Checkit plc (CKT) AI Stock Analysis

• Market Cap: £16.74M
• Dividend Yield: N/A
• Average Volume (3M): 205.59K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• Revenue Growth: 10.00%
• EPS Growth: 34.02%
• Country: UK
• Employees: 161
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 108,008,560
• 10 Day Avg. Volume: 179,610
• 30 Day Avg. Volume: 205,592
• PEG Ratio: 0.25
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.30
• P/FCF Ratio: -14.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): £18.90M

• Rating: 57 Neutral
• Price Target: 16.00p ▼(-23.81% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Checkit plc's overall score is driven by strong technical momentum and positive corporate events, despite challenges in profitability and valuation. The CEO and CFO's share purchases reflect confidence, but financial performance and valuation remain areas of concern.

Positive Factors

Recurring subscription revenue model

Checkit’s business is built on recurring software fees and platform access for frontline operations. That subscription model creates durable revenue visibility, encourages multi-year contracts and customer stickiness in multi-site operational clients, supporting predictable long-term cash generation and upsell opportunities.

Sustained revenue growth trend

Revenue has grown materially from £8.4m in 2022 to £14.1m in 2025 and the Fundamentals show 10% revenue growth. This sustained top-line expansion, alongside an improving gross profit margin, provides structural scale benefits and the potential to leverage fixed costs to improve margins over the medium term.

Management alignment via insider purchases

Publicised insider buys by the CEO and CFO indicate management has personal capital at risk, aligning incentives with shareholders. Such alignment supports disciplined capital allocation, long-term strategic focus, and can improve stakeholder confidence in execution of the recurring-revenue growth strategy over multiple reporting cycles.

Negative Factors

Negative operating and free cash flow

The company reports persistently negative operating and free cash flow, despite some improvement in free cash flow from 2024 to 2025. Ongoing negative cash generation erodes liquidity, forces reliance on external financing or equity issuance, and constrains the ability to invest organically or via M&A without diluting stakeholders.

Persistent unprofitability

Although revenue is growing, the company has persistent negative EBIT and net income and a negative net profit margin. Failure to convert top-line growth into sustainable operating profits limits retained earnings, increases reliance on financing, and raises questions about long-term unit economics and margin sustainability.

Declining equity ratio and weakening equity base

The balance sheet shows a low debt-to-equity ratio but a declining equity ratio and falling shareholders' equity over time. A shrinking equity cushion reduces resilience to losses, may narrow borrowing capacity if needed, and raises risk if negative cash flows or additional investments persist through the medium term.

Checkit plc Business Overview & Revenue Model

Company Description

Checkit plc provides cloud-based services through intelligent operations management platforms for deskless workforces in the United Kingdom and the Americas. The company offers software-as-a-service for connected workflow management, automated monitoring and building energy management, Internet of things, and operational insight-based products and services. It also provides web-based services for work management and automated monitoring. The company was formerly known as Elektron Technology plc and changed its name to Checkit plc in October 2019. Checkit plc was incorporated in 1948 and is headquartered in Cambridge, the United Kingdom.

How the Company Makes Money

Checkit plc generates revenue through a combination of software subscriptions, hardware sales, and service fees. The primary revenue stream comes from subscription-based models, where clients pay for access to Checkit's cloud-based platform, which provides operational insights and management capabilities. Additionally, the company earns income from selling IoT devices and sensors that integrate with its software. Checkit also offers professional services, including installation, training, and ongoing support, which further contribute to its earnings. Strategic partnerships with key industry players and integration with existing systems in customer operations enhance the company's market reach and revenue potential.

Checkit plc Financial Statement Overview

Summary

Checkit plc shows positive revenue growth but faces significant profitability and cash flow challenges. The balance sheet is stable with low leverage, but declining equity ratios and negative cash flows are concerning.

Income Statement

Checkit plc has demonstrated some growth in total revenue, increasing from £8.4 million in 2022 to £14.1 million in 2025, indicating a positive trajectory. However, the company is facing substantial challenges with profitability, as evidenced by persistent negative EBIT and net income over the years. The gross profit margin has improved, but the negative net profit margin reveals ongoing losses, which is a concern for financial health.

Balance Sheet

The company maintains a relatively healthy balance sheet with a low debt-to-equity ratio, reflecting conservative leverage. Stockholders' equity has decreased over time, but it remains positive, which is a good indicator of financial stability. The equity ratio has been declining, suggesting a reduction in asset backing by equity, which could be a potential risk if the trend continues.

Cash Flow

Checkit plc's cash flow situation highlights significant challenges, with negative operating cash flow and free cash flow in recent years. This indicates that the company struggles to generate sufficient cash from its core operations. Although there has been some improvement in free cash flow from 2024 to 2025, the overall cash flow remains negative, posing a risk to liquidity and financial flexibility.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	14.30M	14.10M	12.00M	10.30M	8.40M	13.20M
Gross Profit	9.50M	8.30M	8.00M	5.00M	2.70M	4.70M
EBITDA	-1.60M	-2.90M	-3.60M	-7.00M	-5.60M	-3.40M
Net Income	-3.10M	-3.60M	-4.50M	-12.30M	-6.80M	-4.90M
Balance Sheet
Total Assets	17.80M	19.90M	23.10M	27.40M	37.30M	24.30M
Cash, Cash Equivalents and Short-Term Investments	2.70M	5.10M	9.00M	15.60M	24.20M	11.50M
Total Debt	400.00K	600.00K	500.00K	600.00K	700.00K	500.00K
Total Liabilities	8.70M	8.80M	8.50M	8.50M	6.30M	6.70M
Stockholders Equity	9.10M	11.10M	14.60M	18.90M	31.00M	17.60M
Cash Flow
Free Cash Flow	-1.80M	-1.30M	-6.80M	-6.70M	-5.70M	-3.20M
Operating Cash Flow	-1.80M	-1.10M	-4.70M	-6.30M	-4.90M	-2.90M
Investing Cash Flow	-2.20M	-2.60M	-1.60M	-2.00M	-2.30M	82.70M
Financing Cash Flow	-300.00K	-200.00K	-300.00K	-300.00K	19.90M	100.00K

Checkit plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CKT, the sentiment is Negative. The current price of 21 is above the 20-day moving average (MA) of 17.73, above the 50-day MA of 18.96, and above the 200-day MA of 16.90, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 23.11 is Positive, neither overbought nor oversold. The STOCH value of 9.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CKT.

Checkit plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EYE	69 Neutral	£109.03M	41.31	4.88%	―	0.97%	-71.58%
NET	68 Neutral	£175.60M	46.99	9.59%	0.80%	22.80%	-32.13%
AOM	68 Neutral	£162.19M	-33.80	-2.20%	―	31.86%	-115.22%
SAAS	63 Neutral	£82.90M	23.49	-1.08%	2.00%	9.69%	-319.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GETB	60 Neutral	£34.72M	-10.45	―	―	1.73%	-68.87%
CKT	57 Neutral	£16.74M	-1.93	-29.25%	―	10.00%	34.02%

Checkit plc Corporate Events

Checkit Hits EBITDA Break-Even as Recurring Revenue Quality Improves

Checkit reported that for the year to 31 January 2026 it achieved break-even adjusted EBITDA, ahead of expectations, after delivering £4.0m of annualised cost savings and generating positive EBITDA and cash in the second half. While headline ARR slipped 1% to £14.3m, it rose 2% at constant currency and underlying ARR grew 5% excluding a previously disclosed reduction from a large U.S. customer.

Total revenue edged down 2% to £13.7m as non-recurring income fell, but recurring revenue increased to 96% of the total, with longer contract durations enhancing revenue quality and visibility. Entering FY27 with a materially lower cost base, stronger operational discipline and a robust pipeline, the company plans to shift investment toward growth initiatives on its core platform, including a new user interface and enhanced operational intelligence capabilities, while maintaining tight financial control.

The most recent analyst rating on (GB:CKT) stock is a Hold with a £18.00 price target. To see the full list of analyst forecasts on Checkit plc stock, see the GB:CKT Stock Forecast page.

Checkit CEO Increases Stake with Purchase of Additional Shares

Checkit plc has disclosed that its Chief Executive Officer, Kit Kyte, purchased 22,935 ordinary shares in the company on 19 December 2025 at 21.8 pence per share, increasing his total beneficial holding to 1,878,870 shares, or about 1.73% of the issued share capital. The director dealing, carried out on the London Stock Exchange’s AIM market, modestly strengthens management’s equity stake, a move often interpreted by investors as a sign of confidence in the company’s prospects and alignment with shareholder interests.

The most recent analyst rating on (GB:CKT) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Checkit plc stock, see the GB:CKT Stock Forecast page.

Checkit CEO Increases Stake with Fresh Share Purchases

Checkit plc has disclosed that its chief executive officer, Kit Kyte, has increased his stake in the company through the purchase of 182,137 ordinary shares over two days at just over 20 pence per share, bringing his total holding to 1,855,935 shares, or about 1.71% of the company’s issued share capital. The move signals greater personal financial commitment from the CEO and may be viewed by investors as a vote of confidence in the company’s prospects and the value of its automated monitoring platform within its target markets.

The most recent analyst rating on (GB:CKT) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Checkit plc stock, see the GB:CKT Stock Forecast page.

Checkit CEO Increases Stake with Further Share Purchases

Checkit plc has disclosed that its chief executive, Kit Kyte, has increased his holding in the company with two on-market purchases totalling 182,137 ordinary shares over 17 and 18 December at around 20 pence per share. Following these transactions, Kyte now holds 1,855,935 shares, equivalent to approximately 1.71% of Checkit’s issued share capital, a move likely to be viewed by investors as a sign of management confidence in the company’s prospects.

The most recent analyst rating on (GB:CKT) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on Checkit plc stock, see the GB:CKT Stock Forecast page.