Bandwidth (BAND) AI Stock Analysis

• Market Cap: $473.53M
• Dividend Yield: N/A
• Average Volume (3M): 239.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: 18.51%
• EPS Growth: 97.57%
• Country: US
• Employees: 1,100
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.36
• Shares Outstanding: 27,804,888
• 10 Day Avg. Volume: 228,974
• 30 Day Avg. Volume: 239,887
• PEG Ratio: -4.95
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.01
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 7.12
• 1Y Price Target: $20.75
• Price Target Upside: 37.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: $16.00 ▲(5.68%Upside)

Bandwidth's strong performance in the earnings call, with raised guidance and robust revenue growth, supports a higher score. Financial performance is solid but challenged by profitability issues. Technical analysis and valuation suggest caution, reflecting the current market sentiment and lack of profitability.

Positive Factors

Financial position

Capital allocation strategies, including building cash reserves, suggest a strong financial position for Bandwidth.

Market position

BAND is expected to continue winning market share from legacy telcos due to their differentiated solution including Maestro operating system, and global voice network.

Voice AI applications

The differentiation of Bandwidth's Voice platform versus legacy carriers and the accelerating growth trajectory of Voice AI applications are highlighted.

Negative Factors

Earnings guidance

Revenue guidance for 2025 was lighter than anticipated, missing consensus expectations by about $11 million.

Mixed guidance

Guidance was mixed but skewed negative with 1Q adj. EBITDA of $16M-$18M on revenue of $168M-$170M, down 1% y/y at the midpoint.

Bandwidth Business Overview & Revenue Model

Company Description

Bandwidth Inc. (BAND) is a communications platform-as-a-service (CPaaS) company based in Raleigh, North Carolina. It provides voice, messaging, and emergency services to businesses through its software platform, enabling them to integrate communication capabilities into their applications and systems. Bandwidth serves a wide range of industries, including technology, healthcare, and finance, offering services such as Voice over Internet Protocol (VoIP), text messaging, and 911 access.

How the Company Makes Money

Bandwidth Inc. generates revenue primarily through its CPaaS offerings, where it charges customers based on usage for voice, messaging, and emergency services. The company operates a consumption-based model, meaning revenue is directly tied to the volume of communication services used by its clients. Key revenue streams include fees for voice minutes, text message volumes, and access to emergency services infrastructure. Bandwidth also earns from providing phone numbers and associated services. Strategic partnerships with carriers and technology platforms help expand its service reach and customer base, contributing to its earnings. Additionally, Bandwidth benefits from long-term contracts with some clients, which provide a predictable revenue stream.

Bandwidth Financial Statement Overview

Summary

Bandwidth demonstrates strong revenue growth and efficient cash flow management. However, ongoing challenges in achieving profitability and high leverage levels could impact financial stability. The company's focus on improving margins and reducing leverage will be critical for sustaining growth and enhancing shareholder value.

Income Statement

Bandwidth's income statement shows healthy revenue growth with a TTM revenue of $751.7M, up from $748.5M in the previous year. Gross profit margin remains stable at approximately 37.3%, reflecting efficient cost management. However, the company is struggling with profitability, as indicated by negative net income and EBIT margins, signaling potential challenges in achieving sustainable profitability.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio is relatively high at 1.39, reflecting significant leverage. Stockholders' equity has grown to $345.4M, contributing to an improved equity ratio of 35.8%. While the increase in equity is favorable, high leverage poses a risk in terms of financial stability.

Cash Flow

Cash flow analysis shows robust operating cash flow of $77.98M in the TTM, supporting a healthy free cash flow of $52.1M. The operating cash flow to net income ratio is strong, highlighting effective cash generation from operations despite negative net income. This provides a cushion for debt servicing and operational needs.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	748.49M	601.12M	573.15M	490.91M	343.11M
Gross Profit	279.96M	236.16M	238.35M	218.52M	157.86M
EBITDA	42.15M	32.55M	62.93M	34.23M	8.11M
Net Income	-6.52M	-16.34M	19.57M	-27.36M	-43.98M
Balance Sheet
Total Assets	989.17M	1.10B	929.32M	1.07B	890.61M
Cash, Cash Equivalents and Short-Term Investments	83.79M	153.47M	184.87M	331.45M	112.16M
Total Debt	503.59M	644.54M	492.64M	503.20M	304.91M
Total Liabilities	676.63M	803.66M	657.14M	652.94M	460.69M
Stockholders Equity	312.53M	297.39M	272.18M	412.60M	429.92M
Cash Flow
Free Cash Flow	69.90M	19.10M	-29.18M	-13.83M	-10.07M
Operating Cash Flow	83.88M	39.00M	34.91M	40.80M	4.52M
Investing Cash Flow	-1.44M	30.85M	-133.45M	2.83M	-455.08M
Financing Cash Flow	-131.27M	-52.77M	-120.00M	207.03M	346.89M

Bandwidth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAND, the sentiment is Negative. The current price of 15.14 is below the 20-day moving average (MA) of 15.71, above the 50-day MA of 14.90, and below the 200-day MA of 16.21, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAND.

Bandwidth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAND	64 Neutral	$473.53M	―	-0.32%	―	18.51%	97.57%
Sector *	63 Neutral	£505.90M	23.87	-8.45%	173.32%	4.53%	-18.72%
KLTR	61 Neutral	$296.48M	―	-89.29%	―	2.40%	54.99%
CCSI	61 Neutral	$421.89M	5.00	-94.58%	―	-2.75%	-4.13%
IMXI	61 Neutral	$284.18M	5.59	39.27%	―	-1.90%	0.05%
RXT	51 Neutral	$320.47M	―	81.52%	―	-6.14%	67.53%
GRRR	47 Neutral	$415.98M	―	24.92%	―	―	―

Bandwidth Corporate Events

Bandwidth Holds Annual Meeting, Votes on Key Proposals

On May 29, 2025, Bandwidth Inc. held its Annual Meeting of Stockholders, where four proposals were voted on. The stockholders elected Class II directors, approved the Third Amended and Restated 2017 Incentive Award Plan, ratified Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers. These decisions reflect the company’s strategic direction and governance priorities, potentially impacting its operational and financial strategies.

The most recent analyst rating on (BAND) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Bandwidth stock, see the BAND Stock Forecast page.