Bandwidth Inc (BAND)
NASDAQ:BAND
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Bandwidth
(NASDAQ:BAND)
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Rating:62Neutral
Price Target:
$18.00
▲(6.76% Upside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by improving cash generation and upbeat 2026 guidance pointing to meaningful margin and EPS expansion. Offsetting these positives are still-inconsistent GAAP profitability and leverage-related balance-sheet risk, while technicals are only moderately supportive and valuation is constrained by a negative P/E.
Positive Factors
Improving free cash flow
Sustained positive operating and free cash flow across 2023–2024 and TTM is a durable strength: it funds growth investments, share repurchases and debt repurchases, supports capital allocation flexibility, and provides a buffer while GAAP profitability is being stabilized. Continued FCF is key given elevated leverage.
Negative Factors
Elevated leverage limits flexibility
Persistently elevated debt-to-equity (~1.2x TTM historically higher) reduces financial flexibility and raises execution risk if operating improvements slow. Even with positive FCF, operating cash flow covers only about ~0.6x of debt, so sustained profitability and cash conversion are required to materially de-lever without constraining growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving free cash flow
Sustained positive operating and free cash flow across 2023–2024 and TTM is a durable strength: it funds growth investments, share repurchases and debt repurchases, supports capital allocation flexibility, and provides a buffer while GAAP profitability is being stabilized. Continued FCF is key given elevated leverage.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$529.18M
Dividend YieldN/A
Average Volume (3M)503.48K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth7.42%
EPS Growth34.42%
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.35
Shares Outstanding29,428,894
10 Day Avg. Volume387,890
30 Day Avg. Volume503,478
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)1.16
Price to Sales (P/S)0.61
P/FCF Ratio<0.01
Enterprise Value/Market Cap2.13
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit3.91
Enterprise Value/Ebitda28.78
Forecast
1Y Price Target
$18.33Price Target Upside8.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.7
Revenue Forecast (FY)$873.12M
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:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution across enterprise sales, AI-enabled product momentum, improved margins, robust free cash flow generation, and an $80M share repurchase authorization, supported by concrete 2026 guidance for double-digit revenue growth and significant EBITDA expansion. Offsetting items are largely manageable: messaging market dynamics may limit multiyear CAGR achievement, programmable messaging showed slower full-year growth, there was a quarter-over-quarter comp effect in enterprise voice, and carrier surcharge and political messaging seasonality introduce variability. Overall, the positives on profitability, cash flow, enterprise traction, and AI/product expansion materially outweigh the limited operational and market headwinds.Positive Updates
Full-Year Revenue and Profitability
Total revenue for full-year 2025 of $754,000,000, representing approximately 10% organic year-over-year growth; non-GAAP gross margin of 58%; adjusted EBITDA of $93,000,000; full-year free cash flow of $57,000,000.
Negative Updates
Multiyear Revenue CAGR Shortfall Risk
Management acknowledged that market dynamics—particularly in messaging—will likely keep the company short of its prior four-year revenue CAGR target (15%–20% through 2026).
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Profitability
Total revenue for full-year 2025 of $754,000,000, representing approximately 10% organic year-over-year growth; non-GAAP gross margin of 58%; adjusted EBITDA of $93,000,000; full-year free cash flow of $57,000,000.
Read all positive updates
Company Guidance
Bandwidth’s 2026 guidance calls for total revenue growth of approximately 16% year-over-year (with cloud communications up ~10%), nearly a 30% year-over-year improvement in adjusted EBITDA targeting a 20% full‑year adjusted EBITDA margin, and non‑GAAP EPS of about $1.66–$1.74 (roughly +19%); management says it is on track to hit its multiyear goals for gross margin (~60%), a 15% free cash flow margin, and will significantly exceed its prior $125M cumulative free cash flow objective (already surpassed by 2025). For context, 2025 results included $754M total revenue (10–12% organic growth metrics provided), non‑GAAP gross margin of 58%, adjusted EBITDA of $93M, free cash flow of $57M, incremental gross profit yield of 82%, a Q4 EBITDA margin of 17%, 2025 enterprise voice growth of 21%, software services at a ~$15M annualized run rate, and the board has authorized an $80M share repurchase program; management also expects political campaign activity to contribute roughly 2.5% of cloud communications revenue in 2026.Bandwidth Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
44
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M |
| Gross Profit | 270.10M | 279.96M | 236.16M | 238.35M | 218.52M |
| EBITDA | 42.59M | 42.15M | 32.55M | 62.93M | 39.83M |
| Net Income | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M |
Balance Sheet | |||||
| Total Assets | 1.12B | 989.17M | 1.10B | 929.32M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 111.64M | 83.79M | 153.47M | 184.87M | 331.45M |
| Total Debt | 701.17M | 503.59M | 644.54M | 492.64M | 503.20M |
| Total Liabilities | 720.15M | 676.63M | 803.66M | 657.14M | 652.94M |
| Stockholders Equity | 399.97M | 312.53M | 297.39M | 272.18M | 412.60M |
Cash Flow | |||||
| Free Cash Flow | 67.23B | 69.90M | 19.10M | -29.18M | -13.83M |
| Operating Cash Flow | 89.49B | 83.88M | 39.00M | 34.91M | 40.80M |
| Investing Cash Flow | -39.06B | -1.44M | 30.85M | -133.45M | 2.83M |
| Financing Cash Flow | -29.07B | -131.27M | -52.77M | -120.00M | 207.03M |
Bandwidth Technical Analysis
Positive
16.86
Price Trends
14.63
Positive
14.62
Positive
15.03
Positive
Market Momentum
0.59
Negative
64.11
Neutral
66.87
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 16.86 is above the 20-day moving average (MA) of 15.95, above the 50-day MA of 14.63, and above the 200-day MA of 15.03, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 66.87 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $566.05M | -1,031.94 | -0.32% | ― | ― | ― | |
65 Neutral | $460.97M | 4.97 | -522.60% | ― | -0.44% | -7.23% | |
62 Neutral | $529.18M | -35.89 | -3.39% | ― | 7.42% | 34.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $381.80M | 7.81 | -43.23% | ― | 9.51% | ― | |
56 Neutral | $204.34M | -10.23 | -31.67% | ― | 15.73% | 40.14% | |
50 Neutral | $243.95M | -9.10 | -0.48% | ― | 4.02% | 34.45% |
* Technology Sector Average
BAND
Bandwidth
16.86
3.76
28.70%
DAVA
Endava
4.34
-15.17
-77.75%
PRTH
Priority Technology Holdings
4.64
-2.18
-31.96%
CGNT
Cognyte Software
7.75
-0.05
-0.64%
CCSI
Consensus Cloud Solutions
24.43
1.35
5.85%
BLZE
Backblaze
3.40
-1.43
-29.61%
Bandwidth Corporate Events
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.