Bandwidth Inc (BAND)
NASDAQ:BAND
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Bandwidth
(NASDAQ:BAND)
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Rating:64Neutral
Price Target:
$53.00
▲(130.33% Upside)
Action:ReiteratedDate:05/02/26
Score is driven mainly by strong earnings-call momentum (raised guidance and record results) and a bullish price trend. Offsetting these positives are weaker underlying financial performance (inconsistent profitability and leverage constraints) and very overextended technical conditions (RSI/Stoch), while valuation signals are less dependable due to an anomalous P/E and no dividend yield.
Positive Factors
Integrated Network + CPaaS
Bandwidth's vertical integration — running a software CPaaS platform together with a U.S. telecom network — is a durable competitive advantage. Owning provisioning, numbering and routing reduces third-party dependence, supports E911 compliance, improves margin control and raises switching costs for large customers, fostering long-term customer stickiness and product differentiation.
Negative Factors
Elevated Leverage Historically
Bandwidth has historically carried meaningful debt relative to equity, which constrains financial flexibility common for software infrastructure firms. Elevated leverage raises interest and refinancing risk, limits runway for strategic investments or M&A, and makes the company more vulnerable if revenue or cash generation prove volatile.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated Network + CPaaS
Bandwidth's vertical integration — running a software CPaaS platform together with a U.S. telecom network — is a durable competitive advantage. Owning provisioning, numbering and routing reduces third-party dependence, supports E911 compliance, improves margin control and raises switching costs for large customers, fostering long-term customer stickiness and product differentiation.
Read all positive factors
Bandwidth (BAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend YieldN/A
Average Volume (3M)377.00K
Price to Earnings (P/E)34.3
Beta (1Y)1.62
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. Volume323,902
30 Day Avg. Volume376,995
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 Cap1.24
Enterprise Value/Revenue2.50
Enterprise Value/Gross Profit6.84
Enterprise Value/Ebitda43.45
Forecast
1Y Price Target
$40.00Price Target Upside73.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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
15.89
Positive
15.16
Positive
15.29
Positive
Market Momentum
1.19
Negative
79.10
Negative
95.65
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 23.01 is above the 20-day moving average (MA) of 17.80, above the 50-day MA of 15.89, and above the 200-day MA of 15.29, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 79.10 is Negative, neither overbought nor oversold. The STOCH value of 95.65 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $625.53M | 4.50 | 5285.71% | ― | 0.47% | 6.39% | |
71 Outperform | $811.90M | 44.08 | -0.32% | ― | ― | ― | |
65 Neutral | $448.80M | -8.32 | -27.17% | ― | 13.32% | 61.29% | |
64 Neutral | $1.60B | 34.27 | -1.28% | ― | 4.88% | -534.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $462.44M | 12.35 | -43.23% | ― | 8.33% | ― | |
50 Neutral | $232.14M | -9.10 | -0.48% | ― | 0.95% | -200.75% |
* Technology Sector Average
BAND
Bandwidth
49.89
35.51
246.94%
DAVA
Endava
4.13
-17.37
-80.79%
PRTH
Priority Technology Holdings
5.62
-1.66
-22.80%
CGNT
Cognyte Software
11.11
1.15
11.55%
CCSI
Consensus Cloud Solutions
34.00
10.47
44.50%
BLZE
Backblaze
7.48
2.18
41.13%
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.