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Bandwidth (BAND) AI Stock Analysis
Bandwidth
(NASDAQ:BAND)
The score is driven primarily by improving fundamentals and cash flow plus a very strong, guidance-raising earnings call, which offset a weak valuation profile. Technicals remain a headwind with the stock trading below key moving averages and negative MACD, while leverage and uneven operating profitability continue to be key financial risks.
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.43B
- Dividend Yield
- ―
- Average Volume (3M)
- 908.90K
- Price to Earnings (P/E)
- 386.1
- Beta (1Y)
- 1.66
- Revenue Growth
- 15.11%
- EPS Growth
- ―
- Country
- US
- Employees
- 1,100
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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 its...
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 for r...
Bandwidth Earnings Call Summary
The call was strongly positive. Bandwidth delivered record revenue, adjusted EBITDA, margin, retention, and free cash flow; raised its full-year 2026 outlook; reported substantial enterprise deal activity; and expressed confidence in double-digit cloud communications growth in 2027. The main challenges were a 200-basis-point GAAP gross margin decline caused by higher carrier messaging surcharge revenue, a $3 million reduction in political campaign revenue expectations, moderate near-term Global Voice Plans growth, and the early stage of consumer voice AI adoption.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Bandwidth raised the midpoint of its full year 2026 outlook across all guidance metrics and now expects total revenue to be in the range of $905 million-$910 million, representing 20% growth year-over-year at the midpoint; cloud communications in the range of $624 million-$626 million, representing 11% growth year-over-year at the midpoint; adjusted EBITDA to be in the range of $124 million-$125 million, representing 34% growth year-over-year at the midpoint and a 20% EBITDA margin; and non-GAAP EPS to be in the range of $1.73-$1.79, implying full-year non-GAAP net income growth of 48%. Commercial cloud communications revenue was raised by $4 million, political campaign revenue was trimmed by $3 million to a total of $10 million for the year, net interest income is expected in the range of $0.6 million-$1.1 million, depreciation expense in the range of $39 million-$41 million, adjusted effective tax rate in the range of 20%-22%, weighted average diluted shares outstanding of approximately 39 million, and capital expenditures in the range of $24 million-$26 million. For 2027, management expects double-digit cloud communications revenue growth, Enterprise Voice growth to be healthy and growing, software services revenue to keep growing, Enterprise Voice to grow greater than 20% in the fourth quarter, and Global Voice Plans growth of somewhere between 3% and 8%.
Bandwidth Financial Statement Overview
Summary
Cash generation is the main strength (consistently positive operating cash flow and very strong TTM free cash flow), but profitability quality is mixed with negative operating margins in multiple recent periods. Elevated leverage (debt-to-equity generally ~1.2x–2.2x and still >1x TTM) limits flexibility and keeps the overall financial profile only modestly positive.
Income Statement
44NeutralBalance Sheet
46NeutralCash Flow
62Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 870.37M | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 319.33M | 295.05M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 62.22M | 39.20M | 42.15M | 23.22M | 55.95M | 39.83M |
| Net Income | 8.75M | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 175.81M | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 533.16M | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 712.41M | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 382.00M | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | ||||||
| Free Cash Flow | 89.50M | 67.23M | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 113.88M | 89.49M | 83.88M | 39.00M | 34.91M | 40.80M |
| Investing Cash Flow | -24.11M | -39.06M | -1.44M | 30.85M | -133.45M | 2.83M |
| Financing Cash Flow | 10.01M | -29.07M | -131.27M | -52.77M | -120.00M | 207.03M |
Bandwidth Technical Analysis
Price Trends
Market Momentum
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 47.34 is below the 20-day moving average (MA) of 49.80, below the 50-day MA of 51.54, and above the 200-day MA of 41.06, indicating a neutral trend. The MACD of -1.71 indicates Negative momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 76.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
3 New RisksBandwidth Peers Comparison
Overall Rating
GDDY76Outperform
DOX74Outperform
NET74Outperform
TWLO72Outperform- BAND52Neutral
TCX44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GDDY | 76Outperform | $14.85B | 15.93 | 1200.87% | ― | 6.53% | 24.06% |
| DOX | 74Outperform | $6.76B | 14.89 | 13.45% | 3.56% | 0.15% | -15.59% |
| NET | 74Outperform | $99.95B | -481.39 | -13.86% | ― | 33.53% | -72.17% |
| TWLO | 72Outperform | $31.49B | 24.64 | 15.08% | ― | 19.10% | 1795.49% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| BAND | 52Neutral | $1.52B | 386.13 | 2.24% | ― | 15.11% | ― |
| TCX | 44Neutral | $122.89M | -1.46 | 48.45% | ― | 4.22% | 13.24% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BAND | Bandwidth | 47.34 | 31.36 | 196.25% | |
| DOX | Amdocs Limited | 62.83 | -18.29 | -22.55% | |
| TCX | Tucows | 10.99 | -7.87 | -41.73% | |
| GDDY | GoDaddy Inc. | 117.24 | -17.78 | -13.17% | |
| TWLO | Twilio Inc | 205.03 | 68.93 | 50.65% | |
| NET | Cloudflare Inc | 280.70 | 32.59 | 13.14% |
Bandwidth Corporate Events
Bandwidth Expands Credit Facility to Support Growth
PositiveOn October 26, 2026, Bandwidth amended its credit agreement, expanding its revolving credit facility from $150 million to $200 million, extending the maturity to October 26, 2031 and loosening certain covenant baskets to provide greater financial fle...
Bandwidth appoints Chip Schroeder to expanded board
PositiveBandwidth Inc., a leading global cloud communications company listed on Nasdaq, expanded its board of directors from five to six members and appointed Charles “Chip” Schroeder as a Class II director, effective October 28, 2026. With four...
Bandwidth Expands Global Cloud Communications, Salesforce Partnership
PositiveIn 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 bill...
Bandwidth Announces Leadership Transition in Legal Department
PositiveOn 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 Assis...
Bandwidth Reduces Convertible Debt, Strengthens Balance Sheet
PositiveBandwidth, 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 paid...
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.
Date of analysis: Oct 31, 2026