Bandwidth (BAND) Q1 2026 earnings summary

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 raise in full-year guidance.

• Accelerated adoption of AI-driven platforms, with significant enterprise wins including Salesforce as a critical infrastructure partner for Agentforce Contact Center.

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

• Strategic focus on powering mission-critical communications for AI-driven enterprises, leveraging unique network ownership and Maestro orchestration platform.

• Raised full-year 2026 outlook for revenue and Adjusted EBITDA due to strong demand and operational momentum.

Financial highlights

• Q1 2026 revenue reached $209 million, a 20% year-over-year increase; cloud communications revenue was $150 million, up 13% year-over-year; messaging surcharge revenue was $59 million.

• Non-GAAP gross profit grew 14% to $89 million; non-GAAP gross margin was 59.5%; GAAP gross margin was 37%, down from 41% year-over-year.

• Adjusted EBITDA increased 17% to $26 million; Adjusted EBITDA margin was 12.4%; non-GAAP EPS rose 6% to $0.38.

• Net income was $4 million, compared to a net loss of $4 million in Q1 2025; non-GAAP net income was $13 million.

• Free cash flow improved to near break-even, with net cash provided by operating activities of $8.8 million.

Outlook and guidance

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

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

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

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

• Management expects continued growth driven by AI adoption, cloud migration, and enterprise demand for communications APIs.