Shares in Bango PLC (AIM:BGO, OTCQX:BGOPF, FRA:B1O) rose 8% to 84.68p after the company said it moved into positive cash generation last year, helped by cost cuts and rapid growth in its subscription platform.
In a trading update for the year to December 31, the Cambridge-based payments and subscription technology group said it delivered positive cash earnings of about $2.3 million.
That marked a $2.5 million improvement on the previous year, when cash earnings were negative. The company said it expects cash generation to accelerate further in 2026.
The improvement was driven by strong growth in recurring revenue, which comes from ongoing customer contracts and is typically more predictable.
Annual recurring revenue rose 30% to $18.2 million, supported by almost 60% growth in active subscriptions managed through Bango’s Digital Vending Machine.
This platform allows telecoms groups to bundle and manage services such as streaming subscriptions for their customers.
Bango said none of its live customers left during the year, meaning growth came from existing clients spending more. Net revenue retention reached 117%, indicating customers increased their spending by 17% year on year.
The group signed a record 12 new large customers in 2025 and said seven of the eight largest US telecoms groups now use its platform.
While total revenue dipped slightly to $52.2 million after exiting low-margin activities, gross margins improved sharply to 84.5%.
Chief executive Paul Larbey said the company was now well positioned to deliver improved profitability and free cash flow in the year ahead.