Bandwidth (NASDAQ:BAND – Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.01, FiscalAI reports. Bandwidth had a net margin of 0.27% and a return on equity of 1.83%. The firm had revenue of $219.90 million for the quarter, compared to analyst estimates of $217.62 million. The company’s quarterly revenue was up 22.2% on a year-over-year basis. Bandwidth updated its Q3 2026 guidance to 0.450-0.490 EPS and its FY 2026 guidance to 1.710-1.790 EPS.
Here are the key takeaways from Bandwidth’s conference call:
- Q2 exceeded expectations, with revenue up 22% year over year to $220 million, adjusted EBITDA up 27% to $28 million, record 18.3% EBITDA margin, and free cash flow of $24 million.
- AI-driven demand is producing larger customer opportunities, including five new or expanded $1 million-plus contracts in Q2; 100% included Maestro or AI services, while commercial net revenue retention reached 113% and customer name retention remained above 99%.
- Bandwidth raised its full-year 2026 outlook to $900 million-$910 million of revenue and $123 million-$125 million of adjusted EBITDA, citing enterprise customer deployments, Salesforce Agentforce activity, and margin benefits from its owned network.
- Salesforce traffic has begun flowing, but management excluded future Salesforce contributions and the ramp of five recent enterprise wins from its guidance, suggesting potential upside but also uncertainty around deployment timing.
- The company lowered its expected political campaign revenue contribution to $13 million from approximately $15 million, and the new convertible notes increased the estimated diluted share count, contributing to a more modest full-year EPS outlook of $1.71-$1.79.
Bandwidth Price Performance
BAND traded up $0.33 during midday trading on Friday, reaching $39.16. 604,600 shares of the company’s stock were exchanged, compared to its average volume of 877,358. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37. The business has a 50-day simple moving average of $61.78 and a two-hundred day simple moving average of $35.67. The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of -134.91 and a beta of 2.92. Bandwidth has a one year low of $12.50 and a one year high of $79.08.
Analyst Ratings Changes
Get Our Latest Research Report on Bandwidth
Insider Buying and Selling
In other Bandwidth news, insider Kade Ross sold 1,588 shares of Bandwidth stock in a transaction on Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $93,453.80. Following the completion of the transaction, the insider directly owned 47,996 shares of the company’s stock, valued at approximately $2,824,564.60. This trade represents a 3.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Richard Brandon Asbill sold 29,214 shares of Bandwidth stock in a transaction on Friday, June 5th. The shares were sold at an average price of $72.03, for a total value of $2,104,284.42. Following the transaction, the general counsel directly owned 3,000 shares of the company’s stock, valued at approximately $216,090. The trade was a 90.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 117,269 shares of company stock worth $6,876,623. Insiders own 5.26% of the company’s stock.
Institutional Investors Weigh In On Bandwidth
Large investors have recently made changes to their positions in the company. Rhumbline Advisers lifted its holdings in Bandwidth by 15.0% during the 2nd quarter. Rhumbline Advisers now owns 40,927 shares of the company’s stock valued at $651,000 after purchasing an additional 5,324 shares during the last quarter. Quantbot Technologies LP bought a new stake in Bandwidth during the second quarter worth about $128,000. Arrowstreet Capital Limited Partnership grew its stake in Bandwidth by 26.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company’s stock worth $5,933,000 after buying an additional 78,360 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Bandwidth by 4.7% during the second quarter. Invesco Ltd. now owns 56,367 shares of the company’s stock worth $896,000 after buying an additional 2,532 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of Bandwidth during the second quarter worth approximately $221,000. Institutional investors own 68.53% of the company’s stock.
Bandwidth Company Profile
Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth’s solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.
Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.
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