Boku
reported annual revenue of $128.5 million for 2025, exceeding analyst estimates
and representing 29% growth from the prior year’s $99.3 million, according to a
trading update released today (Wednesday).

The
payments network posted adjusted EBITDA of $41 million, up 31% year-over-year
and ahead of the $39.8 million consensus estimate. The company’s EBITDA margin
reached 32%, compared to 31.6% in 2024.

Cash on the
company’s balance sheet grew 39% to $246 million at year-end, even after Boku
repurchased 5.8 million shares during 2025 at a cost of $12.3 million. The
company’s own cash, which excludes merchant funds in transit, increased 28% to
$103 million.

CEO Stuart
Neal said in the release that performance was “broad-based across
merchants, Local Payment Methods, products and geographies.” He added that
the company expects to deliver medium-term organic revenue growth above 20% on
a compound annual growth rate basis with EBITDA margins above 30%.

Digital Wallets Drive
Revenue Mix Shift

Digital
wallets and account-to-account payment schemes posted 66% growth during the
year, while the company’s bundling product – which helps merchants package
subscription offers – climbed 71%. Together, these two segments now account for
45% of total revenue, up from roughly 35% at mid-year.

Boku’s digital
wallet business had already shown momentum in the first half of 2025, when that segment posted 89%
revenue growth. The company has been pushing to diversify beyond its
traditional direct carrier billing roots, which still grew 9% for the full
year.

Direct
carrier billing allows consumers to charge digital purchases directly to their
mobile phone bills, a payment method that remains popular in markets with lower
banking penetration. The company now separates bundling from DCB in its
reporting, reflecting what it calls “increased scale and broader
application” of the product.

Platform Volumes and Users
Expand

Total
payment volume processed through Boku’s network reached $15.5 billion, up 27%
from $12.4 billion in 2024, or 25% on a constant currency basis. Monthly active
users hit 115 million in December, a 32% increase from 87.1 million a year
earlier.

The company
added several high-profile clients during the year, including what it described
as a leading digital design platform and a global entertainment company, though
it did not name the merchants. When Boku
reported first-half results in July, revenue growth included $3 million from
temporary launch-phase pricing that the company said would not continue.

The company
trades on London’s AIM market under the ticker BOKU.

This article was written by Damian Chmiel at www.financemagnates.com.

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