Zacks Investment Research·4 days ago
Here's Why Bandwidth (BAND) is a Strong Growth StockThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
Bandwidth Inc.(BAND)Earnings, Financials & Key Ratios
BAND•NASDAQ
$67.56
Price updated Jul 7, 2026
AboutBandwidth 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 operate voice or messaging communications services across various mobile applications or connected devices. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, communications service providers, conferencing providers, contact centers, small and medium-sized businesses, emerging technology companies, and many other businesses. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.Show more
- Revenue$754M+0.7%
- EBITDA$43M+46.6%
- Net Income-$13M-97.9%
- EPS (Diluted)-0.43-79.2%
- Gross Margin35.83%-4.2%
- EBITDA Margin5.68%+45.6%
- Operating Margin-1.91%+28.9%
- Net Margin-1.71%-96.5%
- ROE-3.62%-69.4%
BAND Price & Volume
Bandwidth Inc. (BAND) stock price & volume — 10-year historical chart
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Persistent Operating Losses Challenge Infrastructure Scale Ambitions
Investment Thesis • Updated 2026Q1
VerdictNegative
Growth:Decelerating
Profitability:Negative
Financial:Adequate
Cash Flow:Mixed
Primary Risk:Negative Operating Margin Persistence
Key Thesis Takeaways
- Bandwidth faces a difficult transition as its capital-intensive Tier 1 network model struggles to generate consistent profitability, evidenced by persistent negative operating margins of -2.2% in 2026Q1.
- While the company maintains a significant asset base, the reliance on stock-based compensation exceeding $13 billion in the most recent quarter obscures the true cost of operations.
- Investors should remain cautious as revenue growth volatility and high debt-to-equity ratios of 0.92 suggest that the firm has yet to achieve the necessary scale to compete effectively against asset-light software alternatives.
Verdict Logic
the company's inability to sustain positive operating margins, which were -2.2% in 2026Q1, combined with heavy reliance on stock-based compensation, suggests significant execution risk for long-term investors.
BAND Growth Metrics
Bandwidth Inc. (BAND) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years18.52%
5 Years17.05%
3 Years9.56%
TTM27752.2%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM398628.42%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM-873.13%
Return on Capital
10 Years7.99%
5 Years-2.14%
3 Years-2.58%
Last Year-1.58%
BAND Recent Earnings
Bandwidth Inc. (BAND) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 9/12 qtrs (75%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
Apr 30, 2026Metric
Actual
Est
EPS
$0.38+18.8%
$0.32
Rev
$209M+3.6%
$202M
Q1 2026
Feb 19, 2026Metric
Actual
Est
EPS
$0.35+0.0%
$0.35
Rev
$208M-0.3%
$208M
Q4 2025
Oct 30, 2025Metric
Actual
Est
EPS
$0.36-5.3%
$0.38
Rev
$192M-7.9%
$208M
Q3 2025
Jul 29, 2025Metric
Actual
Est
EPS
$0.38+18.8%
$0.32
Rev
$180M-5.4%
$190M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 30, 2026 | $0.38vs $0.32+18.8% | $209Mvs $202M+3.6% |
| Q1 2026 | Feb 19, 2026 | $0.35vs $0.35+0.0% | $208Mvs $208M-0.3% |
| Q4 2025 | Oct 30, 2025 | $0.36vs $0.38-5.3% | $192Mvs $208M-7.9% |
| Q3 2025 | Jul 29, 2025 | $0.38vs $0.32+18.8% | $180Mvs $190M-5.4% |
Based on last 12 quarters of dataView full earnings history →
Latest BAND News
Recent stock market news and headlines for Bandwidth Inc. (BAND)
Zacks Investment Research·6 days ago
Can the Launch of Bandwidth Build Platform Propel BAND Stock Higher?Build pushes Bandwidth deeper into agentic AI, automating communications setup as enterprise cloud adoption and AI-powered apps fuel growth.
PRNewsWire·6 days ago
Bandwidth to Report Second Quarter 2026 Financial Results on July 29, 2026; Present at an Upcoming Investor ConferenceRALEIGH, N.C., July 1, 2026 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced it will report its financial results for the second quarter ended June 30, 2026 before market open on Wednesday, July 29, 2026.
Zacks Investment Research·Jun 30, 2026
5 Small and Mid-Cap AI Stocks to Buy That Have Skyrocketed in 1H 2026BAND, AIP, PENG, ATEN and VECO are among small- and mid-cap AI stocks that surged in 1H 2026 with more room to grow in 2H.
Zacks Investment Research·Jun 26, 2026
Are Computer and Technology Stocks Lagging Bandwidth (BAND) This Year?Here is how Bandwidth (BAND) and Amtech Systems (ASYS) have performed compared to their sector so far this year.
Peers Comparison
Key metrics vs top competitors for Bandwidth Inc. (BAND)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $67.56 | $2.16B | -157.12 | 0.71% | -1.71% | -3.62% | — | |
| $211.97 | $32.12B | 1009.38 | 13.66% | 1.96% | 1.32% | — | |
| $1.97 | $278.14M | 197.00 | 2.89% | 0.22% | 1.2% | — | |
| $40.64 | $3.57B | 84.67 | 4.78% | 3.31% | — | — | |
| $24.99 | $1.91B | 54.32 | 10.28% | 4.87% | 7.37% | — | |
| $98.63 | $5.98B | 10.20 | 7.68% | 17.58% | 13.98% | — |
Compare BAND vs Peers
Bandwidth Inc. (BAND) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
BAND SEC Filings & Documents
Bandwidth Inc. (BAND) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 30, 2026·SEC
Material company update
Mar 2, 2026·SEC
Material company update
Feb 19, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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BAND Frequently Asked Questions
Bandwidth Inc. (BAND) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Bandwidth Inc.'s revenue?
Bandwidth Inc. (BAND) reported $209.36B in revenue for fiscal year 2025. This represents a 151832% increase from $137.8M in 2015.
How fast is Bandwidth Inc. growing?
Bandwidth Inc. (BAND) grew revenue by 0.7% over the past year. Growth has been modest.
Is BAND profitable?
Yes, Bandwidth Inc. (BAND) is profitable, generating $4.11B in net income for fiscal year 2025 (-1.7% net margin).
Dividend & Returns
What is BAND's return on equity?
Bandwidth Inc. (BAND) has a return on equity (ROE) of -3.6%. Negative ROE indicates the company is unprofitable.
What is Bandwidth Inc.'s free cash flow?
Bandwidth Inc. (BAND) generated $1.75B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.