Bandwidth Q4 Revenue Beats, Projects 16% 2026 Growth to $864M–$884M
Bandwidth’s Q4 revenues declined to $207.7M yet narrowly beat the $207.2M consensus, with non-GAAP EPS holding at $0.35 and GAAP loss widening to $0.03 per share. The company forecasts 2026 revenue of $864M–$884M (16% growth) and adjusted EBITDA of $117M–$123M (29% growth).
1. Fourth-Quarter Results
Bandwidth reported Q4 revenues of $207.7M, beating the $207.2M estimate but down from $210.0M a year ago. Non-GAAP net income was $11.5M or $0.35 per share, matching consensus, while GAAP net loss widened to $3.0M or $0.03 per share.
2. Segment Performance
Cloud communications revenue rose to $150.3M from $144.1M, offset by messaging surcharge revenue declining to $57.4M from $65.9M. Non-GAAP gross profit increased to $86.3M with a 57% margin, and adjusted EBITDA grew to $24.8M, reflecting a 17% margin.
3. Cash Flow and Liquidity
Operating cash flow reached $38.6M in the quarter versus $36.5M year-ago, boosting cash and equivalents to $102.8M at year-end. Convertible senior notes outstanding declined to $247.6M from $281.3M, supporting a stronger liquidity position.
4. 2026 Outlook
Management projects 2026 revenues of $864M–$884M, implying roughly 16% year-over-year growth, with adjusted EBITDA of $117M–$123M (about 29% growth) and non-GAAP earnings of $1.66–$1.74 per share.