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Bandwidth
(NASDAQ:BAND)
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Rating:55Neutral
Price Target:
$65.00
▲(38.62% Upside)
Action:Reiterated
Date:09/15/26
Overall score reflects a company with improving operating momentum and a strong outlook (raised guidance, expanding margins) and better recent cash generation, offset by still-weak/volatile profitability, leverage risk on the balance sheet, and a weak intermediate technical setup. Valuation metrics are also a headwind due to the negative P/E and lack of dividend support.
Positive Factors
Strong revenue growth
Strong top-line growth reflects expanding enterprise adoption and increasing AI-related communications usage. This supports greater scale across Bandwidth’s platform, creates more opportunities to leverage its network assets, and improves the foundation for sustained revenue growth over the coming quarters.
Negative Factors
Elevated leverage
Although leverage has improved, Bandwidth remains meaningfully debt-funded and therefore has less financial flexibility than a lightly levered software company. This can constrain capital allocation, increase sensitivity to weaker operating performance, and make balance-sheet execution important over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Strong top-line growth reflects expanding enterprise adoption and increasing AI-related communications usage. This supports greater scale across Bandwidth’s platform, creates more opportunities to leverage its network assets, and improves the foundation for sustained revenue growth over the coming quarters.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend YieldN/A
Average Volume (3M)860.82K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth9.25%
EPS GrowthN/A
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.07
Shares Outstanding30,222,760
10 Day Avg. Volume1,029,140
30 Day Avg. Volume860,817
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 Cap1.22
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit8.11
Enterprise Value/Ebitda48.06
Forecast
1Y Price Target
$68.60Price Target Upside46.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.75
Revenue Forecast (FY)$905.96M
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 selling CPaaS connectivity and related telecom services to business customers on a usage-based and services basis. Key revenue streams include: (1) Voice services: customers pay for placing/receiving calls and fo...
Bandwidth Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: strong revenue growth (22% YoY), margin expansion, record adjusted EBITDA margin, multiple large enterprise and messaging wins, and an upgraded full‑year outlook supported by product innovation (Bandwidth Build, Maestro, AI-focused investments) and balance-sheet actions. Headwinds were limited and largely tactical — a quarter-to-quarter moderation in voice growth attributed to timing, a modest downward revision to political campaign revenue, and conservative modeling for cloud communications in H2. Overall the positives substantially outweigh the limited, short-term cautions.Positive Updates
Strong Top-Line Growth
Total revenue of $220M in Q2 2026, up 22% year-over-year, driven by enterprise wins and greater AI-related usage.
Negative Updates
Voice Growth Moderation in Q2
Voice revenue grew 9% year-over-year in Q2, a deceleration versus prior periods; management attributed this to timing of ramping enterprise customers rather than a change in competitive dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $220M in Q2 2026, up 22% year-over-year, driven by enterprise wins and greater AI-related usage.
Read all positive updates
Company Guidance
Bandwidth raised its full‑year 2026 outlook after a strong Q2 beat, and guided Q3 revenue of $231–$235M (~21% YoY), adjusted EBITDA of $32–$34M (~36% YoY) and non‑GAAP EPS of $0.45–$0.49 (implying ~66% non‑GAAP net income growth). For the full year it now expects total revenue of $900–$910M (≈20% YoY at the midpoint), cloud communications of $622–$626M (≈11% YoY at midpoint), adjusted EBITDA of $123–$125M (≈33% YoY at midpoint; ~20% EBITDA margin), and non‑GAAP EPS of $1.71–$1.79 (~48% net income growth). Modeling assumptions include net interest income $0.5–$1M, depreciation $38–$42M, adjusted tax rate 20–22%, ~39M diluted shares, CapEx $24–$26M, and expected political campaign revenue of ~$13M.Bandwidth Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
40
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 828.24M | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 308.33M | 295.05M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 52.01M | 39.20M | 42.15M | 32.55M | 62.93M | 39.83M |
| Net Income | 2.26M | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | ||||||
| Total Assets | 1.10T | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 174.36B | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 554.42B | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 723.26B | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 378.17B | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | ||||||
| Free Cash Flow | 72.51M | 67.23M | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 98.42M | 89.49M | 83.88M | 39.00M | 34.91M | 40.80M |
| Investing Cash Flow | -27.37M | -39.06M | -1.44M | 30.85M | -133.45M | 2.83M |
| Financing Cash Flow | 40.97M | -29.07M | -131.27M | -52.77M | -120.00M | 207.03M |
Bandwidth Technical Analysis
Positive
46.89
Price Trends
51.32
Positive
56.69
Positive
37.55
Positive
Market Momentum
3.30
Negative
64.98
Neutral
76.81
Neutral
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 46.89 is below the 20-day moving average (MA) of 54.95, below the 50-day MA of 51.32, and above the 200-day MA of 37.55, indicating a bullish trend. The MACD of 3.30 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAND.
Bandwidth Risk Analysis
Bandwidth disclosed 70 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $647.97M | 7.00 | 506.78% | ― | 1.45% | 20.83% | |
67 Neutral | $645.41M | -2,080.95 | -0.03% | ― | ― | ― | |
64 Neutral | $888.88M | -42.24 | -24.09% | ― | 13.85% | 61.09% | |
62 Neutral | $641.63M | 11.28 | -59.14% | ― | 8.91% | 162.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $2.05B | -813.01 | <0.01% | ― | 9.25% | ― | |
46 Neutral | $107.92M | -0.18 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
BAND
Bandwidth
63.74
47.20
285.37%
DAVA
Endava
1.92
-7.37
-79.33%
PRTH
Priority Technology Holdings
7.78
0.75
10.67%
CGNT
Cognyte Software
8.74
0.18
2.10%
CCSI
Consensus Cloud Solutions
35.36
7.51
26.97%
BLZE
Backblaze
14.36
4.82
50.52%
Bandwidth Corporate Events
Business Operations and StrategyProduct-Related Announcements
Bandwidth Expands Global Cloud Communications, Salesforce Partnership
Positive
Sep 15, 2026
In September 2026, Bandwidth presented updated investor materials outlining its positioning as a global cloud communications leader in a large and expanding market, with total addressable market estimates rising from $111 billion in 2025 to $174 b...
Executive/Board ChangesRegulatory Filings and Compliance
Bandwidth Announces Leadership Transition in Legal Department
Positive
Sep 4, 2026
On Sept. 1, 2026, Bandwidth promoted long-time legal executive Emily Harlan to General Counsel and Secretary, succeeding retiring General Counsel Brandon Asbill, who moved into a non‑executive advisory role as General Counsel Emeritus and As...
Business Operations and StrategyPrivate Placements and Financing
Bandwidth Reduces Convertible Debt, Strengthens Balance Sheet
Positive
Aug 3, 2026
Bandwidth, a communications technology company, has repurchased approximately $20.8 million in aggregate principal amount of its 0.50% Convertible Senior Notes due 2028 in open-market transactions at a discount to par, with the repurchase price pa...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
Bandwidth Expands Credit Flexibility Amid Strong Growth
Positive
Jul 29, 2026
On July 25, 2026, Bandwidth amended its credit agreement, doubling the annual cap on certain restricted payments from $20 million to $40 million, or 20% of trailing twelve-month EBITDA, subject to leverage ratio conditions, while leaving other loa...
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.