Audioboom delivers record first half as adjusted EBITDA rises 80%

Audioboom Group (AIM: BOOM) has reported a record first half, with revenue, profit and audience distribution all moving firmly higher.

For the six months ended 30 June 2026, revenue increased 30% to US$45.7 million. Adjusted EBITDA, which strips out interest, tax and several non-cash or exceptional items, rose 80% to US$3.2 million.

That faster rate of profit growth is the key feature of these results. It suggests Audioboom is generating operating leverage, where revenue grows faster than the costs required to support it.

Management has also highlighted more than US$81.0 million of revenue booked for 2026 as of 14 July. That is already ahead of the US$80.4 million generated across the whole of 2025, although booked revenue is not the same as revenue already recognised.

Audioboom's first-half results at a glance

Metric	H1 2026	H1 2025	Change
Revenue	US$45.7 million	US$35.1 million	30%
Gross profit	US$9.9 million	US$7.4 million	33%
Gross margin	22%	21%	1 percentage point
Adjusted EBITDA	US$3.2 million	US$1.8 million	80%
Profit before tax	US$3.1 million	US$1.3 million	US$1.8 million higher
Basic earnings per share	17.3 cents	7.7 cents	125%
Q2 monthly downloads and video views	183 million	100 million	84%
Group cash	US$5.4 million	US$2.5 million	US$2.9 million higher

The group reported total cash and cash equivalents of US$6.0 million on its balance sheet. This included US$590,000 of cash retained in connection with acquisition consideration, leaving reported group cash of US$5.4 million.

Showcase is becoming increasingly important

Showcase, Audioboom's automated advertising marketplace, was the fastest-growing part of the business. Its revenue increased 60% to US$18.6 million and represented 41% of group revenue, up from 33% a year earlier.

This mix shift matters because Showcase carries a higher gross margin. Its expansion helped lift the group's overall gross margin from 21% to 22%, despite some pressure from Audioboom using its share of advertising revenue to meet minimum guarantees for a small number of podcasters.

The other advertising divisions also grew:

• Premium advertising revenue rose 14% to US$22.3 million.
• Sonic Integrated Marketing revenue increased 21% to US$4.6 million.
• Subscription revenue was US$179,000, down from US$200,000.

The continued expansion of Showcase supports management's ambition to develop Audioboom from a traditional podcast network into a more scalable technology platform.

Revenue growth is feeding through to profit

Operating expenses, measured on the same adjusted basis as EBITDA, increased 18% to US$6.7 million. That was comfortably below the 30% increase in revenue and 33% growth in gross profit.

Salary and commission costs rose 20% to US$4.5 million, partly because of the Adelicious acquisition and partly because stronger revenue generated higher commissions. Bandwidth and advertising impression costs increased 36% to US$1.4 million as content distribution expanded.

Audioboom completed a staff restructuring in May, reducing headcount from 53 following the Adelicious deal to 44. That is only two employees more than before the acquisition. Restructuring costs were US$206,000, while management expects salary costs to decline in the second half.

Statutory profit before tax rose to US$3.1 million from US$1.3 million. Basic earnings per share increased to 17.3 cents from 7.7 cents, while diluted earnings per share reached 15.9 cents.

Cash generation has improved, but working capital matters

Cash generated before working-capital movements increased to US$2.8 million from US$473,000. After movements in receivables and payables, net cash generated from operations was US$1.3 million, compared with a US$1.4 million outflow a year earlier.

Audioboom collected US$43.5 million of cash during the period, equivalent to 95% of reported revenue. Debtor days improved to 72 from 80 at June 2025 and 89 at the end of 2025.

There is still a timing mismatch to watch. Major podcast partners can be paid on 30-day terms, while advertising agencies typically pay Audioboom within 60 to 90 days of receiving an invoice. This means rapid growth can absorb working capital even when the underlying business is profitable.

Audioboom had US$5.4 million of group cash at 30 June and another US$3.3 million available through an overdraft facility. It has also reached an agreement in principle with HSBC for a revolving credit facility of up to US$10.0 million. Completion is expected in the coming weeks, so investors should note that this additional facility was not finalised at the reporting date.

The Adelicious acquisition appears encouraging

Audioboom completed the acquisition of Adelicious in July 2025. Management says revenue from Adelicious podcasts increased by 50% during the three months immediately following the deal after the content was connected to Audioboom's advertising technology.

Adelicious generated qualifying 2025 revenue of £5.5 million, resulting in deferred consideration of £0.9 million. This was 30% of the maximum £3.0 million available under that part of the deal.

No contingent consideration was payable because a specific podcast did not exceed the relevant £2.0 million annual minimum-guarantee threshold. Audioboom said that podcast remained profitable following the acquisition.

Total consideration paid, net of the escrow retention, was £4.53 million, compared with maximum potential consideration of £10.0 million.

This is important because management intends to use further acquisitions alongside organic growth to target more than US$200 million of revenue and over US$40 million of adjusted EBITDA in 2030. Audioboom believes four or five additional acquisitions will be required.

Strategic review ends with Audioboom remaining independent

Audioboom concluded its strategic review in June after engaging with more than 30 parties across the US and Europe. Three parties submitted conditional, non-binding proposals to acquire the company.

The Board rejected all three, concluding that they undervalued Audioboom and its prospects. The proposed offer values were not disclosed, although the company said each represented a premium to the £5.40 share price immediately before the offer period began on 3 October 2025.

The near-term strategy is therefore based on independence, organic growth and acquisitions. That gives shareholders continued exposure to Audioboom's growth plans, but it also leaves the company responsible for funding and executing those plans successfully.

What investors should watch next

The headline numbers are strong. Revenue growth is broad-based, margins are improving and adjusted EBITDA is growing significantly faster than sales. Audience distribution is also expanding, with Q2 monthly downloads and video views up 84% to 183 million.

Partnerships with Spotify and Apple could create additional video advertising and subscription opportunities. The required technology integrations are expected to go live during the second half of 2026.

There are still risks. Minimum guarantees offered to podcast creators can become costly if advertising income falls short. Both onerous contracts previously disclosed ended in 2025, and Audioboom said no other existing contracts met the accounting definition of onerous at the reporting date, but these obligations require continued monitoring.

Acquisition execution is another consideration. Audioboom may use debt and new equity as part of future deal funding, creating financing risk and possible shareholder dilution. The proposed US$10.0 million credit facility also remains subject to completion.

Overall, the half-year report shows a business with accelerating revenue, improving profitability and stronger cash generation. The next test is whether Audioboom can convert its booked revenue, video partnerships and acquisition pipeline into sustained profitable growth without weakening its balance sheet or taking on unattractive creator commitments.