Announcement PDF RNS Number : 2248W Bango PLC 25 September 2026 Bango PLC ("Bango") Interim Results for the six months ended 30 June 2026 Cambridge, UK, 25 September 2026 - Bango (AIM: BGO), the global platform for subscription bundling and payments, today announces its unaudited Interim Results for the six months ended 30 June 2026. Financial overview (unaudited): 1H26 1H25 Change Revenue Payments1 $13.6M $14.3M -5% Subscriptions2 $12.3M $10.9M +13% Total $25.9M $25.2M +3% Adj EBITDA3 Payments $5.8M $5.7M +1% Subscriptions $3.2M $1.0M +224% Total $9.0M $6.7M +34% Cash EBITDA4 Payments $4.7M $4.6M +$0.1M Subscriptions ($1.0M) ($5.3M) +$4.3M Total $3.7M ($0.7M) +$4.3M Annual Recurring Revenue (ARR)5 $20.4M $15.6M +31% Net Revenue Retention (NRR)6 119% 108% 30 June 2026 31 Dec 2025 Net debt7 $8.7M $9.2M -$0.5M Highlights · ARR crossed the $20M milestone, growing to $20.4M, up 31% year-on-year (1H25: $15.6M), driven primarily by expansion within the existing customer base (NRR of 119%). · ARR at period end increased to 39% of Group revenue for the last twelve months, continuing the transition toward a higher-quality and more predictable revenue mix (1H25: 29%). · Active subscriptions increased 33% year-on-year to 25.6M, and six new Digital Vending Machine® (DVM) customers were awarded during the period, of which three were contracted by period end. · Gross margin expanded by 310bps to 87%, reflecting the increasing contribution of higher- margin recurring subscription revenues and continued improvement in Payments revenue quality. · Group Adjusted EBITDA increased 34% to $9.0M (1H25: $6.7M), driven by strong operating leverage within the Subscriptions segment, where Adjusted EBITDA more than tripled to $3.2M (1H25: $1.0M). · Group Cash EBITDA improved from a loss of $0.7M in 1H25 to a positive contribution of $3.7M in 1H26 - with the first six months exceeding the total amount generated in the whole of FY25. · Payments Adjusted EBITDA margin increased to 43% (1H25: 40%) following the planned restructuring of lower-margin, non-core payment routes, further improving profitability and cash generation. Outlook · Revenue quality continues to improve; restructuring of non-core payment routes is progressing ahead of plan and is expected to complete this year. The final outcome of the Payments restructuring may result in a low-single-digit variation in reported revenue, with negligible impact on Adjusted EBITDA. Trading for the Group remains in line with full year market expectations8 . · Subscriptions momentum has continued into 2H26 driven by expansion of existing customers. We continue to see exciting opportunities in our pipeline and remain cautiously optimistic despite the continued macroeconomic uncertainty. As of today, there have been eight DVM wins in FY26, with six contracted. Bango CEO, Paul Larbey, said: "Bango delivered a strong first half, with Annual Recurring Revenue increasing 31% to $20.4M, Adjusted EBITDA growing 34% to $9.0M and Cash EBITDA improving to $3.7M - exceeding, in six months, the amount generated in the whole of FY25. The combination of growing recurring revenue and the operating efficiencies delivered last year is translating into increasing profitability across the Group. This demonstrates the increasing operating leverage of our business which directly translates into cash EBITDA growth. The Digital Vending Machine continues to scale as existing customers expand their use of the platform and we win new customers across Telcos and other consumer channels. Net Revenue Retention of 119% underlines the strength of our model: as customers add more subscription services and increase volumes, recurring revenue grows with minimal incremental cost. The opportunity for subscription bundling continues to expand across financial services and other sectors supporting our mission to become the platform of choice for subscription bundling. We entered the second half with growing recurring revenue, an improving cash generation profile and a clear focus on disciplined execution. The Board remains confident in Bango's growth prospects, underpinned by expansion from within the existing customer base and a strong pipeline of new opportunities." Investor Presentation: Bango is hosting a presentation, open to all existing and potential shareholders, at 10.00am BST today. Investors can sign up to Investor Meet Company for free and register to join the call here: https://www.investormeetcompany.com/bango-plc/register-investor Notes 1 Payments segment revenue comprises Direct Carrier Billing (DCB) and wallets where revenue is derived by charging a percentage of the retail price paid by the consumer and one-off fees. 2 Subscriptions segment revenue includes all Digital Vending Machine® (DVM) license and support fees, one-off DVM fees, fees from bundling which are charged as a percentage of the retail price and pre-stocked margin. 3Adjusted EBITDA is earnings before interest, tax, depreciation, amortization, negative goodwill, exceptional items, share of net loss of associate and share based payment charge. 4 Cash EBITDA is Adjusted EBITDA less net capital expenditure. 5 Annual Recurring Revenue is the expected annual revenues to be generated in the next 12 months based on contracted revenues recognized as at 30 June. 6 Net Revenue Retention is a measure of the retention and expansion of revenue from existing customers over the previous 12 months and is calculated by dividing the ARR from existing customers at the end of a period by the ARR generated from those same customers at the beginning of the period. 7Net debt is borrowings less cash, cash equivalents and short-term investments. 8 In so far as the Board is aware, as of 24 September 2026, consensus expectations for FY26 were for revenue of $53.8M, Adjusted EBITDA of $19.5M and Cash EBITDA of $8.3M. The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for making this announcement on behalf of Bango is Paul Larbey, Chief Executive Officer. ENDS Engage with the Bango management team directly by asking questions, watching video summaries and seeing what other shareholders have to say. Navigate to our interactive Investor center here: https://bangoinvestor.com/ For further information, please contact: Investor questions on this announcement We encourage all investors to share questions on this announcement via our investor hub https://bangoinvestor.com/link/eo53YP Bango PLC Paul Larbey, CEO Matt Wilson, CFO +44 1223 617 387 Singer Capital Markets (Nominated Adviser and Joint Broker) Jen Boorer Daniel Ingram Carl Diebitsch +44 20 7496 3000 Canaccord Genuity (Joint Broker) Simon Bridges Harry Gooden George Grainger +44 20 7523 8000 Subscribe to our news alert service: https://bangoinvestor.com/auth/signup About Bango Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers. The world's largest content providers, including Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) trust Bango technology to reach subscribers everywhere. Bango, where people subscribe. For more information, visit www.bangoinvestor.com CEO Statement Introduction The first half of 2026 represented another period of strong strategic and financial progress for Bango. We delivered continued growth in recurring revenue and a material improvement in profitability. Annual Recurring Revenue increased by 31% to $20.4M, and Adjusted EBITDA increased by 34% to $9.0M. Cash EBITDA reached $3.7M, compared with negative $0.7M in the first half of 2025. The Cash EBITDA generated during the first six months of 2026 was $1.4M higher than the $2.3M delivered during the whole of FY25. Bango operates two distinct and complementary segments: a highly cash-generative Payments segment and a rapidly scaling Subscriptions segment. The performance in 1H26 demonstrates the increasing operating leverage in the Bango business model. The operational efficiencies embedded during 2025, combined with continued growth in higher-margin Subscriptions revenue and a focus on revenue quality in Payments, are translating into improved profitability. While total revenue increased 3% to $25.9M, Subscriptions revenue grew 13% to $12.3M. Payments revenue declined 5% to $13.6M as anticipated following the restructuring of legacy low-margin routes, which is progressing ahead of plan and is expected to complete by the end of the current financial year. Our vision remains to be "The place where people subscribe". During the first half, we continued to strengthen our position in the subscription bundling market, both through expansion within our existing customer base and through new customer wins across an increasingly broad range of applications. Subscriptions segment - The Digital Vending Machine® (DVMTM ) The subscription market continues to grow and evolve. Consumers want greater flexibility, simplicity and value from the services they use, while subscription providers are looking for efficient ways to acquire, monetize and retain subscribers. This continues to support the shift toward indirect distribution and the development of the "bundle economy". Our Subscription Signals Report (published in May this year and based on a survey of over 4,000 UK and US consumers) highlights the growing importance of indirect distribution for content providers, with the average UK consumer having more than 2 subscriptions through an indirect channel. The consumer drive to bundle increases with each younger generation, with 55% of Gen Z subscribers expecting entertainment subscriptions included with their broadband and mobile phone plan by default. The Digital Vending Machine is a full-lifecycle subscription bundling platform. It connects subscription providers with Telcos, banks, retailers and other organizations that deliver services to consumers. The DVM enables these partners to launch and manage subscription offers and bundles without having to build and maintain separate integrations for each commercial relationship. Uniquely, the DVM manages the entire subscription lifecycle from partner discovery through to driving consumer engagement, uptake and re-engagement. This common-platform model is strategically important. Subscription providers join a growing network of distribution channels, while resellers gain access to an expanding ecosystem of subscription services. As more partners join, the value available to all participants increases. This creates network effects that strengthen the competitive position of the DVM, creating a growing barrier to entry, making Bango an increasingly important part of the subscription bundling value chain. The financial performance of the Subscriptions segment in the first half demonstrates continued progress. Revenue increased by 13% to $12.3M and Annual Recurring Revenue increased by 31%, driven by an increase in the number of active subscriptions to 25.6M - up 33% YoY. Net Revenue Retention of 119% (1H25: 108%) highlights how customers already live on the DVM are growing - more subscriptions bundled, more revenue to Bango, with minimal incremental operating cost. That is the platform economics working as designed, and it is the most durable of our growth drivers because it does not depend on new wins. We were awarded six new DVM customer wins during the period, three of which were contracted at the period end. As we approach the end of Q3, we have now won a total of eight new DVM customers this year, of which six are now contracted. This momentum and the quality of the pipeline reinforce our confidence in the underlying demand for subscription bundling despite the macroeconomic uncertainty which continues to elongate sales cycles. The combination of new customer acquisition and expansion within the installed base is central to the long-term value of the DVM. A new customer initially creates contracted licensing and support revenue. As that customer launches more subscription services and increases subscription volumes, the associated recurring revenue grows without a corresponding increase in the cost base. Payments segment Direct Carrier Billing (DCB) remains a well-established payment method, enabling consumers to place charges for digital and physical goods directly on their mobile phone bill. It continues to provide a simple and trusted payment experience, particularly for consumers who do not have access to traditional banking services or who prefer the convenience of paying through their Telco. Bango has long-standing relationships with many of the world's leading Telcos and digital merchants. These relationships, combined with our scalable payment technology, support a stable and cash-generative Payments segment as evident in the financial performance of the business during 1H26. Payments revenue was $13.6M in the first half, 5% lower than the prior-year period. This was in line with our expectations and reflects the continued restructuring of selected legacy payment routes. Strategic priorities and progress We continue to execute against the four strategic priorities set out in the FY25 Annual Report: Expand, Explore, Enhance and Extract. These priorities provide a clear framework for investment and execution and ensure that resources are directed toward the areas capable of generating sustainable growth and long-term shareholder value. Expand - Lead the bundling of subscription services through Telco channels Telcos remain central to the development of subscription bundling. They have large customer bases, established billing relationships and frequent engagement with consumers. These attributes make them natural distribution hubs for subscription services. The progress Bango has made in this channel provides a strong foundation for continued growth. Our position in the United States remains the strongest evidence of market leadership where seven of the eight largest Telcos have adopted the DVM. With a global pipeline - targeting over 100 additional Telcos each with more than four million customers - there is significant further growth that can be achieved. The customers announced during the first half included further opportunities in the Telco channel, including mobile virtual network operators (MVNOs) who are now adding bundling to differentiate their offering, further expanding the opportunity for the DVM in the Telco vertical. · KDDI, the second largest Telco in Japan, is using the DVM for bundling with its leading MVNO brand povo · Mobile Vikings, a Belgian MVNO owned by Proximus Group, is using the DVM to power its subscriptions hub. Explore - Identify new bundling opportunities beyond Telcos As we continue to expand with Telcos, the growing interest from financial services companies and global brands demonstrates the reseller-agnostic nature of the DVM. These organizations are exploring subscription bundling to attract customers, increase engagement, reach new audiences, improve loyalty and differentiate their core propositions. This broadens the addressable market for Bango and supports our ambition for the DVM to become the common platform for subscription bundling across multiple verticals. New logos won in the period included businesses outside Telcos, following previous launches in retail, benefits providers, and the pan-European banking win contracted last year. We also announced a partnership with RedSquid to bring subscription bundling onto the TV as part of an AI-driven experience. Each of these tells the same story: any business with a trusted, recurring consumer relationship can use bundling as an effective tool to acquire and retain customers and would rather adopt a standardized platform than build one. Telcos will remain the largest and most established channel for subscription bundling in the short term, but opportunities in financial services and other verticals provide additional routes to market and we will continue to develop these opportunities. Enhance - Use data and technology to differentiate Bango Our third strategic priority is to enhance the DVM through technology, data and product innovation. The product investments made in recent years have created a scalable platform capable of supporting increasingly sophisticated subscription propositions. The all-in-one Super Bundling capabilities launched during 2025 provide a foundation for customers to create and manage complex, multi-product bundles and deliver a simpler experience to subscribers. Our product priorities remain focused on simplifying partner onboarding, reducing deployment times, improving subscriber journeys and enabling customers to manage the full subscription lifecycle more efficiently. Data and AI have an important role to play in this work, both in reducing friction across the ecosystem and in helping customers identify and optimize subscription opportunities. We continued to invest selectively in the growth opportunities ahead during the first half. This investment is balanced against a clear requirement for financial discipline. Product development must either strengthen the competitive position of the DVM, improve scalability, support customer deployment or create a defined commercial opportunity. Extract - Manage the Payments segment for cash and profit Within the Payments segment the focus is on maximizing the profitability, cash generation and strategic value of the DCB routes operated through the Bango platform. Where a route does not generate an appropriate return, we will seek to improve its economics or, where appropriate, discontinue it. The benefits of this approach can be seen in the segment's profitability. Payments Adjusted EBITDA increased slightly to $5.8M, compared with $5.7M in 1H25, despite the planned reduction in revenue. Payments also continued to generate strong cash flows, supporting investment in the DVM and the progressive strengthening of the Group's financial position. We also signed new DCB customers, including two operators who migrated their services to Bango from incumbent providers. The addition of Telin means Bango will support four of the five mobile operators in Hong Kong offering Direct Carrier Billing for Google Play and LMT marks Bango's first DCB customer in Latvia. Governance and people The Board was further strengthened during the first half. Darcy Antonellis became Independent Non-Executive Chair and Duncan Magrath joined the Board as a Non-Executive Director and Chair of the Audit Committee. These appointments increase independent oversight and bring valuable financial and operational experience as Bango enters its next stage of growth. Strong governance, financial controls, risk management and operational resilience remain a priority as the DVM increases in scale and strategic importance. The progress delivered in the first half reflects the continued commitment and expertise of the Bango team. The organization has undergone significant change over recent years, including the integration of DOCOMO Digital, the simplification of the operating model and the establishment of a more focused cost base. Throughout that process, our people have continued to support customers, develop the platform and execute against our strategic priorities. I would like to thank everyone at Bango for their contribution. Looking ahead Bango enters the second half of the year with continued momentum in recurring revenue, an improving profitability profile and significantly stronger cash generation. The growth in Annual Recurring Revenue, Net Revenue Retention of 119% and the six new customer wins provide confidence in the demand for the DVM and in the long- term subscription bundling opportunity. The first-half performance also demonstrates the benefits of the actions taken during 2025. The cost efficiencies are embedded, the Payments segment continues to generate strong cash and profitability, and the Subscriptions segment is moving toward positive Cash EBITDA. Our priorities for the remainder of the year are clear: scale the DVM, expand recurring revenue, maintain the strong cash generation of the Payments segment, strengthen the balance sheet and retain discipline over costs and investment. Trading for the Group remains in line with the full year market expectations and the progress achieved during the first half gives us confidence in both our strategy and our ability to execute it. I look forward to building on this progress as we continue to shape the future of how the world subscribes. Paul Larbey Chief Executive Officer CFO Statement The first half of 2026 demonstrates the increasingly cash-generative nature of our business. Adjusted EBITDA increased 34% to $9.0M, while the continued reduction in opex and capex resulted in Cash EBITDA of $3.7M for the half. This is already 60% ahead of the $2.3M generated across the whole of FY25. This improvement reflects both elements of our strategy: Payments continuing to generate strong margins and cash while lower-quality revenue is progressively removed; and Subscriptions beginning to demonstrate the operating leverage inherent in the DVM platform as recurring revenue scales. Accelerating, higher-quality growth Group revenue grew 3% to $25.9M (1H25: $25.2M). More significant than the headline growth rate is the composition: Annual Recurring Revenue (ARR) grew 31% to $20.4M, driven predominantly by expansion within our existing customer base, which contributed $3.0M of net ARR growth, and new customer wins added a further $1.8M. In the period we won six further DVM customers, three of them already contracted. Post period, there is now a total of eight new DVM customers of which six have been contracted. These wins are expected to contribute progressively to recurring revenue as they launch and scale. Revenue from new business year-to-date is behind prior year, driven by lower implementation fees; the pipeline remains strong, and we are encouraged by the significant uptick in existing customer engagement as DVM adoption increases. Net Revenue Retention of 119% (1H25: 108%) captures the effect directly: existing partners are scaling their subscription volumes, and recurring revenue compounds with limited incremental cost as they do. Gross margin expanded by 310bps to 87%, as the higher-margin Subscriptions segment continued to grow as a share of the revenue mix. Core administrative expenses* fell 15% to $18.9M, comprising a $3.3M reduction from the efficiency initiatives completed during FY25 - the full-period benefit of last year's restructuring now working through the cost base as intended. Together, these drove Adjusted EBITDA up 34% to $9.0M, and an EBITDA margin of 35% (1H25: 27%). Capitalized R&D investment continued its planned decline, down 27% year-on-year to $5.3M and down 31% over two years (1H24: $7.7M), as the platform matures and prior investment increasingly converts into revenue. Payments: Improving quality Payments remains highly cash-generative and capital-light, and its revenue quality continues to improve. Core routes now represent 90% of Payments revenue, up from 83% a year ago, as the strategic reduction of higher cost-of-sales routes continues; we expect this to be completed by December 2026. Revenue was $13.6M (1H25: $14.3M), down 5% as expected: a $1.2M reduction in high cost-of-sales routes was only partially offset by $0.3M of core route growth and $0.1M movement in one-off revenue. Despite the smaller top line, Adjusted EBITDA grew to $5.8M (1H25: $5.7M), with margin improving to 42.6% (1H25: 39.9%). We expect sustainable Adjusted EBITDA margins in our Payments segment of around 40%. $4.7M of Cash EBITDA (1H25: $4.6M) was generated, up 2% on a reported basis. Normalizing for one-off items - higher one-off fee revenue in the current period and the non- repeat of DOCOMO Digital related Other Income - underlying Payments Cash EBITDA growth was stronger still, at 7% growth year-on-year. We are delivering strong progress against our plan to improve revenue quality while protecting and maintaining cash generation. Subscriptions: The growth engine Subscriptions revenue grew 13% to $12.3M (1H25: $10.9M), and profitability scaled even faster: Adjusted EBITDA more than tripled to $3.2M (1H25: $1.0M), a margin of 26% (1H25: 9%). This is the clearest evidence yet of the operating leverage inherent in the DVM platform as subscription volumes scale across an expanding base of partners. Cash EBITDA improved to -$1.0M (1H25: -$5.3M), and the segment remains on track to reach Cash EBITDA positive in FY27, as previously guided. Non-Operating items Depreciation and amortization increased to $8.0M (1H25: $6.8M), reflecting newly developed platform features beginning to generate revenue; we expect D&A to peak in FY27 before reducing in line with the capex cycle in subsequent years. Exceptional costs reduced to zero (1H25: $1.8M), following the completion of the DOCOMO Digital migration and the efficiency initiatives launched last year. Share-based payment charges also reduced to $0.7M (1H25: $1.1M), reflecting structural changes to the scheme and a lower employee headcount. Finance charges increased to $1.2M (1H25: $0.6M), driven by the change in capital structure following the June 2025 refinancing and the relocation of the Cambridge head office. Other income, relating to the recovery of costs from the DOCOMO Digital acquisition, reduced to $48k (1H25: $370k) and is expected to continue to decline year-on- year going forward. Altogether, these factors contributed to a $3.2M increase in operating profit and a $0.3M improvement in Adjusted PAT, both turning positive for the period. Balance sheet and cashflow Net assets were $21.7M at 30 June 2026 (31 December 2025: $22.0M), with both total assets and total liabilities reducing. Trade and other receivables reduced by $2.0M from 31 December 2025 to $17.5M, while trade and other payables reduced by $3.5M to $27.9M, consistent with the working capital normalization highlighted at FY25. Net debt reduced to $8.7M at 30 June 2026 from $9.2M at 31 December 2025, in line with management's expectations. The $0.5M reduction reflects the conversion of $3.7M of Cash EBITDA generated during the period, offset principally by working capital normalization, payment of exceptional costs associated with the FY25 efficiency program, and interest, tax and other financing cash flows. As the FY25 exceptional cash costs fall away and the impact of working capital normalization moderates, we expect an increasing proportion of Cash EBITDA to translate into net debt reduction, supporting continued deleveraging into and through FY27. Outlook The first half provides further evidence of the strengthening financial profile of Bango. Payments is sustaining Adjusted EBITDA margins above 40% while progressively removing lower-quality revenue and generating significant cash. At the same time, Subscriptions is delivering recurring revenue growth and increasingly demonstrating the operating leverage of the DVM platform, with Cash EBITDA improving materially toward our target of positive Cash EBITDA in FY27. The first half benefited from the full-period impact of the FY25 efficiency initiatives. As the comparative base normalizes during the second half, we expect the rate of year-on-year improvement to moderate from that achieved in 1H26. The restructuring of non-core payment routes is progressing ahead of plan and is expected to complete this year, improving the quality of Payments revenue. Depending on the final outcome of these restructuring actions, there may be a low-single-digit variation in reported revenue versus consensus market expectations with negligible impact on Adjusted EBITDA. While the macroeconomic backdrop remains uncertain, the combination of recurring revenue growth, improving profitability, reducing capital intensity and increasing cash generation gives us confidence in the Group's financial trajectory. We remain cautiously optimistic about the outlook for the remainder of FY26, which is expected to be in line with current market expectations. Matt Wilson Chief Financial Officer * Core administrative expenses which exclude the impact of exceptionals, depreciation and amortization, share- based payment charge and capitalized R&D Consolidated statement of comprehensive income for the six months ended 30 June 2026 Note Six months ended 30 June 2026 Unaudited $ 000 Six months ended 30 June 2025 Unaudited $ 000 Revenue 3 25,875 25,225 Cost of sales (3,251) (3,952) Gross profit 22,624 21,273 Other operating income 48 370 Administrative expenses (22,391) (24,592) Adjusted EBITDA 9,002 6,703 Exceptional items 4 - (1,771) Share based payments (676) (1,120) Depreciation (824) (626) Amortization (7,221) (6,135) Operating profit / (loss) 281 (2,949) Finance costs (1,220) (642) Finance income 2 18 Loss before taxation (937) (3,573) Income tax 263 383 Loss for the period (attributable to equity holders of the company) (674) (3,190) Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign exchange on consolidation (328) 1,574 Loss and total comprehensive income for the period (1,002) (1,616) Loss per share Basic loss per share 5 (0.87) c (4.15) c Diluted loss per share 5 (0.87) c (4.15) c Consolidated statement of financial position as at 30 June 2026 ASSETS Note 30 June 2026 Unaudited $ 000 31 December 2025 Audited $ 000 Non-current assets Property, plant and equipment 2,273 2,611 Right-of-use assets 5,409 5,983 Intangible as