Bandwidth (NASDAQ:BAND) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Bandwidth (NASDAQ:BAND) announced its quarterly earnings results on Wednesday. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01, FiscalAI reports. The company had revenue of $219.90 million during the quarter, compared to analyst estimates of $217.04 million. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.The company’s revenue for the quarter was up 22.2% compared to the same quarter last year. 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

Shares of BAND stock traded down $13.91 during mid-day trading on Wednesday, reaching $38.34. The company’s stock had a trading volume of 2,881,690 shares, compared to its average volume of 857,838. Bandwidth has a 1-year low of $12.50 and a 1-year high of $79.08. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94. The company has a market cap of $1.23 billion, a P/E ratio of -99.36 and a beta of 2.92. The firm’s 50-day moving average is $62.60 and its two-hundred day moving average is $35.34.

Wall Street Analyst Weigh In

BAND has been the subject of several recent analyst reports. Needham & Company LLC raised their target price on shares of Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. Zacks Research lowered Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Wall Street Zen lowered shares of Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Sunday, June 28th. Weiss Ratings reissued a “sell (d-)” rating on shares of Bandwidth in a research note on Friday, July 17th. Finally, Citigroup reissued a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Bandwidth presently has an average rating of “Moderate Buy” and a consensus price target of $61.75.

Insider Buying and Selling at Bandwidth

In other Bandwidth news, insider Rebecca Bottorff sold 9,425 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $45.30, for a total value of $426,952.50. Following the sale, the insider directly owned 50,535 shares in the company, valued at $2,289,235.50. This represents a 15.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Kade Ross sold 20,000 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $51.56, for a total transaction of $1,031,200.00. Following the sale, the insider directly owned 43,894 shares in the company, valued at $2,263,174.64. This represents a 31.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 127,269 shares of company stock worth $7,192,523 over the last three months. 5.26% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Bandwidth

Several institutional investors and hedge funds have recently made changes to their positions in BAND. Tower Research Capital LLC TRC increased its holdings in shares of Bandwidth by 183.7% in the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock worth $60,000 after acquiring an additional 2,445 shares in the last quarter. Raymond James Financial Inc. acquired a new position in Bandwidth during the second quarter worth $85,000. Quantbot Technologies LP bought a new position in Bandwidth in the second quarter valued at $128,000. State of Wyoming increased its stake in Bandwidth by 104.6% in the 4th quarter. State of Wyoming now owns 8,756 shares of the company’s stock valued at $135,000 after buying an additional 4,476 shares during the last quarter. Finally, Squarepoint Ops LLC bought a new stake in Bandwidth during the 4th quarter worth about $174,000. Institutional investors and hedge funds own 68.53% of the company’s stock.

More Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Second-quarter revenue reached approximately $220 million, up 22% year over year, while adjusted EBITDA increased 27% to $28 million. The company also reported a record 18% adjusted EBITDA margin. Bandwidth Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Bandwidth earned $0.37 per share, exceeding the $0.36 consensus estimate, and revenue of $219.9 million surpassed expectations of $217.0 million. Bandwidth Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised third-quarter guidance to $231 million-$235 million in revenue and $0.45-$0.49 in EPS, above analyst estimates of $223.6 million and $0.40, respectively. Full-year 2026 guidance also increased to $900 million-$910 million in revenue and $1.71-$1.79 in EPS, above consensus. Bandwidth Q2 Earnings Top Estimates on Strong AI-Driven Demand
• Positive Sentiment: Demand for voice-AI communications, enterprise modernization, and strategic customer wins of more than $1 million are supporting the company’s growth outlook.
• Neutral Sentiment: The quarterly EPS result declined slightly from $0.38 a year earlier, despite the company’s strong revenue growth and higher guidance.
• Negative Sentiment: Shares decreased sharply on unusually heavy trading volume, suggesting that investors may have been selling into the earnings strength or viewing the results as insufficient relative to elevated expectations. Bandwidth also remains marginally unprofitable, with a negative net margin, and its high beta indicates substantial volatility.

About Bandwidth

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.