Bandwidth Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
The business carries its own weight: an owned network, very loyal large customers, dependable free cash flow for three years, no cash interest on the convertible notes and no sign of a threat to the going concern. What is open is a clearly operational question, and a weighty one: Bandwidth has not reported an operating profit in a single year since 2021, and the profit posted in early 2026 came from the balance sheet rather than the business. Add potential dilution of roughly a fifth of the Class A shares. That is not a threat to substance, but it is not proven quality either — hence yellow. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Bandwidth is the price-tag trap in pure form: the same company that repurchased its own shares at an average $15.93 in the first quarter of 2026 borrowed $316.25 million at zero percent eleven weeks later, with a conversion price of roughly $72.64. In between lay no new factory and no new mega-contract, but a new story: AI voice. What is documented: an owned network in more than 65 countries, customer retention above 98.8 percent and free cash flow around $67 million every year since 2023. What is missing: an operating profit — the line has been negative five years running, most recently minus $14.4 million in 2025 and minus $4.6 million in the first quarter of 2026. And what may still come: up to 5,986,169 new shares from conversion. Not investment advice.
Business model and competitive position
An owned IP network in more than 65 countries that the company says reaches over 90 percent of global gross domestic product is hard to replicate. Twelve-month customer retention was above 98.8 percent in 2025, several large customers have been on the platform for more than ten years, and the world's biggest communications platforms are customers rather than competitors.
Earning power
Five consecutive years of operating losses: minus $14.4 million in 2025, minus $20.1 million in 2024, minus $35.5 million in 2023; the first quarter of 2026 also closed at minus $4.6 million on the operating line. The reported quarterly profit of $4.1 million came from a book gain on the note buyback plus a tax benefit — diluted earnings per share still showed minus $0.08.
Cash flow and balance sheet
Free cash flow has been positive since 2023 ($69.9 million in 2024, $67.2 million in 2025) and equity stood at $405.7 million as of March 31, 2026. At the same time cash halved in the first quarter of 2026 from $102.8 million to $47.3 million, $50.5 million of the revolver was drawn for the first time, and $447.0 million of future minimum rents through July 2043 exceed the equity base.
Dilution
The convertible note of June 18, 2026 can produce a maximum of 5,986,169 new Class A shares — about 20 percent of the 30,059,279 Class A shares outstanding as of April 24, 2026. Add 5,045,797 unvested restricted stock units as of March 31, 2026 and stock-based compensation of $52.3 million in 2025, roughly 78 percent of that year's free cash flow.
Revenue quality
Better than a quarter of reported 2025 revenue ($192.4 million of $753.8 million) is pass-through carrier fees with no meaningful margin, and they swing with the U.S. election calendar; they lifted net retention to 122 percent in 2024 and let it fall to 98 percent in 2025. Cloud communications grew more steadily: up 4 percent in 2025 and up 13 percent in the first quarter of 2026.
Governance
Class B shares carry ten votes each: at the annual meeting on May 28, 2026 they made up roughly 7.6 percent of the shares present but 45.0 percent of the votes cast. Executive compensation drew roughly 24 percent opposition (10.0 million against 30.9 million votes). Disclosure itself is transparent — customer concentration, dilution and lease commitments are all stated openly in the filings.
Worth Noting
Bandwidth landed on the research list through our in-house stock scanner: rank 5 of 28 in the list "Richard Moglen: 1 Week Top Performers" (U.S. selection) with a relative strength rating of 98, as of July 25, 2026. That list is recomputed daily; it measures price momentum over four trading days, liquidity and relative strength — demand for the shares, not quality of the company.
Every figure carries its own reporting date: annual figures from the 10-K for 2025 (filed February 19, 2026), quarterly figures from the 10-Q as of March 31, 2026 (filed April 30, 2026), note and dilution data from the current reports on Form 8-K dated June 15, 16 and 18, 2026. Valuation metrics as of July 25, 2026 based on the closing price of July 24, 2026 — meant to be evergreen, with no daily price used as a buy argument.
Easy to confuse: the ticker BAND belongs to Bandwidth Inc. of Raleigh (CIK 0001514416), not to any musical group or radio frequency band. The company was named Bandwidth.com, Inc. until 2017. The spun-off mobile provider Relay, Inc. (formerly Republic Wireless) is a related party and has leased part of the corporate headquarters since January 1, 2025.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at BAND since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 12.80 $ to 78.40 $ · Last price: 50.50 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Software - Infrastructure
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Bandwidth Inc BAND | 1.6 | – | 32.6 | 37.2 | -2.2 | 0.7 | 176.2 |
| Microsoft Corporation MSFT | 3,632.6 | 30.8 | 17.6 | 67.9 | 46.3 | 14.9 | -1.6 |
| Oracle Corporation ORCL | 435.3 | 24.7 | 14.8 | 64.0 | 36.2 | 17.4 | -49.5 |
| Palantir Technologies Inc. PLTR | 432.5 | 199.0 | 147.5 | 84.8 | 46.2 | 56.2 | 4.7 |
| Palo Alto Networks Inc PANW | 305.7 | 302.6 | 194.0 | 70.4 | -2.5 | 14.9 | 84.7 |
| Crowdstrike Holdings Inc CRWD | 248.2 | – | 490.1 | 75.2 | -2.2 | 21.7 | 120.6 |
| Fortinet Inc FTNT | 124.2 | 61.8 | 39.6 | 80.2 | 31.3 | 14.2 | 115.0 |
| Cloudflare Inc NET | 115.1 | – | 2,805.8 | 72.6 | -9.7 | 29.9 | 56.1 |
| Synopsys Inc SNPS | 73.0 | 77.0 | 22.3 | 82.9 | 10.4 | 15.1 | -10.4 |
| Median of companies shown | 248.2 | 69.4 | 39.6 | 72.6 | 10.4 | 15.1 | 56.1 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 152 | 15 | 22 | 1.53 | 5 | -1 | 70 |
| 2017 | 163 | 15 | 6 | 0.41 | 15 | 77 | 104 |
| 2018 | 204 | 7 | 18 | 0.85 | 25 | 109 | 150 |
| 2019 | 233 | -18 | 2 | 0.10 | -1 | 270 | 354 |
| 2020 | 343 | -14 | -44 | -1.83 | 5 | 430 | 891 |
| 2021 | 491 | -2 | -27 | -1.09 | 41 | 413 | 1,066 |
| 2022 | 573 | -24 | 20 | 0.63 | 35 | 272 | 929 |
| 2023 | 601 | -35 | -16 | -0.64 | 39 | 297 | 1,101 |
| 2024 | 748 | -20 | -7 | -0.24 | 84 | 313 | 989 |
| 2025 | 754 | -14 | -13 | -0.43 | 89 | 400 | 1,120 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.06 | – | 210 | 27.00 | -0.80 | 37 | 30 |
| 2025: Q1 | -0.13 | – | 174 | 1.90 | -2.10 | -3 | -11 |
| 2025: Q2 | -0.16 | -220.00 | 180 | 3.70 | -2.70 | 32 | 28 |
| 2025: Q3 | -0.04 | -384.00 | 192 | -1.00 | -0.60 | 22 | 16 |
| 2025: Q4 | -0.10 | – | 208 | -1.10 | -1.40 | 39 | 31 |
| 2026: Q1 | 0.12 | – | 209 | 19.80 | 2.00 | 9 | 2 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 17 of our scanner strategies — each hit links to the scanner.
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
- Above the 50- & 200-SMA
- CANSLIM Type RS
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- High ADR (≥5%)
- Mike Webster: Swing Trading List
- Oliver Kell: Doublers
- Oliver Kell: Strength on Down Day
- Power Trend
- Qullamaggie: Top Gainers 6M
- RS Leader (≥90)
- Richard Moglen: 1 Week Top Performers
- Richard Moglen: Top Performers 3/6 Month
- Stan Weinstein: Stage 2
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 1.75 | 1.72 – 1.78 | 906 | 22.5% | 5 |
| 12/31/2027 | 1.94 | 1.68 – 2.08 | 947 | 10.6% | 5 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 9.2% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $72.5M |
|---|---|
| Market cap | $1.62B |
| Free cash flow in year ten | $175.4M |
| Terminal value as a share of market value | 57.0% |
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Bandwidth verkauft KI-Funktionen als Teil seines Angebots: Die Maestro-Plattform orchestriert KI-Sprachagenten und ist laut Geschäftsbericht 2025 der Kern der KI-Strategie; der Konzern führt die KI-Integrationsfähigkeit ausdrücklich als hervorstechendes Produktmerkmal und schreibt das Wachstum im Enterprise-Voice-Geschäft (+21 % in 2025) Maestro zu.
View the full file — quotes, sources, reviewed filings
„Our Maestro platform is key to Bandwidth’s AI innovation strategy. We believe it is the most open and flexible solution for enterprises to integrate conversational AI into cloud communications, through Native AI within CCaaS platforms, pre-built partner integrations, Bring Your Own AI with third-party apps, and Public APIs like OpenAI’s Realtime interface."
Unsere Maestro-Plattform ist der Schlüssel zur KI-Innovationsstrategie von Bandwidth. Wir halten sie für die offenste und flexibelste Lösung, mit der Unternehmen dialogfähige KI in Cloud-Kommunikation einbinden können — über native KI innerhalb von CCaaS-Plattformen, vorgefertigte Partner-Integrationen, „Bring Your Own AI“ mit Anwendungen Dritter und öffentliche Schnittstellen wie die Realtime-Schnittstelle von OpenAI.
10-K · 2026-02-19 · View SEC filing
„We also offer our customers the ability to integrate certain AI technologies developed by third parties into certain of our offerings, and this integration capability is a prominent feature of our Maestro offering."
Wir bieten unseren Kunden außerdem die Möglichkeit, bestimmte von Dritten entwickelte KI-Technologien in einzelne unserer Angebote einzubinden, und diese Integrationsfähigkeit ist ein hervorstechendes Merkmal unseres Maestro-Angebots.
10-K · 2026-02-19 · View SEC filing
„Bandwidth is strategically positioned at the intersection of enterprise communications and AI. As global enterprises adopt AI-driven tools to modernize customer experiences, we believe AI voice will become a critical new layer of value creation."
Bandwidth ist strategisch an der Schnittstelle von Unternehmenskommunikation und KI positioniert. Während Unternehmen weltweit KI-gestützte Werkzeuge einsetzen, um Kundenerlebnisse zu modernisieren, glauben wir, dass KI-Sprache zu einer entscheidenden neuen Wertschöpfungsebene wird.
10-Q · 2026-04-30 · View SEC filing
Filings Reviewed: 10-Q 2026-04-30 · 10-K 2026-02-19 · 10-Q 2025-10-30 · 10-Q 2025-07-29 · 10-Q 2025-05-07 · 10-K 2025-02-20 · 8-K 2026-06-18
Rated on July 25, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 9.6%
- More than 10% revenue growth is expected for the coming year 4.5%
- Share count grows by less than 3% a year -1.0%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 9.6%
- Gross margin at 40% or higher and without meaningful erosion 39.1%
- Goodwill from acquisitions does not grow faster than revenue 31.9%
- Net debt below twice EBITDA 15.0 x EBITDA
- Operating cash flow covers the profits of the last three years 248 m
- Return on capital at 15% or higher, or up versus two years ago -1.5%
- Insiders hold at least 10% or are net buyers 3.2%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
4/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 19.5%
- Exp. sales growth 3Y > 5% 12.1%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 12.1%
- Net debt < 4x EBIT –
- EBIT positive, 10Y straight 3
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% –
- ROCE > 15% -1.5%
- Expected return > 10% 16.7%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 2, 2026 | Ross Kade | Chief Information Officer | Sell | 753 | 49.29 | 37,115 |
| Sep 2, 2026 | Ross Kade | Chief Information Officer | Sell | 1,151 | 48.50 | 55,827 |
| Sep 2, 2026 | Ross Kade | Chief Information Officer | Sell | 2,096 | 47.54 | 99,643 |
| Sep 2, 2026 | Raiford Daryl E | Chief Financial Officer | Sell | 3,291 | 49.97 | 164,443 |
| Sep 2, 2026 | Raiford Daryl E | Chief Financial Officer | Sell | 1,400 | 48.99 | 68,582 |
| Sep 2, 2026 | Raiford Daryl E | Chief Financial Officer | Sell | 2,536 | 47.74 | 121,057 |
| Sep 1, 2026 | Krupka Devin M | Controller, PAO | Sell | 3,074 | 48.97 | 150,546 |
| Aug 31, 2026 | Agarwal Devesh | Chief Operating Officer | Sell | 2,020 | 49.60 | 100,196 |
| Aug 31, 2026 | Agarwal Devesh | Chief Operating Officer | Sell | 2,849 | 48.82 | 139,096 |
| Aug 31, 2026 | Krupka Devin M | Controller, PAO | Sell | 506 | 49.60 | 25,099 |
The company
About the Company
Bandwidth Inc. ist als Anbieter einer cloudbasierten, softwaregestützten Communications-Platform-as-a-Service in den USA und international tätig.
- Employees
- 1,100
- Headquarters
- Raleigh, NC
- Address
- 2230 Bandmate Way, 27607 Raleigh, United States
- Phone
- 800 808 5150
- Website
- bandwidth.com
- IPO Date
- 11/10/2017
- ISIN
- US05988J1034
Management
| Name | Title | Birth Year |
|---|---|---|
| David Andrew Morken J.D. | Co-Founder, CEO & Chairman | 1969 |
| Daryl E. Raiford CPA | Executive VP & CFO | 1963 |
| Devesh Agarwal | Chief Operating Officer | 1970 |
| Rebecca G. Bottorff | Chief People Officer & Director | 1968 |
| Richard Brandon Asbill J.D. | General Counsel Emeritus and Assistant Secretary | 1967 |
| Devin M. Krupka | Principal Accounting Officer | 1987 |
| Scott T. Mullen | Chief Technology Officer | 1978 |
| Kade B. Ross | Chief Information Officer | – |
| Nils L. Erdmann | Senior Vice President of Investor Relations | – |
| Emily C. Harlan | General Counsel and Secretary | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/15/2026 Bandwidth Inc. (BAND): Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 09/04/2026 Bandwidth Inc. (BAND): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 08/03/2026 Bandwidth Inc. (BAND): Other Events SEC ↗
- 07/29/2026 Bandwidth Inc. (BAND): Entry into a Material Definitive Agreement; Results of Operations and Financial Condition; Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.