Bandwidth Inc.
- Open
- 48.11
- Day high
- 48.99
- Day low
- 46.51
- Prev close
- 47.55
- Volume
- 401K
- Mkt cap
- $1.5B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.0
- P/S
- 1.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$4.7M over the last 3 months (0 open-market buys, 25 sales)
- 🏛Institutions accumulating (13F)
Bandwidth Inc. (BAND) is a Technology company listed on NASDAQ. The stock is up 203% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 25 sales (SEC Form 4). Drillr has 1 published research article covering BAND.
Bandwidth Inc. (BAND) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
BAND earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $0.36 | $0.37 | +1.6% | $220M | +1.1% |
| Apr 30, 2026 | $0.32 | $0.38 | +18.8% | $209M | +3.6% |
| Feb 19, 2026 | $0.35 | $-418.71 | -119731.0% | — | — |
| Oct 30, 2025 | $0.38 | $0.36 | -5.3% | $192M | -7.9% |
| Jul 29, 2025 | $0.32 | $0.38 | +18.8% | $180M | -5.4% |
| Feb 20, 2025 | $0.38 | $0.37 | -2.6% | $210M | +14.9% |
| Oct 31, 2024 | $0.34 | $0.43 | +26.5% | $194M | -4.8% |
| Aug 1, 2024 | $0.28 | $0.29 | +3.6% | $174M | +0.2% |
| Feb 28, 2024 | $0.24 | $0.38 | +58.3% | $165M | +6.7% |
| Nov 2, 2023 | $0.21 | $0.23 | +9.5% | $152M | +2.0% |
| Aug 2, 2023 | $0.06 | $0.16 | +166.7% | $146M | +3.5% |
| May 2, 2023 | $0.01 | $0.05 | +316.7% | $138M | +2.6% |
BAND insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Sep 2, 2026 | Krupka Devin Mofficer: Controller, PAO | Sell | 3,074 | $48.97 |
| Sep 1, 2026 | Raiford Daryl Eofficer: Chief Financial Officer | Option | 5,730 | — |
| Sep 1, 2026 | Asbill Richard Brandonofficer: General Counsel | Sell | 760 | $49.60 |
| Sep 1, 2026 | Raiford Daryl Eofficer: Chief Financial Officer | Sell | 2,734 | $48.82 |
| Sep 1, 2026 | Suriano Douglas Adirector | Option | 3,333 | — |
| Sep 1, 2026 | Ross Kadeofficer: Chief Information Officer | Sell | 945 | $48.82 |
| Sep 1, 2026 | Ross Kadeofficer: Chief Information Officer | Sell | 671 | $49.60 |
| Sep 1, 2026 | Bottorff Rebeccadirector, officer: Chief People Officer | Option | 2,189 | — |
| Sep 1, 2026 | Bottorff Rebeccadirector, officer: Chief People Officer | Option | 4,121 | — |
| Sep 1, 2026 | Agarwal Deveshofficer: Chief Operating Officer | Option | 3,927 | — |
| Sep 1, 2026 | Morken David A.director, officer: Chairman & CEO | Sell | 2,128 | $49.60 |
| Sep 1, 2026 | Krupka Devin Mofficer: Controller, PAO | Option | 2,775 | — |
| Sep 1, 2026 | Raiford Daryl Eofficer: Chief Financial Officer | Option | 6,170 | — |
| Sep 1, 2026 | Raiford Daryl Eofficer: Chief Financial Officer | Sell | 1,939 | $49.60 |
| Sep 1, 2026 | Ross Kadeofficer: Chief Information Officer | Option | 1,853 | — |
Source: BAND SEC Form 4 filings, latest Sep 2, 2026. For informational purposes only — not investment advice.
See the full BAND insider & 13F page →BAND research & analysis
Bandwidth Inc. company profile
Overview
Bandwidth Inc. (NASDAQ:BAND) is a cloud-based communications platform-as-a-service (CPaaS) provider founded in 2000 and headquartered in Raleigh, North Carolina. The company went public in November 2017 and has evolved from a traditional telecommunications service provider into a comprehensive software-powered communications platform. Bandwidth operates a global communications cloud that enables enterprises to integrate voice, messaging, and emergency services capabilities into their applications and business processes through application programming interfaces (APIs) and software development kits (SDKs).
Business
Bandwidth operates in the Communications Platform-as-a-Service (CPaaS) industry, which provides cloud-based communication capabilities that businesses can embed into their applications without building the underlying telecommunications infrastructure themselves. CPaaS platforms serve as intermediaries between traditional telecommunications networks and modern software applications, allowing companies to add voice calling, text messaging, video conferencing, and other communication features to their digital products. The company's core offering is its global communications cloud platform, which consists of several key products and services: 1. Enterprise Voice Services - This segment provides voice calling capabilities for businesses, including SIP trunking (which allows companies to make phone calls over the internet rather than traditional phone lines), hosted voice over IP services, and enterprise-grade calling features. This represents a significant portion of revenue and has shown strong growth of 25-30% year-over-year. 2. Global Voice Plans - These are wholesale voice services provided to communications service providers, conferencing companies, and other businesses that need to route large volumes of voice calls. This is a more mature segment with modest single-digit growth rates. 3. Programmable Messaging - This service allows businesses to send and receive SMS and MMS messages through APIs, enabling applications to communicate with users via text messaging. This segment represents approximately 19-24% of cloud communications revenue and has shown robust growth of 30-50% annually. 4. Maestro Platform and AI Bridge - Bandwidth's newest innovation is an AI-ready communication orchestration platform that enables businesses to integrate artificial intelligence voice agents and chatbots into their communication workflows. This platform simplifies the process of building sophisticated voice AI applications for customer service, healthcare, and other industries. The company also provides ancillary services including emergency services (911 calling), number management, compliance solutions, and data analytics. Bandwidth serves a diverse customer base including large enterprises, small and medium-sized businesses, communications service providers, contact centers, and technology companies across industries such as healthcare, financial services, hospitality, and e-commerce.
Revenue model
Bandwidth generates revenue primarily through usage-based pricing models and recurring subscription fees for its communication services. The company's business model operates on several revenue streams: 1. Usage-Based Revenue - The majority of Bandwidth's revenue comes from charging customers based on their actual usage of voice minutes, text messages sent/received, and API calls made to the platform. This creates a variable revenue stream that scales with customer growth and increased communication volumes. 2. Recurring Platform Fees - Customers pay monthly or annual subscription fees for access to Bandwidth's platforms, APIs, and advanced features like the Maestro orchestration platform and AI Bridge capabilities. 3. Professional Services - The company provides implementation, integration, and ongoing support services to enterprise customers, particularly for complex deployments. Bandwidth's customers are primarily businesses that need to integrate communication capabilities into their applications or operations. These include software companies building communication features into their products, contact centers requiring reliable voice and messaging infrastructure, healthcare organizations needing secure patient communication, and financial services companies requiring compliant communication channels. Several factors influence Bandwidth's profit margins and revenue growth. Positive margin drivers include the company's software-centric approach which provides better gross margins than traditional telecom hardware, economies of scale as traffic volumes increase, and the shift toward higher-margin programmable services and AI-enabled platforms. The company has achieved gross margins above 55% and targets exceeding 60% long-term. Margin pressures come from competitive pricing in the CPaaS market, the need for continuous technology investment to maintain platform capabilities, regulatory compliance costs across multiple countries, and the variable nature of wholesale telecommunications costs. Additionally, customer concentration risk exists as large enterprise customers can significantly impact revenue if they reduce usage or switch providers. Economic downturns can also affect customer communication volumes, though the mission-critical nature of communication services provides some insulation from economic volatility.
Competitive moat
Bandwidth's competitive moat is moderately strong but faces increasing pressure from well-funded competitors. The company's primary moat stems from its comprehensive global telecommunications infrastructure and regulatory expertise. Building a communications platform requires significant capital investment in network infrastructure, carrier relationships across dozens of countries, and navigation of complex telecommunications regulations - creating meaningful barriers to entry for new competitors. The company's technical differentiation includes its proprietary global communications cloud, which provides unified APIs for voice and messaging across 60+ countries, and its emerging AI integration capabilities through the Maestro platform. Bandwidth has also invested heavily in compliance and security certifications (ISO 27001, STIR/SHAKEN implementation) that enterprise customers require, creating switching costs for existing clients. However, Bandwidth faces significant competitive threats that limit the strength of its moat. Large cloud providers like Amazon (with Amazon Connect), Microsoft (with Teams and Azure Communication Services), and Google are investing heavily in CPaaS capabilities and can leverage their existing enterprise relationships and broader cloud ecosystems. These competitors have substantially greater financial resources and can potentially offer communication services as loss leaders bundled with other cloud services. Specialized CPaaS competitors such as Twilio, Vonage (now part of Ericsson), and others also compete directly for enterprise customers. The industry is experiencing commoditization pressure, particularly in basic voice and messaging services, which could erode Bandwidth's pricing power over time. The company's customer retention rate of 99% and net retention rate above 110% suggest meaningful switching costs exist, but these metrics could deteriorate if competitive pressure intensifies. Bandwidth's focus on AI integration and the Maestro platform represents an attempt to strengthen its moat through technological differentiation, but it remains to be seen whether these innovations will provide sustainable competitive advantages as AI capabilities become more commoditized.
Risks & safety
Bandwidth presents a moderate margin of safety with some financial strength but concerning profitability trends. • Liquidity and Solvency: Strong cash position of $36 million plus short-term investments, current ratio of 1.31x indicates adequate short-term liquidity. However, debt-to-equity ratio of 1.39x shows meaningful leverage. Free cash flow turned negative at -$10 million in Q1 2025 after positive $70 million for full year 2024, indicating potential cash burn concerns. • Profitability Concerns: Company reported negative EBITDA of -$5 million in Q1 2025 versus positive $42 million for full year 2024, suggesting operational challenges. Net income has been inconsistent, ranging from small profits to losses over recent quarters. • Valuation Metrics: Trading at 1.1x price-to-book ratio suggests reasonable valuation relative to assets. EV/EBITDA metrics are distorted by negative EBITDA in recent quarter. Revenue multiple appears reasonable given 7% growth rates. • Other Considerations: High customer retention (99%) and net retention (110%+) provide revenue stability. Political campaign messaging provides periodic revenue boosts but creates lumpiness. Debt service obligations and working capital needs could pressure cash flows if growth slows.
Recent development
Over the past few years, Bandwidth has undergone significant strategic transformation from a traditional telecommunications provider to an AI-enabled communications platform company. The most significant development has been the launch and expansion of the Maestro platform, an AI-ready communication orchestration system that enables enterprises to integrate artificial intelligence voice agents and chatbots into their workflows. This platform now serves hundreds of enterprise customers with average annual spending exceeding $200,000. The company has heavily invested in AI Bridge technology, which simplifies the integration of AI voice agents with existing communication platforms. This strategic pivot toward AI-enabled communications represents Bandwidth's attempt to differentiate itself in an increasingly competitive CPaaS market and capture higher-value enterprise deals. Management reports that over 50% of enterprise customers now use either Maestro or AI Bridge platforms. Bandwidth has also focused on global expansion and platform unification. The company expanded its network to over 60 countries and developed a unified global communications platform that reduces complexity for multinational enterprises. Key innovations include nomadic emergency services for international markets, centralized message registration centers, and enhanced number portability solutions. The messaging business has been a major growth driver, evolving from basic SMS services to sophisticated multichannel messaging capabilities including Rich Business Messaging (RBM) and direct carrier aggregation. The company became a directly connected messaging aggregator, reducing dependency on third-party providers and improving margins. Strategic partnerships have expanded significantly, particularly with managed service providers (MSPs) and AI technology companies. The company hosted its first user conference (Reverb24) and has been building an ecosystem of integrations to support its platform strategy. Leadership changes included bringing in new executives focused on software strategy and revenue growth to support the platform transformation.
BAND company profile · for informational purposes only — not investment advice.
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