Kooth reports lower revenue, earnings for 2025

8th Apr 2026 12:27

(Sharecast News) - Kooth reported lower revenue and earnings for 2025 on Wednesday following a record prior year, but said it delivered strong strategic progress and expected continued growth as it expanded its US footprint.

The AIM-traded digital mental health provider said revenue for the year ended 31 December fell to £63.3m from £66.7m, reflecting foreign exchange movements, reduced product development revenues in California and delays in signing a contract with the state of Michigan, which would now contribute in 2026.

Annual recurring revenue declined to £60.6m from £66.4m, while net revenue retention on a constant currency basis was 96%.

Adjusted EBITDA came in ahead of expectations at £11.3m, compared with £15.8m in 2024, reflecting continued investment in growth initiatives, including user marketing in California.

The group ended the year with £21.6m in cash and no debt, after completing a £1.5m share buyback, and retains access to a $9.5m undrawn working capital facility.

Operationally, Kooth highlighted strong performance in the US, where its Soluna platform exceeded targets in California with more than 144,000 young people registered by year-end, equivalent to around one in 41 of the state's eligible youth population.

The service had established more than 1,400 institutional and community partnerships, and had been endorsed by state agencies and local authorities as part of broader behavioural health integration efforts.

It said independent research demonstrated the platform's impact, with 90% of users reporting that Soluna helped them access support, while 88% of those who had previously used urgent care reported fewer visits after using the service.

Evaluation by Northwestern University also reportedly found sustained improvements in psychological wellbeing.

Kooth said it had expanded its US presence to three states, securing a contract renewal in New Jersey and signing a new $2.6m agreement with Michigan after the period ended.

In the UK, the group said it maintained its market position and continues to contribute significantly to NHS mental health service usage in commissioned areas, while also securing new work with the Department for Work and Pensions.

The group said it had laid the foundations for long-term growth through its state alliance model and expanded capabilities following the acquisition of Kismet Health.

It also highlighted independent accreditation from organisations including URAC in the US and the British Association for Counselling and Psychotherapy.

Looking ahead, Kooth said it expected to scale its US operations further while launching Soluna in the UK in the second half of 2026, alongside continued investment in product development and ethical AI capabilities.

"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," said chief executive Kate Newhouse.

"With over a quarter-century of evidence and experience, we now provide access to mental health support to over 20m 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.

"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."

At 1143 BST, shares in Kooth were up 5.14% at 112.5p.

Reporting by Josh White for Sharecast.com.