Bandwidth Q3 revenue beats estimates, raises EBITDA outlook

Bandwidth

30/10/2025 11:17

Overview

Bandwidth Q3 2025 revenue beats analyst expectations despite slight year-over-year decline

Adjusted EBITDA for Q3 2025 remains stable year-over-year at $24 mln

Company raises full-year adjusted EBITDA outlook to approximately $91 mln

Outlook

Bandwidth projects full-year 2025 revenue of $747 mln to $760 mln

Company raises full-year 2025 adjusted EBITDA outlook to $91 mln

Bandwidth expects growth in Voice AI and software revenue in 2026

Result Drivers

AI DEPLOYMENT - Bandwidth's results driven by enterprises moving from AI experimentation to large-scale deployment, per CEO David Morken

SOFTWARE REVENUE - Increasing mix of software-driven revenue contributed to solid Q3 performance, according to CFO Daryl Raiford

NEW DEALS - Record number of million-dollar-plus deals closed, enhancing Q3 results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$192 mln
$190.62 mln (5 Analysts)
Q3 Net Income
-$1 mln
Q3 Adjusted Gross Margin
58%
Q3 Gross Profit
$73.79 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "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 $17.50, about 4.2% above its October 29 closing price of $16.77

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPnbZH8r6a

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(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.)