Bango shares rise as it cashes in on surge of optimism

Its update for the year to December 31 is timely, as Larbey remarked. He said: "2025 marked an important year for Bango as we successfully executed on the key strategic priorities of continued strong growth in recurring revenue and continued opex and capex reductions. This resulted in positive Cash EBITDA of approximately $2.3 million - a $2.5m improvement from the negative Cash EBITDA of FY24. We expect the growth of Cash EBITDA to accelerate in FY26."

Annual Recurring Revenue increased by 30 per cent year-on-year to $18.2m, driven by almost 60 per cent growth in active subscriptions managed by the Digital Vending Machine (DVM). With zero churn of live customers, the subscription growth delivered Net Revenue Retention of 117 per cent, highlighting the critical role the DVM plays for Bango customers as they scale their subscription offerings.

Larbey added: "We secured a record 12 new enterprise DVM customers in 2025 up from nine in each of the previous two years. The DVM has now been adopted by 7 of the top 8 Telcos in the US and in new countries including Japan, South Korea, Turkey and South Africa.

"The closing of several large DVM opportunities moved from Q4 FY25 into FY26 due to extended customer processes; the scale and quality of these contracts remain unchanged. Driven by the cost efficiencies delivered during FY25, expansion of core DCB routes, continued growth in active subscriptions and a strong pipeline of new DVM customers, Bango is well positioned to generate improved profitability and free cash flow in FY26."

Transactional revenue is expected to be $33.4m (FY24: $36.2m), with the year-on-year reduction resulting from a small number of low margin routes; the restructuring of these routes is under review. Visibility of revenue growth continues to improve.