Bango (BGO) H1 2026 earnings summary

Executive summary

• Achieved 31% year-on-year ARR growth to £20.4m/$20.4M, primarily from existing customer expansion and zero churn in DVM customers.

• Subscriptions segment delivered significant operating leverage, with adjusted EBITDA up 224% to $3.2M and cash EBITDA turning positive at $3.7M, up $4.3M year-on-year.

• Payments segment maintained strong cash generation and profitability, with revenue down 5% due to exit from low-margin routes but adjusted EBITDA margin rising to 43%.

• Gross margin improved to 87%, benefiting from operational efficiencies, cost reductions, and a higher mix of recurring revenues.

• Platform economics, customer trust, and expanding use cases underpin a defensible market position with global adoption.

Financial highlights

• Annual recurring revenue (ARR) grew 31% year-on-year to £20.4m/$20.4M, with 60% of growth from existing customers and net revenue retention at 119%.

• Adjusted EBITDA increased 34% year-on-year to £9m/$9.0M, with margin rising from 27% to 35%.

• Cash EBITDA reached £3.7m/$3.7M in H1, up 60% from the prior year’s full-year figure.

• Net debt reduced to £8.7m/$8.7M, with further deleveraging expected as exceptional costs fall away.

• Active subscriptions grew 33% to 25.6M; total revenue increased 3% year-on-year to $25.9M.

Outlook and guidance

• Subscriptions business expected to be cash EBITDA positive in fiscal 2027, joining payments as a cash-generative segment.

• Trading remains in line with full-year market expectations, with strong ARR growth and momentum continuing into H2.

• Payments optimization and restructuring of low-margin routes to complete by year-end 2026, further improving revenue quality with minimal EBITDA impact.

• Focus remains on growing ARR, converting it into cash EBITDA, and strengthening the balance sheet.

• Subscriptions momentum continues with a strong pipeline and cautious optimism despite macroeconomic uncertainty.