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Bandwidth
(NASDAQ:BAND)
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Rating:62Neutral
Price Target:
$56.00
▲(19.43% Upside)
Action:Reiterated
Date:10/30/26
Overall score reflects improved cash generation and a very constructive earnings call with raised 2026 guidance and strong operating momentum, partially offset by structurally uneven operating profitability and meaningful leverage. Technicals are modestly supportive near-term but mixed, while valuation looks very low based on the provided P/E.
Positive Factors
Enterprise Growth and Retention
High customer retention and expansion indicate that Bandwidth is embedded in enterprise communications workflows, supporting recurring usage growth. Large contract wins add a visible deployment pipeline and can compound revenue as customers scale communications across applications and regions.
Negative Factors
Elevated Leverage
Elevated leverage remains a material constraint even as management has reduced net leverage and improved financing capacity. Debt obligations can limit flexibility if profitability weakens, requiring more cash for balance-sheet management and reducing funds available for expansion or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Enterprise Growth and Retention
High customer retention and expansion indicate that Bandwidth is embedded in enterprise communications workflows, supporting recurring usage growth. Large contract wins add a visible deployment pipeline and can compound revenue as customers scale communications across applications and regions.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.71B
Dividend YieldN/A
Average Volume (3M)885.02K
Price to Earnings (P/E)0.3
Beta (1Y)1.68
Revenue Growth9.25%
EPS GrowthN/A
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.12
Shares Outstanding30,222,760
10 Day Avg. Volume931,471
30 Day Avg. Volume885,020
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 Cap1.46
Enterprise Value/Revenue2.87
Enterprise Value/Gross Profit7.83
Enterprise Value/Ebitda40.18
Forecast
1Y Price Target
$62.80Price Target Upside33.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.75
Revenue Forecast (FY)$905.70M
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:Oct 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Record Third-Quarter Revenue and Adjusted EBITDA
Third-quarter total revenue reached a record $234 million, up 22% year-over-year, while adjusted EBITDA reached a record $35 million, up 43% year-over-year. Adjusted EBITDA margin was a record 22%.
Negative Updates
GAAP Gross Margin Decline
GAAP gross margin was 36% for the quarter, 200 basis points below the prior year. Management attributed the decline solely to higher carrier messaging surcharge revenue.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Third-Quarter Revenue and Adjusted EBITDA
Third-quarter total revenue reached a record $234 million, up 22% year-over-year, while adjusted EBITDA reached a record $35 million, up 43% year-over-year. Adjusted EBITDA margin was a record 22%.
Read all positive 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
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 | 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
Positive
46.89
Price Trends
51.56
Positive
54.64
Negative
40.89
Positive
Market Momentum
-1.73
Negative
53.87
Neutral
89.23
Negative
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 50.62, below the 50-day MA of 51.56, and above the 200-day MA of 40.89, indicating a bullish trend. The MACD of -1.73 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 89.23 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $37.15B | 29.07 | 15.08% | ― | 17.82% | 5490.04% | |
75 Outperform | $13.41B | 14.39 | 1200.87% | ― | 7.50% | 18.20% | |
74 Outperform | $6.69B | 14.74 | 13.45% | 3.59% | 0.15% | -15.59% | |
66 Neutral | $110.49B | -531.97 | -13.86% | ― | 33.53% | -72.17% | |
62 Neutral | $1.71B | 0.33 | 5.48% | ― | 9.25% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
43 Neutral | $116.63M | -1.39 | 48.45% | ― | 4.22% | 13.24% |
* Technology Sector Average
BAND
Bandwidth
47.34
31.19
193.13%
DOX
Amdocs
62.83
-18.42
-22.67%
TCX
Tucows
10.99
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GDDY
GoDaddy
117.24
-15.89
-11.94%
TWLO
Twilio
205.03
70.15
52.01%
NET
Cloudflare
280.70
27.40
10.82%
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...
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.