Bandwidth (BAND) Citizens JMP Technology Conference 2026 summary

Business performance and industry trends

• Voice services are experiencing renewed growth, driven by the rise of AI voice agents at scale, with significant relevance for global communications platforms.

• AI voice agents require global reach, ultra-low latency, and high-fidelity networks, which are being met by platforms with extensive international footprints.

• The next billion users of the PSTN are expected to be AI voice agents, creating unique and growing demand for communication infrastructure.

• Enterprises are shifting from AI experimentation to full-scale production deployments, accelerating network consumption and platform adoption.

• Incumbent telecom providers are raising prices, but platforms with owned infrastructure are seeing increased enterprise demand and improved margins.

Financial highlights and guidance

• Achieved record profitability and cash flow in the latest quarter, exceeding guidance, with 10% revenue growth and strong cloud communications performance.

• Software services, including Maestro, Call Assure, and Trust Services, are generating recurring high-margin revenue, with a $15 million ARR exit run rate.

• For every incremental dollar of cloud communications revenue in 2025, $0.82 is yielded in gross profit, with a non-GAAP margin of 59%.

• Guidance includes a 14% adjusted EBITDA margin for next year and nearly 30% EBITDA growth to $120 million at the midpoint for 2026.

• Free cash flow targets have been exceeded ahead of schedule, supporting balanced capital allocation, including share repurchases and debt reduction.

Strategic initiatives and competitive positioning

• The Maestro platform's agnostic orchestration layer enables integration with multiple vendors, supporting flexibility and rapid deployment for large enterprises.

• Achieved a 100% attach rate of Maestro in enterprise deals, contributing to record-setting deal flow and customer retention.

• Maintains a strong competitive moat through regulatory approvals, global infrastructure, and significant capital investment, deterring new entrants.

• Offers more cloud features at lower cost than incumbents, with zero churn in the fastest-growing enterprise voice segment over the past two years.

• Focus remains on organic growth, with opportunistic M&A considered but not prioritized.