Bango (BGO) H2 2025 earnings summary

Executive summary

• FY 2025 marked a transition year with positive cash EBITDA for the first time since the Billtrust digital acquisition, driven by improved revenue quality, structural efficiencies, and record DVM wins with zero churn in live customers.

• Segmental reporting was introduced, separating payments and subscriptions, providing greater transparency and aligning with internal operations.

• The DVM platform expanded to 130 content providers and seven of the top eight US telcos, reinforcing its position as the de facto platform for subscription bundling.

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

Financial highlights

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

• Gross margin improved by 6 percentage points to 84%; adjusted EBITDA margin rose to 31% (up 3 points year-over-year).

• Adjusted EBITDA grew 7% to $16.4M/GBP 16.4 million; Cash EBITDA turned positive at $2.3M.

• Costs reduced by nearly GBP 3 million year-over-year, with a total reduction of ~$10M over 24 months.

• Revenue slightly declined 2% year-over-year to $52.2M, but gross profit rose 6% to $44.1M.

Outlook and guidance

• Q1 FY 2026 revenue grew 13% year-over-year, with continued positive cash EBITDA and adjusted EBITDA margin at 39%.

• Subscriptions segment expected to become cash EBITDA positive in FY 2027.

• Ongoing focus on expanding beyond telcos, targeting banks and retailers, and leveraging network effects for further growth.

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