Audioboom Group (AIM: BOOM) has delivered one of the more quietly compelling re-ratings on AIM in 2025. The share price has risen steadily from around 281 pence in mid-July to approximately 675.00 pence at the time of writing, a move that reflects more than simple market momentum.
Behind the price action sits a business that has transitioned from recovery mode into consistent profitability, improved revenue quality, and strategic relevance within a rapidly consolidating global podcast market.
This is not a company benefiting from a single short-term catalyst. Instead, Audioboom’s progress reflects several structural shifts that have taken place over the last eighteen months. These include a decisive move toward higher margin platform revenue, the emergence of video as a material growth driver, the execution of a disciplined acquisition strategy, and an increasingly credible path to scale earnings through operating leverage. With management signalling that 2025 is a foundation year and that 2026 should show further acceleration, the investment debate is now centred on sustainability and valuation rather than survival.
Audioboom’s Share Price Re-rating and What the Market Is Starting to See
The recent share price performance has coincided with a series of trading updates that steadily improved investor confidence. In its Q2 trading update, the company confirmed that it remained on track for record performance in 2025, underpinned by improving gross margins and disciplined cost control. This was followed by a well-received half-year report that showed EBITDA growth significantly outpacing revenue growth, a key indicator that the business model was beginning to scale.
Momentum continued through the second half of the year. The Q3 trading update confirmed record Showcase revenue and further EBITDA growth, while a flash November trading update reinforced the view that the company was exiting the year with strong operational momentum. Importantly, these updates did not rely on one-off items. Instead, they highlighted repeatable drivers such as platform mix, video monetisation, and integration benefits from recent acquisitions.
From Podcast Network to Scalable Platform Business
Historically, Audioboom was often described as a podcast publisher or network. That framing increasingly understates what the company has become. Today, Audioboom operates a platform that connects creators, audiences, and advertisers at scale, monetising content through a combination of direct sales, programmatic advertising, and proprietary technology.
According to the company’s own disclosures, Audioboom supports more than 8,000 podcast channels, reaches tens of millions of unique monthly listeners, and works with thousands of advertisers globally. What differentiates the model is that growth is not solely dependent on adding new shows. Instead, incremental revenue increasingly comes from better monetisation of existing inventory, improved ad yield, and platform-driven efficiencies.
This shift matters because platform businesses typically command higher valuation multiples than content-led peers. They also exhibit stronger operating leverage once fixed costs are absorbed. Audioboom’s recent financial trajectory suggests it is beginning to benefit from both.
Revenue Quality, Margins, and the Importance of Showcase
One of the most important developments in Audioboom’s story has been the rising contribution from Showcase, its higher margin, technology-driven advertising marketplace. Showcase allows advertisers to access global inventory programmatically, improving fill rates and pricing while reducing reliance on minimum guarantee arrangements with creators.
The impact of this shift is evident in the numbers. The company’s half-year report showed gross profit rising far faster than revenue, while adjusted EBITDA increased sharply year on year. Management has repeatedly highlighted that declining exposure to minimum guarantee true-ups has materially improved margin stability.
This focus on revenue quality rather than headline growth is central to the investment case. As Showcase continues to scale, incremental revenue is expected to drop through to EBITDA at a higher rate, creating the conditions for sustained margin expansion into 2026.
Video Is the Hidden Accelerator
While audio remains the foundation of the business, video has emerged as a powerful accelerant. Audioboom has established itself as a leader in video podcasting, with management outlining strong traction across platforms such as YouTube. This strategy was discussed in detail in the video strategy update, which highlighted improved monetisation and audience reach.
Video materially expands Audioboom’s addressable market. It allows creators to reach audiences beyond traditional podcast apps and enables advertisers to deploy richer formats that command higher pricing. Importantly, video monetisation often benefits from existing content, meaning that incremental revenue can be generated without proportionate increases in production cost.
As video becomes a larger share of distribution and revenue, it reinforces the platform narrative and supports the case for higher long-term margins.
The Adelicious Acquisition and Why It Changes the UK Narrative
Audioboom’s acquisition of Adelicious marked a strategic inflection point. Announced through a proposed acquisition and £3.0 million placing, the deal valued Adelicious at less than one times revenue, a notable discount to typical podcast industry transactions.
Adelicious brought scale in the UK market, adding premium podcasts, meaningful audience reach, and established advertiser relationships. The acquisition created the UK’s second largest podcast network and significantly accelerated Audioboom’s domestic positioning. Crucially, management moved quickly to integrate the business, completing the process ahead of schedule as confirmed in September.
The market response to the transaction was telling. The associated placing was significantly oversubscribed, suggesting strong institutional support for the strategy. From an earnings perspective, management has guided that the acquisition is expected to be earnings accretive, reinforcing confidence that the deal was executed on favourable terms.
International Expansion and Optionality Beyond the Core Markets
Audioboom’s core revenue base remains concentrated in the US and UK, but management has increasingly highlighted international expansion as a medium-term growth lever. The company has recently appointed a dedicated international expansion role.
International markets currently represent a disproportionate share of distribution relative to revenue, implying under-monetisation rather than lack of demand. Over time, this creates optionality. As local sales capability improves and global advertisers allocate more spend to podcasting, Audioboom is positioned to capture incremental revenue without rebuilding its platform from scratch.
Financial Performance, Cash Discipline, and Operating Leverage
The financial trajectory over the last year supports the strategic narrative. Audioboom has demonstrated tight control over operating costs while allowing revenue to grow. The half-year report and subsequent Q3 trading update both showed that EBITDA growth is now outpacing revenue growth, a hallmark of operating leverage.
Cash collection remains an area of focus, given the nature of advertising cycles, but management has shown consistency in working capital management. The improving profitability profile also reduces reliance on external funding, an important consideration for AIM investors.
Strategic Review and Why Audioboom Is a Credible Takeover Target
In October, Audioboom announced an update on its strategic review, confirming that it was assessing options to maximise shareholder value. While no outcome has been announced, the timing of the review is notable.
The global podcast market remains fragmented, with many independent networks lacking the scale, technology, or profitability to compete effectively. Audioboom’s platform, combined with its proven integration capability and improving margins, positions it as either a consolidator or an attractive acquisition target for larger media or technology groups seeking exposure to podcasting.
Comparable transactions in the sector have historically occurred at higher revenue multiples than those implied by Audioboom’s current valuation, particularly for profitable, scalable platforms. While a buyout cannot be assumed, the strategic logic is increasingly credible.
Why 2026 Could Matter More Than 2025
Management has been clear that 2025 is about validation and execution. By contrast, 2026 should reflect a full year contribution from Adelicious, further Showcase mix improvement, continued video monetisation, and incremental international revenue. Each of these factors supports the case for accelerating earnings growth.
Importantly, this growth does not require heroic assumptions. It is driven by execution within an existing framework rather than a radical change in strategy. That distinction matters for risk-adjusted returns.
Risks and a Balanced Perspective
No investment is without risk. Audioboom remains exposed to advertising cycles, platform dependency, and execution risk as it scales internationally. The share price re-rating also means expectations are higher than they were a year ago. Any slowdown in growth or margin progression would be felt more acutely by the market.
However, these risks are now balanced by a clearer earnings base, improved revenue quality, and strategic relevance within a consolidating industry.
Final Thoughts
Audioboom’s evolution over the past eighteen months has been substantial. What began as a recovery story has become a platform growth narrative supported by improving margins, disciplined capital allocation, and credible strategic optionality. The share price performance reflects growing recognition of that shift.
While 2025 has delivered proof of concept, 2026 may be the year when Audioboom’s earnings power becomes more fully visible. For investors, the story is no longer about whether the business works, but how far it can scale, and at what valuation the market ultimately chooses to recognise that progress.
Disclaimer: The information presented in this article represents the opinions and research of the author and is provided for informational purposes only. It is not intended to be, nor should it be interpreted as, financial, investment, or legal advice. Investors are encouraged to perform their own due diligence and consult with qualified financial advisors before making any investment decisions. Investing in small-cap stocks involves significant risks, and past performance is not indicative of future results. The author and publisher are not liable for any financial losses or actions taken based on the content of this article.
