A larger stake and a shrinking free float

Two filings show how Boku's Shareholder base is shifting. On Monday 9 November 2026 the company published a notification that private investor Richard Griffiths had increased his voting rights to 6.62% from 5.01%. He holds 17,034,906 shares directly, or 6.01%, plus contracts for difference over 1,733,508 shares, equal to 0.61%. Four days earlier, Boku (LSE:BOKU) reported buying a further 226,274 of its own shares between 29 October and 4 November at a weighted average of about 128.7p, through Investec on AIM.

After those purchases, the company said, it held 20,995,692 shares in treasury out of 304,457,492 in issue, leaving 283,461,800 voting shares. Treasury stock represents roughly 6.9% of the issued capital.

About the company

Boku operates a network that connects large global merchants, such as app stores, streaming services and gaming platforms, with local payment methods used by consumers. These methods include mobile wallets, real-time bank schemes and carrier billing, where a purchase is charged to a mobile phone account. The company earns a fee on the total value of payments it processes, so its Revenue depends on payment Volume and on its take rate, the share of each payment that it keeps.

Boku is incorporated in the US but listed on AIM, and reports in US dollars. Its customers are concentrated among a small number of very large merchants, which means launches and renewals involving a single merchant can move volumes materially.

What Boku does

Boku, which is incorporated in the US but listed on AIM, connects large global merchants, including app stores, streaming and gaming platforms, with local payment methods such as mobile wallets, real-time bank schemes and carrier billing. It earns a fee on total payment volume, so revenue depends both on volume and on the take rate it can charge. Its blended take rate fell to 77 basis points in the first half from an underlying 81, because volume grew faster than revenue.

How the buyback has grown

The programme has been extended during 2026. An extension announced in July raised the authority from 5% to 10% of issued stock, allowed up to 8,000,000 additional shares to be bought and capped prices at 105% of the trailing five-day average. At that point LSE:BOKU held 12,217,022 treasury shares, about 3.71% of its stock. The authority runs until publication of results for the year to 31 December 2026, expected in March 2027.

Treasury holdings have therefore risen by roughly 8.8 million shares since that extension. In the first half, Boku repurchased 9.5m shares for $23.6m.

The trading context

The buying has coincided with weaker expectations. On 8 July LSE:BOKU guided to 2026 revenue of $135m to $142m and adjusted EBITDA of $38m to $42m, below market expectations at the time, citing delays in launching new connections and slower merchant onboarding; the shares fell 33% that day. The interim figures showed revenue of $66.5m, payment volume up 16% to $8.6bn and adjusted EBITDA of $19.6m. Group cash fell to $186.8m from $245.6m at the end of December, while own cash declined to $84.6m from $102.9m, partly reflecting buybacks.

The reported buyback prices, around 127p to 129p in late October and early November, sit above the July low, though price movements cannot be attributed to any single filing.

How the buyback changes the arithmetic

Treasury shares are shares the company has bought back and holds rather than cancels. Because they carry no voting rights, they reduce the number of shares used to calculate each holder's percentage. With 20,995,692 shares in treasury, the voting share count of 283,461,800 is about 6.9% smaller than the 304,457,492 in issue. A holder with a fixed number of shares will therefore see its percentage rise each time the company buys back stock.

That is why a notification showing a rise from 5.01% to 6.62% cannot be read solely as new buying. Mr Griffiths's direct holding of 17,034,906 shares, or 6.01%, and the contracts for difference over 1,733,508 shares may reflect additional purchases, the effect of the shrinking share count, or both. The filing does not distinguish between them.

Take rate and growth

The fall in the blended take rate to 77 basis points from an underlying 81 is a mathematical consequence of volume growing faster than revenue. Payment volume rose 16% to $8.6bn while revenue was $66.5m, so large, lower-margin volumes lifted the total faster than income. For a payments company, a modest take rate on a growing volume can still produce rising profit if costs are controlled, and adjusted EBITDA of $19.6m in the half suggests that margins are held.

The guidance for 2026, with revenue of $135m to $142m and adjusted EBITDA of $38m to $42m, was lower than previously expected, and management said that delays in launching new connections and slower merchant onboarding were behind it.

Balance sheet and capital use

Group cash of $186.8m includes funds held for customers, while own cash of $84.6m is the more relevant measure of the company's capacity to invest. The fall in own cash from $102.9m, partly due to buybacks, shows the trade-off the board faces. Repurchases of 9.5m shares for $23.6m in the first half reduce the share count but also limit the cash available for new market launches, such as the regulated Brazilian business. The buyback authority runs until results for 2026 are published in March 2027, so the remaining capacity will be drawn down over the coming months at a pace set by the share price limit.

Why it matters, and the limits

Each repurchase raises the percentage held by remaining investors without them buying more shares, so part of any increase in a large holder's stake can arise passively. Mr Griffiths's notification also shows direct share purchases and derivative exposure, but it does not state his intentions. A more concentrated register can reduce liquidity, and spending own cash on Buybacks leaves less for acquisitions, licences or new market launches, such as the regulated Brazilian Business the company has highlighted.

Execution remains the central risk. The interim report noted that a key merchant's launches slipped into the second half and that two carrier billing connections were suspended by authorities in one country. Management's medium-term ambitions of over 20% organic growth and EBITDA margins above 30% sit above the current guidance range.

The next scheduled milestone disclosed is the full-year results, expected in March 2027, which will also mark the expiry of the current buyback authority. Weekly buyback notices will show how fast the remaining authority is used.