Bandwidth (BAND) AI Stock Analysis

• Market Cap: $441.95M
• Dividend Yield: N/A
• Average Volume (3M): 232.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: 7.42%
• EPS Growth: 34.42%
• Country: US
• Employees: 1,100
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.36
• Shares Outstanding: 28,563,553
• 10 Day Avg. Volume: 258,871
• 30 Day Avg. Volume: 232,587
• PEG Ratio: 1.14
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 6.63
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 17.89
• 1Y Price Target: $24.00
• Price Target Upside: 65.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $14.50 ▲(0.14% Upside)

Bandwidth's overall stock score reflects a mixed financial performance with significant leverage and profitability challenges. However, positive earnings call highlights, including strong revenue growth and strategic advancements, contribute positively. Technical indicators and valuation concerns weigh down the score.

Positive Factors

AI Strategy Success

Bandwidth's AI strategy is driving significant customer adoption, particularly in financial services, healthcare, and hospitality, indicating a strong competitive advantage and potential for sustained revenue growth.

Customer Retention

High customer retention rates suggest strong customer loyalty and satisfaction, providing a stable revenue base and reducing the risk of revenue volatility.

Enterprise Voice Revenue Growth

The robust growth in enterprise voice revenue highlights Bandwidth's ability to capitalize on demand for its core platform, supporting long-term revenue expansion.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting Bandwidth's ability to invest in growth opportunities and weather economic downturns.

Negative Net Profit Margins

Negative net profit margins reflect operational inefficiencies and profitability challenges, which could hinder Bandwidth's ability to generate sustainable long-term earnings.

Decline in Revenue Growth

The decline in revenue growth raises concerns about Bandwidth's ability to maintain its market position and competitive edge, potentially impacting future financial performance.

Bandwidth Business Overview & Revenue Model

Company Description

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates in two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or messaging communications services across various mobile applications or connected devices. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, communications service providers, conferencing providers, contact centers, small and medium-sized businesses, emerging technology companies, and many other businesses. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.

How the Company Makes Money

Bandwidth generates revenue primarily through its usage-based pricing model, which means that customers are billed based on the volume of services they consume, such as the number of calls made or messages sent. Key revenue streams include charges for voice minutes, SMS messages, and access to premium features like 911 services. Additionally, Bandwidth partners with major technology companies and platforms, enhancing its market presence and driving growth through strategic integrations. The company also benefits from long-term contracts with enterprise customers, providing a steady revenue base and fostering customer loyalty.

Bandwidth Financial Statement Overview

Summary

Bandwidth's financial performance shows challenges in revenue growth and profitability, with high leverage posing risks to financial stability. Improvements in cash flow generation are noted, but operational inefficiencies and leverage need addressing.

Income Statement

Bandwidth's income statement shows a mixed performance. The company has experienced a significant decline in revenue growth, with a negative growth rate of -26.2% in the TTM period. Gross profit margins have slightly improved over the years, but net profit margins remain negative, indicating ongoing profitability challenges. The EBIT and EBITDA margins have shown some improvement, but they are still relatively low, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.22 in the TTM period, indicating significant leverage. However, this is an improvement from previous years. The return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively stable, but the high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth, with a 2.8% increase in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is below 1, suggesting that not all net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	756.12M	748.49M	601.12M	573.15M	490.91M	343.11M
Gross Profit	293.49M	279.96M	236.16M	238.35M	218.52M	157.86M
EBITDA	50.52M	42.15M	32.55M	62.93M	34.23M	8.11M
Net Income	-11.67M	-6.52M	-16.34M	19.57M	-27.36M	-43.98M
Balance Sheet
Total Assets	1.03B	989.17M	1.10B	929.32M	1.07B	890.61M
Cash, Cash Equivalents and Short-Term Investments	80.37M	83.79M	153.47M	184.87M	331.45M	112.16M
Total Debt	479.62M	503.59M	644.54M	492.64M	503.20M	304.91M
Total Liabilities	640.59M	676.63M	803.66M	657.14M	652.94M	460.69M
Stockholders Equity	392.74M	312.53M	297.39M	272.18M	412.60M	429.92M
Cash Flow
Free Cash Flow	64.03M	69.90M	19.10M	-29.18M	-13.83M	-10.07M
Operating Cash Flow	87.39M	83.88M	39.00M	34.91M	40.80M	4.52M
Investing Cash Flow	-33.19M	-1.44M	30.85M	-133.45M	2.83M	-455.08M
Financing Cash Flow	-54.20M	-131.27M	-52.77M	-120.00M	207.03M	346.89M

Bandwidth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAND, the sentiment is Negative. The current price of 14.48 is below the 20-day moving average (MA) of 15.93, below the 50-day MA of 16.17, and below the 200-day MA of 15.16, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAND.

Bandwidth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCSI	70 Outperform	$544.64M	6.92	―	―	-1.23%	-11.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLZE	61 Neutral	$545.79M	―	-69.83%	―	19.08%	28.99%
PRTH	56 Neutral	$529.86M	25.48	―	―	12.86%	―
CGNT	56 Neutral	$607.31M	-133.76	-2.26%	―	―	―
BAND	52 Neutral	$441.95M	―	-3.20%	―	7.42%	34.42%
DAVA	52 Neutral	$459.61M	18.48	3.37%	―	7.13%	23.63%

Bandwidth Corporate Events

Bandwidth’s Earnings Call: Strong Growth and Strategic Wins

Bandwidth’s Earnings Call Highlights Strong Growth and Strategic Advancements

Bandwidth Reports Strong Q3 2025 Financial Performance

Bandwidth Inc., a global leader in cloud communications, offers voice calling, text messaging, and emergency services through its Communications Cloud, serving major tech companies and enterprises worldwide.