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(Sharecast News) - Boku said in an update on Thursday that it expected to deliver full-year revenue and adjusted EBITDA ahead of market expectations for 2025, underpinned by strong growth across its increasingly diversified portfolio of local payment methods.
The AIM-traded payments group said total revenue was expected to be around $128.5m for the 12 months ended 31 December, up about 29% from $99.3m a year earlier, or 27% on a constant exchange rate basis.
Growth was led by rapid expansion in digital wallets and account-to-account schemes, which rose by around 66%, while bundling revenue increased by 71% and would now be reported separately due to its scale and broader application beyond direct carrier billing.
Direct carrier billing continued to grow, increasing by around 9%.
Boku said digital wallets, account-to-account and bundling together accounted for 45% of total revenue, reflecting the progress of its strategy to diversify beyond carrier billing.
Adjusted EBITDA for 2025 was expected to be about $41m, up roughly 31% from $31.4m in 2024, implying an adjusted EBITDA margin of around 32%.
The firm noted that foreign exchange costs linked to currency conversion services were now included within adjusted EBITDA following a methodology change, adding that adjusted EBITDA would have been at least $43m without this adjustment.
Cash generation also strengthened during the year.
Total group cash rose by around 39% to approximately $246m at the end of December, while Boku's own cash increased by about 28% to around $103m, including the impact of a $12.3m share buyback completed during 2025.
Operationally, Boku continued to expand its global network of local payment methods and merchant connections.
Total payment volume increased by around 27% to $15.5bn, while monthly active users grew 32% year-on-year to about 115 million in December.
The group said it onboarded several high-profile merchants during the year, expanding its reach into new customer segments, while take rates are expected to remain broadly stable.
"I am pleased to report another strong year for Boku, driven by deeper merchant relationships, continued revenue diversification and the benefits of sustained investment across the business," said chief executive Stuart Neal.
"Our performance was broad-based across merchants, local payment methods, products and geographies, reflecting the ongoing expansion of mobile-native payment methods and Boku's position as a partner of choice for global technology leaders.
"Momentum is evident across the portfolio - direct carrier billing remains a popular payment method, digital wallets are scaling rapidly and account-to-account schemes are continuing to emerge, while adoption of our bundling product is increasing as merchants seek to accelerate subscription growth."
Neal said the group entered 2026 with confidence and expected to deliver medium-term organic revenue growth above 20% on a compound basis and adjusted EBITDA margins above 30%, improving from 2026.
At 1156 GMT, shares in Boku were down 0.66% at 226.5p.
Reporting by Josh White for Sharecast.com.