Bandwidth Inc.

What they do

Bandwidth operates the Bandwidth Communications Cloud, an owned-and-operated network spanning more than 65 countries that reaches over 90 percent of global GDP. It sells APIs that let customers embed voice, messaging, emergency services, and AI capabilities into software and applications, and it was the first cloud communications provider to offer a broad set of APIs built on its own cloud platform. It reports as a single reportable segment.

Revenue drivers

• Global Voice Plans — Powers UCaaS and CCaaS leaders including Microsoft, Google, Zoom, Cisco, RingCentral, Genesys, and Five9, which the filing says are all 2025 Gartner Magic Quadrant Leaders in those categories.
• Messaging — The company cites customer demand across Voice and Messaging as a driver of second quarter 2026 revenue, which reached $220 million.
• Maestro and AI services — Maestro orchestration and AI services were included in each of the $1m+ customer wins and expansions in the second quarter of 2026.

Recent performance

For the three months ended June 30, 2026, total revenue was $220 million, up 22% from $180 million a year earlier, and net income was $2 million versus a $5 million net loss. For the six months ended June 30, 2026, revenue was $429 million versus $354 million, with net income of $7 million versus a $9 million net loss. Second quarter 2026 Adjusted EBITDA was $28 million, up 27% year over year, at a record 18% margin. GAAP gross margin was 36% in the second quarter of 2026 versus 40% a year earlier, while non-GAAP gross margin was 59% versus 58%. Second quarter net cash provided by operating activities was $29 million and free cash flow was $24 million.

Strategy

Bandwidth states three strategies: cross-sell and up-sell existing customers using its global footprint, APIs, and AI orchestration; focus on direct-to-enterprise growth serving Global 2000 companies; and be the preferred provider for enterprises and SaaS platforms using conversational voice and messaging. It frames AI voice as a critical new layer and says its Maestro platform and Communications Cloud are designed to orchestrate AI voice agents. In February 2026 the board authorized a share repurchase program of up to $80 million, with about $60 million remaining as of June 30, 2026.

Risks

• Macroeconomic and capital markets — The 10-K cites securities price volatility, reduced liquidity and credit availability, high inflation, and higher interest rates, and says uncertain capital markets could impair its ability to obtain financing or refinance debt.
• Gross margin compression — The 10-K states that higher rates of inflation have been experienced in the United States and that the company may experience compression in gross margins as a result.
• Regulatory and compliance costs — The company flags compliance with GDPR, the California Consumer Privacy Act, STIR/SHAKEN, and other robocalling and anti-spam standards, plus increased costs associated with such compliance.
• Network provider fees — The 10-K identifies as a risk its ability to manage fees that have been or may be instituted by network providers that increase its costs.

Outlook

Management raised its full-year 2026 outlook for both revenue and Adjusted EBITDA, citing sustained demand strength, accelerating business model fundamentals, growing visibility from recent enterprise wins, and momentum in AI-enabled communications. CEO David Morken said AI is increasing demand for trusted, scalable infrastructure and that the company is securing larger strategic wins across AI-native innovators, Global 2000 enterprises, and hyperscalers. CFO Daryl Raiford cited strong demand across Voice and Messaging and the structural advantages of the owned-and-operated global network.