Bandwidth

BAND · Nasdaq · Communication Services · Financials, fiscal 2016 to 2025

BAND · Last close · November 6, 2026

$40.34

Bandwidth's revenue rose 0.7% to $754 million in fiscal 2025. Its operating margin was −1.9%, up from −2.7% a year earlier. Free cash flow was $67 million, down 3.8%. The diluted share count rose 10.2%.

BANDWIDTH INC. Latest fiscal year ended December 31, 2025 10-K filed February 19, 2026 · 0001514416-26-000017 Updated November 8, 2026

Revenue

$754M

0.7%

Operating margin

−1.9%

0.8 pts

Net income

−$13M

Free cash flow

$67M

3.8%

Return on capital

−2.1%

0.8 pts

Market cap

$1.6B

Nov 6 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Bandwidth does

Bandwidth sells cloud communications services to businesses and software companies. Customers use its application programming interfaces (APIs), which are software connections, to build voice calling, text messaging, emergency calling and AI voice features into their own apps and services. It owns and runs its own network, which spans more than 65 countries.

It reports one segment and sells through three offerings. Global Voice Plans supplies calling for providers of cloud phone and contact center software, and the company names Microsoft, Google, Zoom, Cisco, RingCentral, Genesys and Five9 among them. It also sells messaging services to platforms and direct voice and messaging services to large enterprises. It is also pushing into AI voice, with a platform called Maestro that helps businesses run AI voice agents.

Bandwidth says it is the only provider of this kind of platform service that also owns and operates its own global cloud communications network. It competes in a crowded market with other communications platforms and carriers. It has about 1,100 employees, mostly in the United States, Europe and Asia Pacific.

Its biggest risks, as it describes them

Competition in a crowded market, and the cost of winning new customers.
A large share of its revenue comes from a limited number of large customers.
Its newer services, such as AI voice, may not gain acceptance or may bring legal and reputation problems.
Litigation over taxes and charges tied to its 911 emergency calling services.
Changing communications regulation, including rules on emergency calling.

From Bandwidth's annual report on Form 10-K, filed February 19, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2019, earnings per share fell 59.5% a year and net income 51.9% a year, as new shares raised the share count by 85% and diluted each share's earnings. Bandwidth then lost money in fiscal 2020, 2021, 2023, 2024 and 2025.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	332	185	154	84	111
Debt incl. finance leases	487	481	418	281	255
Net debt (negative means net cash)	155	296	265	198	144
Net debt to EBITDA	4.5x	26.2x	42.3x	6.8x	3.6x
Debt to equity	1.2x	1.8x	1.4x	0.9x	0.6x
Interest coverage	−0.1x	−4.7x	−9.5x	−6.7x	−5.9x
Current ratio	4.4x	2.5x	2.1x	1.3x	1.4x
Quick ratio	4.4x	2.5x	2.1x	1.3x	1.4x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Bandwidth's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Bandwidth's projections

Insider trades

No officer, director or 10% owner of Bandwidth reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.

From Form 4 filings with the SEC. Grants, option exercises and shares withheld for tax aren't counted. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	5 of 9	5 of 9	6 of 9
Rule of 40	9.8%	33.9%	9.6%
Altman Z''	0.75	0.43	0.70
Accruals ratio	−5.5%	−8.7%	−10.0%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Pass	Fail	Fail
Gross margin rose	Fail	Fail	Pass
Revenue rose relative to assets	Pass	Pass	Pass
F-score	5 of 9	5 of 9	6 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Bandwidth side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Bandwidth	FY25	0.7%	−1.9%	8.9%	−2.1%	3.6x	6
Iridium Communications	FY25	4.9%	27.1%	34.4%	8.7%	3.7x	7	Compare
Cogent Communications	FY25	−5.8%	−10.4%	−20.3%	−3.8%	13.0x	4	Compare
Uniti Group	FY25	91.5%	11.7%	−19.6%	4.0%	10.3x	—	Compare
Lumen Technologies	FY25	−5.4%	−6.5%	3.0%	−3.9%	8.7x	4	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	152	163	204	233	343	491	573	601	748	754
Revenue growth	10.4%	7.1%	25.3%	13.9%	47.5%	43.1%	16.8%	4.9%	24.5%	0.7%
Gross profit	67	74	96	108	154	214	238	236	280	295
Research and development	8	11	21	32	55	70	98	104	119	132
Operating income	15	15	7	−18	−14	−2	−24	−36	−20	−14
Net income	22	6	18	2	−44	−27	20	−16	−6	−13
Diluted EPS (US$)	1.51	0.37	0.85	0.10	−1.83	−1.09	−0.48	−0.64	−0.24	−0.43
Diluted shares (millions)	13	14	21	24	24	25	31	26	27	30
Cash flow
Cash from operations	5	15	25	−1	4	41	35	39	84	90
Capital expenditure	4	5	12	22	12	18	42	9	14	22
Free cash flow	1	10	12	−23	−8	23	−7	30	70	67
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0	0	0
Acquisitions	0	0	0	0	400	0	0	0	0	0
Stock-based compensation	1	2	3	7	10	14	21	37	48	52
Balance sheet at fiscal year end
Cash and short-term investments	7	38	59	184	72	332	185	154	84	111
Debt incl. finance leases	40	0	0	0	283	487	481	418	281	255
Total assets	70	104	150	341	891	1,066	929	1,101	989	1,053
Total liabilities	70	28	42	71	461	653	657	804	677	653
Shareholders' equity	−22	77	109	270	430	413	272	297	312	400
Margins and ratios
Gross margin	44.0%	45.2%	47.0%	46.3%	44.9%	43.5%	41.6%	39.3%	37.4%	39.1%
Operating margin	10.0%	9.0%	3.3%	−7.6%	−3.9%	−0.5%	−4.2%	−5.9%	−2.7%	−1.9%
Net margin	14.7%	3.7%	8.8%	1.1%	−12.8%	−5.6%	3.4%	−2.7%	−0.9%	−1.7%
Free cash flow margin	0.9%	5.9%	6.0%	−10.1%	−2.3%	4.7%	−1.2%	5.0%	9.3%	8.9%
Rule of 40 (growth + FCF margin)	11.3%	13.0%	31.2%	3.9%	45.3%	47.8%	15.6%	9.8%	33.9%	9.6%
Return on capital	—	29.3%	15.1%	−20.6%	−2.9%	−0.3%	−4.3%	−5.0%	−3.0%	−2.1%
Return on equity	—	22.0%	19.3%	1.3%	−12.6%	−6.5%	5.7%	−5.7%	−2.1%	−3.6%
Return on assets	—	6.8%	14.1%	1.0%	−7.1%	−2.8%	2.0%	−1.6%	−0.6%	−1.3%
Net debt to EBITDA	1.6x	−1.9x	−4.7x	—	63.8x	4.5x	26.2x	42.3x	6.8x	3.6x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Bandwidth's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Bandwidth.