Bango Reports Positive Cash EBITDA and 30% ARR Growth in FY25 Trading Update

Headline takeaways: cash EBITDA turns positive, ARR up 30%

Bango’s FY25 trading update is a clear step forward on profitability and predictability. Cash EBITDA flipped positive to approximately $2.3 million, a $2.5 million swing from FY24, while Annual Recurring Revenue (ARR) grew 30% to $18.2 million. Net Revenue Retention (NRR) came in at 117% with zero churn of live customers – a strong signal that existing clients are expanding on the platform.

Top-line revenue was broadly flat at $52.2 million (FY24: $53.4 million), but quality improved: gross margin expanded by over 600 basis points to 84.5% as higher-margin platform revenues and core transactional routes did more of the heavy lifting.

What’s Bango actually selling? Quick primer on the jargon

• Digital Vending Machine (DVM): Bango’s platform that lets telcos and resellers bundle and sell third-party subscriptions (think Amazon, Microsoft, etc.) to their customers.
• Transactional revenue: Fees earned as a percentage of consumer spend across payments routes such as direct carrier billing (DCB), resale and e-distribution.
• ARR (Annual Recurring Revenue): The next 12 months’ expected recurring revenues from contracts live at year-end.
• NRR (Net Revenue Retention): Expansion minus contraction from existing customers over 12 months; 100% means flat, above 100% means existing customers are buying more.
• Adjusted EBITDA: Profit before interest, tax, depreciation, amortisation and certain non-cash/exceptional items. Cash EBITDA equals Adjusted EBITDA less net capex.

Revenue mix: lower transactional sales, higher gross margin

Transactional revenue is expected at $33.4 million (FY24: $36.2 million). Management says the year-on-year dip came from a small number of low-margin routes, which are under review. Excluding these, core transactional revenue grew by 6% year-on-year, and transactional gross profit still rose by 3%.

DVM and one-off revenue grew 10% to $18.8 million (FY24: $17.2 million). One-off implementation revenue was $1.5 million lower than FY24 because several large DVM contracts slipped from Q4 FY25 into FY26. Total revenue landed at $52.2 million, with gross margin up to 84.5% (FY24: 78.3%). That margin step-up is meaningful for future operating leverage.

Subscription engine: DVM momentum with zero churn

ARR rose 30% to $18.2 million, driven by almost 60% growth in active subscriptions managed through the DVM. With zero churn of live customers and NRR at 117%, existing clients are clearly expanding their subscription offerings on Bango’s rails.

Bango signed a record 12 new enterprise DVM customers in 2025, up from nine in each of the prior two years. Adoption is broadening geographically too, with new countries including Japan, South Korea, Turkey and South Africa. In the US, 7 of the top 8 telcos now use the DVM – an impressive proof point for product-market fit.

Do note: several large DVM opportunities shifted from Q4 FY25 into FY26 due to extended customer processes. Management states the “scale and quality” of these deals are unchanged. If they land early in FY26, they can add to ARR and mix.

Costs, efficiency and profitability: turning the corner

Core administrative expenses fell by $2.9 million year-on-year despite approximately $1.1 million of adverse FX headwinds. Headcount reduced to 164 at year-end (end FY24: 219). With the DOCOMO Digital integration complete, management expects the transactional business to deliver around 40% Adjusted EBITDA margins with minimal capex.

Adjusted EBITDA grew 7% to at least $16.3 million (FY24: $15.3 million). Cash EBITDA – which deducts net capex – came in positive at approximately $2.3 million (FY24: negative $0.2 million). The message is clear: the platform is scaling with better unit economics.

Cash, net debt and outlook: aiming for stronger FY26 cash generation

Net debt at 31 December 2025 was $9.3 million (FY24: $1.8 million). The increase reflects planned working capital movements, refinancing completed in 1H25 and timing of cash inflows. Management expects net leverage to reduce materially in FY26 as cash generation strengthens, supported by embedded cost savings, growing active subscriptions and a healthy DVM pipeline.

Other income was $1 million (FY24: $2.2 million), mainly tax recoveries linked to the DOCOMO Digital acquisition. That’s outside revenue and shouldn’t be seen as recurring.

Key numbers at a glance

Metric	FY25	FY24	Comment
Total revenue	$52.2 million	$53.4 million	Mix shift to higher-margin lines
Transactional revenue	$33.4 million	$36.2 million	Low-margin routes under review; core grew 6%
DVM and one-off revenue	$18.8 million	$17.2 million	Up 10%; some implementations moved to FY26
Gross margin	84.5%	78.3%	Up over 600 bps
Adjusted EBITDA	At least $16.3 million	$15.3 million	Up 7%
Cash EBITDA	Approximately $2.3 million	Negative $0.2 million	Turned positive
ARR	$18.2 million	Not disclosed	Up 30% year-on-year
NRR	117%	Not disclosed	Zero churn of live customers
Net debt (year-end)	$9.3 million	$1.8 million	Expected to reduce in FY26
Other income	$1 million	$2.2 million	Mostly tax recoveries
Permanent headcount	164	219	Efficiency gains

Why it matters: my take on the positives and the watch-outs

Positives

• Quality over quantity: Despite flat revenue, gross margin hit 84.5% as DVM and core transactional mix improved.
• Recurring muscle: ARR up 30% and NRR at 117% with zero churn suggests sticky, expanding customer relationships.
• Operational discipline: Costs down $2.9 million year-on-year and headcount rightsized; Cash EBITDA positive.
• Market validation: 7 of the top 8 US telcos now on DVM, plus new countries added in Asia, Europe and Africa.

Watch-outs

• Revenue timing: Several large DVM contracts slipped to FY26. Delivery remains key to sustain growth and cash conversion.
• Net debt: Up to $9.3 million at year-end. Management expects leverage to fall in FY26, but investors will want to see that in cash flow.
• Low-margin routes: Transactional revenue fell due to a handful of weak routes. The restructuring outcome will matter for FY26 mix and profitability.

Outlook and catalysts to track into FY26

• Final results in Q2: Detail on cash flow, capex, segment margins and contract phasing.
• DVM contract closures: Deals that moved from Q4 FY25 into FY26 – timing and ARR contribution.
• Core transactional margins: Progress toward “around 40%” Adjusted EBITDA margin with minimal capex.
• ARR and NRR trajectory: Can Bango maintain zero churn and >100% NRR as the base grows?
• Net leverage: Evidence of material reduction through stronger cash generation.

Engage with management

You can put questions to the team and watch their updates via the Bango investor hub. Ask questions about this announcement here: Bango investor Q&A, or browse the hub: bangoinvestor.com. You can also subscribe for news alerts.

Bottom line

This update reads like a business exiting a heavy integration phase and leaning into scalable, high-margin subscription infrastructure. Positive Cash EBITDA, a fatter gross margin and 30% ARR growth with 117% NRR are all moving in the right direction. Execution on the slipped DVM deals and ongoing route optimisation now need to turn that momentum into visibly stronger cash generation and lower net leverage in FY26.