Kooth (AIM:KOO) reported 2025 revenue of £63.3m, down from £66.7m in 2024, reflecting foreign-exchange headwinds, lower product development income from California and the delayed recognition of a State of Michigan contract that will be recognised in the current financial year.
Earnings (adjusted EBITDA) tottalled £11.3m (2024: £15.8m), and the group finished the year with £21.6m of cash and no debt, having completed a £1.5m share buyback in February and retaining an undrawn $9.5m working capital facility.
Annual recurring revenue fell to £60.6m (2024: £66.4m), with group net revenue retention on a constant currency basis at 96% (2024: 100%).
Management flagged increased investment in direct user marketing in California in H1 2025 as a deliberate growth expense and said the weaker top line masks progress on its strategic shift to state-scale contracts.
Strategically, Kooth said Soluna is becoming embedded in California’s behavioural health system.
The platform has established more than 1,400 institutional and community partnerships, reached over 144,000 young people and received endorsements from county and state agencies — including a Los Angeles County Board of Supervisors motion directing youth-serving departments to integrate Soluna. Independent evaluations, including work by The Lab for Scalable Mental Health at Northwestern University, reportedly show significant and sustained improvements in psychological wellbeing; internal surveys cited in the announcement say about 90% of users felt Soluna helped them get the support they needed and that urgent care visits fell for most prior users.
The company also disclosed US contract momentum: it renewed its New Jersey contract during the year and signed a new $2.6m contract with the State of Michigan after the period end. Kooth said it has embedded a State Alliance model as the primary route to long-term, sustainable growth and has expanded capabilities through the acquisition of Kismet Health. Kooth also highlighted independent accreditations from URAC in the US and BACP in the UK as validation of service quality.
In the UK, Kooth said it maintained a market-leading position, remaining one of the largest individual national contributors to NHS Mental Health Services Dataset access figures in commissioned areas and winning 14 new contracts, including services funded by the Department for Work and Pensions to help young people into employment, education and training.
Cash strength and balance-sheet discipline were emphasised: £21.6m of cash at year end (2024: £21.8m) and no debt. The company confirmed ongoing investment in product development, an ethical AI strategy, and plans to launch Soluna in the UK in H2 2026 to drive cross-market economies of scale and closer alignment with customer requirements.
The company included a defence of its longer sales cycles as part of a deliberate shift to higher-quality, state-wide contracts that demand upfront resource but offer broader reach and more durable funding over time.
"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." Kate Newhouse, Chief Executive Officer of Kooth, commented.
