Bandwidth (BAND) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of $209 million, up 20% year-over-year, and adjusted EBITDA of $26 million, exceeding expectations and prompting a full-year guidance raise.

• Accelerated adoption of AI-driven platform, with significant large enterprise wins, including Salesforce selection for Agentforce Contact Center and multi-million-dollar deals in financial services.

• Maestro AI orchestration platform and owned network are driving platform expansion and positioning as a backbone for AI-first enterprises.

• Strengthened balance sheet through debt reduction and share repurchase initiatives, including $100 million of 2028 convertible notes repurchased at a discount.

• Land-and-expand model driving higher usage, increased software attachment, and durable revenue growth across voice and messaging.

Financial highlights

• Q1 2026 revenue: $209 million (+20% year-over-year); Cloud Communications revenue: $150 million (+13%).

• Non-GAAP gross profit: $89 million (+14%); non-GAAP gross margin: 59.5% (+50 bps); GAAP gross margin: 37%.

• Adjusted EBITDA: $26 million (+17%); non-GAAP EPS: $0.38 (+6%); net income: $4.1 million.

• Net retention rate: 102%; commercial net retention rate (normalized): 110%; customer name retention: >99%.

• Average annual revenue per customer reached $244,000, up 16% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected at $214–$220 million; adjusted EBITDA $24–$27 million; non-GAAP EPS: $0.35–$0.37.

• Full-year 2026 revenue guidance raised to $880–$900 million (+18% at midpoint); Cloud Communications $616–$624 million (+10%).

• Adjusted EBITDA outlook: $119–$125 million (+31% at midpoint); non-GAAP EPS: $1.77–$1.83 (+26%).

• Political campaign messaging expected to contribute $15 million in H2 Cloud Communications revenue.

• Full-year 2026 guidance assumes 18% total revenue growth and 31% Adjusted EBITDA growth year-over-year.