Boku Inc. (NASDAQ: BOKU) presented its half-year results for the period ended June 30, 2026, highlighting 11% underlying revenue growth and a strategic partnership with Stripe. The company’s total payment volume rose 16% to $8.6 billion, despite $200 million in one-off headwinds. Revenue reached $66.5 million on a reported basis, with headline growth of 5% and underlying growth of 11%, excluding $3.4 million of non-recurring launch-phase pricing from the prior year. Adjusted EBITDA expanded to $19.6 million, marking a 7% increase on an underlying basis, though headline EBITDA declined 10% due to share-based payments, depreciation, FX losses, and restructuring costs. Adjusted EBITDA margins stood at 29.4%, while operating profit contracted to $4.8 million from $11.9 million in H1 2025, reflecting these expenses. Free cash flow generated was $11.3 million, with $23.6 million returned to shareholders through share buybacks. The company maintained a debt-free balance sheet, with total cash on hand at $84.6 million as of June 30, 2026, down from $102.9 million at year-end 2025. Capitalized software investments totaled $4.6 million, and group cash balances were $186.8 million, down from $245.6 million in 2025.
Revenue breakdown reflected growth across key segments. Direct Carrier Billing (DCB) contributed $35.3 million (53% of total revenue), growing 3% year-over-year, while digital wallets and A2A payments generated $22 million (33% of revenue), with 15% underlying growth. Bundling revenue surged 39% to $9.2 million, representing 14% of group revenue, up from 11% in H1 2025. The company now serves 51 million subscribers, a 21% increase year-over-year, with onboarding times improved by 50%. Non-DCB revenue accounted for 47% of underlying revenue, up from 43% in H1 2025 and 35% in 2024.
Boku expanded its network with 47 new payment connections across 24 markets and added 10 new local payment methods. The company also announced the appointment of Karim Ahmad as Chief Product Officer, effective October 1, 2026, bringing expertise from Bain & Company, Trustly, and Paysafe. A key strategic move was the partnership with Stripe, which Boku launched as its first major channel partnership. The collaboration serves as a local payment method acquiring layer for Stripe’s 5 million connected merchants, with the deal currently operational in one country and three more technically ready. Management expects minimal immediate revenue impact from the partnership, with full integration anticipated within 12 to 18 months.
Full-year 2026 guidance was reaffirmed, with revenue projected between $135 million and $142 million and adjusted EBITDA between $38 million and $42 million. The company projected a 3-year compound annual growth rate (CAGR) of 18–20% based on the midpoint revenue of $138.5 million. The broader market outlook remains positive, with Juniper Research estimating local payment methods (LPMs) to account for ~60% of global e-commerce transaction value by 2028, representing a $11 trillion market opportunity where ~37% of global consumers currently use LPMs.
CEO Stuart Neal emphasized the company’s competitive moat, citing its network of licenses and banking relationships as a safeguard against the impact of AI-driven disruption. The company’s stock rose 1.62% to $124.99 following the announcement, following a previous session gain of 2.03% to $125.50. The 52-week trading range spans $90 to $250.
