Kooth (KOO) AI Stock Analysis

• Market Cap: £49.00M
• Dividend Yield: N/A
• Average Volume (3M): 141.76K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.62
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 593
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.00
• Shares Outstanding: 36,032,154
• 10 Day Avg. Volume: 194,228
• 30 Day Avg. Volume: 141,758
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 3.76
• 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: £430.00
• Price Target Upside: 273.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 156.00p ▲(35.65% Upside)

The score is driven primarily by strong financial performance in 2024 (growth, profitability, and free-cash-flow strength with very low leverage). Technicals reduce the score due to overbought signals and the share price still below the 200-day average, while valuation is moderately supportive based on a mid-range P/E and no dividend data.

Positive Factors

2024 revenue and margin improvement

A material step-change in 2024 revenue and margins signals the business can convert scale into profitable operations. Sustained higher margins improve reinvestment capacity, support win/renewal economics for commissioned contracts, and strengthen long-term earnings power if execution persists.

Robust cash generation and FCF

Strong operating and free cash flow in 2024 provides durable financial flexibility: funds investment in product, supports working-capital needs tied to contract timing, and reduces reliance on external financing, improving the company’s ability to scale services and endure procurement cycles.

Very conservative balance sheet

Extremely low leverage and rising equity reduce financial risk and increase optionality for bidding on public contracts or funding product development. A strong balance sheet supports stability through multi-year procurement cycles and cushions against revenue timing variability.

Negative Factors

Earnings and cash-flow volatility

Historic swings between losses and the 2024 rebound indicate structural exposure to timing of contract wins, onboarding costs, and utilization. Persistent volatility makes long-term planning and forecasting harder, raising execution risk around renewals and sustained profitability.

Concentration in public-sector commissioned contracts

Heavy reliance on public-sector commissions exposes revenue to procurement cycles, budgetary constraints, and renewal risk. Long sales cycles and concentrated customers can limit pricing flexibility and make growth lumpy, constraining predictable, diversified revenue expansion.

Limited revenue diversification

Lack of meaningful alternative channels beyond commissioned contracts restricts scalability and resilience. Without diversified income streams, the company’s growth and margin expansion depend on winning and renewing public contracts, increasing exposure to a single demand channel.

Kooth Business Overview & Revenue Model

Company Description

Kooth plc, together with its subsidiaries, provides digital mental health services to children, young people, and adults in the United Kingdom. It operates an online platform that offers various therapeutic support tools and interventions, including self-help tools; and a community with a library of peer and professional created content, as well as provides online counselling and support services. The company was founded in 2001 and is based in London, the United Kingdom.

How the Company Makes Money

Kooth Financial Statement Overview

Summary

Strong 2024 step-change: revenue growth accelerated to 23.21%, margins improved materially (EBIT 13.72%, net 12.04%), and cash generation was robust (FCF ~17.7m; OCF ~1.34x net income) with minimal leverage. Main risk is durability given prior multi-year earnings and cash-flow volatility.

Income Statement

Revenue growth has been strong, accelerating to 23.21% in 2024, and profitability improved materially: EBIT margin rose to 13.72% and net margin to 12.04% (from losses in 2022–2023). Gross margins are consistently high (~77–78% in 2023–2024), supporting scalable economics. The main weakness is volatility in the earnings trajectory, with several loss-making years prior to the sharp 2024 rebound.

Balance Sheet

The balance sheet is very conservatively financed, with minimal debt (2024 debt-to-equity ~0.001) and a growing equity base (equity increased to ~29.8m in 2024 from ~20.8m in 2023). Profitability on equity is strong in 2024 (ROE ~27%), reflecting improved earnings power. A key watch item is that prior years showed negative ROE, indicating returns have not been consistently strong across the cycle.

Cash Flow

Cash generation is a major strength in 2024, with operating cash flow of ~17.8m and free cash flow of ~17.7m, and very strong free cash flow growth (110.77%). Cash conversion is solid: operating cash flow is greater than net income (about 1.34x), and free cash flow is roughly in line with net income (~0.99x). The main weakness is variability—cash flow was much lower in 2023 and free cash flow was negative in 2020–2021.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.34M	66.74M	33.34M	20.12M	16.68M	13.01M
Gross Profit	39.54M	51.99M	25.86M	13.86M	11.59M	7.92M
EBITDA	8.98M	14.53M	1.51M	1.32M	1.65M	-133.00K
Net Income	2.86M	8.03M	-169.00K	-716.00K	-310.00K	-1.48M
Balance Sheet
Total Assets	35.21M	43.03M	30.68M	16.14M	13.78M	13.46M
Cash, Cash Equivalents and Short-Term Investments	15.26M	21.84M	11.00M	8.49M	7.08M	7.82M
Total Debt	0.00	23.00K	44.00K	68.00K	0.00	17.00K
Total Liabilities	7.80M	13.28M	9.93M	5.62M	2.81M	2.60M
Stockholders Equity	27.40M	29.75M	20.76M	10.52M	10.97M	10.85M
Cash Flow
Free Cash Flow	6.01M	17.67M	1.58M	1.33M	-744.00K	-1.25M
Operating Cash Flow	6.11M	17.79M	1.87M	4.38M	1.85M	360.00K
Investing Cash Flow	-4.99M	-6.30M	-8.71M	-3.05M	-2.60M	-1.61M
Financing Cash Flow	0.00	0.00	9.39M	81.00K	0.00	8.85M

Kooth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KOO	76 Outperform	£49.00M	17.50	10.86%	―	―	―
IXI	58 Neutral	£10.43M	-6.05	-15.57%	―	13.32%	55.07%
OPT	53 Neutral	£190.87M	54.16	―	―	―	―
COG	52 Neutral	£16.76M	-9.02	-68.57%	―	-30.77%	-6.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TRLS	51 Neutral	£1.53M	-0.29	-56.95%	―	―	―

Kooth Corporate Events

Kooth Buoyed by US Contract Wins and California Momentum as Profitability Beats Expectations

Kooth expects 2025 revenues of £63.3m, slightly below the prior year largely due to foreign exchange impacts and the timing of a US state contract, but anticipates adjusted EBITDA to come in ahead of market expectations thanks to disciplined cost control and front-loaded California marketing spend. The group has secured a new $2.6m one-year US state contract for its Soluna platform covering up to 100,000 students, renewed its New Jersey deal, and is reporting strong operational traction in California, where user registrations, engagement metrics and endorsements from local authorities such as Los Angeles County underline its growing role in youth mental health provision; alongside a solid UK pipeline and planned 2026 UK launch of Soluna, the company says it enters 2026 with a strong cash position and a strategy geared toward sustainable, system-integrated growth.

The most recent analyst rating on (GB:KOO) stock is a Buy with a £131.00 price target. To see the full list of analyst forecasts on Kooth stock, see the GB:KOO Stock Forecast page.

Kooth Wins $2.6m US State Deal to Deliver Digital Mental Health Support to 100,000 Students

Kooth has secured a one-year, $2.6 million contract with an undisclosed US state to provide digital mental health services to up to 100,000 students aged 13-18 through its Soluna platform. The deal, to be delivered using Kooth’s existing workforce supplemented by in-state counsellors, expands the group’s US presence to three states alongside California and New Jersey, and gives the company a broad foothold for advocacy and partnership-building under its “State Alliance Model,” with the potential to unlock further funding and targeted support, strengthening its strategic position in the growing US youth mental health market.

The most recent analyst rating on (GB:KOO) stock is a Buy with a £127.00 price target. To see the full list of analyst forecasts on Kooth stock, see the GB:KOO Stock Forecast page.

Kooth PLC Exercises Share Options and Updates Voting Rights

Kooth plc, a prominent digital mental health service provider, announced the transfer of 10,393 ordinary shares to meet the exercised share options under its Long Term Incentive Plan. Following this transfer, the company’s total voting share count is 36,032,154. This update impacts shareholder calculations and reflects the company’s abiding commitment to transparency and operational governance.

The most recent analyst rating on (GB:KOO) stock is a Buy with a £430.00 price target. To see the full list of analyst forecasts on Kooth stock, see the GB:KOO Stock Forecast page.

Kooth Expands US Presence with Acquisition of Kismet Health’s Telehealth Platform

Kooth has acquired Kismet Health’s telehealth platform to expand its digital mental health services for children aged 5-12, particularly in rural areas of the US. This acquisition aligns with Kooth’s strategy to broaden its capabilities and reach, integrating Kismet’s innovative technology and team to enhance service delivery without altering its financial expectations.

The most recent analyst rating on (GB:KOO) stock is a Buy with a £2.60 price target. To see the full list of analyst forecasts on Kooth stock, see the GB:KOO Stock Forecast page.

Kooth plc Transfers Treasury Shares to Satisfy Employee Options

Kooth plc has transferred 10,101 ordinary shares from its treasury to satisfy share options exercised by employees under the Company’s Long Term Incentive Plan. This transaction adjusts the company’s issued ordinary share capital to 36,694,683 shares, with 36,021,761 shares holding voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s rules.

The most recent analyst rating on (GB:KOO) stock is a Buy with a £2.60 price target. To see the full list of analyst forecasts on Kooth stock, see the GB:KOO Stock Forecast page.