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Bandwidth
(NASDAQ:BAND)
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Rating:56Neutral
Price Target:
$50.00
▲(6.63% Upside)
Action:Reiterated
Date:10/29/26
The score is supported most by the earnings call’s raised outlook and improving profitability trajectory, alongside strong recent cash generation. Offsetting this are weaker underlying financial quality signals (historically thin/unstable operating profitability and meaningful leverage), a currently soft technical setup (below key short-to-mid-term averages with negative MACD), and limited valuation support given the negative P/E and no dividend yield provided.
Positive Factors
Revenue and EBITDA Growth
Strong Q2 growth combined with higher full-year revenue and EBITDA guidance indicates improving demand and operating leverage. If enterprise usage and AI-related communications continue scaling, the larger revenue base should support greater profitability and reinforce Bandwidth’s competitive position.
Negative Factors
Elevated Leverage
Although leverage has improved, Bandwidth remains meaningfully debt-funded, limiting financial flexibility relative to a less leveraged business. Debt obligations can constrain investment and capital allocation, while uneven profitability makes it harder to consistently cover the full cost of capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and EBITDA Growth
Strong Q2 growth combined with higher full-year revenue and EBITDA guidance indicates improving demand and operating leverage. If enterprise usage and AI-related communications continue scaling, the larger revenue base should support greater profitability and reinforce Bandwidth’s competitive position.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend YieldN/A
Average Volume (3M)871.55K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth9.25%
EPS GrowthN/A
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)162.73
Shares Outstanding30,222,760
10 Day Avg. Volume889,449
30 Day Avg. Volume871,550
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 Cap1.60
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda1.36
Forecast
1Y Price Target
$62.60Price Target Upside33.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.75
Revenue Forecast (FY)$905.87M
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:Feb 25, 2027
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
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 234.65B | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 85.03B | 295.05M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 1.84B | 39.20M | 42.15M | 23.22M | 55.95M | 39.83M |
| Net Income | 5.25B | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | ||||||
| Total Assets | 1.09T | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 175.81B | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 533.16B | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 712.41B | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 382.00B | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | ||||||
| Free Cash Flow | 37.76B | 67.23M | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 37.78B | 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
Neutral
46.89
Price Trends
51.54
Negative
54.80
Negative
40.69
Positive
Market Momentum
-2.32
Positive
47.18
Neutral
79.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAND, the sentiment is Neutral. The current price of 46.89 is below the 20-day moving average (MA) of 51.08, below the 50-day MA of 51.54, and above the 200-day MA of 40.69, indicating a neutral trend. The MACD of -2.32 indicates Positive momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $38.97B | 33.75 | 14.15% | ― | 17.82% | 5490.04% | |
74 Outperform | $6.69B | 14.74 | 13.45% | 3.59% | 0.15% | -15.59% | |
67 Neutral | $13.49B | 15.67 | 660.95% | ― | 7.50% | 18.20% | |
66 Neutral | $113.49B | -546.68 | -13.86% | ― | 33.53% | -72.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.56B | -617.98 | 0.57% | ― | 9.25% | ― | |
43 Neutral | $114.45M | -1.36 | 48.45% | ― | 4.22% | 13.24% |
* Technology Sector Average
BAND
Bandwidth
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31.68
188.91%
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Bandwidth Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Bandwidth Expands Credit Facility to Support Growth
Positive
Oct 29, 2026
On 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 ...
Business Operations and StrategyExecutive/Board Changes
Bandwidth appoints Chip Schroeder to expanded board
Positive
Oct 29, 2026
Bandwidth 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 fo...
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.