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Bandwidth
(NASDAQ:BAND)
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Rating:52Neutral
Price Target:
$44.00
▼(-6.16% Downside)
Action:Reiterated
Date:09/06/26
The score reflects a company with improving business momentum and raised guidance from the latest earnings call, partially offset by weaker underlying financial quality (inconsistent profitability and leverage) and bearish technical signals (price below key moving averages with negative MACD and low RSI). Valuation adds limited support due to a negative P/E and no indicated dividend yield.
Positive Factors
Revenue and enterprise growth
Strong revenue growth alongside multiple large enterprise wins indicates increasing adoption of Bandwidth’s communications platform. A growing base of sizable customers can improve revenue visibility, support operating leverage, and strengthen the company’s position in enterprise cloud communications over the next several quarters.
Negative Factors
Inconsistent profitability
Despite positive EBITDA, negative TTM operating margin and repeated net losses show that the business has not yet established consistent bottom-line earnings. Persistent cost pressure can limit internally funded investment and make future results more sensitive to revenue growth and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and enterprise growth
Strong revenue growth alongside multiple large enterprise wins indicates increasing adoption of Bandwidth’s communications platform. A growing base of sizable customers can improve revenue visibility, support operating leverage, and strengthen the company’s position in enterprise cloud communications over the next several quarters.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)1.03M
Price to Earnings (P/E)―
Beta (1Y)1.69
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. Volume702,150
30 Day Avg. Volume1,032,731
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$70.75Price Target Upside50.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.75
Revenue Forecast (FY)$905.44M
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: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
Negative
46.89
Price Trends
55.86
Negative
52.35
Negative
33.65
Positive
Market Momentum
-1.96
Positive
38.58
Neutral
24.20
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 46.89 is below the 20-day moving average (MA) of 49.82, below the 50-day MA of 55.86, and above the 200-day MA of 33.65, indicating a neutral trend. The MACD of -1.96 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.20 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.
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% | |
64 Neutral | $832.86M | -39.57 | -24.09% | ― | 13.85% | 61.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $457.54M | 8.04 | -59.14% | ― | 8.91% | 162.25% | |
60 Neutral | $625.94M | -210.17 | -1.33% | ― | ― | ― | |
52 Neutral | $1.41B | -558.29 | <0.01% | ― | 9.25% | ― | |
46 Neutral | $172.00M | -0.28 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
BAND
Bandwidth
43.77
28.07
178.79%
DAVA
Endava
3.06
-6.97
-69.49%
PRTH
Priority Technology Holdings
5.55
-2.20
-28.39%
CGNT
Cognyte Software
8.47
-1.06
-11.12%
CCSI
Consensus Cloud Solutions
35.36
8.21
30.24%
BLZE
Backblaze
13.46
4.31
47.21%
Bandwidth Corporate Events
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...
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...
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.