Bandwidth Inc. (NASDAQ: BAND) saw its stock price plummet 5.40% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. The cloud communications company reported earnings that fell short of analyst expectations and showed year-over-year declines in key metrics.
For Q3 2025, Bandwidth reported adjusted earnings per share (EPS) of $0.36, missing the analyst consensus estimate of $0.39 by 6.74%. This represents a 16.28% decrease from the $0.43 per share reported in the same period last year. Revenue for the quarter came in at $191.895 million, slightly beating the analyst estimate of $190.622 million by 0.67%. However, this still marks a 1.03% decrease from the $193.883 million in sales reported in Q3 2024.
Despite the slight revenue beat, investors seem to be focusing on the earnings miss and the year-over-year declines in both EPS and revenue. The company's guidance for full-year 2025 revenue of $747-760 million did little to assuage concerns about growth. Bandwidth's adjusted gross margin for the quarter stood at 58%, with gross profit reaching $73.798 million. The company reported a net loss of $1 million for the quarter, further contributing to the negative sentiment surrounding the stock.
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