Bandwidth (BAND) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $220M, up 22% year-over-year, with record Adjusted EBITDA of $28M (up 27% YoY) and an 18.3% margin, driven by strong AI adoption, major $1M+ customer wins, and enterprise modernization.

• Five $1M+ customer wins in Q2 2026, spanning healthcare, insurance, financial services, hyperscalers, and messaging, all leveraging Maestro or AI services.

• Investments in innovation, network expansion, and AI voice infrastructure are fueling growth and competitive differentiation.

• The business model fundamentals are accelerating, prompting a raised full-year 2026 outlook.

• Major debt refinancing and share repurchases improved the balance sheet and supported further investment.

Financial highlights

• Q2 2026 total revenue was $220M, up 22% YoY; Cloud Communications revenue was $152M, up 12%; Programmable Messaging revenue grew 22% to $31M.

• Non-GAAP gross profit rose 14% to $90M; non-GAAP gross margin improved to 59.4%; GAAP gross margin was 36%, down from 40% due to higher messaging surcharges.

• Adjusted EBITDA grew 27% to $28M, with a record 18.3% margin; non-GAAP EPS was $0.37.

• Free cash flow reached $24M; net leverage closed at 1.6x; cash and cash equivalents at June 30, 2026, were $170M.

• Net income for Q2 2026 was $2.4M, compared to a net loss of $4.9M in Q2 2025.

Outlook and guidance

• Q3 2026 revenue expected between $231M–$235M; adjusted EBITDA $32M–$34M; non-GAAP EPS $0.45–$0.49.

• Full-year 2026 revenue guidance raised to $900M–$910M (20% YoY growth); Adjusted EBITDA $123M–$125M (33% YoY growth); non-GAAP EPS $1.71–$1.79.

• Cloud Communications revenue guidance: $622M–$626M (11% YoY growth).

• Political campaign revenue for 2026 revised to $13M, down from $15M.

• Outlook raised due to strong enterprise demand and AI-driven customer wins.