Bango (BGO) H2 2025 earnings summary

Executive summary

• Fiscal year 2025 marked a transition to positive cash EBITDA, driven by improved revenue quality, operational efficiencies, and record DVM wins with zero churn among live customers.

• Segmental reporting introduced, clarifying the distinction between the cash-generative payments business and the growth-focused subscriptions (DVM) segment.

• The DVM platform expanded to 130 content providers and seven of the top eight US telcos, reinforcing its market leadership.

• Structural efficiencies realized via Frankfurt migration and significant headcount reduction.

Financial highlights

• Active subscriptions grew 60% year-over-year to 24M; ARR increased 30% to $18.2M.

• Net Revenue Retention at 117%, indicating strong expansion within existing customers.

• Gross margin improved by 6 percentage points to 84%; adjusted EBITDA margin rose to 31%.

• Payments revenue declined from $35M to $30M due to planned reduction in low-margin routes, while core routes grew 5%.

• Adjusted EBITDA up 7% to $16.4M; Cash EBITDA turned positive at $2.3M; net debt at $9.2M.

Outlook and guidance

• Q1 FY26 revenue up 13% year-over-year, with adjusted EBITDA margin exceeding 39%.

• Subscriptions segment expected to be cash EBITDA positive by fiscal 2027.

• Continued focus on expanding DVM into new verticals (e.g., banking, retail, smart TVs) and targeting over 100 additional telcos globally.

• Pipeline remains strong with focus on DVM win timing and visibility.

• Anticipated further cost reductions and leverage improvement as business shifts from investment to cash generation.