Bandwidth (BAND) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $234.0M, up 22% YoY; Adjusted EBITDA was $34.8M, up 43%, with a record 22% margin.

• FY26 guidance midpoints rose across revenue, Adjusted EBITDA and non-GAAP EPS; management expects double-digit cloud communications growth in FY27.

• Growth reflected expanding platform usage, enterprise wins and messaging activity; carrier surcharges pressured reported gross margin.

Financial highlights

• Total revenue was $234.0M, up 22% YoY; cloud communications revenue was $158.5M, up 12%.

• Non-GAAP gross profit rose 18% to $96M and non-GAAP gross margin was 60.6%; GAAP gross margin fell to 36% from 38%, reflecting higher carrier messaging surcharge revenue.

• Adjusted EBITDA was $34.8M, up 43%; non-GAAP net income was $19.9M and diluted EPS was $0.50.

• Q3 free cash flow was $33.0M, up 151% YoY; YTD free cash flow was $56.1M versus $25.5M.

• GAAP net income was $5.2M versus a $1.2M loss a year earlier; operating income was $1.8M.

Outlook and guidance

• FY26 revenue guidance is $905M–$910M, including cloud communications revenue of $624M–$626M; midpoint growth is 20% and 11%, respectively.

• FY26 Adjusted EBITDA guidance is $124M–$125M, or 34% growth at midpoint; non-GAAP EPS guidance is $1.73–$1.79.

• Commercial cloud communications revenue expectation rose $4M; political campaign revenue expectation fell $3M to $10M for FY26.

• Double-digit FY27 cloud communications growth is expected despite lapping political messaging revenue; Q4 2026 is expected to mark a growth-rate turning point.

• Q4 2026 guidance: revenue $242M–$247M, Adjusted EBITDA $36M–$37M and non-GAAP EPS $0.52–$0.58.