Bandwidth Q1 revenue beats estimates on demand for AI-driven platform; outlook raised

Bandwidth

30/04/2026 12:29

Overview

US cloud communications firm's Q1 revenue rose 20% yr/yr, beating analyst expectations

Adjusted EBITDA for Q1 increased 17% yr/yr to $26 mln

Company raised full-year 2026 outlook for revenue and adjusted EBITDA

Outlook

Bandwidth raises full-year 2026 revenue outlook to $880 mln-$900 mln

Company expects Q2 2026 revenue between $214 mln and $220 mln

Bandwidth sees full-year 2026 adjusted EBITDA of $119 mln-$125 mln

Result Drivers

AI PLATFORM ADOPTION - Co said accelerating adoption of its AI-driven platform increased usage and value capture

LARGE ENTERPRISE DEALS - Strong momentum in large enterprise segment, including $1 mln+ wins and selection by Salesforce for Agentforce Contact Center

HIGH-VOLUME MESSAGING - Continued growth in high-volume messaging contributed to results

Company press release: ID:nPn4syRcZa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$209 mln
$196.33 mln (5 Analysts)
Q1 Net Income
$4.1 mln
Q1 Adjusted Gross Margin
59.00%
Q1 Gross Profit
$77.91 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Bandwidth Inc is $23.50, about 2.9% below its April 29 closing price of $24.20

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)