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KOO
Kooth PLC
420/1000 Overall fit
AI beneficiary 35% 42
Operating leverage 25% 50
Valuation 25% 30
Downside protection 15% 50
First-pass take
Digital mental health platform with 99% recurring revenue, but facing operational deterioration: ARR down 3.7% constant-currency, net profit -67% YoY, adjusted EBITDA margin compressed 580bps (23.7% → 17.9%). AI is strategic positioning (risk detection on proprietary dataset of 6M interactions) not revenue driver. Extreme customer concentration: 71% revenue from single customer (California state contract). Balance sheet strong (£21.6m net cash, no debt) but insufficient to offset revenue decline and concentration risk.
Flags
no-valuation-datacustomer-concentrationrevenue-declinemargin-compressionfcf-declinecontract-dependencydefensive