Bandwidth Approves $80M Buyback and Guides 16% Revenue Growth in 2026
Bandwidth ended 2025 with $754 million in revenue, up 10% organically, while Q4 organic revenue rose 12% and free cash flow reached $57 million with a 17% adjusted EBITDA margin. The board approved an $80 million share repurchase and management guides 2026 for about 16% revenue growth, nearly 30% EBITDA improvement, and EPS of $1.66–$1.74.
1. Q4 and Full-Year 2025 Results
Bandwidth reported full-year 2025 revenue of $754 million, up 10% organically year over year, with Q4 organic revenue growth of 12%. Adjusted EBITDA margin for the quarter reached 17%, delivering $93 million of EBITDA and $57 million of free cash flow.
2. 2026 Financial Guidance
For fiscal 2026 management forecasts approximately 16% total revenue growth, nearly 30% year-over-year adjusted EBITDA improvement targeting a 20% margin, and non-GAAP EPS of $1.66 to $1.74. The company expects cloud communications growth of about 10% and accelerating AI-driven voice demand.
3. Enterprise Momentum and AI Innovation
Bandwidth achieved a record number of $1 million-plus enterprise deals in 2025, driven by AI-enabled voice tools and software services. Third-party conversational AI developers on its platform more than quadrupled in six months, supporting future software revenue acceleration.
4. Share Repurchase and R&D Investment
The board authorized an inaugural $80 million share repurchase program alongside the largest R&D investment to date to expand its AI communications portfolio, including AI voice, trust services, and orchestration software.