UK's Bango 1H revenue rises, helped by subscription platform growth

Overview

• UK subscription bundling platform's 1H26 revenue grew 3% yr/yr, driven by Subscriptions segment

• Adjusted EBITDA for 1H26 rose 34%, reflecting operating leverage and improved profitability

• Annual Recurring Revenue climbed 31% yr/yr, supported by customer expansion and new wins

Outlook

• Bango expects restructuring of non-core payment routes to complete in 2026, with minimal EBITDA impact

• Company says trading remains in line with full-year market expectations

• Subscriptions momentum continues into 2H26, but company remains cautious due to macroeconomic uncertainty

Result Drivers

• PAYMENTS RESTRUCTURING - Co said Payments revenue declined due to planned restructuring of legacy low-margin routes, aimed at improving profitability and cash generation

• SUBSCRIPTIONS EXPANSION - Subscriptions revenue grew as existing customers expanded use of the platform, with Net Revenue Retention rising to 119%

• HIGHER-MARGIN MIX - Gross margin expanded as higher-margin recurring subscription revenues increased as a share of total revenue

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Bango PLC is GBp181.00, about 194.3% above its September 24 closing price of GBp61.50

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

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• Sept 22 - UK's Yu Group H1 revenue rises 19% on higher volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)