Bango PLC (BGO) reported a mixed first half of 2026, with headline revenue declining between 3% and 5% year-on-year as the company completed a planned restructuring of its lowest-margin payment routes — even as its higher-value subscriptions segment posted robust double-digit growth.
Annual recurring revenue rose 31% to GBP 20.4 million from GBP 15.6 million a year earlier, with more than 60% of that growth coming from existing customers. Net revenue retention held at 119%. Adjusted EBITDA climbed 34% to GBP 9 million, and the margin widened to 35%, an improvement of 800 basis points from 27% in the same period last year.
The subscriptions business drove much of the operating improvement. Headline subscriptions revenue grew 13%, while recurring subscription revenue accelerated by 39%. Adjusted EBITDA from subscriptions more than tripled, rising 224%. The broader gross margin expanded over 300 basis points to 87%. Cash EBITDA reached GBP 3.7 million in the half compared with GBP 2.3 million for the full prior year, and the subscriptions cash EBITDA improved by GBP 4.3 million year-on-year after moving out of negative territory.
Core payments revenue was flat to modestly positive, rising roughly 3% on a constant-currency basis.
Operating profit reached breakeven, recovering from a GBP 2.9 million loss a year earlier. Net debt stood at GBP 8.7 million, down GBP 0.5 million from December 2025, and the current ratio remained below one at 0.67. Capital expenditure-related depreciation and amortization are expected to peak in FY2027 before easing, and the company forecast the restructuring of its low-margin payment routes would be completed by end of 2026.
On a forward-looking basis, management said the subscriptions unit is on track to reach standalone positive cash EBITDA in FY2027, with meaningful net-debt reduction also expected that year. The investor analysis noted an implied free cash flow yield of 11% at current valuations.
Bango's digital vending machine (DVM) platform now supports distribution to over 130 subscription services across telcos, banks, retailers and connected-TV providers. The firm tracks more than 100 telcos, each with over 4 million customers, and reported zero customer churn in the subscriptions business to date. Recent commercial wins were highlighted, including partnerships with Google since 2012, Amazon carrier billing in Japan launched in 2017, SoftBank added in 2020, and the acquisition of DOCOMO Digital in 2022. Additional partners mentioned included Verizon, Disney, NTT, KDDI and Shopify.
Shares rose 5.69%, adding $3.50 to close at $65 from a previous close of $61.5. The stock trades within a 52-week range of $55 to $115.
