Down 21% in less than 2 months, this small FTSE stock is worth checking out today
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I FTSE AIM 100 The index is made up of the top 100 companies by market capitalization listed in the The Alternative Investment Market (OBJECTIVE). It’s also home to some interesting growth stocks.
With a market capitalization of £516m, Boku‘s (LSE:BOKU) is one example. It is a fintech firm that connects tech companies around the world like Amazon, Netflix again Spotify to over 114m people worldwide who do not have a debit/credit card or choose not to.
Let’s take a look at Boku’s 2025 results – released on Wednesday (March 17) – to see why the stock jumped nearly 8%.
The first mobile payment network
When Boku was ranked in 2018, it focused on carrier billing (charging items and services on your phone bill). While still active in that market, which accounted for about 55% of revenue last year, the company has integrated local payment methods (LPMs) and consolidation.
LPMs include account-to-account and digital wallets. Most of the company’s growth here comes from Southeast Asia, where hundreds of millions of people now use digital wallets, including GrabPay (Southeast Asia), MoMo (Vietnam), and GCash (Philippines).
Clearly bundling when suppliers offer the most attractive packages. For example, to get six months of Spotify or Disney+ included with your mobile app. Boku processes the payment, taking a small cut.
Therefore, the company is sitting at the crossroads of really big growth trends (global proliferation of smartphones, digital payments, streaming, games, e-commerce, etc.).
Strong growth
All three businesses are growing, but digital wallets and aggregators are really taking off, with revenue growth of 67% and 71% respectively over the past year. The group’s revenue increased 30% year-on-year to $128.8m – a doubling of the top line from 2022.
| FY 2025 | Year-on-year growth | |
| Direct carrier payment | $70.4m | +9% |
| Digital wallets and account-to-account | $43.5m | + 67% |
| Integration | $14.9m | + 71% |
| The total income of the group | $128.8m | +30% |
Monthly active users jumped 31% to 114.4m, while the value of payments rose 27% to $15.7bn. Chief executive Stuart Neal said: “As global commerce increasingly relies on a variety of payment methods, our role as a growth partner for global merchants continues to deepen.”
Another thing I like here is that the payment company makes a profit. Last year, adjusted EBITDA increased 36% to $41.3m, supporting an operating profit of $18.9m. The company is debt-free and ended December with $103m in cash.
This year, City analysts expect earnings to increase by around 26%. This puts the stock at a forward price ratio of 22, which I don’t consider too expensive for a fast-growing global fintech company.
In the medium term, Boku is targeting annual organic revenue growth of more than 20%. And the last thing to note is that the company is getting into cross-border payments and developing new payment capabilities like stablecoins. So Boku is not resting on its laurels.
Final thoughts
In terms of risks, there is a possibility of negative financial fluctuations and global economic slowdown. Also, there is a lot of competition in local payments in Asia Pacific and Latin America (also applies to Brazil).
That said, global e-commerce is expected to reach $11trn by 2028, so this is a huge market that can accommodate many winners. The growth potential is definitely there, and if Boku can take it, it should be a great company in a few years from now.
So, I think this under-the-radar AIM stock is worth considering at 177p.
