Checkit posts H1 adjusted EBITDA profit of £0.3m

For best results when printing this announcement, please click on link below: RNS Number: 5321W Checkit PLC 28 September 2026 28 September 2026 Checkit plc (“Checkit”, the “Company” or the “Group”) Half Year Results for the Six Months Ended 31 July 2026 EBITDA profitable, focused and positioned for the next phase of growth Checkit plc (AIM: CKT), the intelligent operations platform for frontline-led organisations, announces its unaudited results for the six months ended 31 July 2026 (“H1 FY27”). The Group's management team will host a live webinar including an opportunity for questions at 14:00 (BST) tomorrow, 29 September 2026.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 09:00 BST on the day of the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Checkit via: Investors who already follow Checkit on the Investor Meet Company platform will automatically be invited. 9m loss), demonstrating the structural benefit of the Group’s cost reduction programme and operating leverage.

8m and 96%). 1m). 3m). 8m).

7m of annualised cost. Critically, it also removes a separate legacy technology estate and cost centre and will allow product and operational resources to be concentrated on one modern, cloud-based platform. The legacy product is reported as a discontinued operation. 3m outflow).

0m). Outlook The first-half results provide tangible evidence of Checkit’s stronger financial foundations. With 97% recurring revenue, a materially lower operating cost base and the simplification arising from the retirement of the legacy product and platform unification, the Group is increasingly well positioned to deliver operating leverage and sustainable growth. The Board has adopted a two-year value-creation framework centred on sustained adjusted EBITDA profitability, cash generation and progressively stronger ARR growth.

It establishes strategic objectives of achieving net revenue retention of 105—110% and gross revenue retention above 95%, compared with current levels of 102% and 94% respectively. Delivery will require disciplined investment in completing the unified platform and strengthening go-to-market execution to support future growth. The Board will balance this investment with continued financial discipline, with growth judged by its quality and capital efficiency as well as its rate.

Kit Kyte, Chief Executive Officer of Checkit, commented: “H1 FY27 marks an important inflection point for Checkit, with the benefits of the transformation undertaken over the past year now clearly reflected in our financial performance. We have moved from funding significant new product development programmes to an EBITDA-profitable business with 97% recurring revenue and a materially lower cost base. We also announced today the termination of the formal sale process that commenced earlier in the year. The process provided valuable external validation of the strength of our technology, customer proposition and position in regulated environments.

It also reinforced where we should concentrate our efforts. Our task now is straightforward: deepen our position in Medical, focus Retail investment on high-quality multi-site opportunities, complete the move to one cloud platform and continue to improve commercial performance. These priorities underpin our two-year value-creation framework, which will guide how we invest and grow the business with financial discipline. We enter this next phase as a simplified business: with differentiated technology, mission-critical customer use cases, high recurring revenue and a cost base capable of producing meaningful operating leverage.

” Notes 1 Adjusted EBITDA is earnings from operating activities before depreciation and amortisation, share-based payment charges and non-recurring or special items. 2 Annual Recurring Revenue (“ARR”) is the annualised value of contracted recurring revenue from subscription services at the period end, including committed annual recurring revenue not yet commenced. Constant currency comparisons use the exchange rates prevailing at 31 July 2026. 3 Net revenue retention ("NRR") is defined as the amount of recurring revenue from existing customers retained over the trailing year, excluding new wins in the last 12 months.

Gross revenue retention ("GRR") is defined as the amount of recurring revenue from existing customers retained over the period, excluding new wins or upsell/expansion in the period. 3m. This improvement was achieved alongside 4% growth in recurring revenue and a two percentage point increase in gross margin. The result establishes a strong starting point for the next phase.

Checkit is now operationally lean, and concentrated on markets where its technology addresses mission-critical requirements. We are no longer balancing investment across multiple technology estates. The FSP brought Checkit into detailed engagement with potential strategic and financial acquirers and tested the Company’s technology, customer proposition, market opportunity and financial model. Although the FSP did not result in any offers at a value the Board could recommend to shareholders, the due diligence undertaken by interested parties during the process yielded valuable intelligence.

Potential acquirers consistently recognised the strategic quality of Checkit’s integrated platform, its recurring revenue, blue-chip customer base and position in regulated markets. It also confirmed where management must now concentrate: commercial execution, growth in the highest-quality segments, completion of the platform unification and continued improvements in profitability. Those conclusions do not require a change of direction. They require tighter execution against a narrower set of priorities.

We will retain the financial discipline established through the restructuring of the cost base and invest selectively where we can see a clear path to durable ARR, improved retention and attractive returns on capital. Intelligent Operations Checkit provides an interface between the real world of sensors and enterprise quality-management systems. Hardware-led competitors can record conditions but generally lack embedded workflow and operational intelligence. Enterprise quality systems manage corporate documentation but do not own the live sensor estate or the frontline response to an excursion.

Checkit connects the two. Our platform monitors critical conditions, guides the action required when something changes and preserves the evidence needed for compliance and audit. That integrated operating layer is difficult to replace once embedded in daily work and is especially valuable where failures carry material financial, regulatory or patient-safety consequences. Focused Commercial Strategy Medical is our largest sector, accounting for 71% of revenues in H1 FY27, and is central to our growth strategy.

We have established positions in the UK NHS, US plasma collection, private hospitals, diagnostics and biotech. Our immediate opportunity is to deepen those positions through enterprise expansion, additional sites and applications, and selective entry into adjacent geographies and regulated markets where existing customer use cases transfer well. Our Retail strategy is focused primarily on premium multi-site customers in food production, contract catering, hospitality and senior living, where sensing and workflow are both operationally important and regulatory requirements support attractive retention and pricing.

Smaller fragmented opportunities with weaker economics will receive less attention in future. Bookings performance improved in the half. 8m. We intend to build on that progress through stronger pipeline qualification, disciplined enterprise selling, expansion within existing accounts and value-based pricing.

One Platform The legacy product relied on infrastructure shared with the Group’s core Medical offering. This constrained the Group’s ability to modernise the Medical platform and move to a unified technology architecture, limiting both the efficiency benefits of a single platform and the ability to introduce new capabilities across the Medical customer base. 6m but removed this constraint and materially simplified the Group’s technology estate. 7m of annualised cost and enables development resources to be concentrated on a single modern cloud platform.

The Group is now progressing the unification of its Medical and Retail technology on this platform, with Next-Generation Medical Monitoring the principal product priority for the rest of this financial year. It will combine medical-grade sensing with enhanced functionality designed to meet stringent regulatory and compliance requirements, particularly in the US, including electronic signatures and audit trails, digital calibration records, integrated task management and a complete alert lifecycle.

Existing Medical customers can retain their existing hardware while gaining a substantially improved software experience and access to workflow and analytics capabilities previously unavailable to them. Delivery is structured in four phases. Core Medical functionality designed to meet stringent regulatory and compliance requirements, together with the customer migration design, is targeted for completion by the end of October 2026. Operational management features, including calibration and operational qualification, and remaining feature parity are targeted for January 2027.

Parallel customer testing is then expected to begin from February 2027, followed by a phased migration over several quarters to reflect operational capacity and customers’ own process-change requirements. The Group expects to begin the go-to-market launch in the new calendar year. Completion of the unified platform will leave the Group with a single codebase across Medical and Retail. This should increase development speed, reduce duplicated R&D and infrastructure, improve operating efficiency, and provide a more consistent customer experience.

It will also broaden the range of software available to customers, creating greater opportunities for cross-sell. AI-enabled engineering is accelerating this work and improving development productivity; we are applying it to measurable delivery outcomes rather than treating AI as a separate proposition. 1m). 8m) and represented 97% of revenue.

1m), with gross margin improving to 69% (H1 FY26: 67%). The improvement reflects the higher proportion of recurring revenue and continued efficiencies in the delivery model. 9m loss). The adjusted EBITDA margin increased to 4% from negative 15%.

This demonstrates the operating leverage available as recurring revenue grows over a structurally lower cost base. 3m). 5m. 4m).

Its retirement was strategically important, removing a constraint on the modernisation of the core Medical platform, and enabling development resources to be focussed on the unified platform and the associated efficiency and commercial opportunities. 0m). 3m outflow in H1 FY26. 0m).

4m reduction in H1 FY26. A summary of H1 FY27 key financial performance metrics is shown below. 9) 240%. 4 - Net Revenue Retention 102% 101% 1% Gross Revenue Retention 94% 90% 4% Priorities for the Next Phase The Group’s priorities are clear: protect profitability and cash, improve commercial execution, complete the unified platform and concentrate investment on the markets where Checkit has the strongest competitive position.

Delivery against the Board’s two-year framework will not necessarily be linear, particularly as we invest in completing the platform unification and strengthening go-to-market execution. This investment will be carefully managed to protect cash generation while supporting opportunities capable of delivering durable ARR, stronger retention and attractive returns on capital. The Board believes this provides a clear and measurable basis for sustainable growth, progressively stronger cash generation and, ultimately, shareholder value. 8p The accompanying notes form an integral part of this consolidated interim financial information.

* Adjusted earnings before interest, tax, depreciation and amortisation “EBITDA” is calculated by taking operating profit and adding back depreciation and amortisation, share-based payment charges and non-recurring or special items. ** The comparative information for the year ended 31 January 2026 has been restated to reflect a discontinued operation. The restated presentation has not been audited. 4 The accompanying notes form an integral part of this consolidated interim financial information.