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Bandwidth
(NASDAQ:BAND)
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Rating:61Neutral
Price Target:
$71.00
▲(208.56% Upside)
Action:Reiterated
Date:07/08/26
The score is anchored by weak financial performance (inconsistent profitability and leverage) despite improving cash flow, partially offset by a strong technical uptrend and a bullish earnings call with raised guidance and clear growth drivers. Valuation metrics remain a headwind given the deeply negative P/E and no dividend support, while recent financing/capital-structure events are mildly positive but secondary.
Positive Factors
Owned network & 911 infrastructure
Owning an IP voice network plus direct public‑safety connectivity is a durable competitive advantage. It lowers latency, simplifies compliance for E911, raises switching costs for enterprise customers, and supports mission‑critical use cases that sustain long‑term revenue and differentiated margins.
Negative Factors
High leverage
Material leverage constrains financial flexibility and raises refinancing and interest risk if growth or margins slip. For a software infrastructure firm, elevated debt limits ability to invest in product, pursue M&A, or absorb execution setbacks without resorting to dilutive financing or cutting strategic spend.
Read all positive and negative factors
Positive Factors
Negative Factors
Owned network & 911 infrastructure
Owning an IP voice network plus direct public‑safety connectivity is a durable competitive advantage. It lowers latency, simplifies compliance for E911, raises switching costs for enterprise customers, and supports mission‑critical use cases that sustain long‑term revenue and differentiated margins.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth4.88%
EPS Growth-534.80%
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.17
Shares Outstanding30,056,656
10 Day Avg. Volume1,403,870
30 Day Avg. Volume1,463,686
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)1.16
Price to Sales (P/S)0.61
P/FCF Ratio6.89
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue2.54
Enterprise Value/Gross Profit6.95
Enterprise Value/Ebitda37.59
Forecast
1Y Price Target
$61.67Price Target Upside168.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.78
Revenue Forecast (FY)$887.16M
Bandwidth Business Overview & Revenue Model
Company Description
Bandwidth Inc. offers a sophisticated, cloud-native Communications Platform-as-a-Service (CPaaS), primarily focused on the United States market. The company's business activities are categorized into two main segments: CPaaS and "Other." Through i...
How the Company Makes Money
Bandwidth primarily makes money by charging customers for usage-based and recurring fees associated with cloud communications delivered through its platform and network. Key revenue streams include: (1) Voice services: per-minute (or similar consu...
Bandwidth Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record revenue and adjusted EBITDA, raised full-year guidance, accelerated high‑margin software services, key strategic partnerships (notably Salesforce), and multiple large enterprise wins underpin growth expectations. Offsetting these positives are timing and deployment risks — several large deals are not yet fully deployed (pushing material benefits into the second half), free cash flow is only essentially breakeven in Q1, and some reported metrics are adjusted for cyclical political revenue. On balance, the constructive results, raised guidance, and strategic partnerships significantly outweigh the execution and timing caveats.Positive Updates
Record Revenue and Adjusted EBITDA
Total revenue of $209 million in Q1 2026, up 20% year-over-year, and record first-quarter adjusted EBITDA of $26 million, up 17% year-over-year.
Negative Updates
Large Deals Not Fully Deployed Yet
Several large enterprise deals that underpin expected second-half acceleration are still in early stages of deployment: of the large multi-million dollar deals referenced, five are reported as less than 50% deployed, delaying the revenue run-rate impact until later in the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Total revenue of $209 million in Q1 2026, up 20% year-over-year, and record first-quarter adjusted EBITDA of $26 million, up 17% year-over-year.
Read all positive updates
Company Guidance
Management raised its outlook with near‑term and full‑year targets: Q2 revenue is expected to be $214–220M (≈+20% YoY), adjusted EBITDA $24–27M (+20% YoY) and non‑GAAP EPS $0.35–0.37; full‑year 2026 revenue is guided to $880–900M (≈+18% YoY at the midpoint, up from prior $864–884M), Cloud Communications $616–624M (+10% YoY at the midpoint), adjusted EBITDA $119–125M (+31% YoY at the midpoint, versus prior $117–123M) and non‑GAAP EPS $1.77–1.83 (+26% YoY at the midpoint, versus prior $1.66–1.74). They also modeled net interest expense of $1–3M, depreciation of $38–42M, an adjusted effective tax rate of 20–21%, roughly 35M diluted shares outstanding, and capex of $24–26M; note Q1 results already came in ahead with $209M revenue (+20% YoY) and $26M adjusted EBITDA, and management cited about $15M of political messaging benefit expected in H2.Bandwidth Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 788.36M | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 288.50M | 270.10M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 53.30M | 42.59M | 42.15M | 32.55M | 62.93M | 39.83M |
| Net Income | -5.05M | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | ||||||
| Total Assets | 984.20M | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 50.27M | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 423.22M | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 578.52M | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 405.67M | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | ||||||
| Free Cash Flow | 76.92M | 67.23M | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 101.37M | 89.49M | 83.88M | 39.00M | 34.91M | 40.80M |
| Investing Cash Flow | -29.08M | -39.06M | -1.44M | 30.85M | -133.45M | 2.83M |
| Financing Cash Flow | -59.82M | -29.07M | -131.27M | -52.77M | -120.00M | 207.03M |
Bandwidth Technical Analysis
Positive
23.01
Price Trends
54.40
Positive
35.55
Positive
25.29
Positive
Market Momentum
2.18
Negative
63.28
Neutral
80.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAND, the sentiment is Positive. The current price of 23.01 is below the 20-day moving average (MA) of 58.54, below the 50-day MA of 54.40, and below the 200-day MA of 25.29, indicating a bullish trend. The MACD of 2.18 indicates Negative momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 80.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAND.
Bandwidth Risk Analysis
Bandwidth disclosed 68 risk factors in its most recent earnings report. Bandwidth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bandwidth Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $683.48M | 7.92 | 5285.71% | ― | 0.47% | 6.39% | |
67 Neutral | $918.00M | -40.62 | -27.17% | ― | 13.32% | 61.29% | |
66 Neutral | $680.36M | -225.81 | -1.33% | ― | ― | ― | |
63 Neutral | $582.25M | 9.82 | -51.19% | ― | 8.83% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.94B | -401.19 | -1.28% | ― | 4.88% | -534.80% | |
44 Neutral | $164.69M | -0.27 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
BAND
Bandwidth
67.56
51.49
320.41%
DAVA
Endava
2.85
-12.30
-81.19%
PRTH
Priority Technology Holdings
6.97
-1.26
-15.31%
CGNT
Cognyte Software
9.10
-0.04
-0.44%
CCSI
Consensus Cloud Solutions
36.67
13.01
54.99%
BLZE
Backblaze
15.84
10.43
192.79%
Bandwidth Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Bandwidth Issues New 2032 Convertible Notes and Capped Calls
Positive
Jun 18, 2026
On June 15, 2026, Bandwidth Inc. agreed to sell $275 million of 0% Convertible Senior Notes due 2032 to a syndicate led by Morgan Stanley, and on June 18, 2026 it issued a total of $316.25 million after full exercise of the underwriters’ opt...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Bandwidth Prices $275 Million Convertible Senior Notes Offering
Positive
Jun 16, 2026
On June 16, 2026, Bandwidth announced it had priced a private offering of $275 million in 0% convertible senior notes due 2032, sold under Rule 144A to qualified institutional buyers, with an option for purchasers to buy an additional $41.25 milli...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Bandwidth Announces $275 Million Convertible Notes Offering
Neutral
Jun 15, 2026
On June 15, 2026, Bandwidth Inc. announced a proposed private offering of $275 million in convertible senior notes due 2032, with an option for initial purchasers to buy an additional $41.25 million, in a deal limited to qualified institutional bu...
Executive/Board ChangesShareholder Meetings
Bandwidth Shareholders Reelect Directors and Approve Governance Items
Positive
May 29, 2026
On May 28, 2026, Bandwidth Inc. held its 2026 Annual Meeting of Stockholders, where holders of Class A and Class B shares representing 87.08% of eligible votes were present, establishing a quorum. Stockholders elected Class III directors David A. ...
Business Operations and Strategy
Bandwidth Highlights AI-Powered Voice and Messaging Platform Strength
Positive
May 12, 2026
Bandwidth Inc., a global cloud communications provider, circulated an investor presentation dated May 2026 outlining its role as a mission‑critical platform for AI‑driven voice and messaging. The company highlighted its owned global ne...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.