We continue to execute against our strategy, which is built around four strategic priorities: Expand, Explore, Enhance and Extract. These pillars have guided our progress in recent years and continue to provide a clear framework for investment and execution.

• Expand - Lead the bundling of subscription services through Telco channels

• Explore - Identify new bundling opportunities beyond Telcos

• Enhance - Use data and technology to differentiate Bango

• Extract - Manage the Payments segment for cash and profit

This is part one of our series exploring the four Bango strategic growth pillars and how each contributes to our long-term growth strategy.

Executive summary

Expand - Lead the bundling of subscription services through Telco channels

Expand is designed to create a compounding growth engine: more Telcos attract more subscription providers, more services make the DVM more valuable to Telcos, and greater usage drives recurring revenue for Bango.

The Digital Vending Machine® (DVM™) is more than a technology platform. It is an ecosystem where Telcos and subscription providers establish commercial partnerships.

Every new subscription provider brings more services that resellers can offer to their customers, while every new reseller gives providers another channel to reach new audiences. This creates a powerful network effect: each new addition increases the commercial opportunities available to everyone across the DVM ecosystem.

This isn't growth for growth's sake. It's a repeatable strategy for increasing the number of commercial relationships, expanding subscription bundling and strengthening Bango's competitive position.

There is growing evidence that this model is delivering. Active subscriptions reached 24M in 2025, up almost 60% year over year. In 1H26, Annual Recurring Revenue grew 31% to $20.4M, with Net Revenue Retention (NRR) of 119% and zero churn among live DVM customers - demonstrating growth from the existing customer base as well as new wins. The DVM is now used by 7 of the 8 largest US Telcos, reinforcing Bango’s position in its core market.

For investors, the significance is clear: Bango has established a strong position in a growing market, with a recurring revenue model that can grow through both new customer wins and increased usage from existing customers.

Why Telcos

Every successful growth strategy starts with a strong foundation.

For Bango, that starts with converting its established Telco position into greater scale.

Bango's core DVM market focus is Telcos for a number of reasons:

1. Telcos have the customers, billing relationships and distribution scale to become major subscription marketplaces

2. They need the technology to make bundling economical and scalable - turning subscription bundling into a source of revenue growth, differentiation and customer retention beyond connectivity.

3. Bango is already known by Telcos through its DCB leadership and trusted to connect sensitive identity and billing systems

4. Consumers are accustomed to buying entertainment services (especially video/TV) through Telcos.

The challenge facing Telcos is that the economics of connectivity are under pressure. Consumers are using more data and demanding faster, better networks, requiring continued CAPEX investment, but connectivity itself has become increasingly commoditized. Pricing and ARPU remain under pressure, making it difficult for Telcos to translate growing data consumption (and hence CAPEX investments) into equivalent revenue growth.

An increasing share of the value delivered across those networks sits in the digital services consumers use every day - streaming, gaming, productivity, fitness, education and other subscriptions. Telcos provide the connectivity that makes these services possible and already have enormous customer bases, established billing relationships and trusted positions in consumers' monthly spending, but historically capture relatively little of the value generated by the services travelling over their networks.

This creates both the need and the opportunity that Bango addresses.

Telcos need to find new sources of revenue beyond connectivity, monetizing the non-network assets such as their customer and billing relationships. They need to differentiate their propositions and increase the value of their existing customer relationships.

Subscription bundling allows them to use assets they already have - customers, billing, distribution and brand - to participate more fully in the growing digital services economy.

The barrier is complexity. Integrating individually with multiple subscription providers, launching offers and managing entitlements and billing can require significant technology development and operational resource.

The Digital Vending Machine® from Bango provides the infrastructure to remove that complexity, enabling Telcos to build, launch and manage subscription propositions at scale, without every new service requiring a lengthy individual integration.

For Bango, this creates a compelling target market: Telcos with significant existing customer scale, facing structural pressure to find growth beyond their traditional connectivity business and possessing the distribution assets required to become a major channel for subscription services.

Expand is about capturing this opportunity by establishing the DVM as the leading platform for subscription bundling through Telco channels. Bango has already made significant headway, building a market-leading position from which to drive further growth. That growth can come in two ways:

1. Increasing usage within existing Telcos: As more consumers choose to bundle subscriptions through their Telco, and those consumers subscribe to more services, the number of active subscriptions managed through the DVM increases. Growing adoption and usage across the customer bases already on the platform provide a significant route to further growth.

2. Adding more Telcos: With more than 100 additional target Telcos identified globally, each with more than four million customers, there is significant scope to continue expanding the DVM footprint and increasing the commercial opportunities it creates.

The addressable market is also growing. Omdia and Bango forecast digital subscriptions delivered through Telco bundles to increase from 360M in 2023 to 626M in 2029. The strategic objective is therefore not simply to grow the DVM customer base, but to increase Bango's role in powering subscription bundling as that market expands.

The DVM therefore addresses a strategic Telco challenge, not simply a technology requirement: how to turn enormous connectivity customer bases into higher-value subscription relationships, creating new revenue, greater differentiation and stronger customer retention without adding equivalent operational complexity.

Creating more commercial opportunities

At the same time as Telcos are looking to move beyond connectivity, subscription providers are looking for efficient ways to reach more consumers without building individual commercial relationships with every potential distribution partner.

The DVM brings those businesses together to power their subscription bundling strategies at scale and speed.

This is already happening with some of the world's largest businesses. The DVM powers subscription bundling for businesses including Verizon, Dish, Optus, EE and KDDI, while leading subscription services across a growing range of categories benefit from subscription bundling through the Bango ecosystem - from SVOD and AI to productivity, cybersecurity, mobility, delivery, replenishment and more.

Businesses onboard to the DVM once.

From there, they can establish commercial partnerships with multiple businesses already using the DVM, significantly reducing the time, effort and complexity involved in launching new subscription services as bundled offers.

For a Telco, that means faster access to leading subscription providers.

For a subscription provider, it means access to a growing network of distribution partners.

Every new Telco that integrates to the DVM creates new distribution opportunities for subscription providers.

Every new subscription provider creates more value for every Telco already using the DVM.

Once a Telco or subscription provider is connected, the value of that connection can increase as the ecosystem expands, without requiring Bango to recreate the platform for every new commercial relationship.

Expand isn't measured by the number of businesses using the DVM.

It's measured by the number of commercial opportunities created and the volume of active subscriptions managed through the platform as part of those bundling relationships.

Proof the strategy is working

The DVM is a platform designed to benefit from scale.

Today, 7 of the 8 largest US Telcos use the DVM, alongside the top 7 subscription video services in the US by market share - providing enterprise validation, strengthening the network effect and making the DVM increasingly attractive to companies that want access to the same ecosystem.

The Bango DVM is trusted by some of the world's largest digital businesses, powering major subscription bundling and perk propositions from Telcos including Verizon and Optus SubHub.

Momentum continues to build.

During 2025, Bango secured a record 12 new enterprise DVM customers and expanded into Japan, South Korea, Turkey and South Africa.

At the same time, active subscriptions managed through the DVM increased by almost 60% year over year to 24M. Active subscriptions are an important indicator for investors because they link platform adoption to Bango's financial model. As customers manage more subscriptions through the DVM, Bango generates more recurring licensing revenue.

The financial impact is also evident. Subscription segment revenue increased 22% to $22.2M in FY25, with Adj. EBITDA of $2.7M. The segment is forecast to become Cash EBITDA positive in FY27, strengthening the financial foundation for continued growth.

For investors, the significance is the scalability of the model. The DVM provides shared technology and infrastructure through which increasing numbers of customers, services and subscriptions can generate recurring revenue.

This scalability is central to Bango's long-term ambition: turn increasing DVM scale into sustainable revenue growth and, over time, stronger profitability and cash generation.

Expanding the ecosystem strengthens the strategy

Expand creates growth by adding more Telcos and increasing adoption and usage across the existing customer base.

A larger ecosystem creates greater opportunities to optimize subscriber acquisition, engagement and retention using industry-wide benchmark data and AI. It also strengthens the platform from which Bango can take its proven subscription bundling model into new industries.

Payments supports the wider Bango strategy as a scaled, cash-generative business, while also providing established Telco relationships that can be leveraged by the DVM business.

Together, the four pillars support Bango’s ambition to build two complementary Rule of 40 businesses: a high-growth DVM business and a scaled, cash-generative Payments business.

Progress at a glance

The DVM is showing progress across customer growth, platform adoption and recurring revenue.

• Is the ecosystem expanding? 12 new enterprise DVM customers in 2025; 39 total customers

• Is the ecosystem broadening? 130+ subscription services

• Is platform usage growing? 24M active subscriptions, up almost 60%

• Is recurring revenue growing? ARR $20.4M in 1H26, up 31%

• Are existing customers expanding? NRR 119%

• Are customers staying? Zero churn among live DVM customers

• Is growth translating into revenue? Subscription segment revenue $22.2M in 2025, up 22%

• Does Bango have market validation? Used by 7 of the 8 largest US Telcos and the top 7 US subscription video services by market share

• Is there runway? 100+ additional target Telcos with 4M+ customers each

• Is the underlying market growing? Telco-bundled subscriptions forecast to grow from 360M in 2023 to 626M in 2029

Key takeaways

• Expand builds scale in Bango’s core Telco market.

• Subscription bundling helps Telcos grow beyond connectivity.

• The DVM becomes more valuable as the ecosystem expands.

• Growth comes from adding more Telcos and increasing adoption and usage within existing customers.

• Expand creates the scale that supports Bango’s wider long-term growth strategy.