Bango (AIM:BGO) slumped 7.94% to 71.3p after reporting upbeat financials that included $2.3m Cash EBITDA and 30% Annual Recurring Revenue growth.
The Cambridge-based payments and subscriptions platform said Annual Recurring Revenue rose 30% year-on-year to $18.2m, net revenue retention was 117%, active subscriptions managed by its Digital Vending Machine® grew almost 60% to 24m and DVM customers increased to 39 from 27 a year earlier.
"2025 marked a pivotal year for Bango as we delivered strong growth in recurring revenue and reached a key financial inflection point with positive cash EBITDA," Paul Larbey, chief executive, said.
Trading in Q1 FY26 was positive with revenue up 13% year-on-year and Adjusted EBITDA up 39%, aided by higher-quality recurring revenue and the full-year effect of 2025 cost reductions.
The Board said it is intentionally shifting away from legacy low-margin payment routes, accepting modest near-term revenue headwinds to materially improve earnings quality.
Gross margin expanded by more than 600 basis points to 84%, core administrative costs were cut by $2.9m, permanent headcount fell from 219 to 164 and R&D capex was reduced to $13.6m.
Bango strengthened its balance sheet with an enhanced NHN loan and a $15m revolving credit facility from NatWest, completed the DOCOMO migration to the cloud, and the Board expects the Subscriptions segment to generate positive Cash EBITDA in FY27 while noting macro uncertainty from recent Middle East developments.
