Boku — Confident start to FY26

Boku (AIM: BOKU)

Last close As at 21/01/2026

GBP2.28

7.00 (3.17%)

Market capitalisation

GBP674m

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Research: TMT

Boku — Confident start to FY26

Boku expects to report FY25 revenue and adjusted EBITDA ahead of consensus. Continued strong revenue growth across digital wallets, account-to-account (A2A) and bundling was underpinned by resilient performance in direct carrier billing (DCB) compared to FY24. Boku’s network continues to expand as it adds new connections for new and existing merchants, providing support for management’s ambitious growth targets, which are unchanged.

Katherine Thompson

Written by

Katherine Thompson

Director

Software and comp services

FY25 trading update

22 January 2026

Price 228.00p
Market cap £674m

$1.34/£

Net cash at end FY25

$246.0m

Shares in issue

295.6m
Free float 79.1%
Code BOKU
Primary exchange AIM
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs 9.9 (7.5) 18.4
52-week high/low 250.0p 144.5p

Business description

Boku operates a billing platform that connects merchants with mobile network operators and alternative payment methods in more than 60 countries. It has c 550 employees, with its main offices in the US, UK, Estonia, Germany and India.

Next events

FY25 results

17 March

Analyst

Katherine Thompson
+44 (0)20 3077 5700

Boku is a research client of Edison Investment Research Limited

Note: EBITDA and diluted EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue ($m) EBITDA ($m) EPS ($) DPS ($) EV/EBITDA (x) P/E (x)
12/23 82.7 25.8 0.06 0.00 25.5 55.0
12/24 99.3 31.4 0.07 0.00 21.0 43.3
12/25e 128.5 41.0 0.09 0.00 16.1 33.6
12/26e 152.6 48.0 0.11 0.00 13.7 28.8

Strong performance across the board

Boku expects to report revenue of c $128.5m (our forecast $127.3m/consensus $127.5m), which equates to 29% y-o-y growth or 27% at constant exchange rates (CER). DCB was c 9% higher, digital wallets and A2A were c 66% higher and bundling was c 71% higher, highlighting the growing diversification of the business. Total payment volume (TPV) of c $15.5bn was 27% higher y-o-y (25% CER) and the take rate is expected to remain broadly stable. Monthly active users grew c 32% y-o-y to c 115m. Group cash at year-end was c $246m and own cash was 28% higher year-on-year at c $103m, after share buybacks costing $12.3m.

Adjusted EBITDA beat for FY25

Boku expects to report adjusted EBITDA of c $41m (our forecast $38.5m/ consensus $39.8m), with a margin of c 32%. As we have previously written, the company is now including currency conversion costs within its adjusted EBITDA metric; without this adjusted EBITDA would have been c $43m. We have updated our forecasts for FY25 to reflect the expected results and maintain our forecasts for FY26 and FY27, pending results in March. Management maintains its outlook for medium-term revenue growth of at least 20% on a CAGR basis and adjusted EBITDA margins of at least 30%, accreting from FY26.

Valuation: Medium-term growth supports upside

On FY25 and FY26 forecasts, Boku trades at a premium to its peer group on EV/EBITDA multiples. However, a discounted cash flow (DCF) analysis that takes into account longer-term growth highlights the potential for significant upside. Using our forecasts to FY27, revenue growth of 10% and EBITDA margins of 34.1% thereafter results in a value per share of 396.3p. Taking a very conservative view of 5% growth from FY28 (318.5p value per share) would still provide upside of 40% to the current share price. Wider adoption of local payment methods (LPMs) by existing merchants, new major merchant sign-ups and adoption of treasury services will be the key drivers of longer-term growth and profits.

FY25 trading update

Boku reported the following metrics in its year-end trading update.

Outlook and changes to forecasts

Management confirmed that it was entering FY26 with confidence and maintains its outlook (with the starting point of FY24) for medium-term organic revenue growth of at least 20% on a CAGR basis and adjusted EBITDA margins of at least 30%, accreting from FY26.

We have revised our forecasts to reflect FY25 performance and we maintain our revenue and profit forecasts for FY26 and FY27.

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