Bango (AIM:BGO), the AIM-listed global platform for subscription bundling and payments, reported annual recurring revenue (ARR) of $20.4m for the six months to 30 June, up 31% year-on-year from $15.6m.
The Cambridge-based company said the growth was driven primarily by expansion within its existing customer base, with net revenue retention of 119%.
Group adjusted EBITDA rose 34% to $9m, from $6.7m a year earlier, while cash EBITDA (adjusted EBITDA less net capital expenditure) swung to a positive $3.7m from a $0.7m loss in the first half of last year, already exceeding the $2.3m generated across the whole of FY25.
Active subscriptions climbed 33% year-on-year to 25.6m, and the company secured six new Digital Vending Machine customer wins in the period, three of which were contracted by period end.
Gross margin expanded by 310 basis points to 87%, reflecting the growing weight of higher-margin subscription revenue.
Within Payments, adjusted EBITDA margin rose to 43% from 40%, following the planned restructuring of lower-margin, non-core routes, which the company said is progressing ahead of plan and expected to complete this year.
"The combination of growing recurring revenue and the operating efficiencies delivered last year is translating into increasing profitability across the Group," said chief executive Paul Larbey.
Bango said trading remains in line with full-year market expectations, which it noted stood at $53.8m revenue, $19.5m adjusted EBITDA and $8.3m cash EBITDA as of 24 September. As of today, the company has secured eight DVM wins in FY26, six of which are contracted.
News Intelligence what this means for the company
Bango reported H1 FY26 results showing ARR growth of 31% to $20.4m, with adjusted EBITDA up 34% to $9m and cash EBITDA of $3.7m—already exceeding the $2.3m generated across all of FY25. The company is executing on its shift toward higher-margin recurring revenue (gross margin now 87%, up 310 basis points) while securing eight Digital Vending Machine wins year-to-date, and management reiterated full-year guidance remains on track.
The inflection from cash-burn to positive cash generation, combined with net revenue retention of 119% and accelerating profitability, validates Bango's strategic pivot away from low-margin payment routes. At current run-rate, H1 cash EBITDA of $3.7m annualizes well ahead of consensus FY26 forecasts of $8.3m, suggesting either conservative guidance or material upside if DVM customer wins and subscription expansion sustain momentum.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.