Bango expects FY25 sales of $52.2m (vs. $54.8mE) i.e. -5% below, as implementation revenue was $1.5m lower y/y reflecting how several large DVM opportunities moved into FY26. Notwithstanding, recurring licence revenue was very strong: growing 29% y/y, post 12 new customer wins (PY: 9) and 117% NRR (PY: 125%). Y/e ARR also reflects this message: growing +30% to $18.2m, +7% ahead of forecast. EBITDA grew 7% to $16.3m (vs. $17.1mE) but skewed materially by FX and non-cash acquisition accounting, and excluding both, EBITDA grew +22%, post 6% GP growth and a $2.9m reduction in u/l admin expenses. Meanwhile, capex was also lower y/y and led to a $2.5m improvement in cash EBITDA (from $-0.2m in FY24 to $+2.3m in FY25). Y/e net debt was materially better at $9.3m vs. $11,6mE. Looking ahead, the combination of a strong FY25 ARR performance and an attractive pipeline (which includes “several large DVM opportunities”) both point to GP growth reaccelerating and positive FCF in FY26. As per Bango’s inclusions as a 2026 ‘best idea’ we believe sentiment surrounding the stock overly cautious, but expect this to improve, as the market starts to price-in to FY26/27 FCF potential.
