Revenue Decline#
Checkit, a UK-based operational intelligence platform, reported a 2% decline in revenue, totaling £13.7 million for the fiscal year 2026. This decrease was primarily due to a reduction in non-recurring sales, as stated in the company's recent announcement.
Profitability Through Cost Cuts#
Despite the revenue drop, Checkit achieved a positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of £0.3 million. This turnaround was largely attributed to £4 million in annual cost savings, which were realized through workforce reductions and lower operating expenses. However, the company still reported a net loss of £2.80 million and an operating loss of £2.60 million for the same period.
Shift to Recurring Revenue#
Checkit’s gross profit was reported at £9.90 million, while operating expenses were slightly lower at £9.80 million. Notably, the company has shifted its focus toward subscription-based models, with recurring revenue now making up 96% of total revenue. Additionally, underlying annual recurring revenue grew by 5%, excluding the effects of a major US customer reducing unused services.
Future Plans#
On March 26, 2026, Checkit announced a Formal Sale Process, which is still ongoing, though there is no guarantee that any offers will materialize. Looking ahead to fiscal year 2027, Checkit plans to retire its legacy product and introduce a next-generation solution. This strategy aims to enhance the growth of high-quality annual recurring revenue and broaden its reach within enterprise customers.