Highlights

  • Bango’s Annual Recurring Revenue rose 30% to USD 18.2M, with zero churn of active customers.
  • Positive Cash EBITDA of USD 2.3M marks a USD 2.5M improvement from FY24.
  • Transactional gross profit increased by 3% despite slight decline in overall revenue.

Bango PLC (LSE:BGO) released its trading update for the 12 months ended 31 December 2025, ahead of the FY25 final results scheduled for Q2.

The company reported a positive Cash EBITDA of USD 2.3M for FY25, compared with negative USD 0.2M in FY24. This change reflects reductions in operating and capital expenditure and improved revenue visibility. Adjusted EBITDA increased by 7% to at least USD 16.3M (FY24: USD 15.3M).

Total FY25 revenue is expected at USD 52.2M, slightly below USD 53.4M recorded in FY24. Gross margin improved to approximately 84.5% (FY24: 78.3%), driven by growth in recurring DVM platform revenue and higher-margin core transactional business. Other income was USD 1M (FY24: USD 2.2M), primarily related to tax recoveries from the DOCOMO Digital acquisition.

Annual Recurring Revenue and Subscription Growth
Annual Recurring Revenue (ARR) grew 30% year-on-year to USD 18.2M, supported by almost 60% growth in active subscriptions managed through the Digital Vending Machine (DVM). Net Revenue Retention remained at 117%, reflecting continued adoption by existing customers.

During FY25, Bango secured 12 new enterprise DVM customers, up from nine in each of the previous two years. The DVM platform is now in use by seven of the top eight US telecom companies and expanded into Japan, South Korea, Turkey, and South Africa. Some large contracts shifted from Q4 FY25 to FY26 due to extended customer processes.

Transactional Revenue and Profitability
Transactional revenue is projected at USD 33.4M (FY24: USD 36.2M), with reductions linked to a few low-margin routes under review. Excluding these, core transactional revenue grew 6% year-on-year. Transactional gross profit rose by 3%, and post-DOCOMO integration, the transactional business is expected to achieve Adjusted EBITDA margins around 40% with minimal capex.

DVM and one-off revenue is expected to increase 10% to USD 18.8M (FY24: USD 17.2M). One-off implementation revenue decreased by USD 1.5M, due to timing of large DVM contracts.

Cost Management and Debt
Core administrative expenses decreased by USD 2.9M despite adverse foreign exchange impacts of approximately USD 1.1M. Headcount reduced from 219 at the end of FY24 to 164. Net debt rose to USD 9.3M (FY24: USD 1.8M), reflecting planned working capital movements, refinancing, and timing of cash inflows. Net leverage is expected to decline in FY26 as cash generation strengthens.

Share Performance
BGO shares surged to 84.60 GBX on January 20, rising 7.77%.