Bandwidth (BAND) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 results, with double-digit organic revenue growth, increased software mix, improved margins, and strong free cash flow.

• Growth driven by accelerating Voice usage, AI-driven voice adoption, and large enterprise deals, with Maestro and Communications Cloud gaining traction.

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

• Entering 2026 with confidence in continued growth, margin expansion, and business model durability.

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

Financial highlights

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

• Q4 2025 revenue was $208M; Q4 EBITDA margin reached 17%, and Q4 Adjusted EBITDA was $25M.

• Non-GAAP gross margin expanded to 58% for 2025, up 100bps year-over-year.

• Adjusted EBITDA for 2025 was $93M, up 14% year-over-year; free cash flow was $57M, representing a 10% margin.

• Enterprise Voice revenue grew 21% for the year; Global Voice Plans revenue up 8%.

Outlook and guidance

• 2026 guidance: total revenue of $864M–$884M, representing 16% year-over-year growth, with 10% cloud communications growth.

• Adjusted EBITDA expected at $117M–$123M, up 29% year-over-year, targeting a 20% full-year margin.

• Non-GAAP EPS projected at $1.66–$1.74, up about 19%.

• Political campaign messaging expected to contribute roughly 2.5% of cloud communications revenue in 2026, with most impact in the second half.

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