8th Apr 2026 11:23
(Alliance News) - Kooth PLC shares rose on Wednesday, after it reported lower revenue and earnings after a "record" previous year, although adjusted Ebitda surpassed expectations.
Kooth's stock was 4.2% higher at 111.50 pence late on Wednesday morning in London.
The London-based digital mental health services provider's pretax profit fell 56% to GBP4.4 million in 2025 from GBP9.9 million in 2024.
Adjusted earnings before interest, tax, depreciation and amortisation, which was also before share-based payment expenses and foreign exchange movements, fell 28% to GBP11.3 million from GBP15.8 million but was "ahead of expectations". Kooth said the decline reflected "continued investment in key growth drivers, including investment in direct user marketing in California in H1".
Revenue decreased 5.2% to GBP63.3 million from GBP66.7 million, but Kooth noted that 2024 was "a record year...in which revenues doubled".
"This figure reflects the impact of FX movements, a reduction in California product development revenues and delays in signing a [post-period USD2.6 million] contract with the State of Michigan, for which revenues will now be recognised in the current financial year," Kooth explained.
Kooth also noted a renewed contract in New Jersey and its ongoing "market-leading position in the UK". Meanwhile, in California, its Soluna service had over 144,000 young people registered by the end of the year, which Kooth said exceeded performance targets.
Looking ahead, Kooth's priorities include scaling its US footprint "with a sustained focus on embedding Soluna in California, New Jersey and Michigan," and launching Soluna in the UK, which it expects in the second half of 2026.
Kooth also highlighted its plans to continue investing in "ethical AI strategy and product development...benefiting from the structural advantage Kooth has in the current AI regulatory environment," and seek opportunities to "strengthen service offer and capabilities through strategic partnership or acquisition."
"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," commented Chief Executive Officer Kate Newhouse. "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 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."
By Emma Curzon, Alliance News reporter
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