REG - Bango PLC - Trading Update

BangoAnnouncement

20/01/2026 07:00

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RNS Number : 5080P  Bango PLC  20 January 2026

Bango PLC

 

("Bango")

 

Trading Update

 

 

Cambridge, UK, 20 January 2026 - Bango (AIM: BGO), today announces a trading
update for the 12 months ended 31 December 2025, ahead of announcing FY25
Final Results in Q2.

 

"2025 marked an important year for Bango as we successfully executed on the
key strategic priorities of continued strong growth in recurring revenue and
continued opex and capex reductions. This resulted in positive Cash EBITDA of
approximately $2.3M, a $2.5M improvement from the negative Cash EBITDA of
FY24. We expect the growth of Cash EBITDA to accelerate in FY26.

 

Annual Recurring Revenue increased by 30% year-on-year to $18.2M, driven by
almost 60% growth in active subscriptions managed by the Digital Vending
Machine (DVM). With zero churn of live customers, the subscription growth
delivered Net Revenue Retention of 117%, highlighting the critical role the
DVM plays for our customers as they scale their subscription offerings.

 

We secured a record 12 new enterprise DVM customers in 2025 up from nine in
each of the previous two years. The DVM has now been adopted by 7 of the top 8
Telcos in the US and in new countries including Japan, South Korea, Turkey and
South Africa. The closing of several large DVM opportunities moved from Q4
FY25 into FY26 due to extended customer processes; the scale and quality of
these contracts remain unchanged.

 

Driven by the cost efficiencies delivered during FY25, expansion of core DCB
routes, continued growth in active subscriptions and a strong pipeline of new
DVM customers, Bango is well positioned to generate improved profitability and
free cash flow in FY26."

 

Paul Larbey, Bango CEO

 

 

Financial Highlights

 

Transactional revenue(1) is expected to be $33.4M (FY24: $36.2M), with the
year-on-year reduction resulting from a small number of low margin routes; the
restructuring of these routes is under review. Excluding these routes, the
Core Transactional revenue (which make up the majority of the portfolio) grew
by 6% year-on-year. Overall Transactional gross profit was 3% higher in FY25
compared with FY24. With the integration of the DOCOMO Digital acquisition now
complete, the Transactional business is expected to generate Adjusted
EBITDA(5) margins of around 40% with minimal capex.

 

DVM and One-off revenue(2) is expected to increase by 10% to $18.8M (FY24:
$17.2M). One-off implementation revenue was $1.5M lower than FY24, reflecting
the timing of several large DVM contracts that moved into FY26.

 

Total FY25 revenue is expected to be $52.2M (FY24: $53.4M). Gross margin is
expected to increase by over 600 basis points to 84.5% (FY24 78.3%) driven by
growing contributions from recurring DVM platform revenues and the higher
margin Core Transactional business.

 

Other Income, which is not included in the revenue figure above, was $1M (FY24
$2.2M) relating primarily to tax recoveries associated with the DOCOMO Digital
acquisition.

 

Core administrative expenses(3) significantly reduced by $2.9M year-on-year,
reflecting the efficiency initiatives executed during FY25. These savings were
achieved despite adverse foreign exchange cost headwinds of approximately
$1.1M, compared with FY24. Permanent headcount at the end of FY25 was 164 (end
FY24 219).

 

Cash EBITDA(4) (Adjusted EBITDA(5) less net capital expenditure) for FY25 is
positive and is expected to be $2.3M (FY24 negative $0.2M). Adjusted EBITDA
grew by 7% to at least $16.3M (FY24: $15.3M).

Net debt(6) at 31 December 2025 was $9.3M (FY24: $1.8M), reflecting planned
working capital movements, the refinancing completed in 1H25 and the timing of
cash inflows. With cost efficiencies now embedded and revenue visibility
improving, net leverage is expected to reduce materially during FY26 as cash
generation strengthens.

 

Visibility of revenue growth continues to improve. Annual Recurring Revenue
(ARR)(7) increased by 30% growing to $18.2M at 31 December 2025, with Net
Revenue Retention (NRR)(8) remaining strong at 117%.

 

(1)Transactional Revenue is revenue derived by charging a percentage of the
retail price paid by the consumer and is made up of direct carrier billing,
resale and e-Disti revenue share amounts.

(2) DVM & One Off Revenue includes all DVM license and support fees,
revenue from Bango Audiences (discontinued in Q1 2024) and one-off fees
including DVM set-up and change requests.

(3) Core administrative expenses is administrative costs before exceptional
items, share based payment charge, capitalized R&D expenses and
depreciation and amortization.

(4)Cash EBITDA is Adjusted EBITDA less net capital expenditure.

(5)Adjusted EBITDA is earnings before interest, tax, depreciation,
amortization, negative goodwill, exceptional items, share of net loss of
associate and share based payment charge.

(6)Net debt is borrowings less cash and cash equivalents plus short-term
investments.

(7)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.

(8)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
generated from those same customers at the beginning of the period.

 

 

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 Investorhub

here: https://bangoinvestor.com (https://bangoinvestor.com/link/yzj62y%22)

 

 

ENDS

 

 

For further information, please contact:

 

 Investor questions on this announcement                   https://bangoinvestor.com/link/yzj62y (https://bangoinvestor.com/link/yzj62y)

 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 Broker)

 Jen Boorer

 Asha Chotai
                                                           +44 20 7523 8000

 Canaccord Genuity (Joint Broker)

 Simon Bridges

 Harry Gooden

 George Grainger

 

 

Subscribe to our news alert service: https://bangoinvestor.com/auth/signup
(https://bangoinvestor.com/auth/signup)

 

 

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/)

 

 

 

 

 

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