REG - Bango PLC - Bango FY25 Final Results
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RNS Number : 9213B Bango PLC 27 April 2026
BANGO PLC
Full Year Results for the year ended 31 December 2025
Cambridge, UK, 27 April 2026 - Bango (AIM: BGO), today announces its full
year audited results for the 12 months ended 31 December 2025 and provides an
update on current trading and outlook for 2026.
FY25 Financial overview:
FY25 FY24 YoY Change
Revenue
Payments segment revenue(1) $30.0M $35.2M -15%
Subscriptions segment revenue(2) $22.2M $18.2M +22%
Total revenue $52.2M $53.4M -2%
Annual Recurring Revenue (ARR) (3) $18.2M $14.0M +30%
Net Retention(4) 117% 125%
Adj. EBITDA(5) $16.4M $15.3M +7%
Cash EBITDA(6) $2.3M ($0.2) +$2.5M
Net (debt)/cash at 31 December(7) ($9.2M) ($1.8M) ($7.4M)
Highlights:
High quality recurring revenue growth
· ARR grew 30% to $18.2M (FY24 : $14.0M) with NRR of 117% reflecting the
continued growth in existing customers and zero churn among live customers.
· 12 new Digital Vending Machine® (DVM™) customer wins in 2025; DVM customers
now total 39 (FY24 : 27).
· Active subscriptions managed by the DVM increased by almost 60% year-on-year,
to 24M.
· Over 130 subscription services connected to the DVM.
· DVM customers include 7 of the top 8 Telcos in the US. New customers secured
in Japan, South Korea, Turkey and South Africa together with a leading
European bank operating in 24 countries.
· Launched a fully integrated Super Bundling solution, enabling customers to
build and manage a next-gen subscriptions hub that delivers sophisticated,
multi-product consumer bundles.
Strengthening financial profile
· $2.5M increase in Cash EBITDA to $2.3M (FY24 : ($0.2M))
· Balance sheet strengthened with an enhanced loan facility from NHN and a $15M
Revolving Credit Facility (RCF) with NatWest.
· Completed the migration of the remaining DOCOMO Digital routes from the
Frankfurt data center to the cloud.
· Gross margin expansion of greater than 600 bps to 84% (FY24 : 78%)
· Permanent headcount reduced from 219 at the end of FY24 to 164 at the end of
FY25 while maintaining an employee engagement score of over 80%.
· Core administrative expenses(8) reduced by $2.9M year-on-year. These savings
were achieved despite adverse foreign exchange cost headwinds, compared with
FY24, of approximately $0.9M.
· R&D capex reduced by 11% to $13.6M (FY24 : $15.3M).
Increased disclosure
Segmental reporting introduced from FY26. Proforma FY25 information below(9).
FY25 Payments segment(1) Subscriptions segment(2)
Adj. EBITDA $13.7M $2.7M
Cash EBITDA $10.9M ($8.7M)
Current trading and outlook
Trading in FY26 has started well with 3 new DVM customer wins (1 contracted)
and continued strong expansion from existing customers. Revenue for Q1 FY26
was up 13% year-on-year and Adjusted EBITDA increased 39%, through a
combination of higher quality revenue and the annualized effect of the cost
reductions implemented in FY25.
The Board has taken the decision to intentionally shift away from legacy
low-margin payment routes, resulting in modest revenue headwinds but a
material improvement in the quality of earnings. The delay of the Q4 FY25 DVM
opportunities (referenced in the Trading Update issued on 20 Jan 26) caused by
extended customer processes, have not yet been signed with discussions
continuing in Q2 FY26 (the customers' new fiscal year).
While Bango has experienced a strong start to the year, the recent
developments in the Middle East have led to the macroeconomic and geopolitical
backdrop becoming more uncertain. This has not impacted Q1 however, the Board
is cognizant of the potential further impact to customer processes and sales
cycles. The Board remains confident in the medium-term growth prospects,
supported by a strong pipeline of opportunities and the positive start to the
year and expect the Subscriptions segment to generate positive Cash EBITDA in
FY27.
Notes
(1) Payments segment revenue concerns Direct Carrier Billing (DCB) and wallets
where revenue is derived by charging a percentage of the retail price paid by
the consumer and one-off fees.
(2) Subscriptions segment revenue includes all Digital Vending Machine®
(DVM) license and support fees, one-off DVM fees, fees from bundling which are
charged as a percentage of the retail price and pre-stocked margin, and
revenue from Bango Audiences (discontinued in Q1 2024).
(3)Annual Recurring Revenue is the expected annual revenues to be generated in
the next 12 months based on contracted revenues recognized as at 31 December
2025.
(4)Net Revenue Retention is a measure of the retention and expansion of
revenue from existing customers over the previous 12 months and is calculated
by dividing the ARR from existing customers at the end of a period by the ARR
from those same customers at the beginning of the period.
(5)Adjusted EBITDA is earnings before interest, tax, depreciation,
amortization, exceptional items, and share-based payment charge.
(6)Cash EBITDA is Adjusted EBITDA less net capital expenditure.
(7)Net debt is borrowings less cash and cash equivalents plus short-term
investments.
(8)Core administrative expenses is administrative costs before exceptional
items, share-based payment charge, capitalized R&D expenses and
depreciation and amortization.
(9)Proforma segmental profitability reporting is unaudited for FY25.
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU)
No.596/2014. Upon the publication of this announcement, this inside
information is now considered to be in the public domain. The person
responsible for making this announcement on behalf of Bango is Paul Larbey,
Chief Executive Officer.
Investor Presentation:
Bango is hosting a presentation, open to all existing and potential
shareholders, at 10.30am BST today. Investors can sign up to Investor Meet
Company for free and register to join the call here:
https://www.investormeetcompany.com/bango-plc/register-investor
(https://www.investormeetcompany.com/bango-plc/register-investor)
Bango CEO, Paul Larbey, said:
"2025 marked a pivotal year for Bango as we delivered strong growth in
recurring revenue and reached a key financial inflection point with positive
cash EBITDA. This performance reflects continued momentum in our Digital
Vending Machine, where active subscriptions grew significantly and drove a 30%
increase in Annual Recurring Revenue.
We expanded the DVM's global footprint with a record number of new enterprise
customers, deepened our relationships with leading Telcos, and expanded in
verticals such as financial services, reinforcing our position at the center
of the growing subscriptions bundling economy. At the same time, the payments
segment continued to generate strong cash flows, supporting investment in our
high-margin, DVM platform.
Profitability improved materially during the year, driven by a combination of
revenue mix shift towards higher-margin DVM revenues and the operational
efficiencies delivered across the business. These improvements enabled Bango
to generate positive cash EBITDA and establish a more scalable and efficient
operating model to support future growth.
With a strong pipeline, increasing revenue visibility and the operational
efficiencies delivered during 2025 now embedded, Bango enters 2026 with good
momentum. While we remain mindful of macroeconomic uncertainty affecting the
timing of some opportunities, demand for bundling remains strong. With a
continued focus on long-term shareholder value, we are well positioned to
accelerate profitable growth and cash generation as we scale the DVM and
execute on our strategy."
ENDS
Engage with the Bango management team directly by asking questions, watching
video
summaries and seeing what other shareholders have to say. Navigate to
our interactive Investor hub here: https://bangoinvestor.com/
(https://bangoinvestor.com/link/8r6N0r)
For further information, please contact:
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We encourage all investors to share questions on this announcement via our
investor hub
Bango PLC +44 1223 617 387
Paul Larbey, CEO
Matt Wilson, CFO
+44 20 7496 3000
Singer Capital Markets (Nominated Adviser and Joint Broker)
Jen Boorer
Daniel Ingram
Carl Diebitsch
+44 20 7523 8000
Canaccord Genuity (Joint Broker)
Simon Bridges
Harry Gooden
George Grainger
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About Bango
Bango enables content providers to reach more paying customers through global
partnerships. Bango revolutionized the monetization of digital content and
services, by opening-up online payments to mobile phone users worldwide.
Today, the Digital Vending Machine® is driving the rapid growth of the
subscriptions economy, powering choice and control for subscribers.
The world's largest content providers, including Amazon (NASDAQ: AMZN), Google
(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) trust Bango technology to reach
subscribers everywhere.
Bango, where people subscribe. For more information,
visit www.bangoinvestor.com (http://www.bangoinvestor.com/)
Chair statement
2025 represented a year of operational and strategic success and the delivery
of positive cash EBITDA, an important financial inflection point. Bango
continues to successfully transition its business mix, accelerating ARR growth
through the market-leading Digital Vending Machine® (DVM) subscription
bundling platform, while simultaneously focusing on cash generation in the
core payments segment. In doing so, I believe we have laid a strong foundation
for a successful future.
Market developments and Bango strategy
The global subscription economy is undergoing a structural shift as consumers
increasingly maintain multiple subscriptions across video, music, gaming,
productivity, fitness and lifestyle services.
Many consumers experience the complexity and cost of managing and paying for
numerous individual subscriptions. This is accelerating demand for
subscription bundling, where multiple services are combined into simple
cost-effective consumer-centric packages or hubs.
Telecommunications operators are emerging as natural distribution hubs for
this new model. Telcos already maintain consumer relationships with billions
of customers, operate trusted billing platforms and engage with customers
frequently through their connectivity services. By bundling digital
subscriptions alongside connectivity, Telcos simplify the consumer experience
and improve value for money, while increasing customer loyalty and lifetime
value.
For subscription providers, Telco bundling offers an efficient route to
market, enabling access to large customer bases with lower acquisition costs
and improved retention.
The investment we have made in our platform over recent years makes Bango
extremely well positioned to sit at the heart of this structural
transformation. The DVM is a modern, highly scalable platform that streamlines
complex ecosystem interactions.
The DVM is the foundation of a multi-year platform strategy generating durable
network effects. The Board remains confident, based on customer traction to
date and a good pipeline of new Telcos and additional channels, that the DVM
addresses a clear market need and differentiates Bango as a provider of growth
enabling infrastructure.
Board priorities
I am pleased to report measurable success against each of the three core
priorities I set out in last year's Chair's report:
(1) Demonstrating clear financial progress:
2025 marked a significant financial turning point for the Group. Gross margins
expanded to 84%, demonstrating the team's success in building out a
high-margin, scalable, "platform economics" based business model. Bango
achieved its goal of positive Cash EBITDA, $2.3M, representing an improvement
of $2.5M from 2024, reflecting disciplined cost management and increased
operational efficiency resulting from the conclusion of the migration of
DOCOMO Digital customers to the Bango cloud-based payments infrastructure.
The balance sheet was strengthened by the establishment of two important
financing arrangements. Long-standing strategic investor NHN Corporation
provided a term loan that reflects its continued support for Bango's long-term
strategy and confidence in the development of the DVM. In addition, NatWest
Group agreed a $15M revolving credit facility, providing flexible access to
working capital and reinforcing our financial resilience.
Together these facilities provide Bango with a more robust and flexible
capital structure, enabling an acceleration in profit margin expansion while
supporting operational stability and prudent financial management.
Bango entered 2026 with a robust cash generating portfolio of predictable
transactional payment routes and fast-growing recurring revenue driven by the
growth of subscription bundling.
(2) Expanding leadership in subscription bundling:
The DVM is becoming the industry standard for subscription bundling. A
powerful indicator of Bango leadership is that all but one of the top 8 Telcos
in the US, the biggest subscription market, have adopted the DVM. Over 2025,
Bango saw a 60% growth in active subscriptions, and zero churn from live DVM
customers. Major new channel partners added during the year in the US, Japan,
and South Korea and a growing pipeline of new opportunities are expected to
maintain that upward momentum in the coming years.
This market-leading position with Telcos is an important reason that the
leading providers of subscription services are attracted to the DVM - it helps
them find more subscribers - a clear demonstration of the network effect.
(3) Strengthening competitive barriers:
The Bango DVM gains strength from the network effect. Every new subscription
service onboarded brings more value for the existing Telcos and each Telco
that starts bundling with the DVM brings new opportunities for all
subscription providers. Partnerships and technology added to the platform
benefit the whole community.
The launch of new automated onboarding and migration tools along with tools to
manage the full lifecycle of the subscription has made it easier for partners
to join - and harder for them to leave.
The platform-based strategy is working. Competition from traditional
integrators or internal Telco teams remains, but the competitive strength of
DVM continues to deepen, increasing the pressure for internal projects to
migrate to a standard platform.
AI is accelerating the pace at which software can be developed and tested. For
the DVM, this means faster onboarding of new partners and quicker deployment
of new products into the ecosystem. AI streamlines DVM adoption, and therefore
enhances its fundamental competitive advantage: access to an established and
commercially active network of Telcos and subscription providers. As
integration becomes easier, the value of participating in the DVM ecosystem
increases.
Creating and delivering value for shareholders
A top priority for the Board is creating long-term shareholder value. This is
achieved by developing distinctive technology for our target markets and
building a flexible, scalable platform business with a diverse mix of
customers and geographies, while carefully managing costs and investment.
(1) Platform economics and margin growth
Detailed in the financial report, these increasingly demonstrate the emergence
of the platform economics enabled by the DVM that Bango is seeking to achieve.
Maintaining and improving this model with Bango innovations in technology and
products around the platform is core to creating exceptional business value.
(2) Operational efficiency and the DOCOMO integration
In 2025, Bango successfully completed the migration of the valuable customers
on the legacy DOCOMO Frankfurt data center systems over to Bango cloud-based
infrastructure, this reduced operational complexity and will deliver
substantial and sustained savings going forward. The drive to reduce
complexity and leverage technology will continue to be a focus for the Bango
team.
(3) Cash generation and capital allocation
In payments, Bango is a market leader, delivering stable, predictable revenues
with Adjusted EBITDA margins of around 40%. The strong cash conversion from
this segment, combined with reducing cost, supported the important swing to
positive Cash EBITDA in 2025. Bango is now well positioned to sustain
deleveraging alongside disciplined investment in the DVM, driving increasing
shareholder value.
Governance and Board
Strong governance is essential as Bango continues its growth. The Board
remains engaged in ensuring that governance structures, risk management, and
oversight processes evolve in line with the Bango strategy.
Key areas of Board attention are detailed in this report and include a
strengthening of the risk management framework, operational resilience,
cybersecurity, and financial controls. The Audit and Risk Committee continues
to play a central role in overseeing these matters.
Colleagues and culture
Bango progress is underpinned by the quality and commitment of its people. The
Board recognizes the efforts of the management team and colleagues across the
business in delivering products and executing complex customer migrations.
The reduction in headcount during 2025 reflects the efficiency of the single
unified platform, rather than a restriction on growth. The Board was delighted
with the high employee engagement score, especially after the restructuring.
We are also excited to see the adoption of AI in working practices as well as
in products. The new Cambridge headquarters is already proving its value,
fostering closer collaboration across the organization, improving
effectiveness between teams and strengthening our ability to attract
outstanding talent to Bango to support the next phase of growth.
Looking ahead
The Board acknowledges the sustained contribution of Bango employees and the
continued support of shareholders, both of which have been instrumental in
delivering the operational and strategic success achieved in 2025.
While the Board remains mindful of economic uncertainty, the foundations are
now firmly in place for delivery of sustained growth in ARR and profit
margins. With a strengthened balance sheet, clear focus on cash generation,
market-leading payments platform, continued growth in active subscriptions and
a strong pipeline of new DVM customers, Bango remains focused on maintaining
its positive trajectory through 2026 and in the years ahead.
Ray Anderson
Executive Chair
CEO statement
Introduction
2025 marked a pivotal year for Bango. We delivered strong growth in recurring
revenue, materially improved profitability and reached an important financial
inflection point. Investments made in our platform and operating model
translated into a significant increase in Cash EBITDA, which turned positive
during the year. We expect Cash EBITDA to continue to grow as operational
efficiencies combine with the expansion of high-margin Digital Vending
Machine® (DVM™) revenues.
Bango operates two distinct segments which together create a powerful model
for sustainable, profitable growth: a cash-generative payments segment and a
rapidly scaling subscriptions segment. The Payments segment provides strong
cash flows that support the continued expansion of the Subscriptions segment.
Our vision is to be "the place where people subscribe." In 2025, we
strengthened our position within the global subscription economy by expanding
distribution through Telcos, extending into new verticals such as banking and
retail, and increasing the value we deliver to subscription providers.
Subscriptions segment / Digital Vending Machine (DVM)
The subscription market continues to evolve rapidly. Consumers increasingly
expect flexibility, simplicity, and value, while subscription providers are
seeking more effective and cost-efficient ways to acquire, retain, and
monetize subscribers. New subscription services continue to emerge, with AI
creating a new generation of products and services delivered through
subscription models. Across the industry this has accelerated the shift toward
indirect distribution, creating what we describe as the "bundle economy." This
shift is beginning to divide the market between those who bundle and
orchestrate consumer access - and those who are bundled by others.
Increasingly, brands must decide where they want to sit in that structure, do
they want to bundle or be bundled - the Bango DVM plays a central role in
enabling this transformation.
The DVM is a full lifecycle subscription bundling platform that connects
subscription providers with brands that distribute digital services to
consumers, such as Telcos, retailers, banks etc. It enables these partners to
create and manage subscription bundles, simplify the customer experience, and
scale the distribution of digital services. This model reduces the complexity
of managing multiple integrations and allows new and sophisticated bundles to
be launched more quickly.
The strategic advantage of a common bundling platform is that every new
deployment strengthens the ecosystem. By connecting once to the DVM,
subscription providers gain access to a growing network of bundling channels,
while resellers joining the platform gain access to an ecosystem of over 130
subscription services. These network effects reinforce Bango's position as a
leading platform supporting the bundling economy and create competitive
advantage that grows as more partners join. The emergence and incorporation of
AI tools further strengthens this advantage by simplifying connectivity to the
DVM while enabling Bango to extend the platform's capabilities and
functionality, expanding the ecosystem and enhancing its competitive moat.
Payments segment
Direct Carrier Billing (DCB) is a well-established payment method that enables
consumers to charge the cost of digital and physical goods directly to their
mobile phone bill. Over the past decade, it has become an important payment
channel for digital services, supported by long-standing relationships between
mobile network operators and merchants. The Bango payments technology delivers
a seamless, secure, one-click payment experience for consumers who may not
have access to traditional banking services, helping to broaden access to
digital content and services in many developing markets. At the same time, the
convenience and trusted relationship consumers have with their mobile operator
continues to support adoption in developed markets such as Japan. As mobile
commerce and digital services continue to expand globally, DCB remains a
stable and reliable payment channel, delivering steady growth and strong
conversion for merchants.
Bango is a global market leader in DCB. We are the largest DCB partner for
Google Play, the only DCB partner for Amazon in Japan, and the sole provider
of DCB services to NTT DOCOMO - the largest Telco in the most valuable DCB
market.
Strategic priorities and progress
We continue to execute against our strategy, which is built around four
strategic priorities: Expand, Explore, Enhance and Extract. These pillars have
guided our progress in recent years and continue to provide a clear framework
for investment and execution.
Expand - Lead the bundling of subscription services through Telco channels
During 2025, we continued to expand the adoption of the DVM across the global
Telco ecosystem. We secured a record 12 new enterprise DVM customers during
the year (bringing the total to 39), extending our leadership in the United
States, where seven of the top eight Telcos - including three of the top four
- now rely on the DVM, and entering new markets including Japan, South Korea,
Turkey, and South Africa.
While progress in expanding our footprint - particularly in the United States
- has been strong, significant headroom for growth remains. We are targeting
over 100 additional Telcos, each with more than four million customers.
Active subscriptions managed by the DVM increased by c.60% year-on-year to
over 24 million, driving a 30% increase in Annual Recurring Revenue. Net
Revenue Retention was 117%, with zero churn among live DVM customers,
reflecting expanding usage by existing partners.
When deploying the DVM, many Telcos already have one or two bundled
subscription services directly integrated. These are often migrated onto the
DVM to reduce complexity and enable more sophisticated, higher-value bundles.
These migrations are expected to further accelerate the growth of
subscriptions managed by the DVM.
As the number of subscriptions managed through the DVM increases, revenue from
existing customers grows correspondingly through subscription-linked licensing
fees. This provides a scalable recurring revenue model, where growth in
subscriber volumes drives incremental revenues with close to zero additional
operating cost.
Explore - Identify new bundling opportunities beyond Telcos
While Telcos remain the primary distribution channel for subscription
bundling, 2025 also saw increasing adoption of the DVM beyond the Telco
vertical. Leading subscription providers and platforms selected Bango to
support more sophisticated bundling strategies, including bundling third-party
subscriptions alongside their own services. We also signed a contract with a
leading European bank operating in 24 countries, enabling them to use
subscription bundling as a customer acquisition and loyalty tool. This example
reinforces the DVM's reseller-agnostic design and supports our ambition to
become the common platform for subscription bundling across multiple
verticals.
Enhance - Use data and technology to differentiate Bango
Innovation remained a key focus in 2025. We launched a fully integrated DVM
Super Bundling solution, incorporating enhanced orchestration capabilities and
the DVM CX user interface, simplifying deployment, improving subscriber
journeys, and increasing subscriber conversion.
These investments bolster the DVM's position as the industry standard platform
for managing the full subscription bundling lifecycle and enable Bango
customers to launch, manage, and scale sophisticated bundled offerings more
efficiently.
As the platform scales, data generated across the ecosystem increasingly
supports customers in optimizing subscriber acquisition, retention, and
lifetime value. In 2026, product enhancements will focus on using AI to
further reduce friction for subscribers and make it easier for subscription
providers and resellers to discover, connect, and launch sophisticated
bundles. These investments are expected to reduce time to market and support
further subscription growth across the DVM.
Extract - Manage the Payments segment for cash and profit
The migration of the remaining DOCOMO Digital routes from the Frankfurt data
center to the cloud was completed in 2025, delivering simplified operations,
reduced costs, and positioning the Payments segment to generate strong cash
flows.
A new baseline for growth
The recapitalization of the business through the extended NHN loan and the
NatWest revolving credit facility in the first half of the year enabled us to
accelerate efficiency initiatives following completion of the DOCOMO Digital
migration. Our focus remains on increasing profitability and enhancing
long-term shareholder value.
We executed targeted opex and capex reductions, embedding a leaner and more
efficient operating model while continuing to invest in areas that support
long-term growth. Core administrative expenses were reduced by $2.9M
year-on-year.
Headcount, following the temporary increase resulting from the acquisition,
has been realigned with the size and focus of the business. Prior to the
DOCOMO Digital acquisition Bango had approximately 120 employees. This
increased to around 360 immediately following the acquisition and has since
been reduced in line with the integration plan - reducing to 219 at the end of
2024 and further to 164 at the end of 2025.
The 25% headcount reduction in 2025 was achieved while maintaining a strong
employee engagement score of 81%, a testament to the strong culture and team.
Our progress in 2025 was driven by the commitment, creativity, and resilience
of our people. Guided by our THRIVE (Transparent, Happy, Reliable, Innovative,
Victorious, Expressive) values, teams across Bango continued to innovate,
execute, and support our customers through a year of significant change. We
also continued to invest in governance, resilience, and operational
robustness, including achieving ISO22301 certification for business
continuity.
Looking ahead
Bango entered 2026 with strong momentum and the cost efficiencies delivered
during 2025 embedded in our operating model. The DVM pipeline remains robust,
with advanced-stage opportunities across Telco channels, as well as
opportunities across other verticals.
Revenue visibility continues to improve as our customer base grows, supporting
an increasingly predictable recurring revenue stream.
With growing recurring revenues, a strengthened balance sheet, and a clear
focus on cash generation, Bango is well positioned to accelerate profitable
growth and capture the long-term opportunity in subscription bundling.
I am proud of the Bango team's achievements in 2025. We have made significant
progress executing our strategy, strengthened the DVM's leadership position,
and delivered a year that marks a clear step forward for Bango. I look forward
to building on this momentum as we continue to shape the future of how the
world subscribes.
Paul Larbey
CEO
CFO statement
FY25 marked an inflection point for Bango. We materially improved the quality
of our revenue mix, expanded gross margins by over 600 basis points, embedded
a structurally lower and more scalable cost base, and delivered positive Cash
EBITDA(1). These outcomes reflect the actions taken in 2025 to support our
strategic priorities, focusing on recurring revenue growth, strengthening
operating leverage and building a self-funding platform for long-term value
creation.
During the year, Bango refined its revenue presentation to distinguish between
the "Payments segment" and the "Subscriptions segment". This updated
categorization better reflects the underlying structure of the business and
provides increased transparency and clarity for stakeholders. It also
establishes the foundation for the introduction of full segmental reporting.
Payments segment revenue relates to Direct Carrier Billing (DCB) and wallets
where revenue is derived by charging a percentage of the retail price paid by
the consumer and one-off fees. Subscriptions revenue includes all DVM license
and support fees, one-off DVM fees, fees from bundling which are charged as a
percentage of the retail price, pre-stocked margin amounts, and revenue from
Bango Audiences (discontinued in Q1 2024).
Accelerating recurring revenue growth
Total revenue for FY25 was $52.2M (FY24: $53.4M). Overall, revenue was broadly
consistent year-on-year, however the quality of revenue continued to improve.
Subscriptions segment revenue increased 22% to $22.2M (FY24: $18.2M), driven
by strong underlying subscription growth of c.60% year-on-year. This
significant scaling in the number of active subscriptions managed is a leading
indicator of increasing enterprise adoption of subscription bundling,
positioning the DVM as a core element of our customers' growth plans.
During FY25, Bango secured a record 12 new DVM customers, a 33% increase vs.
each of the previous two years. Bango also drove a notable increase in
recurring revenues. Annual Recurring Revenue (ARR) increased by 30% to $18.2M,
with a significant uplift in the second half reflecting growth in existing
customers as their subscription volumes increased. This is precisely what the
usage-based revenue model of the DVM is designed to achieve, and we expect to
demonstrate further progress in 2026 as the benefits of platform dynamics flow
through and adoption of the DVM increases.
The increasing proportion of recurring revenue reflects the strength and
durability of the DVM business model. To date, all live DVM customers have
sustained or increased their subscription volume tiers, meaning an increasing
commitment to the DVM. Net Revenue Retention (NRR) of 117% demonstrates that
existing customers are spending more on the DVM. This retention and expansion
dynamic is a core characteristic of the DVM economics: as partners grow their
volume of subscriptions, recurring revenue for Bango grows.
The DVM benefits from three reinforcing growth drivers. First, existing
customers increase recurring revenues as the number of subscriptions they need
to bundle rises. Second, new bundlers that join the DVM add incremental
recurring revenue and deepen the platform's network effect. Third, customer
momentum and satisfaction with the DVM, as demonstrated by the zero churn of
live customers to date, preserves and compounds the growing revenue base over
time. Together, these factors create a predictable and progressively expanding
revenue base, underpinning the platform's investment case.
Payments segment revenue was $30.0M (FY24: $35.2M), reflecting the anticipated
normalization of performance in a small number of lower-margin routes.
Excluding the low margin routes and one-off fees, our Core Payments revenue
(which is over 80% of the portfolio's revenue and contains the more
profitable, strategically valuable routes) grew c.5% year-on-year in line with
expectations. This supports overall margin expansion while enabling focus on
strategically important, higher-quality revenue streams.
Structural gross margin expansion
The shift towards higher-quality recurring revenues and successful efficiency
initiatives contributed to a gross margin improvement of over 600 basis points
to 84% (FY24: 78%). Going forward, the gross margin of the Group will also
benefit from a structural tailwind as the higher margin Subscriptions segment
becomes a greater share of the revenue mix and platform economics increasingly
drives margin expansion.
Our objective is to further bolster the Payments gross margin by optimizing
the profitability of lower-margin routes, with a continued focus on revenue
quality over volume. This continues to be kept under review and we will update
investors on progress throughout the year.
A leaner and more efficient organization
During FY25, we embedded a series of efficiency initiatives designed to
simplify operations and enhance operating leverage. Core administrative
expenses, which exclude the impact of exceptionals, depreciation and
amortization, share-based payment charge and capitalized R&D, reduced by
$2.9M year-on-year. This significant reduction was achieved despite foreign
exchange headwinds of approximately $900k as the USD weakened against both the
GBP and EUR over the course of FY25. Permanent headcount reduced from 219 at
the end of FY24 to 164 at the end of FY25, reflecting the completion of our
operating model simplification and improved alignment with our strategy.
During the year we incurred exceptional costs of $6.4M (FY24: $4.2M). These
costs primarily relate to the efficiency initiatives undertaken during the
year, including workforce reductions and the simplification of the Group's
corporate entity structure. While these actions resulted in one-off charges in
FY25, they reduce ongoing cost and improve operating leverage.
Other income, which relates to the recovery of costs from NTT DOCOMO from the
acquisition of DOCOMO Digital, was $1.1M lower than prior year. These amounts
are difficult to predict but we expect this other income to recur in future,
in reducing amounts.
Overall, Adjusted EBITDA for the period increased by 7% to $16.4M (FY24:
$15.3M), reflecting gross margin expansion and disciplined cost management.
Depreciation and amortization increased by $2.9M from $11.7M to $14.6M
following the historical investment in the DVM. As newly developed features
begin to generate revenue, the result is an increase in non-cash amortization
costs. We expect depreciation and amortization to peak over the next 12-18
months and then reduce in-line with the capex cycle in future years.
The share-based payment charge was $1.2M (FY24: $2.1M), reflecting awards
under the Group's employee share option program. The year-on-year reduction
reflects structural changes to the scheme and a lower employee headcount.
Finance charges increased from $0.8M to $2.0M driven primarily by the change
in capital structure following the refinancing in the summer, as well as the
relocation of the Cambridge head office to a new lease.
Overall loss for the financial year was $7.6M (FY24: $3.7M) driven by the
combination of the factors described above. Basic loss per share was (9.86)
cents (FY24: (4.75 cents)).
Move to positive Cash EBITDA
Cash EBITDA was positive at $2.3M (FY24: negative $0.2M), marking a
significant inflection point. Cash EBITDA is Adjusted EBITDA less capital
expenditure and is a critical measure of the cash earnings of Bango. The Group
has now transitioned from investment-led scaling to a model capable of funding
growth internally, enhancing financial resilience and strategic flexibility.
Together with a reduction in core operating expenditure, we continue to take a
disciplined approach to R&D investment. Capitalized development costs
reduced $1.7M year-on-year to $13.6M (FY24: $15.3M). Capital expenditure
during FY25 was primarily directed toward continued development of the DVM
platform. Investment included enhanced orchestration capabilities and the DVM
CX interface. These initiatives improve deployment efficiency, streamline
subscriber journeys and support higher conversion rates, while reinforcing the
DVM's position as a scalable platform for managing sophisticated subscription
bundles. Looking ahead, product development will remain targeted toward
reducing friction across the subscription lifecycle and shortening
time-to-market for new bundle launches. As the DVM benefits from platform
network effects, incremental development investment increasingly delivers
higher marginal returns.
Strengthened balance sheet
Capital allocation discipline remains central to our strategy and our priority
here is clear - continuing to strengthen the balance sheet through progressive
deleveraging, supported by improving cash generation.
Net debt at 31 December 2025 was $9.2M (FY24: $1.8M), reflecting planned
working capital movements, refinancing activity during the year and timing of
cash inflows.
In June 2025, Bango secured an enhanced loan facility from NHN and a new $15M
multi-currency Revolving Credit Facility (RCF) with NatWest. Importantly,
these refinancings extended maturity profiles and significantly enhanced
liquidity flexibility, enabling us to accelerate planned efficiency savings.
With improving cash generation and growing ARR visibility, we expect net
leverage to reduce further during FY26.
Intangible assets increased $2.5M to $42.1M (FY24: $39.6M), reflecting
continued DVM investment and migration of DOCOMO Digital routes. Right-of-use
assets also increased to $6.0M (FY24: $1.9M), following the relocation to our
new Cambridge head office.
Cashflow and going concern
As announced at our FY24 results in June 2025, FY25 cashflow reflects a
planned transition over the period, including one-off costs and the
normalization of prior year working capital inflows. As a result, cashflow
from operating activities decreased to ($8.2M; FY24: $18.9M), primarily driven
by timing effects between receipts and payments, and the normalization of
performance in the low margin routes following strong growth in 2024.
As noted above, Bango continues to invest in its customer proposition and saw
an outflow from R&D investing activities of $13.6M (FY24: $15.3M).
Cashflow from financing activities increased by $12.5M driven by the
combination of the above and the refinancing of the NatWest and NHN
facilities.
The Board have considered the Group's financial position, cashflow forecasts
and funding arrangements and is confident that Bango is well positioned to
support its planned investments and continued growth. With improving cash
generation, increasing recurring revenues and enhanced financing flexibility,
the Group has the resources required to execute its strategy and scale the DVM
platform.
Based on a review of forecasts, sensitivities and wider macro-economic
effects, the Board is confident that Bango has sufficient resources to
continue as a going concern.
Outlook and reporting evolution
Bango enters FY26 with improving revenue visibility, a strengthened operating
model and positive Cash EBITDA momentum. Continued growth in Annual Recurring
Revenue, combined with a disciplined approach to cost and capital allocation,
is expected to drive further improvements in profitability and cash flow.
To enhance transparency and better reflect the underlying drivers of the
business, Bango will fully introduce segmental reporting in FY26. This will
provide more visibility of the Subscriptions business and the Payments
business, supporting more informed investor analysis.
With the integration of the DOCOMO Digital acquisition now complete, Bango
operates two distinct and complementary economic engines with differentiated
growth and margin characteristics.
The Payments segment operates with Adjusted EBITDA margins of around 40% and
minimal capital intensity, providing a stable, cash-generative earnings base.
The Subscriptions segment is the Group's growth engine, built on the DVM
platform which connects telcos, content providers and consumers in a scalable,
multi-sided ecosystem. Growth is driven by increasing participation and rising
subscription volumes across the platform, with zero churn of live customers
and strong expansion within existing and new partners. Having reached Adjusted
EBITDA profitability, the platform is expected to deliver further margin
expansion as scale increases, reflecting high incremental margins and
operating leverage inherent in the model.
Together, these businesses position Bango favorably to deliver sustainable
growth, increasing cash generation and disciplined value creation over the
medium term.
Matt Wilson
CFO
1 Cash EBITDA is Adjusted EBITDA less Capital expenditure
Consolidated statement of comprehensive income for the year ended 31 December
2025
2025 2024
$ 000 $ 000
Revenue 52,215 53,070
Cost of sales ____(8,114) ___(11,578)
Gross profit 44,101 41,792
Other operating income 1,060 2,162
Administrative expenses (50,978) (46,666)
Adjusted EBITDA 16,418 15,285
Exceptional items (6,427) (4,217)
Share based (1,248) (2,068)
payments
Depreciation (1,701) (1,035)
Amortization (12,859) (10,677)
Operating (5,817) (2,712)
loss
Finance (1,957) (842)
costs
Finance 26 15
income
__________ ___________
Loss before taxation (7,748) (3,539)
Income 167 (112)
tax
Loss for the financial year (attributable to equity holders of the company)
(7,581) (3,651)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign exchange on consolidation 1,155 240
Loss and total comprehensive income for the financial year (6,426) (3,411)
Loss per share attributable to the equity holders of the parent
Note
Basic loss per
share
3 (9.86) c (4.75) c
Diluted loss per share
3
(9.86) c (4.75) c
Consolidated Statement of Financial Position as at 31 December 2025
31 December 31 December
2025 2024
$ 000 $ 000
ASSETS
Non-current assets
Property, plant and equipment 2,611 1,216
Right-of-use assets 5,983 1,928
Intangible assets 42,064 39,637
Other investments 50 50
50,708 42,831
Current assets
Trade and other receivables 19,471 20,932
Research and development tax credits 1,136 1,344
Short-term investments - 41
Cash and cash equivalents 5,313 3,337
25,920 25,654
Total assets 76,628 68,485
EQUITY
Capital and reserves attributable to owners of the parent company
Share capital 24,634 24,593
Share premium account 63,319 63,197
Merger reserve 2,886 2,886
Share-based payments reserve 11,516 9,273
Foreign exchange reserve (1,264) (1,793)
Accumulated losses (79,109) (71,974)
Total equity 21,982 26,182
LIABILITIES
Current liabilities
Trade and other payables 31,395 34,236
Lease liabilities 730 880
Loans and borrowings 5,369 3,412
Income tax liability 1,148 678
38,642 39,206
Non-current liabilities
Loans and borrowings 9,141 1,706
Lease liabilities 6,346 887
Deferred tax 517 504
16,004 3,097
Total liabilities 54,646 42,303
Total equity and liabilities 76,628 68,485
Consolidated cashflow statement
For the year ended 31 December 2025
2025 2024
$ 000 $ 000
Cash flows from operating activities
Net cash flow from operating activities 8,200 _____18,879
Cash flows from investing activities
Acquisitions of property plant and equipment (1,543) (183)
Expenditure on capitalized development costs and intangible
assets (13,559) (15,347)
Payment for other fees for Right-of-use assets (214) -
Short-term investments 41 (1)
Interest received _________26 ________15
Net cash flows from investing activities (15,249) (15,516)
Cash flows from financing activities
Proceeds from issue of ordinary shares, net of issue costs 163 45
Interest paid (1,713) (794)
Proceeds from borrowings 2,875 -
Repayment of bank borrowing (891) (1,957)
Proceeds from other borrowing draw downs 8,765 -
Transaction costs related to loans and borrowings (592) -
Landlord incentive (capital contribution) 1,216 -
Lease payments (1,042) (1,015)
Net cash flows from financing activities 8,781 (3,721)
Net increase/(decrease) in cash and cash equivalents 1,732 (358)
Cash and cash equivalents at 1 January 3,337 3,720
Effect of exchange rate fluctuations on cash held 244 (25)
Cash and cash equivalents at 31 December 5,313 3,337
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2025
Share capital Share premium Merger reserve Share based Foreign currency Accumulated
payment reserve translation losses Total
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
At 1 January 2025 24,593 63,197 2,886 9,273 (1,793) (71,974) 26,182
Loss for the year - - - - - (7,581) (7,581)
Foreign exchange translation - - - 626 529 - 1,155
Total comprehensive income - - - 626 529 (7,581) (6,426)
Issue of warrants - - - 999 - 999
Cancellation of warrants - - - (184) - (184)
Share-based payment transactions - - - 1,248 - - 1,248
Transfer for exercised options - - - (446) - -
446
Exercise of share options and warrants 41 122 - - - - 163
Transactions with owners 41 122 - 1,617 - 446 2,226
At 31 December 2025 24,634 63,319 2,886 11,516 (1,264) (79,109) 21,982
Share capital Share premium Merger reserve Share based Foreign currency Accumulated
payment reserve translation losses Total
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
At 1 January 2024 24,584 63,161 2,886 7,218 (2,033) (68,323) 27,493
Loss for the year - - - - - (3,651) (3,651)
Foreign exchange translation - - - (13) 240 - 227
Total comprehensive income - - - (13) 240 (3,651) (3,424)
Share-based payment transactions - - - 2,068 - - 2,068
Exercise of share options and warrants 9 36 - - - - 45
Transactions with owners 9 36 - 2,068 - - 2,113
At 31 December 2024 24,593 63,197 2,886 9,273 (1,793) (71,974) 26,182
1 Basis of preparation
The Group consolidated financial statements, which consolidate those of Bango
PLC and all of its subsidiaries, have been prepared under the historical cost
convention and under the basis of going concern.
The financial information set out above and below, does not constitute the
company's statutory accounts for the years ended 31 December 2025 or 2024 but
is derived from those accounts. Statutory accounts for 2024 have been
delivered to the registrar of Companies, and those for 2025 will be delivered
in due course. The auditor has reported on those accounts; their reports were
(i) unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
UK-adopted international accounting standards and as applied in accordance
with the provisions of the Companies Act 2006, this announcement does not
itself contain sufficient information to comply with UK-adopted international
accounting standards. The financial information contained within this full
year results statement was approved and authorized for issue by the Board on
24 April 2026.
These financial statements are presented in US Dollars (USD), the presentation
currency of Bango PLC Group.
2 Revenue
Timing of revenue recognition:
2025 2024
$ 000 $ 000
At a point in time 33,676 36,205
Over time 18,539 17,165
52,215 53,370
2025 2024
$ 000 $ 000
Subscriptions 22,183 18,183
Payments 30,032 35,187
52,215 53,370
Payment revenues are derived by charging a percentage of the retail price paid
by the consumer and is made up of carrier billing and one-off fees for
integrations. Subscriptions include resale and DVM revenues generated from
subscription and bundling services.
Geographical analysis
Bango's revenue from external customers is divided into the following
geographical areas.
2025 2024
$ 000 $ 000
United Kingdom (country of domicile) 1,913 1,765
EU 7,037 6,348
USA and Canada 15,487 13,770
Asia (including Japan) 15,085 16,734
Middle East and Africa (including Iraq) 8,780 11,031
Rest of the World 3,913 3,722
52,215 53,370
All turnover is spread over many territories, of which $5.2M comes from one
partner in Asia. (2024: $9.1M and $7.0M from two partners in Asia and Middle
East).
Bango's non-current assets are divided into the following geographical areas.
2025 2024
$ 000 $ 000
United Kingdom (country of domicile) 50,366 41,366
Germany 119 1,425
Japan 223 40
50,708 42,831
Non-current assets are allocated based on their physical location
3 (Loss) per share
(a) Basic
Basic (loss) per share are calculated by dividing the loss attributable to
equity holders of Bango PLC by the weighted average number of ordinary shares
in issue during the year.
2025 2024
Basic (loss) per share $ 000 $ 000
(Loss) for the financial year (7,581) (3,651)
Weighted average number of ordinary shares in issue 76,874,396 76,813,432
(9.86) c (4.75) c
Basic (loss) per share attributable to equity holders
Basic adjusted (loss)/earnings per share
Adjusted (loss)/earnings per share is a key financial information which
discloses the financial performance of the core business for which the
Directors have direct control. Adjusted basic (loss)/earnings per share is
determined as the (loss) / profit attributable to equity holders of Bango PLC
excluding exceptional items divided by the weighted average number of ordinary
shares in issue during the year.
2025 2024
$ 000 $ 000
(Loss) / earning attributable to equity holders of Bango PLC:
From continuing operations (7,581) (3,651)
Exceptional items 6,427 4,217
Adjusted (loss) / earning attributable to equity holders of Bango PLC (1,154) 566
Weighted average number of ordinary shares in issue 76,874,396 76,813,432
Adjusted basic (loss) / earnings per share attributable to equity holders (c) (1.50) c 0.74 c
(b) Diluted
Diluted loss per share is in line with basic loss per share. The weighted
average number of shares for the purposes of calculating diluted loss per
share are the same as for the basic loss per share calculation. This is
because the outstanding share options would have the effect of reducing the
loss per share and would not, therefore, be dilutive under the terms of IAS
33.
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