Half Year Trading Update
Kooth Plc reported a strong first half of 2026, with revenues expected to be £30.8 million, a slight decrease from £32.1 million in the prior year, attributed to planned tapering of California product development revenue and foreign exchange movements, partially offset by a new Michigan contract. The company anticipates Adjusted EBITDA to be between £5.0 million and £5.4 million, a significant increase from £1.6 million in the first half of 2025, driven by robust California user engagement. Kooth's balance sheet remains strong, with net cash of £23.1 million as of June 30, 2026. The company highlighted strong performance in California with 187,000 registrations and positive validation of its Soluna platform, while its UK market position remains solid with new initiatives.
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Kooth (AIM: KOO), a leading provider of digital mental health services, announces an unaudited trading update for the half year ended 30 June 2026.
Trading update
Celebrating its 25 year anniversary, Kooth continues to deliver vital digital mental health services to whole populations across the UK, California, Michigan and New Jersey, with a particular focus on teens and young adults.
Performance for the half year ended 30 June 2026 is in line with expectations. Revenues for the period are expected to be £30.8m (H1 2025: £32.1m), reflecting planned tapering of California product development revenue and a negative FX movement of £0.7m partially offset by revenues from a new contract with the State of Michigan. Adjusted EBITDA is expected to be £5.0m-£5.4m (H1 2025 £1.6m) reflecting strong California user engagement compared to the prior period in which Adjusted EBITDA had decreased in line with an accelerated investment in key areas of focus. Kooth's balance sheet remains very strong, with unaudited net cash as at 30 June 2026 of £23.1m (H1 2025: £15.3m).
In California, Kooth has now entered the fourth year of the contract and is continuing to demonstrate robust and consistent delivery, having exceeded performance targets with 187k registrations by the end of June 2026. The value of Soluna has been independently validated through both the California Department of Health Care Services' (DHCS) 2025 Impact Report and independent research from Northwestern University's Lab for Scalable Mental Health.
Reflecting Soluna's system-wide impact and the strength of partnerships with local communities, schools and partners, Soluna was also highlighted as a core element of California's Governor Gavin Newsom's Children and Youth Behavioral Health Initiative (CYBHI) in his recently published Legacy Report. This came alongside the announcement of a balanced budget for California across 2026-27 and 2027-28, providing a stable basis for planned Government spending going forward.
In the UK Kooth's market position remains strong, with recent Government recommendations calling for more flexible and preventative support for children and young people, particularly to improve participation rates in education and employment. The Company has recently launched an integrated employment and mental health support pathfinder programme in the West Midlands, and Soluna by Kooth is rolling out for young people in the UK as they return to school.
The Group's half year results for the six months to 30 June 2026 will be announced in September 2026.
Kate Newhouse, Chief Executive Officer of Kooth, said:
"Throughout the first half of 2026 we have continued to build on the strong foundations we established in 2025. The external validation of Kooth's services in California has reinforced the positive impact Soluna has on young people across California, with registrations continuing to grow as we embed into the State's healthcare and educational systems.
"As we look ahead to the next six months, we will continue to execute against our evolved strategy and State Alliance model to deliver sustainable growth for Kooth whilst being guided by our mission to build mentally healthier populations and make a tangible difference to young people."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.