Bandwidth Inc. (BAND) AI Stock Analysis

Headquartered in Raleigh, North Carolina, Bandwidth Inc. provides cloud-based Communications Platform as a Service (CPaaS) solutions. Established in 2000, the company enables enterprises, including large corporations and small to medium-sized businesses, to develop, expand, and manage voice and messaging services across mobile applications and connected devices. Its scalable platform supports voice calling, text messaging, and multimedia messaging integrated via APIs and developer-friendly tools. Bandwidth designs its communications solutions to deliver high-quality voice and messaging while prioritizing reliability, security, data privacy, and regulatory compliance across diverse industries.

Between FY2021 and FY2025, Bandwidth's revenue expanded from $490.9M to $753.8M, reflecting a 5-year revenue CAGR of 17.0%. Annual revenue growth slowed to 0.7% in FY2025 from 24.5% in FY2024. Gross margin was 39.1% in FY2025, down from 44.5% in FY2021. The company recorded an operating margin of -1.9% and a net loss of $12.9M in FY2025, alongside EPS of $1.45. Operating cash flow reached $89.5M in FY2025 with free cash flow of $67.2M. For the trailing twelve months ended June 30, 2026, revenue was $828.2M with quarterly revenue growth of 22.2% year-over-year.

As of June 30, 2026, Bandwidth held $174.4M in cash and short-term investments against total debt of $554.4M, resulting in net debt of $380.1M. Total assets stood at $1.10B and shareholders' equity was $378.2M, representing a debt-to-equity ratio of 1.47 and a current ratio of 2.04. In FY2025, capital expenditures totaled $22.3M. Over five years, the company's share count increased by 32.2%.

Bandwidth trades at a forward P/E of 23.0x, above the 18.8x median of its US-listed Technology peers. Its enterprise value to EBITDA ratio is 38.1x compared to the peer median of 16.6x, while its price-to-sales ratio is 1.7x versus the peer median of 2.8x. Over the past year, the stock rose 182.0%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, BAND fell 51.8%, while the S&P 500 gained 83.0%.

Bandwidth has 2 Strong Buy, 2 Buy, and 2 Hold ratings from analysts. The mean price target is $66.50, which is 53.4% above the last closing price of $43.34 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate revenue of $905.7M and EPS of $1.75. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Bandwidth Inc. (BAND). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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