21	(4,104)		(4,104)
Translation reserve	21	(208)		83
Total equity		31,592		29,754

 

Consolidated statement of changes in equity

For the year ended 31 December 2025

	Share capital	Treasury shares	Share premium	Share based payment reserve	P&L reserve	Capital redemption reserve	Merger reserve	Translation reserve	Total Equity
Balance at 1 January 2024	1,825	-	23,444	2,142	(2,503)	115	(4,104)	(161)	20,758
Profit for the year	-	-	-	-	8,034	-	-	-	8,034
Other comprehensive income	-	-	-	-	-	-	-	244	244
Total comprehensive income	1,825	-	23,444	2,142	5,531	115	(4,104)	83	29,036
Transactions with owners:
Share options exercised	9	-	-	(424)	424	-	-	-	9
Share based payment charge	-	-	-	1,142	-	-	-	-	1,142
Treasury shares purchased	-	(17)	-	-	-	-	-	-	(17)
Deferred tax	-	-	-	(416)	-	-	-	-	(416)
As at 31 December 2024	1,834	(17)	23,444	2,444	5,955	115	(4,104)	83	29,754
Balance at 1 January 2025	1,834	(17)	23,444	2,444	5,955	115	(4,104)	83	29,754
Profit for the year	-	-	-	-	2,608	-	-	-	2,608
Other comprehensive income	-	-	-	-	-	-	-	(291)	(291)
Total comprehensive income	1,834	(17)	23,444	2,444	8,563	115	(4,104)	(208)	32,071
Transactions with owners:
Share options exercised	1	-	-	(415)	415	-	-	-	1
Share based payment charge	-	-	-	992	-	-	-	-	992
Treasury shares purchased	-	(1,483)	-	-	-	-	-	-	(1,483)
Sale of treasury shares	-	412	-	-	(401)	-	-	-	11
Deferred tax	-	-	-	-	-	-	-	-	-
As at 31 December 2025	1,835	(1,088)	23,444	3,021	8,577	115	(4,104)	(208)	31,592

 

The accompanying notes form part of the financial statements.

 

Consolidated cash flow statement

For the year ended 31 December 2025

	Note	2025		2024
		£'000		£'000
Cash flows from operating activities
Profit for the year		2,608		8,034
Adjustments:
Depreciation, amortisation and impairment	12, 13, 14	6,197		5,692
Income tax paid		(1,350)		(624)
Share based payment expense	6	1,107		1,222
Income tax recognised	9	1,762		1,824
Other income	7	(261)		-
Interest income	8	(718)		(702)
		9,345		15,446
Movements in working capital
Decrease/(Increase) in trade and other receivables	16	897		(1,600)
(Decrease)/Increase in trade and other payables	19, 20	(4,688)		3,241
Net cashflow from operating activity		5,554		17,087
Cash flows from investing activities
Purchase of property, plant and equipment	14	(72)		(120)
Additions to intangible assets	12	(4,381)		(6,887)
Interest income	8	718		702
Net cash used in investing activities		(3,735)		(6,305)
Cash flows from financing activities
Acquisition of treasury shares	21	(1,483)		-
Net cash from financing activities		(1,483)		-
Net increase in cash and cash equivalents		336		10,782
Foreign exchange adjustments		(597)		55
Cash and cash equivalents at the beginning of the year	18	21,841		11,004
Cash and cash equivalents at the end of the year	18	21,580		21,841