Start here if you're new
what it is
Bandwidth lets companies add phone calls, texts, and emergency services to their apps.
how it gets paid
Last year Bandwidth made $754M in revenue. Messaging APIs was the main engine at $245M, or 32% of sales.
why it's growing
Revenue grew 0.7% last year. Latest-quarter revenue was $546M, up 185% vs. prior year, and gross margin was 39.7%.
what just happened
Bandwidth posted $546M in latest-quarter revenue, while EPS stayed negative at -$0.33.
At a glance
C+ balance sheet — struggling to keep the lights on
20/100 earnings predictability — expect surprises
31.8x trailing p/e — you're paying up for this one
4.4% return on capital — nothing to write home about
-$0.43 fy2025 eps est
xvary composite: 23/100 — weak
What they do
Bandwidth lets companies add phone calls, texts, and emergency services to their apps.
Bandwidth sells APIs, or software hooks, so your app can make calls and send texts without telecom plumbing. It runs in more than 65 countries and reaches over 90% of global GDP. Leaving is painful because your numbers, routes, and emergency flows sit on its network.
How they make money
$754M
annual revenue · their business grew +0.7% last year
Messaging APIs
$245M
+0.7%
Voice APIs
$230M
flat
SIP Trunking
$120M
flat
Emergency Services APIs
$85M
+0.7%
Platform and other services
$74M
+0.7%
The products that matter
cloud voice communications
Voice API
~$528M · +12%
this is the part that actually moved. roughly $528M of revenue growing 12% is what gives management a plausible path to its 2026 acceleration target.
growth engine
sms and mms services
Messaging API
~$151M · -5%
this business fell 5% last year to roughly $151M. In human-speak: one of the core products is shrinking while the company asks you to underwrite a faster growth story.
pressure point
911 and location routing
Emergency Services API
~$75M · flat
it is a regulated niche with roughly $75M of stable revenue. Useful, sticky, and not the number that gets this stock re-rated.
stability
Key numbers
$754M
annual revenue
That is the size of the whole business. On a $478M market cap, you are paying about 0.63x sales.
39.7%
gross margin
For every $100 of sales, $39.70 stays after direct costs. The rest funds telecom plumbing and overhead.
$248M
long-term debt
That is 34% of capital. The balance sheet is not broken, but it is not clean either.
2.0x
beta
A 2 beta stock tends to move about twice as much as the market. Your nerves will not be bored.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $248M (34% of capital)
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for BAND right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Bandwidth posted $546M in latest-quarter revenue, while EPS stayed negative at -$0.33.
Latest-quarter revenue was $546M, up 185% vs. prior year, and gross margin was 39.7%. EPS was still negative, so the turnaround is growing the top line before it fixes the bottom line.
$546M
revenue
-$0.33
eps
39.7%
gross margin
the number that mattered
Revenue was $546M, and that matters because it shows the company can still grow fast even with EPS at -$0.33.
source: company earnings report, 2026
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What could go wrong
the #1 risk is failing to turn a 1.1% quarterly revenue decline into a 16% full-year growth story.
med
the 2026 guide is now the valuation
BAND told investors to expect $864M–$884M of revenue in 2026. When a stock rises 24% on that message, the guide stops being a forecast and starts being the stock's job description.
Miss that range and the rerating loses its anchor.
med
messaging is already telling you this market is crowded
Messaging revenue fell 5% last year while voice grew 12%. That's a useful contrast because it shows Bandwidth can win in one lane and still get squeezed in another.
If voice slows before messaging stabilizes, the mix shift stops helping.
med
$248M of debt is manageable until growth disappoints
Long-term debt sits at $248M, or 34% of capital. The recent $100M note repurchase helps, but this still is not the kind of balance sheet that makes weak execution painless.
Lower growth and continued debt obligations are a bad combination for a C+ balance sheet grade profile.
med
the ai voice angle still needs proof
Management is leaning on AI-powered voice demand as a growth driver. That can work. It also can stay a conference-call story longer than the market wants.
At 31.8x trailing earnings and 5 / 100 price stability, you are not being paid to wait forever.
The combined risk picture is simple: a stock at $13.96 with a 24% post-earnings jump, a 31.8x trailing p/e, and $248M of debt now needs the $864M–$884M revenue target to look real, fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
guidance
the first read on the $864M–$884M target
Every quarter matters now, but the next report matters more. You want to see early evidence that a 16% growth year is more than one good slide deck.
mix shift
voice up, messaging down cannot last forever
Voice grew 12% while messaging fell 5%. If that gap widens, Bandwidth becomes more dependent on one product lane carrying the story.
balance sheet
what the $100M note repurchase actually fixes
Debt coming down is good. What you care about next is whether interest burden and financial flexibility improve enough to matter against $248M of long-term debt.
capital allocation
whether the $80M buyback is support or theater
Buybacks look better when free cash flow is abundant. Here, you want to see repurchases funded by strength, not by optimism.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not trust this business to deliver cleanly quarter after quarter.
price stability
5 / 100
When the story changes, the stock tends to move with it. This is a narrative-sensitive name, not a bunker stock.
balance sheet grade
C+
That grade means below-average flexibility. You can live with it if growth shows up. You worry about it if growth does not.
source: institutional data
Institutional activity
institutional ownership data for BAND is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$14
current price
n/a
target midpoint · n/a from current
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