Bango (LSE:BGO) has reported a sharp rise in adjusted EBITDA for the first half of 2026 and a swing to positive cash EBITDA, helped by growth in subscriptions. The company announced interim results for the six months to 30 June 2026 on 25 September 2026.

What the company does

Bango is a Cambridge-based company whose shares trade on AIM under the ticker BGO. It operates a platform for subscription bundling and payments. Its Digital Vending Machine serves telecoms operators and other consumer channels, and the company says large content providers use its technology. The group reports two segments, Subscriptions and Payments.

The interim results

Revenue was $25.9m, up 3% from $25.2m. Subscriptions Revenue rose 13% to $12.3m, while Payments fell 5% to $13.6m. Adjusted EBITDA increased 34% to $9.0m from $6.7m. Subscriptions adjusted EBITDA more than tripled to $3.2m, and Payments delivered $5.8m. Cash EBITDA was $3.7m, compared with a loss of $0.7m in the first half of 2025, which LSE:BGO says exceeds the full-year 2025 amount. Net Debt was $8.7m at 30 June 2026, down from $9.2m at the end of 2025.

Operating metrics

Annual Recurring Revenue reached $20.4m, up 31%, and net revenue retention was 119%. Active subscriptions rose 33% to 25.6 million. Gross Margin improved by 310 basis points to 87%, and the Payments adjusted EBITDA margin reached 43%. Six new Digital Vending Machine customers were awarded in the period.

Outlook

Management said restructuring of non-core payment routes is ahead of plan and should be completed this year. It may lead to a low-single-digit change in reported revenue, with little effect on EBITDA. LSE:BGO said trading remains in line with full-year market expectations, and that subscription momentum has continued into the second half, with eight Digital Vending Machine wins in FY26 so far, six of them contracted. Management described itself as cautiously optimistic given macroeconomic uncertainty.

Sector and index context

Bango is a payments and subscription technology company within the FTSE AIM All Share Index. Its customers include telecom operators, whose bundling of digital services creates a distribution channel for content providers. The market is shaped by app store policy, regulation of payments and consumer appetite for subscriptions. Shifting from transaction-based Payments revenue towards recurring Subscriptions revenue is the strategic aim.

Reading the numbers

Adjusted EBITDA of $9.0m on revenue of $25.9m is a margin of about 35%, but cash EBITDA of $3.7m shows that a large part of reported Earnings is not yet converting into cash. LSE:BGO's Subscriptions segment remained cash negative at the cash EBITDA level, with a loss of $1.0m, although this was much smaller than $5.3m a year before.

Key risks

Payments revenue is declining and depends on operator relationships and routes that are being restructured. Net debt of $8.7m is manageable relative to adjusted EBITDA but is not negligible. Reliance on a limited number of large partners, currency exposure and the pace at which new Digital Vending Machine customers launch services are all uncertainties.

What to watch next

Investors will follow full-year trading, the completion of the payments restructuring, the conversion of announced Digital Vending Machine wins into launches and any update on cash generation and debt.