US Market News
1月前
Bandwidth Announces First Quarter 2026 Financial ResultsApril 30, 2026 7:00 AM
PR Newswire (US)
Record quarterly revenue of $209 million, up 20% year-over-year, and Adjusted EBITDA of $26 million, up 17% year-over-year; raising full-year 2026 outlookAI-driven platform adoption accelerating usage and value captureStrong large enterprise momentum, including $1M+ wins and selection by Salesforce for Agentforce Contact CenterStrengthened balance sheet through disciplined capital allocation, including debt retirement and share repurchasesRALEIGH, N.C., April 30, 2026 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the first quarter ended March 31, 2026.
"Bandwidth entered 2026 with historic momentum. In the first quarter, we exceeded the top end of guidance ranges with record revenue of $209 million, up 20 percent year-over-year, and record first-quarter Adjusted EBITDA of $26 million," said David Morken, Bandwidth's Cofounder, Chief Executive Officer, and Chairman. "These results show our structural advantage as the mission-critical foundation for the AI-driven enterprise. Customers are deploying voice AI into production on our platform, as evidenced by our selection as Salesforce's critical infrastructure partner for Agentforce Contact Center, alongside strong momentum with million-dollar-plus deals in financial services and continued growth in high-volume messaging. Based on this momentum, we are raising our full-year outlook for both revenue and Adjusted EBITDA."First Quarter 2026 Financial Highlights The following table summarizes the condensed consolidated financial highlights for the three months
ended March 31, 2026 and 2025 ($ in millions, except per share amounts).
Three months endedMarch 31,
2026
2025Revenue$ 209
$ 174Gross Margin37 %
41 %Non-GAAP Gross Margin (1)59 %
59 %Net income (loss)$ 4
$ (4)Non-GAAP net income (1)$ 13
$ 11Net income (loss) per share, basic$ 0.13
$ (0.13)Net loss per share, diluted$ (0.08)
$ (0.13)Non-GAAP net income per Non-GAAP share (1)$ 0.38
$ 0.36Adjusted EBITDA (1)$ 26
$ 22Net cash provided by (used in) operating activities$ 9
$ (3)Free cash flow (1)$ (1)
$ (13)
(1) Additional information regarding the Non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of GAAP to Non-GAAP financial measures has also been provided in the financial tables included below."We delivered better-than-expected performance across our key financial metrics in the first quarter, while deleveraging our balance sheet and reducing dilution through share repurchases," said Daryl Raiford, Bandwidth's Chief Financial Officer. "These results reflect the strength of our business model, the operating leverage of our cloud communications platform and the depth of our competitive moat as we capitalize on the AI opportunity. With strong demand across Voice and Messaging, increasing software contribution, and improving net retention and average annual revenue per customer, we are raising our full-year guidance."First Quarter Customer HighlightsSalesforce selected Bandwidth as its critical infrastructure partner to power voice and messaging for its groundbreaking new Agentforce Contact Center platform, embedding our Communications Cloud and Maestro™ orchestration directly into governed AI-driven workflows for intelligent customer engagement at scale.A leading U.S. consumer financial services company with over 70 million active accounts selected Bandwidth to replace its legacy telecom provider and migrate its contact center to the cloud, leveraging our Maestro integration with Genesys and our ultra-reliable Call Assure toll-free voice solution to enable its transition to AI-driven customer experiences.One of the largest mutual life insurers in the world chose Bandwidth to replace a long-standing legacy carrier for its comprehensive customer experience transformation, deploying our Maestro platform with Genesys, Call Assure toll-free voice, and Trust Services including Call Verification and Number Reputation Management–reinvesting cost savings into AI-driven customer engagement initiatives.A high-volume messaging customer supporting major consumer brands in retail and restaurant verticals switched to Bandwidth for superior delivery performance and scalability, managing tens of millions of messages per month across short code, 10DLC, and toll-free channels as it expands AI-powered campaigns and customer interactions.Continued strong momentum from a growing ecosystem of third-party AI application developers building vertical agentic solutions on our platform across industries such as hospitality, healthcare, home services, and customer support.Financial OutlookBandwidth is providing guidance for its second quarter and full year 2026 as follows (in millions, except per share amounts) based on current indications for its business, which are subject to change.
2Q 2026
Guidance
Full Year 2026
GuidanceRevenue$214 - $220
$880 - $900Adjusted EBITDA$24 - $27
$119 - $125Non-GAAP earnings per share (1)$0.35 - $0.37
$1.77 - $1.83
(1) Assumes weighted average diluted share count of approximately 34.7 million in 2Q 2026 and weighted average diluted share count of approximately 35.3 million in full year 2026.Bandwidth has not reconciled its second quarter and full year 2026 guidance related to (i) Adjusted EBITDA to GAAP net income or loss, (ii) non-GAAP net earnings or loss to GAAP net earnings or loss or (iii) non-GAAP earnings or loss per share to GAAP earnings or loss per share, because stock-based compensation cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.Upcoming Investor ConferencesNeedham Technology, Media, and Consumer Conference in New York, NY. Fireside chat with David Morken, CEO and Daryl Raiford, CFO on Wednesday, May 13, 2026 at 2:15 PM Eastern Time.B. Riley Securities Institutional Investor Conference in Marina Del Rey, CA. Hosted by David Morken, CEO and John Bell, CPO on Wednesday, May 20, 2026.Jefferies Software, Internet, and AI Conference in Newport Coast, CA. Hosted by John Bell, CPO on Wednesday, May 27, 2026.About Bandwidth Inc.Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world solve complex communications challenges to reach anyone, anywhere.Conference CallBandwidth will host a conference call to discuss financial results for the first quarter ended March 31, 2026 on April 30, 2026. Details can be found below and on the investor section of its website at https://investors.bandwidth.com where a replay will also be available shortly following the call.Conference Call DetailsApril 30, 2026
8:00 am ET
Domestic dial-in:
844-481-2707
International dial-in:
412-317-0663Replay informationAn audio replay of this conference call will be available through May 7, 2026 by dialing 855-669-9658 or 412-317-0088 for international callers, and entering passcode 9573448.Forward-Looking StatementsThis press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including, without limitation, future financial and business performance for the quarter ending June 30, 2026 and year ending December 31, 2026, the success of our product offerings and our platform, and the value proposition of our products, are forward-looking statements. The words "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "guide," "may," "will" and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, risks related to our rapid growth and ability to sustain our revenue growth rate, competition in the markets in which we operate, market growth, our ability to innovate and manage our growth, our ability to successfully leverage the use of artificial intelligence in our business operations and in our service offerings, our ability to expand effectively into new markets, macroeconomic conditions both in the U.S. and globally, legal, reputational and financial risks which may result from ever-evolving cybersecurity threats, our ability to operate in compliance with applicable laws, as well as other risks and uncertainties set forth in the "Risk Factors" section of our latest Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") and any subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no obligation to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with certain Non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these Non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these Non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.The presentation of Non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our Non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.We define Non-GAAP gross profit as gross profit after adding back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation. We add back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation because they are non-cash items. We eliminate the impact of these non-cash items, because we do not consider them indicative of our core operating performance. Their exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we believe that showing gross margin, as adjusted to remove the impact of these non-cash expenses, is helpful to investors in assessing our gross profit and gross margin performance in a way that is similar to how management assesses our performance. We calculate Non-GAAP gross margin by dividing Non-GAAP gross profit by cloud communications revenue, which is revenue less pass-through messaging surcharges.We define Non-GAAP net income (loss) as net income or loss adjusted for certain items affecting period to period comparability. Non-GAAP net income (loss) excludes stock-based compensation, amortization of acquired intangible assets related to acquisitions, amortization of debt discount and issuance costs for convertible debt, acquisition related expenses, impairment charges of intangibles assets, net cost associated with early lease terminations and leases without economic benefit, (gain) loss on sale of business, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, non-recurring items not indicative of ongoing operations and other, and estimated tax impact of above adjustments, net of valuation allowances.We define Adjusted EBITDA as net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, acquisition related expenses, stock-based compensation expense, impairment of intangible assets, (gain) loss on sale of business, net cost associated with early lease terminations and leases without economic benefit, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, and non-recurring items not indicative of ongoing operations and other. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business.We define free cash flow as net cash provided by or used in operating activities less net cash used in the acquisition of property, plant and equipment and capitalized development costs for software for internal use. We believe free cash flow is a useful indicator of liquidity and provides information to management and investors about the amount of cash generated from our core operations that can be used for investing in our business. Free cash flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, it does not take into consideration investment in long-term securities, nor does it represent the residual cash flows available for discretionary expenditures. Therefore, it is important to evaluate free cash flow along with our condensed consolidated statements of cash flows.We believe that these Non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making. While a reconciliation of Non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, many of these costs and expenses that we may incur in the future, we have provided a reconciliation of Non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release. BANDWIDTH INC.Condensed Consolidated Statements of Operations(In thousands, except share and per share amounts)(Unaudited)
Three months ended March 31,
2026
2025Revenue$ 208,784
$ 174,241Cost of revenue130,870
102,729Gross profit77,914
71,512Operating expenses
Research and development38,466
30,632Sales and marketing24,627
26,456General and administrative19,442
19,111Total operating expenses82,535
76,199Operating loss(4,621)
(4,687)Other income, net7,213
877Income (loss) before income taxes2,592
(3,810)Income tax benefit1,526
70Net income (loss)$ 4,118
$ (3,740)
Net income (loss) per share
Basic$ 0.13
$ (0.13)Diluted$ (0.08)
$ (0.13)
Numerator used to compute net income (loss) per share:
Basic$ 4,118
$ (3,740)Diluted$ (2,579)
$ (3,740)
Weighted average number of common shares outstanding:
Basic31,681,879
28,982,432Diluted32,957,834
28,982,432 BANDWIDTH INC.Condensed Consolidated Balance Sheets(In thousands)(Unaudited)
As of March 31,
As of December 31,
2026
2025Assets
Current assets:
Cash and cash equivalents$ 47,283
$ 102,788Marketable securities2,990
8,476Accounts receivable, net of allowance101,170
91,409Deferred costs4,558
4,830Prepaid expenses and other current assets15,883
11,557Total current assets171,884
219,060Property, plant and equipment, net172,157
174,251Operating right-of-use asset, net152,126
152,950Intangible assets, net128,830
138,742Deferred costs, non-current2,609
3,098Other long-term assets7,896
7,754Goodwill348,694
356,772Total assets$ 984,196
$ 1,052,627Liabilities and stockholders' equity
Current liabilities:
Accounts payable$ 31,694
$ 42,600Accrued expenses and other current liabilities87,381
91,151Current portion of deferred revenue8,815
8,742Operating lease liability, current4,130
3,947Current portion of convertible senior notes—
7,627Line of credit, current portion50,500
—Total current liabilities182,520
154,067Other liabilities1,625
555Operating lease liability, net of current portion219,892
221,019Deferred revenue, net of current portion3,950
4,972Deferred tax liability21,839
24,479Convertible senior notes148,699
247,562Total liabilities578,525
652,654Stockholders' equity:
Class A and Class B common stock32
31Treasury common stock(5,009)
—Additional paid-in capital503,269
485,836Accumulated deficit(80,208)
(84,326)Accumulated other comprehensive loss(12,413)
(1,568)Total stockholders' equity405,671
399,973Total liabilities and stockholders' equity$ 984,196
$ 1,052,627 BANDWIDTH INC.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)
Three months ended March 31,
2026
2025Cash flows from operating activities
Net income (loss)$ 4,118
$ (3,740)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization17,387
12,503Non-cash reduction to the right-of-use asset788
753Amortization of debt discount and issuance costs310
365Stock-based compensation12,990
13,575Deferred taxes and other(2,019)
(1,776)Net gain on extinguishment of debt(7,283)
(1,082)Changes in operating assets and liabilities:
Accounts receivable, net of allowance(9,991)
(253)Prepaid expenses and other assets(4,004)
(5,366)Accounts payable(9,245)
(10,932)Accrued expenses and other liabilities6,625
(8,072)Operating right-of-use liability(908)
942Net cash provided by (used in) operating activities8,768
(3,083)Cash flows from investing activities
Purchase of property, plant and equipment(7,092)
(7,368)Capitalized software development costs(2,258)
(2,844)Purchase of marketable securities(1,979)
(4,717)Proceeds from sales and maturities of marketable securities7,467
987Proceeds from sale of business—
103Net cash used in investing activities(3,862)
(13,839)Cash flows from financing activities
Borrowings on line of credit84,000
15,000Repayments on line of credit(33,500)
(15,000)Net cash paid for debt extinguishment(99,621)
(26,120)Repurchase of Class A common stock(5,009)
—Value of equity awards withheld for tax liabilities and other(5,627)
(2,913)Net cash used in financing activities(59,757)
(29,033)Effect of exchange rate changes on cash, cash equivalents and restricted cash(840)
(124)Net decrease in cash, cash equivalents, and restricted cash(55,691)
(46,079)Cash, cash equivalents, and restricted cash, beginning of period103,160
82,234Cash, cash equivalents, and restricted cash, end of period$ 47,469
$ 36,155 BANDWIDTH INC.Reconciliation of Non-GAAP Financial Measures(In thousands, except share and per share amounts)(Unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Three months ended March 31,
2026
2025Gross Profit$ 77,914
$ 71,512Gross Profit Margin %37 %
41 %Depreciation5,826
4,678Amortization of acquired intangible assets5,074
1,897Stock-based compensation465
525Non-GAAP Gross Profit$ 89,279
$ 78,612Non-GAAP Gross Margin % (1)59 %
59 %
(1) Calculated by dividing Non-GAAP gross profit by cloud communications revenue of $150 million and $133 million for the three months ended March 31, 2026 and 2025, respectively. BANDWIDTH INC.Reconciliation of Non-GAAP Financial Measures(In thousands, except share and per share amounts)(Unaudited)
Non-GAAP Net Income
Three months ended March 31,
2026
2025Net income (loss)$ 4,118
$ (3,740)Stock-based compensation12,990
13,575Amortization of acquired intangibles7,604
4,287Amortization of debt discount and issuance costs for convertible debt243
298Net gain on extinguishment of debt(7,283)
(1,082)Non-recurring items not indicative of ongoing operations and other (1)(388)
539Estimated tax effects of adjustments (2)(4,766)
(2,747)Non-GAAP net income$ 12,518
$ 11,130Interest expense on Convertible Notes (3)210
250Numerator used to compute Non-GAAP diluted net income per share$ 12,728
$ 11,380
Net income (loss) per share
Basic$ 0.13
$ (0.13)Diluted$ (0.08)
$ (0.13)
Non-GAAP net income per Non-GAAP share
Basic$ 0.40
$ 0.38Diluted$ 0.38
$ 0.36
Weighted average number of shares outstanding
Basic31,681,879
28,982,432Diluted32,957,834
28,982,432
Non-GAAP basic shares31,681,879
28,982,432Convertible debt conversion1,275,955
1,658,767Stock options issued and outstanding15,078
21,302Nonvested RSUs outstanding863,381
767,704Non-GAAP diluted shares33,836,293
31,430,205
(1) Non-recurring items not indicative of ongoing operations and other include (i) $0.6 million of foreign exchange charges primarily related to balance sheet revaluations during the three months ended March 31, 2026, (ii) $0.2 million and less than $0.1 million of losses on disposals of property, plant and equipment during the three months ended March 31, 2026 and 2025, respectively, and (iii) $0.5 million of nonrecurring litigation expense during the three months ended March 31, 2025.(2) The estimated tax-effect of adjustments is determined by recalculating the tax provision on a Non-GAAP basis. The Non-GAAP effective income tax rate was 20.6% and 19.4% for the three months ended March 31, 2026 and 2025, respectively. We analyze the Non-GAAP valuation allowance position on a quarterly basis. As of March 31, 2026, we have no valuation allowance against our deferred tax assets for Non-GAAP purposes.(3) Non-GAAP net income is increased for interest expense as part of the calculation for diluted Non-GAAP earnings per share. BANDWIDTH INC.Reconciliation of Non-GAAP Financial Measures(In thousands, except share and per share amounts)(Unaudited)
Adjusted EBITDA
Three months ended March 31,
2026
2025Net income (loss)$ 4,118
$ (3,740)Income tax benefit(1,526)
(70)Interest expense, net673
488Depreciation9,783
8,216Amortization7,604
4,287Stock-based compensation12,990
13,575Net gain on extinguishment of debt(7,283)
(1,082)Non-recurring items not indicative of ongoing operations and other (1)(388)
539Adjusted EBITDA$ 25,971
$ 22,213
(1) Non-recurring items not indicative of ongoing operations and other include (i) $0.6 million of foreign exchange charges primarily related to balance sheet revaluations during three months ended March 31, 2026, (ii) $0.2 million and less than $0.1 million of losses on disposals of property, plant and equipment during the three months ended March 31, 2026 and 2025, respectively, and (iii) $0.5 million of nonrecurring litigation expense during the three months ended March 31, 2025. Free Cash Flow
Three months ended March 31,
2026
2025Net cash provided by (used in) operating activities$ 8,768
$ (3,083)Net cash used in investing in capital assets (1)(9,350)
(10,212)Free cash flow$ (582)
$ (13,295)
(1) Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use. Stock-Based Compensation Expense
Bandwidth recognized total stock-based compensation expense as follows:
Three months ended March 31,
2026
2025Cost of revenue$ 465
$ 525Research and development5,789
5,557Sales and marketing1,732
2,274General and administrative5,004
5,219Total$ 12,990
$ 13,575
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Original: Bandwidth Announces First Quarter 2026 Financial Results
US Market News
4月前
Bandwidth Announces Fourth Quarter and Full Year 2025 Financial ResultsFebruary 19, 2026 7:00 AM
PR Newswire (US)
Record fourth quarter Adjusted EBITDA and free cash flowProvides 2026 outlook of approximately 16% revenue growth and 29% Adjusted EBITDA growthBoard authorizes an $80 million share repurchase programRALEIGH, N.C., Feb. 19, 2026 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the fourth quarter and full year ended December 31, 2025.
"2025 was a year of sustained business performance and strengthening fundamentals for Bandwidth, with record million-dollar-plus deals and continued enterprise adoption of AI-driven voice," said David Morken, CEO of Bandwidth. "Customers are increasingly relying on our Maestro platform and Communications Cloud to power AI in production environments, reinforcing the durability of our model and the long-term value we deliver. The authorization of our first $80 million share repurchase program reflects our confidence in our growth strategy, margin expansion, and ability to generate meaningful cash flow while continuing to invest in innovation."Fourth Quarter 2025 Financial Highlights
The following table summarizes the consolidated financial highlights for the three months and years ended December 31, 2025 and 2024 ($ in millions, except per share amounts).
Three months endedDecember 31,
Year endedDecember 31,
2025
2024
2025
2024Revenue$ 208
$ 210
$ 754
$ 748Gross Margin38 %
36 %
39 %
37 %Non-GAAP Gross Margin (1)57 %
58 %
58 %
57 %Net loss$ (3)
$ (2)
$ (13)
$ (7)Non-GAAP net income (1)$ 11
$ 12
$ 46
$ 41Net loss per share, basic and diluted$ (0.10)
$ (0.06)
$ (0.43)
$ (0.24)Non-GAAP net income per Non-GAAP share (1)$ 0.35
$ 0.37
$ 1.43
$ 1.34Adjusted EBITDA (1)$ 25
$ 23
$ 93
$ 82Net cash provided by operating activities$ 39
$ 37
$ 89
$ 84Free cash flow (1)$ 31
$ 30
$ 57
$ 59
(1) Additional information regarding the Non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of GAAP to Non-GAAP financial measures has also been provided in the financial tables included below. "We achieved a solid fourth quarter, highlighted by record quarterly results for Adjusted EBITDA and free cash flow," said Daryl Raiford, CFO of Bandwidth. "For 2026, we expect approximately 16 percent revenue growth and 29 percent Adjusted EBITDA growth, reflecting continued acceleration in voice demand, expanding software services contribution, and continued operating leverage. This outlook supports a balanced capital allocation approach: investing in growth while also returning capital to shareholders."Fourth Quarter Customer Highlights A major U.S. insurance group deployed Bandwidth to power a new cloud-based customer experience stack for claims and quoting, citing our AI-enabling capabilities, network reliability, and seamless integration with a complex Cisco environment.A top 10 U.S. bank serving millions of customers selected Bandwidth's resilient toll-free solution to modernize and protect its contact center infrastructure, driven by our differentiated failover architecture, open integration strategy, and strong customer support.A top-five global automaker's U.S. consumer financing arm selected Bandwidth, to power AI-enabled communications for its Genesys contact center, gaining greater flexibility and cost savings to support investment in new Genesys AI services.A high-growth e-commerce platform supporting time-sensitive messaging for leading consumer brands chose Bandwidth for its consistent deliverability, scalable capacity, and reliable performance during peak retail demand.A long-time Bandwidth customer serving hundreds of enterprise brands trusted Bandwidth to power its first production RCS campaigns, relying on our scalable throughput, consistent deliverability, and operational reliability as RCS adoption expands.Financial OutlookBandwidth is providing guidance for its first quarter and full year 2026 as follows (in millions, except per share amounts) based on current indications for its business, which are subject to change.
1Q 2026
Guidance
Full Year 2026
GuidanceRevenue$200 - $203
$864 - $884Adjusted EBITDA$21 - $24
$117 - $123Non-GAAP earnings per share (1)$0.30 - $0.32
$1.66 - $1.74
(1) Assumes weighted average diluted share count of approximately 34.2 million in 1Q 2026 and weighted average diluted share count of approximately 36.1 million in full year 2026.Bandwidth has not reconciled its first quarter and full year 2026 guidance related to Adjusted EBITDA to GAAP net income or loss and non-GAAP net earnings or loss to GAAP net earnings or loss and non-GAAP earnings or loss per share to GAAP earnings or loss per share, because stock-based compensation cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.Share Repurchase Program AuthorizationBandwidth today announced that its Board of Directors has authorized a share repurchase program of up to $80 million of the Company's outstanding Class A common stock, subject to market conditions, contractual restrictions and other factors. The repurchases may be made from time to time at the discretion of management through open market purchases, block trades, privately negotiated transactions, Rule 10b5-1 plans or other means.Upcoming Investor ConferenceCitizens Technology Conference in San Francisco, CA. Fireside chat with David Morken, CEO and Daryl Raiford, CFO on Tuesday, March 3, 2026 at 9:00AM Pacific Time.Morgan Stanley Technology, Media, & Telecom Conference in San Francisco, CA. Fireside chat with Daryl Raiford, CFO and John Bell, CPO on Wednesday, March 4, 2026 at 1:50PM Pacific Time.About Bandwidth Inc.Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world solve complex communications challenges to reach anyone, anywhere. For more information, visit www.bandwidth.com.Conference Call
Bandwidth will host a conference call to discuss financial results for the fourth quarter and full year ended December 31, 2025 on February 19, 2026. Details can be found below and on the investor section of its website at https://investors.bandwidth.com where a replay will also be available shortly following the call.Conference Call Details
February 19, 2026
8:00 am ET
Domestic dial-in:
844-481-2707
International dial-in:
412-317-0663Replay information
An audio replay of this conference call will be available through February 26, 2026 by dialing 855-669-9658 or 412-317-0088 for international callers, and entering passcode 6655875.Forward-Looking StatementsThis press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including, without limitation, future financial and business performance for the quarter ending March 31, 2026 and year ending December 31, 2026, the success of our product offerings and our platform, and the value proposition of our products, are forward-looking statements. The words "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "guide," "may," "will" and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, risks related to our rapid growth and ability to sustain our revenue growth rate, competition in the markets in which we operate, market growth, our ability to innovate and manage our growth, our ability to successfully leverage the use of artificial intelligence in our business operations and in our service offerings, our ability to expand effectively into new markets, macroeconomic conditions both in the U.S. and globally, legal, reputational and financial risks which may result from ever-evolving cybersecurity threats, our ability to operate in compliance with applicable laws, as well as other risks and uncertainties set forth in the "Risk Factors" section of our latest Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") and any subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no obligation to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with certain Non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these Non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these Non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.The presentation of Non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our Non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.We define Non-GAAP gross profit as gross profit after adding back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation. We add back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation because they are non-cash items. We eliminate the impact of these non-cash items, because we do not consider them indicative of our core operating performance. Their exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we believe that showing gross margin, as adjusted to remove the impact of these non-cash expenses, is helpful to investors in assessing our gross profit and gross margin performance in a way that is similar to how management assesses our performance. We calculate Non-GAAP gross margin by dividing Non-GAAP gross profit by cloud communications revenue, which is revenue less pass-through messaging surcharges.We define Non-GAAP net income (loss) as net income or loss adjusted for certain items affecting period to period comparability. Non-GAAP net income (loss) excludes stock-based compensation, amortization of acquired intangible assets related to acquisitions, amortization of debt discount and issuance costs for convertible debt, acquisition related expenses, impairment charges of intangibles assets, net cost associated with early lease terminations and leases without economic benefit, (gain) loss on sale of business, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, non-recurring items not indicative of ongoing operations and other, and estimated tax impact of above adjustments, net of valuation allowances.We define Adjusted EBITDA as net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, acquisition related expenses, stock-based compensation expense, impairment of intangible assets, (gain) loss on sale of business, net cost associated with early lease terminations and leases without economic benefit, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, and non-recurring items not indicative of ongoing operations and other. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business.We define free cash flow as net cash provided by or used in operating activities less net cash used in the acquisition of property, plant and equipment and capitalized development costs for software for internal use. We believe free cash flow is a useful indicator of liquidity and provides information to management and investors about the amount of cash generated from our core operations that can be used for investing in our business. Free cash flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, it does not take into consideration investment in long-term securities, nor does it represent the residual cash flows available for discretionary expenditures. Therefore, it is important to evaluate free cash flow along with our condensed consolidated statements of cash flows.We believe that these Non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making. While a reconciliation of Non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, many of these costs and expenses that we may incur in the future, we have provided a reconciliation of Non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release. BANDWIDTH INC.Condensed Consolidated Statements of Operations(In thousands, except share and per share amounts)(Unaudited)
Three months ended December 31,
Year ended December 31,
2025
2024
2025
2024Revenue$ 207,668
$ 209,969
$ 753,817
$ 748,487Cost of revenue129,591
133,458
458,766
468,529Gross profit78,077
76,511
295,051
279,958Operating expenses
Research and development37,128
31,412
132,517
118,627Sales and marketing25,707
28,208
101,683
109,698General and administrative19,168
19,562
75,220
71,692Total operating expenses82,003
79,182
309,420
300,017Operating loss(3,926)
(2,671)
(14,369)
(20,059)Other (expense) income, net(538)
(252)
(2,222)
11,106Loss before income taxes(4,464)
(2,923)
(16,591)
(8,953)Income tax benefit1,464
1,164
3,679
2,429Net loss$ (3,000)
$ (1,759)
$ (12,912)
$ (6,524)
Net loss per share, basic and diluted$ (0.10)
$ (0.06)
$ (0.43)
$ (0.24)
Weighted average number of common shares outstanding, basic and diluted30,814,252
27,882,092
29,996,861
27,209,698
Bandwidth recognized total stock-based compensation expense as follows:
Three months ended December 31,
Year ended December 31,
2025
2024
2025
2024Cost of revenue$ 562
$ 515
$ 2,159
$ 1,638Research and development6,430
5,826
23,133
20,433Sales and marketing1,910
2,090
7,850
8,105General and administrative4,982
4,781
19,190
18,186Total$ 13,884
$ 13,212
$ 52,332
$ 48,362 BANDWIDTH INC.Condensed Consolidated Balance Sheets(In thousands)(Unaudited)
As of December 31,
2025
2024Assets
Current assets:
Cash and cash equivalents$ 102,788
$ 81,812Marketable securities8,476
1,975Accounts receivable, net of allowances91,409
86,455Deferred costs4,830
3,729Prepaid expenses and other current assets11,557
13,841Total current assets219,060
187,812Property, plant and equipment, net174,251
176,823Operating right-of-use asset, net152,950
153,601Intangible assets, net138,742
145,355Deferred costs, non-current3,098
4,355Other long-term assets7,754
3,977Goodwill356,772
317,243Total assets$ 1,052,627
$ 989,166Liabilities and stockholders' equity
Current liabilities:
Accounts payable$ 42,600
$ 28,362Accrued expenses and other current liabilities91,151
101,819Current portion of deferred revenue8,742
7,031Operating lease liability, current3,947
3,111Current portion of convertible senior notes7,627
—Total current liabilities154,067
140,323Other liabilities555
576Operating lease liability, net of current portion221,019
219,191Deferred revenue, net of current portion4,972
7,955Deferred tax liability24,479
27,304Convertible senior notes247,562
281,284Total liabilities652,654
676,633Stockholders' equity:
Class A and Class B common stock31
29Additional paid-in capital485,836
435,927Accumulated deficit(84,326)
(71,414)Accumulated other comprehensive loss(1,568)
(52,009)Total stockholders' equity399,973
312,533Total liabilities and stockholders' equity$ 1,052,627
$ 989,166 BANDWIDTH INC.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)
Year ended December 31,
2025
2024Cash flows from operating activities
Net loss$ (12,912)
$ (6,524)Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization53,764
49,242Non-cash reduction to the right-of-use asset3,386
3,601Amortization of debt discount and issuance costs1,384
1,709Stock-based compensation52,332
48,362Deferred taxes and other(2,131)
(4,452)Gain on sale of intangible asset—
(1,000)Net gain on extinguishment of debt(1,082)
(10,267)Changes in operating assets and liabilities:
Accounts receivable(3,956)
(8,725)Prepaid expenses and other assets(1,682)
4,062Accounts payable13,070
(4,639)Accrued expenses and other liabilities(10,737)
18,108Operating right-of-use liability(1,945)
(5,594)Net cash provided by operating activities89,491
83,883Cash flows from investing activities
Purchase of property, plant and equipment(22,261)
(13,986)Refund of deposits for construction in progress—
2,707Capitalized software development costs(10,680)
(11,394)Purchase of marketable securities(16,127)
(34,050)Proceeds from sales and maturities of marketable securities9,650
53,502Proceeds from sale of business361
779Proceeds from sale of intangible assets—
1,000Net cash used in investing activities(39,057)
(1,442)Cash flows from financing activities
Borrowings on line of credit28,500
206,500Repayments on line of credit(28,500)
(206,500)Payments on finance leases(66)
(87)Net cash paid for debt extinguishment(26,144)
(128,534)Payment of debt issuance costs(25)
(524)Proceeds from exercises of stock options109
167Value of equity awards withheld for tax liabilities(2,942)
(2,295)Net cash used in financing activities(29,068)
(131,273)Effect of exchange rate changes on cash, cash equivalents and restricted cash(440)
(1,241)Net increase (decrease) in cash, cash equivalents, and restricted cash20,926
(50,073)Cash, cash equivalents, and restricted cash, beginning of period82,234
132,307Cash, cash equivalents, and restricted cash, end of period$ 103,160
$ 82,234 BANDWIDTH INC.Reconciliation of Non-GAAP Financial Measures(In thousands, except share and per share amounts)(Unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Three months ended December 31,
Year ended December 31,
2025
2024
2025
2024Gross Profit$ 78,077
$ 76,511
$ 295,051
$ 279,958Gross Profit Margin %38 %
36 %
39 %
37 %Depreciation5,536
4,396
20,673
18,532Amortization of acquired intangible assets2,103
1,934
8,142
7,811Stock-based compensation562
515
2,159
1,638Non-GAAP Gross Profit$ 86,278
$ 83,356
$ 326,025
$ 307,939Non-GAAP Gross Margin % (1)57 %
58 %
58 %
57 %
(1) Calculated by dividing Non-GAAP gross profit by cloud communications revenue of $150 million and $144 million for the three months ended December 31, 2025 and 2024, respectively, and $561 million and $540 million for the years ended December 31, 2025 and 2024, respectively. BANDWIDTH INC.Reconciliation of Non-GAAP Financial Measures(In thousands, except share and per share amounts)(Unaudited)
Non-GAAP Net Income
Three months ended December 31,
Year ended December 31,
2025
2024
2025
2024Net loss$ (3,000)
$ (1,759)
$ (12,912)
$ (6,524)Stock-based compensation13,884
13,212
52,332
48,362Amortization of acquired intangibles4,609
4,370
18,094
17,503Amortization of debt discount and issuance costs for convertible debt279
312
1,133
1,492Net cost associated with early lease terminations and leases without economic benefit—
4
—
2,387Net gain on extinguishment of debt—
—
(1,082)
(10,267)Non-recurring items not indicative of ongoing operations and other (1)811
257
2,813
(571)Estimated tax effects of adjustments (2)(5,087)
(4,832)
(14,460)
(11,486)Non-GAAP net income$ 11,496
$ 11,564
$ 45,918
$ 40,896Interest expense on Convertible Notes (3)238
251
964
1,118Numerator used to compute Non-GAAP diluted net income per share$ 11,734
$ 11,815
$ 46,882
$ 42,014
Net loss per share, basic and diluted$ (0.10)
$ (0.06)
$ (0.43)
$ (0.24)
Non-GAAP net income per Non-GAAP share
Basic$ 0.37
$ 0.41
$ 1.53
$ 1.50Diluted$ 0.35
$ 0.37
$ 1.43
$ 1.34
Weighted average number of shares outstanding, basic and diluted30,814,252
27,882,092
29,996,861
27,209,698
Non-GAAP basic shares30,814,252
27,882,092
29,996,861
27,209,698Convertible debt conversion1,478,379
1,779,025
1,522,858
2,321,106Stock options issued and outstanding15,600
26,288
20,526
29,731Nonvested RSUs outstanding1,350,756
1,958,506
1,313,572
1,822,530Non-GAAP diluted shares33,658,987
31,645,911
32,853,817
31,383,065
(1) Non-recurring items not indicative of ongoing operations and other include (i) $0.2 million of foreign exchange charges primarily related to balance sheet revaluations during the three months ended December 31, 2025 and $1.3 million during the year ended December 31, 2025, (ii) $0.6 million and $0.3 million of losses on disposals of property, plant and equipment during the three months ended December 31, 2025 and 2024, respectively, and $0.9 million and $0.4 million during the years ended December 31, 2025 and 2024, respectively, (iii) $0.5 million of nonrecurring litigation expense during the year ended December 31, 2025, (iv) $0.1 million of losses on the sale of business during the year ended December 31, 2025, and v) $1.0 million gain on the sale of an intangible asset during the year ended December 31, 2024.(2) The estimated tax-effect of adjustments is determined by recalculating the tax provision on a Non-GAAP basis. The Non-GAAP effective income tax rate was 19.0% and 18.1% for the years ended December 31, 2025 and 2024, respectively. For the year ended December 31, 2025, the Non-GAAP effective income tax rate differed from the federal statutory tax rate of 21% in the U.S. primarily due to the research and development tax credits generated in 2025. We analyze the Non-GAAP valuation allowance position on a quarterly basis. As of December 31, 2025, we have no valuation allowance against our deferred tax assets for Non-GAAP purposes.(3) Non-GAAP net income is increased for interest expense as part of the calculation for diluted Non-GAAP earnings per share. BANDWIDTH INC.Reconciliation of Non-GAAP Financial Measures(In thousands, except share and per share amounts)(Unaudited)
Adjusted EBITDA
Three months ended December 31,
Year ended December 31,
2025
2024
2025
2024Net loss$ (3,000)
$ (1,759)
$ (12,912)
$ (6,524)Income tax benefit(1,464)
(1,164)
(3,679)
(2,429)Interest expense, net495
771
2,028
1,861Depreciation9,497
7,732
35,670
31,739Amortization4,609
4,370
18,094
17,503Stock-based compensation13,884
13,212
52,332
48,362Net cost associated with early lease terminations
and leases without economic benefit—
4
—
2,387Net gain on extinguishment of debt—
—
(1,082)
(10,267)Non-recurring items not indicative of ongoing operations and other (1)811
257
2,813
(571)Adjusted EBITDA$ 24,832
$ 23,423
$ 93,264
$ 82,061
(1) Non-recurring items not indicative of ongoing operations and other include (i) $0.2 million of foreign exchange charges primarily related to balance sheet revaluations during the three months ended December 31, 2025 and $1.3 million during the year ended December 31, 2025, (ii) $0.6 million and $0.3 million of losses on disposals of property, plant and equipment during the three months ended December 31, 2025 and 2024, respectively, and $0.9 million and $0.4 million during the years ended December 31, 2025 and 2024, respectively, (iii) $0.5 million of nonrecurring litigation expense during the year ended December 31, 2025, (iv) $0.1 million of losses on the sale of business during the year ended December 31, 2025, and v) $1.0 million gain on the sale of an intangible asset during the year ended December 31, 2024. Free Cash Flow
Three months ended December 31,
Year ended December 31,
2025
2024
2025
2024Net cash provided by operating activities$ 38,614
$ 36,518
$ 89,491
$ 83,883Net cash used in investing in capital assets (1)(7,535)
(6,173)
(32,941)
(25,380)Free cash flow$ 31,079
$ 30,345
$ 56,550
$ 58,503
(1) Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use.
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Original: Bandwidth Announces Fourth Quarter and Full Year 2025 Financial Results
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