Bandwidth (BAND)
NASDAQ:BAND
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Bandwidth
(NASDAQ:BAND)
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Rating:62Neutral
Price Target:
$61.00
▲(165.10% Upside)
Action:Reiterated
Date:05/30/26
The score is driven primarily by strong earnings-call momentum with raised guidance and solid technical strength, offset by weaker underlying financial quality (inconsistent profitability and higher leverage) and limited valuation support due to loss-making GAAP earnings and no dividend.
Positive Factors
Integrated Network + CPaaS
Bandwidth’s vertical integration—owning a software CPaaS platform and a U.S. telecom network—gives durable control over number provisioning, routing and compliance (E911). That reduces dependency on third-party carriers, supports differentiated features and can sustain margin and competitive moats.
Negative Factors
High Leverage
Debt-to-equity near 1.6–2.2 is elevated for a software/infrastructure company and constrains financial flexibility. Elevated leverage increases interest and refinancing risk, limiting capacity to invest or absorb setbacks if operating profitability falters over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated Network + CPaaS
Bandwidth’s vertical integration—owning a software CPaaS platform and a U.S. telecom network—gives durable control over number provisioning, routing and compliance (E911). That reduces dependency on third-party carriers, supports differentiated features and can sustain margin and competitive moats.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth4.88%
EPS Growth-534.80%
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.17
Shares Outstanding30,056,656
10 Day Avg. Volume1,034,463
30 Day Avg. Volume1,172,407
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 Cap1.18
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit8.51
Enterprise Value/Ebitda54.08
Forecast
1Y Price Target
$61.67Price Target Upside168.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.78
Revenue Forecast (FY)$887.16M
Bandwidth Business Overview & Revenue Model
Company Description
Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates in two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and ope...
How the Company Makes Money
Bandwidth primarily makes money by charging customers for usage of its cloud communications services and related telecommunications capabilities. Key revenue streams include: (1) Messaging revenue: fees tied to application-to-person and person-to-...
Bandwidth Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record revenue and adjusted EBITDA, raised full-year guidance, accelerated high‑margin software services, key strategic partnerships (notably Salesforce), and multiple large enterprise wins underpin growth expectations. Offsetting these positives are timing and deployment risks — several large deals are not yet fully deployed (pushing material benefits into the second half), free cash flow is only essentially breakeven in Q1, and some reported metrics are adjusted for cyclical political revenue. On balance, the constructive results, raised guidance, and strategic partnerships significantly outweigh the execution and timing caveats.Positive Updates
Record Revenue and Adjusted EBITDA
Total revenue of $209 million in Q1 2026, up 20% year-over-year, and record first-quarter adjusted EBITDA of $26 million, up 17% year-over-year.
Negative Updates
Large Deals Not Fully Deployed Yet
Several large enterprise deals that underpin expected second-half acceleration are still in early stages of deployment: of the large multi-million dollar deals referenced, five are reported as less than 50% deployed, delaying the revenue run-rate impact until later in the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Total revenue of $209 million in Q1 2026, up 20% year-over-year, and record first-quarter adjusted EBITDA of $26 million, up 17% year-over-year.
Read all positive updates
Company Guidance
Management raised its outlook with near‑term and full‑year targets: Q2 revenue is expected to be $214–220M (≈+20% YoY), adjusted EBITDA $24–27M (+20% YoY) and non‑GAAP EPS $0.35–0.37; full‑year 2026 revenue is guided to $880–900M (≈+18% YoY at the midpoint, up from prior $864–884M), Cloud Communications $616–624M (+10% YoY at the midpoint), adjusted EBITDA $119–125M (+31% YoY at the midpoint, versus prior $117–123M) and non‑GAAP EPS $1.77–1.83 (+26% YoY at the midpoint, versus prior $1.66–1.74). They also modeled net interest expense of $1–3M, depreciation of $38–42M, an adjusted effective tax rate of 20–21%, roughly 35M diluted shares outstanding, and capex of $24–26M; note Q1 results already came in ahead with $209M revenue (+20% YoY) and $26M adjusted EBITDA, and management cited about $15M of political messaging benefit expected in H2.Bandwidth Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 788.36M | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 288.50M | 270.10M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 45.42M | 42.59M | 42.15M | 32.55M | 62.93M | 39.83M |
| Net Income | -5.05M | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | ||||||
| Total Assets | 984.20M | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 50.27M | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 423.22M | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 578.52M | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 405.67M | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | ||||||
| Free Cash Flow | 76.92M | 67.23M | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 101.37M | 89.49M | 83.88M | 39.00M | 34.91M | 40.80M |
| Investing Cash Flow | -29.08M | -39.06M | -1.44M | 30.85M | -133.45M | 2.83M |
| Financing Cash Flow | -59.82M | -29.07M | -131.27M | -52.77M | -120.00M | 207.03M |
Bandwidth Technical Analysis
Positive
23.01
Price Trends
33.31
Positive
23.81
Positive
19.59
Positive
Market Momentum
8.20
Positive
79.02
Negative
70.69
Neutral
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 23.01 is below the 20-day moving average (MA) of 53.31, below the 50-day MA of 33.31, and above the 200-day MA of 19.59, indicating a bullish trend. The MACD of 8.20 indicates Positive momentum. The RSI at 79.02 is Negative, neither overbought nor oversold. The STOCH value of 70.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAND.
Bandwidth Risk Analysis
Bandwidth disclosed 68 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $631.97M | 7.30 | 5285.71% | ― | 0.47% | 6.39% | |
71 Outperform | $845.52M | -1,331.02 | -0.32% | ― | ― | ― | |
65 Neutral | $526.25M | 9.09 | -51.19% | ― | 8.83% | ― | |
65 Neutral | $496.80M | -21.88 | -27.17% | ― | 13.32% | 61.29% | |
62 Neutral | $2.08B | -407.28 | -1.28% | ― | 4.88% | -534.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | $180.99M | -0.30 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
BAND
Bandwidth
64.97
50.57
351.18%
DAVA
Endava
3.22
-11.83
-78.60%
PRTH
Priority Technology Holdings
6.39
-2.10
-24.73%
CGNT
Cognyte Software
11.57
0.47
4.23%
CCSI
Consensus Cloud Solutions
34.35
13.16
62.10%
BLZE
Backblaze
8.28
2.59
45.52%
Bandwidth Corporate Events
Executive/Board ChangesShareholder Meetings
Bandwidth Shareholders Reelect Directors and Approve Governance Items
Positive
May 29, 2026
On May 28, 2026, Bandwidth Inc. held its 2026 Annual Meeting of Stockholders, where holders of Class A and Class B shares representing 87.08% of eligible votes were present, establishing a quorum. Stockholders elected Class III directors David A. ...
Business Operations and Strategy
Bandwidth Highlights AI-Powered Voice and Messaging Platform Strength
Positive
May 12, 2026
Bandwidth Inc., a global cloud communications provider, circulated an investor presentation dated May 2026 outlining its role as a mission‑critical platform for AI‑driven voice and messaging. The company highlighted its owned global ne...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Bandwidth Accelerates Deleveraging With Convertible Note Repurchases
Positive
Mar 2, 2026
On March 2, 2026, Bandwidth Inc. said it had entered into privately negotiated agreements to repurchase $100 million of its 0.50% Convertible Senior Notes due 2028 for cash, at a discount to par, leaving $150 million outstanding from the original ...
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.