Kooth’s revenue doubles in 2024

Driven by its work with the State of California, AIM-listed digital mental health business Kooth plc, achieved significant growth in FY24 (year ended 31st December 2024), doubling group revenue to £66.7m (2023: £33.3m). 

Gross profit for the year was £52.0m (2023: £25.9m), operating profit was £9.2m (2023: loss of £2.3m) and profit before tax was £8.0m (2023: loss of £2.0m). Adjusted EBITDA was £15.8m (2023: £2.3m), with increases in revenue and gross profit offset by Kooth’s investment in the US and higher administrative expenses. Management expects EBITDA growth, which was driven by the onboarding and ramp up of services in California, to return to ‘more typical levels’ in 2025. Cash and cash equivalents were £21.8m (2023: £11.0m). 

Although US revenue increased to £48.7m (2023: £14.2m), representing 73% of group revenue (2023: 43%), UK revenue decreased by 6% to £18.0m (2023: £19.1m). The situation in the UK was blamed on NHS budgetary pressures, with £2.0m of churn being offset by contract expansion upon renewal with other NHS clients. 

In October 2024, Kooth announced it had received communication from the State of Pennsylvania (where it is running a pilot study) exercising its right to terminate the contract. However, there was more positive news, with the company announcing pilot contracts with the State of New Jersey and Aetna Better Health in Illinois (the latter representing Kooth's first US private-sector partnership). 

It was an exceptional year for Kooth; however, as we have previously warned, the company’s reliance on its California contract makes it vulnerable to change. In October 2024, an article in the California Healthline publication regarding uptake of the service in the state (which Kooth stated was based on outdated information) and conflict of interest allegations contributed to a 50% drop in its share price. Kooth’s share price has fallen further in 2025; however, at the time of writing it was up 13% in today’s trading. 

Kate Newhouse, who is due to take over from Tim Barker as CEO in June 2025, has a good platform for growth, but recent success is almost entirely down to a single contract. Newhouse will need to focus on building resilience in the face of continued political uncertainty in the US (particularly concerning Medicaid funding) and expanding Kooth’s footprint in other markets. 

Posted by: Dale Peters at 09:46

Tags: results   nhs   health   USA   healthcare   mental+health