**Summary**
Checkit plc, an automated monitoring and operational intelligence platform, released its FY26 trading update on February 19, 2026, highlighting significant progress in profitability, cash generation, and revenue quality. Key achievements include
1. **Financial Performance**
Full-year Adjusted EBITDA reached break-even, exceeding market expectations, supported by ยฃ4.0m in annualized cost savings.
Positive Adjusted EBITDA of ยฃ0.5m in H2 FY26, with net cash of ยฃ3.0m at year-end, reflecting a cash-generative second half.
Annual Recurring Revenue (ARR) stood at ยฃ14.3m, down 1% year-on-year but up 2% at constant currency. Excluding a ยฃ0.4m reduction from a large US customer, underlying ARR grew by 5%.
Recurring revenue increased to 96% of total revenue, enhancing earnings quality and visibility.
2. **Operational Focus**
Management prioritized profitability, cash generation, and revenue quality, marking a significant inflection point for the Group.
Contract durations increased for approximately 25% of the revenue base, improving forward visibility.
3. **Outlook for FY27**
The Group enters FY27 with a lower cost base, improved operational discipline, and a strong pipeline.
Investment will focus on growth initiatives, including a new user interface and enhanced operational intelligence capabilities, while maintaining financial discipline.
4. **CEO Commentary**
Kit Kyte emphasized FY26 as a pivotal year, with a structural reset, EBITDA break-even, and strengthened recurring revenue quality. The company is well-positioned for growth in FY27 with a lower cost base and robust pipeline.
Overall, Checkit demonstrated resilience and strategic progress, setting a positive trajectory for future growth and shareholder value.
Below is the HTML table code comparing the financials and debt (net cash) year-on-year for Checkit PLC based on the provided text:
### Explanation:
- **Metrics**: The table includes key financial metrics such as Group Revenue, Recurring Revenue percentage, ARR, Constant Currency ARR, Adjusted EBITDA, and Net Cash.
- **Values**: The values for FY26 and FY25 are directly extracted from the provided text.
- **Percentage Change**: The percentage change is also taken from the text, reflecting the year-on-year comparison. This HTML table can be embedded into a webpage for clear and structured presentation of the financial comparison.