28th Jul 2025 13:38
(Alliance News) - Kooth PLC on Monday said trading remained in line with expectations in the first half of 2025, and it maintained a positive outlook on US business.
The London-based firm offers digital mental health services and has contracts with the Californian state government as well as the NHS.
Kooth said spending on marketing, partnerships and commercial activity increased as planned in the the six months that ended June 30, and expects to moderate marketing expenses in the second half.
Despite budget cuts to Medicaid by the US government, the firm maintained: "Youth mental health remains a priority at state level, where demand continues to outstrip supply."
Kooth remains optimistic of uptake in California, as healthcare providers "seek innovative solutions to enable earlier intervention and reduce downstream costs". Around 128,000 users have registered on its Soluna platform since January 2024, and Kooth expects to meet state registration targets for 2025.
The firm said plans are underway to introduce Soluna to the UK, where business "remains steady", though the NHS and public sector more broadly continue to battle spending restrictions.
"The publication of the government's 10-year health plan for England and the multi-year spending review - which commit to extending digital access to services, prioritising mental health and increasing NHS funding - offer a level of encouragement for the future," Kooth noted.
The company's net cash was GBP15.1 million at June 30, down from GBP21.8 million at December 31, which Kooth said reflects increased spending in California and a USD1.5 million buyback scheme. Kooth also noted that revenue and earnings before interest, tax, depreciation and amortisation were impacted by a stronger sterling value against the US dollar.
Kate Newhouse, who was promoted in June to chief executive from chief operating officer, said the company was "well positioned to achieve our registration targets and capitalise on growth opportunities in the second half of the year which...ensures we can target sustainable and impactful long-term growth."
Kooth shares were down 12% at 160.00 pence on Monday afternoon in London and have fallen 51% over the past 12 months.
By Holly Munks, Alliance News reporter
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