Bandwidth Q4 revenue slightly misses analyst expectations

Overview

• Cloud communications firm's Q4 revenue slightly missed analyst expectations

• Company achieved record Q4 adjusted EBITDA and free cash flow

• Company authorized $80 mln share repurchase program

Outlook

• Bandwidth expects 2026 revenue to grow by approximately 16% to $864 mln - $884 mln

• Company forecasts 1Q 2026 revenue between $200 mln and $203 mln

• Bandwidth projects full-year 2026 Adjusted EBITDA between $117 mln and $123 mln

Result Drivers

• AI-DRIVEN VOICE SERVICES - Co cited increased enterprise adoption of AI-driven voice services as a key driver of Q4 results

• CUSTOMER DEPLOYMENTS - Major U.S. companies deployed Bandwidth's services for cloud-based customer experiences and AI-enabled communications

• MAESTRO PLATFORM - Co's Maestro platform and Communications Cloud reinforced its model's durability and long-term value

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Bandwidth Inc is $20.00, about 54% above its February 18 closing price of $12.99

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPnb8Q3WRa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)