Kooth (AIM:KOO), the AIM-listed digital mental health services provider, expects adjusted EBITDA of £5m to £5.4m for the half year ended 30 June, up sharply from £1.6m in the first half of 2025.
Revenue is expected to come in at £30.8m, down from £32.1m a year earlier, reflecting a planned tapering of California product development revenue and a £0.7m negative currency movement, partly offset by a new contract with the State of Michigan.
The prior-year period had seen adjusted EBITDA fall as Kooth accelerated investment in key focus areas; this year's rebound reflects stronger user engagement in California.
Unaudited net cash stood at £23.1m at the period end, up from £15.3m a year earlier.
Kooth's California business, delivered under its Soluna brand, is now in the fourth year of its state contract and exceeded performance targets with 187,000 registrations by the end of June.
The California Department of Health Care Services' 2025 Impact Report and research from Northwestern University's Lab for Scalable Mental Health both validated the programme's impact, and Governor Gavin Newsom's Legacy Report cited Soluna as a core element of the state's Children and Youth Behavioral Health Initiative, alongside a balanced California budget for 2026-27 and 2027-28.
In the UK, Kooth has launched an integrated employment and mental health pathfinder programme in the West Midlands, and is rolling out Soluna by Kooth for young people returning to school.
"Registrations continuing to grow as we embed into the State's healthcare and educational systems", chief executive Kate Newhouse said.
Half-year results are due in September.
News Intelligence what this means for the company
Kooth's adjusted EBITDA more than tripled to £5.0–5.4m in H1 2026, driven by stronger user engagement in California and disciplined cost management after prior-year investment acceleration. Revenue declined 4% year-on-year to £30.8m, but the margin expansion and £7.8m net cash increase (to £23.1m) signal operational leverage kicking in as the Soluna California contract matures into its fourth year with 187,000 registrations and external validation from state health authorities and Northwestern University research.
The company is transitioning from growth-at-all-costs to profitable scale: EBITDA tripling while revenue contracts slightly suggests unit economics are improving and the California platform is moving toward sustainable contribution. The £23.1m cash position and positive operating leverage reduce near-term funding risk, though the revenue decline and reliance on California contract renewal (now in year four) remain key watch points for H1 results in September.
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