Bandwidth (BAND) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 results, with double-digit organic revenue growth, record enterprise deals, and strong AI-driven innovation and adoption in production environments.

• Growth was driven by accelerating Voice usage, seasonal messaging demand, expanding AI voice adoption, and higher software services contribution.

• Durable, scalable business model supported by long-term customer relationships, owned infrastructure, and expanding software services.

• Board authorized an inaugural $80 million share repurchase program, reflecting confidence in growth and cash flow generation.

Financial highlights

• Full-year 2025 revenue reached $754 million, up 10% organically year-over-year; cloud communications revenue was $561 million, up 19% year-over-year, normalized.

• Q4 2025 revenue was $208 million; Q4 2025 Adjusted EBITDA reached $25 million, and full-year Adjusted EBITDA was $93 million.

• Non-GAAP gross margin expanded to 58% for the year; adjusted EBITDA margin was 17% in 2025.

• Free cash flow for 2025 was $57 million, representing a 10% margin.

• Enterprise Voice revenue grew 21% for the year; Programmable Messaging up 7% organically.

Outlook and guidance

• 2026 guidance projects total revenue of $864–$884 million, up 16% year-over-year, with cloud communications up 10%.

• Adjusted EBITDA expected to improve nearly 29–30% year-over-year, targeting a 20% margin and non-GAAP EPS of $1.66–$1.74.

• Political campaign messaging expected to contribute about 2.5% of cloud communications revenue in 2026.

• Beyond 2026, expects sustained double-digit cloud communications growth, margin expansion, and strong free cash flow.

• Q1 2026 revenue guidance: $200–$203 million; Adjusted EBITDA: $21–$24 million; non-GAAP EPS: $0.30–$0.32.