Key Highlights

  • Boku, Inc. (LSE:BOKU) reported first-half 2026 Revenue of $66.5m, up about 11% on an underlying basis.
  • Adjusted EBITDA was around $19.3m, a Margin of roughly 29%.
  • The company signed its first channel Partnership with Stripe and processed first transactions on PIX in Brazil and UPI in India.
  • FY26 guidance stands at revenue of $135m to $142m and adjusted EBITDA of $38m to $42m.
  • Boku repurchased 9.6 million shares for $23.5m and intends to extend its buyback.

Why Boku Is in Focus Today

Boku, Inc. (LSE:BOKU) is drawing renewed attention on 3 November 2026 as investors assess whether the global payments specialist can regain momentum in the second half of the year. The FTSE AIM All-Share company, which operates a global network of local payment methods, cut its full-year expectations in July but has since confirmed that delayed merchant connections are now live and contributing.

With a landmark partnership with Stripe and a fast-growing bundling business, the debate around Boku has shifted from short-term disappointment to the long-term opportunity in alternative payment methods.

First-Half Results Show Resilience

Boku's first-half revenue reached $66.5m. On an underlying basis, excluding non-recurring launch-phase revenue in the prior year, growth was about 11%. Adjusted EBITDA was approximately $19.3m, giving a margin of around 29%, and the company generated just over $11m of free cash flow.

Total payment Volume rose to roughly $8.3bn, up about 12%, while blended take rates remained broadly stable at around 80 basis points.

Diversification Beyond Carrier Billing

Boku built its reputation on direct carrier billing, which lets consumers pay for digital content through their mobile phone bills. DCB revenue rose 3% to $35.3m and still accounts for just over half of group revenue.

The faster growth is coming elsewhere. Digital wallets and account-to-account payments generated $22.0m, up around 15% on an underlying basis. Bundling, where Boku helps telecom operators bundle subscriptions such as streaming services into mobile plans, was the standout, growing 39% to $9.2m. Non-DCB products now represent around 47% of group revenue, compared with 35% in 2024.

Stripe Partnership Opens New Doors

The signing of Boku's first channel partnership with Stripe is a significant strategic step. It gives Boku (LSE:BOKU) an indirect route to many more merchants, allowing businesses that use Stripe to access Boku's network of local payment methods. Boku also processed its first transactions on PIX in Brazil and UPI in India, two of the world's largest real-time payment systems.

Guidance Reset and Recovery

In July, Boku lowered its FY26 outlook, citing delays to the launch of several new connections, slower merchant onboarding and the suspension of two connections in one country. Previous market expectations had been for revenue of around $155m and adjusted EBITDA of about $49.9m.

The company now guides to FY26 revenue of $135m to $142m and adjusted EBITDA of $38m to $42m. Management, led by chief executive Stuart Neal, said post-period trading has been in line with expectations and that the delayed connections are now live and contributing in the second half.

Shareholder Returns

Boku has used its strong cash generation to buy back shares, repurchasing 9.6 million shares for $23.5m during the first half, and has said it intends to extend the programme. This reflects management's view that the shares are undervalued after the guidance reset.

Why Local Payment Methods Matter

Around the world, a growing share of online purchases is made through methods other than cards, including mobile wallets, real-time bank transfers and carrier billing. Global merchants need access to these methods to reach consumers in emerging and developed markets alike. Boku's role is to provide a single connection to hundreds of local payment options, which is why partnerships with large payment processors and integration of systems such as PIX and UPI are strategically important.

What Investors Are Watching Next

Key catalysts for Boku (LSE:BOKU) include:

  • A full-year trading update, usually published in January, confirming performance against FY26 guidance.
  • Volumes and revenue from the Stripe partnership.
  • Growth in bundling and Digital Wallet revenues.
  • Progress with PIX, UPI and other new payment methods.
  • Execution of the extended share buyback.

Risks to Consider

Boku relies on large merchants such as major technology platforms, so changes in their payment strategies can affect volumes. Regulatory changes and the suspension of connections in individual countries can disrupt revenue. Competition in global payments is intense, and take rates could come under pressure as volumes grow.

Outlook

Boku (LSE:BOKU) has reset expectations but continues to build a broader payments platform with growing non-DCB revenues and a powerful new partner in Stripe. For FTSE AIM All-Share investors, the January trading update will show whether second-half recovery has put the Business back on a stronger growth path.