Bango PLC (AIM:BGO, OTCQX:BGOPF), the payments and subscriptions technology company, has set a target for its subscriptions division to achieve positive cash earnings in 2027, following a strong start to the current financial year.
Revenue for the first quarter of 2026 rose 13% year-on-year, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) up 39%, driven by higher-quality revenue and the annualised effect of cost cuts made during 2025.
The Cambridge-based company said it had secured three new Digital Vending Machine (DVM) customer wins so far in 2026, with one contracted, alongside continued expansion from existing customers.
The DVM is Bango's proprietary platform that allows telecoms operators and other partners to manage and bundle subscription services for consumers.
The board cautioned that rising geopolitical uncertainty following recent developments in the Middle East had not yet affected trading but could weigh on customer processes and sales cycles in the coming months.
For the full year ended 31 December, total revenue slipped 2% to $52.2 million, as a 15% decline in payments segment revenue to $30 million offset a 22% rise in subscriptions revenue to $22.2 million.
Annual recurring revenue (ARR), a key measure of the quality and predictability of the business, grew 30% to $18.2 million, with a net revenue retention rate of 117% and zero churn among live customers.
Adjusted EBITDA rose 7% to $16.4 million, while cash EBITDA turned positive, improving by $2.5 million to $2.3 million.
Gross margin expanded by more than six percentage points to 84%, reflecting the deliberate shift away from legacy low-margin payment routes.
Bango ended the year with net debt of $9.2 million, having drawn on an enhanced loan facility from NHN and a new $15 million revolving credit facility with NatWest.
The company reduced permanent headcount from 219 to 164 during the year while maintaining an employee engagement score above 80%, and cut core administrative expenses by $2.9 million.
Active subscriptions managed through the DVM increased by almost 60% year-on-year to 24 million, with 39 DVM customers now signed, including seven of the top eight US telecoms operators.