Bandwidth ( (BAND) ) has released its Q3 earnings. Here is a breakdown of the information Bandwidth presented to its investors.
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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.
In its third quarter of 2025, Bandwidth exceeded its revenue and profitability guidance, driven by growth in core voice usage and software. The company highlighted its role in helping enterprises scale AI deployments and closed a record number of high-value deals.
Financially, Bandwidth reported a slight decline in revenue to $192 million from $194 million the previous year, maintaining a gross margin of 38%. The company achieved an adjusted EBITDA of $24 million, consistent with the prior year, and generated a free cash flow of $13 million. Strategic advancements included the expansion of AI services and securing significant contracts across various sectors.
Looking ahead, Bandwidth anticipates continued growth in its Voice AI offerings and software revenue, projecting a 9% to 11% year-over-year revenue increase for 2025. The company remains focused on leveraging AI across its platform to enhance customer engagement and operational efficiency.