Bandwidth (NASDAQ:BAND) Announces Quarterly Earnings Results, Hits Expectations

Bandwidth (NASDAQ:BAND) announced its quarterly earnings results on Thursday. The company reported $0.35 earnings per share for the quarter, meeting the consensus estimate of $0.35, FiscalAI reports. Bandwidth had a positive return on equity of 1.17% and a negative net margin of 1.54%.The company had revenue of $207.67 million during the quarter, compared to analysts’ expectations of $208.30 million.

Here are the key takeaways from Bandwidth’s conference call:

• Bandwidth issued upbeat 2026 guidance, targeting ~16% total revenue growth (≈10% cloud communications growth) and a near-20% adjusted EBITDA margin with non-GAAP EPS of $1.66–$1.74, signaling meaningful margin expansion.
• The company highlighted strong AI-driven enterprise momentum, closing a record number of $1M+ deals in 2025 (examples: a major U.S. insurance group and a top-10 bank) and reporting a >4x increase in third-party conversational AI developers building on its platform.
• Full-year 2025 results showed durable profitability and cash generation — $754M revenue (organic +10%), non-GAAP gross margin ~58%, adjusted EBITDA $93M, and $57M free cash flow — and Bandwidth announced an inaugural $80M share repurchase program while continuing to invest in R&D for AI.
• Management emphasized a structural competitive advantage from owning a scaled global communications infrastructure, citing an 82% incremental gross profit yield, >99% customer name retention, and 107% organic net retention as defenses against rivals.
• Management warned that market dynamics in messaging make it likely Bandwidth will fall short of its original multi-year 15%–20% revenue CAGR target, introducing revenue-growth risk despite margin and cash-flow progress.

Bandwidth Price Performance

Shares of Bandwidth stock traded up $3.22 on Thursday, hitting $16.21. 675,640 shares of the company were exchanged, compared to its average volume of 280,682. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 0.63. The company has a 50-day moving average price of $14.15 and a 200 day moving average price of $14.89. The stock has a market capitalization of $494.73 million, a price-to-earnings ratio of -41.59 and a beta of 2.15. Bandwidth has a 1-year low of $11.33 and a 1-year high of $18.63.

Analyst Upgrades and Downgrades

BAND has been the topic of a number of recent analyst reports. Robert W. Baird set a $16.00 price target on shares of Bandwidth in a report on Friday, October 31st. Wall Street Zen lowered Bandwidth from a “buy” rating to a “hold” rating in a research note on Sunday, December 14th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Bandwidth in a research report on Wednesday, January 21st. Finally, B. Riley Financial started coverage on shares of Bandwidth in a research note on Friday, January 23rd. They issued a “buy” rating and a $20.00 price target on the stock. Six analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $20.83.

Insider Activity at Bandwidth

In other news, CEO David A. Morken sold 12,584 shares of Bandwidth stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $14.06, for a total transaction of $176,931.04. Following the sale, the chief executive officer owned 29,494 shares of the company’s stock, valued at approximately $414,685.64. The trade was a 29.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Richard Brandon Asbill sold 4,460 shares of the company’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $14.06, for a total value of $62,707.60. Following the completion of the transaction, the general counsel owned 62,465 shares in the company, valued at $878,257.90. This represents a 6.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 63,463 shares of company stock valued at $895,210 over the last ninety days. Corporate insiders own 6.50% of the company’s stock.

Institutional Investors Weigh In On Bandwidth

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC increased its position in shares of Bandwidth by 183.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock worth $60,000 after purchasing an additional 2,445 shares during the last quarter. Raymond James Financial Inc. acquired a new position in Bandwidth in the second quarter valued at about $85,000. Quantbot Technologies LP purchased a new position in Bandwidth during the second quarter worth about $128,000. State of Wyoming increased its position in shares of Bandwidth by 104.6% during the fourth quarter. State of Wyoming now owns 8,756 shares of the company’s stock valued at $135,000 after acquiring an additional 4,476 shares during the last quarter. Finally, Brevan Howard Capital Management LP purchased a new stake in shares of Bandwidth in the 3rd quarter valued at approximately $174,000. Hedge funds and other institutional investors own 68.53% of the company’s stock.

About Bandwidth

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth’s solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.