The earnings call reflected a positive sentiment with strong financial performance, significant traction in AI strategy, and robust growth in enterprise voice revenue. While messaging growth was slower, the company is positioned well for continued success with increased EBITDA outlook and record high average revenue per customer.

Company Guidance -

Q3 2025

During the Bandwidth Inc. Second Quarter 2025 Earnings Call, the company provided guidance for the third quarter and full year 2025, projecting 10% organic revenue growth for the full year at the midpoint. The second quarter saw a total revenue of $180 million, marking a 9% year-over-year increase, with adjusted EBITDA growing by 17% to $22 million. The company highlighted a strong performance in its global voice plans, which grew at a rate of 7%, the highest since 2021, and enterprise voice revenue, which increased by 29% year-over-year. The non-GAAP gross profit improved by 11% year-over-year to $79 million, and the net retention rate stood at 112%. Bandwidth's AI strategy is showing tangible progress, with AI-powered use cases generating up to 3x to 4x the revenue of standard voice calls. The company maintained its full year guidance, expecting continued acceleration in the second half and increasing its full year EBITDA outlook to $88 million.

Strong Financial Performance

Bandwidth reported total revenue of $180 million, a 9% year-over-year increase, and adjusted EBITDA of $22 million, exceeding expectations. Non-GAAP gross profit increased by 11% year-over-year with a 2 percentage point improvement in gross margin.

AI Strategy Gains Traction

Investments in AI voice are translating into customer adoption, with new $1 million-plus multiyear deals. AI-powered calls have the potential to generate 3x to 4x the revenue of standard voice calls.

Enterprise Voice Revenue Growth

Enterprise voice revenue grew 29% year-over-year, driven by demand for core platform services, cloud migrations, and channel partnerships.

Record High Average Revenue Per Customer

Average annual revenue per customer reached a record $230,000, or $216,000 excluding political campaign revenue.

Increased Full Year EBITDA Outlook

The company increased its full year EBITDA outlook to $88 million at the midpoint, reflecting confidence in second-half acceleration.

Bandwidth (BAND) Earnings, Revenues Date & History

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BAND Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 30, 2025	2025 (Q3)	0.37 / -	0.43	―	―	―
Jul 29, 2025	2025 (Q2)	0.33 / 0.38	0.29	31.03% (+0.09)
May 07, 2025	2025 (Q1)	0.27 / 0.36	0.27	33.33% (+0.09)
Feb 20, 2025	2024 (Q4)	0.39 / 0.37	0.38	-2.63% (-0.01)
Oct 31, 2024	2024 (Q3)	0.32 / 0.43	0.23	86.96% (+0.20)
Aug 01, 2024	2024 (Q2)	0.26 / 0.29	0.16	81.25% (+0.13)
May 07, 2024	2024 (Q1)	0.20 / 0.27	0.05	440.00% (+0.22)
Feb 28, 2024	2023 (Q4)	0.23 / 0.38	0.19	100.00% (+0.19)
Nov 02, 2023	2023 (Q3)	0.20 / 0.23	0.27	-14.81% (-0.04)
Aug 02, 2023	2023 (Q2)	0.04 / 0.16	-0.04	500.00% (+0.20)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

BAND Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 29, 2025	$16.21	$13.20	-18.57%
May 07, 2025	$12.28	$13.76	+12.05%
Feb 20, 2025	$18.27	$17.46	-4.43%
Oct 31, 2024	$18.84	$19.50	+3.50%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.