It’s been years in the making but Bango (BGO) might have finally found a model for long-run success. Shares in the £70 million direct carrier billing firm jumped close on 8% on Tuesday after reporting stronger operating performance in 2025.
Flagging a strategic shift toward higher-margin, recurring subscription revenues and tighter cost control has clearly gone down well with investors.
New DVM clients and markets
ARR, or annual recurring revenue, rose 30% to $18.2 million, underpinned by nearly 60% growth in active subscriptions on its Digital Vending Machine platform. Net revenue retention was an impressive 117%, with zero client churn so far.
| Bango (BGO) | Price: 84.6p | Market cap: £65.1m |
Bango bagged a record 12 new enterprise DVM customers, extending its reach to seven of the top eight US telecom operators. It has also opened the door to new markets, like Japan, South Korea, Turkey and South Africa, although the signing of several large contracts slipped from late 2025 into 2026.
Such delays will need watching, it has fallen foul of ugly timing pressures many times in the past.
Business reshaped for faster growth
Overall revenue may have nudged down from 2024’s $53.4 million, coming in at $52.2 million, but this had been flagged. Some modest restructuring of a small number of low-margin contracts and trimming the workforce (headcount went from 219 to 164) was the reason.
‘Driven by the cost efficiencies delivered during 2025, expansion of core DCB routes, continued growth in active subscriptions and a strong pipeline of new DVM customers, Bango is well positioned to generate improved profitability and free cash flow in full year 2026’, said CEO Paul Larbey.
Bango has a history of moments in the stock market sun turning to prolonged spells of investor apathy. For that reason, a level of scepticism would be understandable.
But if analysts are right, this could be the start of renewed enthusiasm underscored by the promise that operational momentum has sustainable legs.
Consensus forecasts for Bango
| 2024 | 2025 | 2026 | |
| Revenue | $53.4m | $55.2m | $60.7m |
| PTP | -$3.54m | $1.90m | $4.70m |
| EPS | -$0.05 | $1.27 | $3.81 |
Source: Consensus comiled by Barclays
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