Checkit reported a modest revenue reduction for fiscal year 2026, with top-line sales falling 2% to £13.7 million, according to the company statement released Tuesday. Management attributed the decline primarily to lower non-recurring sales as the business shifted emphasis toward subscription-based revenue streams.
Despite the slight slide in revenue, the firm recorded a positive turn in adjusted EBITDA, which reached £0.3 million. That improvement followed £4 million in annualised cost savings realized through reductions in headcount and other operating expense cuts. The company nevertheless reported a net loss of £2.80 million for the period and an operating loss of £2.60 million.
Checkit reported gross profit of £9.90 million while disclosing operating expenses of £9.80 million for the year. The composition of revenue continued to move toward recurring sources, with recurring revenue representing 96% of total revenue by the end of the period.
Underlying annual recurring revenue (ARR) increased by 5% on a like-for-like basis, after excluding the impact of a single large US customer that reduced its utilisation of services. That adjustment highlights the company view that ARR growth was stronger when that customer-specific reduction is removed from the calculation.
On March 26, 2026, Checkit announced a Formal Sale Process that remains in progress. The company cautioned that there is no assurance any offers will be made or that any discussions will conclude with a sale.
Looking ahead to fiscal year 2027, Checkit plans to retire its legacy product and roll out a next-generation solution. The company said the move is intended to accelerate high-quality ARR growth and broaden penetration into enterprise accounts.
Summary
In FY2026 Checkit managed to convert cost savings into a positive adjusted EBITDA despite a small decline in revenue and continuing net and operating losses. The transition toward subscription revenue increased recurring revenue to 96% of the total, and management has launched a Formal Sale Process while preparing a product refresh in FY2027.