Want to see BAND full AI Analyst Report?
Top Page
Bandwidth
(NASDAQ:BAND)
Select Model
Select Model
Rating:51Neutral
Price Target:
$50.00
▼(-16.39% Downside)
Action:Reiterated
Date:08/03/26
The score is held back primarily by below-average financial performance (thin/negative operating profitability and leverage risk) and weak technicals (price below major moving averages with bearish momentum). Valuation is also a major headwind given the extremely high P/E. Offsetting these is a strong latest earnings call featuring raised guidance, improving margins, and solid growth drivers (enterprise wins and AI-focused initiatives).
Positive Factors
Owned voice network & direct interconnect
Owning an IP voice network and direct operator/public‑safety interconnects is a durable competitive advantage. It lowers per‑unit costs, reduces vendor dependency, improves latency and compliance (E911), and makes Bandwidth more attractive to enterprise and platform partners for mission‑critical communications.
Negative Factors
Elevated leverage
Historically high debt ratios leave Bandwidth with above‑average financial risk. Elevated leverage constrains strategic flexibility, raises refinancing and covenant risk in downturns, and can limit the company's ability to invest aggressively or pursue large M&A without additional capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Owned voice network & direct interconnect
Owning an IP voice network and direct operator/public‑safety interconnects is a durable competitive advantage. It lowers per‑unit costs, reduces vendor dependency, improves latency and compliance (E911), and makes Bandwidth more attractive to enterprise and platform partners for mission‑critical communications.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.74B
Dividend YieldN/A
Average Volume (3M)1.43M
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth9.25%
EPS GrowthN/A
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.07
Shares Outstanding30,222,760
10 Day Avg. Volume949,332
30 Day Avg. Volume1,429,046
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$77.00Price Target Upside28.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.79
Revenue Forecast (FY)$893.88M
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 charging customers for usage-based and recurring fees associated with cloud communications delivered through its platform and network. Key revenue streams include: (1) Voice services: per-minute (or similar consu...
Bandwidth Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
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
40
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 828.24M | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 308.33M | 295.05M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 52.01M | 39.20M | 42.15M | 32.55M | 62.93M | 39.83M |
| Net Income | 2.26M | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | ||||||
| Total Assets | 1.10T | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 174.36B | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 554.42B | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 723.26B | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 378.17B | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | ||||||
| Free Cash Flow | 72.51M | 67.23M | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 98.42M | 89.49M | 83.88M | 39.00M | 34.91M | 40.80M |
| Investing Cash Flow | -27.37M | -39.06M | -1.44M | 30.85M | -133.45M | 2.83M |
| Financing Cash Flow | 40.97M | -29.07M | -131.27M | -52.77M | -120.00M | 207.03M |
Bandwidth Technical Analysis
Positive
59.80
Price Trends
58.85
Negative
47.65
Positive
31.12
Positive
Market Momentum
-2.43
Negative
49.96
Neutral
93.00
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 59.8 is above the 20-day moving average (MA) of 52.04, above the 50-day MA of 58.85, and above the 200-day MA of 31.12, indicating a neutral trend. The MACD of -2.43 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 93.00 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 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $716.50M | 7.74 | 506.78% | ― | 1.45% | 20.83% | |
70 Outperform | $1.26B | -55.94 | -24.09% | ― | 13.85% | 61.09% | |
66 Neutral | $691.71M | -226.30 | -1.33% | ― | ― | ― | |
62 Neutral | $458.37M | 7.96 | -59.14% | ― | 8.91% | 162.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $1.74B | -688.39 | <0.01% | ― | 9.25% | ― | |
46 Neutral | $177.62M | -0.29 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
BAND
Bandwidth
53.97
39.88
283.04%
DAVA
Endava
3.10
-9.49
-75.38%
PRTH
Priority Technology Holdings
5.49
-2.13
-27.95%
CGNT
Cognyte Software
9.12
0.35
3.99%
CCSI
Consensus Cloud Solutions
39.07
13.19
50.97%
BLZE
Backblaze
19.02
11.34
147.66%
Bandwidth Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Bandwidth Issues New 2032 Convertible Notes and Capped Calls
Positive
Jun 18, 2026
On June 15, 2026, Bandwidth Inc. agreed to sell $275 million of 0% Convertible Senior Notes due 2032 to a syndicate led by Morgan Stanley, and on June 18, 2026 it issued a total of $316.25 million after full exercise of the underwriters’ opt...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Bandwidth Prices $275 Million Convertible Senior Notes Offering
Positive
Jun 16, 2026
On June 16, 2026, Bandwidth announced it had priced a private offering of $275 million in 0% convertible senior notes due 2032, sold under Rule 144A to qualified institutional buyers, with an option for purchasers to buy an additional $41.25 milli...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Bandwidth Announces $275 Million Convertible Notes Offering
Neutral
Jun 15, 2026
On June 15, 2026, Bandwidth Inc. announced a proposed private offering of $275 million in convertible senior notes due 2032, with an option for initial purchasers to buy an additional $41.25 million, in a deal limited to qualified institutional bu...
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...
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.