Bandwidth Q4 revenue slightly misses analyst expectations

Bandwidth

19/02/2026 12:08

Overview

Cloud communications firm's Q4 revenue slightly missed analyst expectations

Company achieved record Q4 adjusted EBITDA and free cash flow

Company authorized $80 mln share repurchase program

Outlook

Bandwidth expects 2026 revenue to grow by approximately 16% to $864 mln - $884 mln

Company forecasts 1Q 2026 revenue between $200 mln and $203 mln

Bandwidth projects full-year 2026 Adjusted EBITDA between $117 mln and $123 mln

Result Drivers

AI-DRIVEN VOICE SERVICES - Co cited increased enterprise adoption of AI-driven voice services as a key driver of Q4 results

CUSTOMER DEPLOYMENTS - Major U.S. companies deployed Bandwidth's services for cloud-based customer experiences and AI-enabled communications

MAESTRO PLATFORM - Co's Maestro platform and Communications Cloud reinforced its model's durability and long-term value

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$208 mln
$208.30 mln (5 Analysts)
Q4 Net Income
-$3 mln
Q4 Adjusted Gross Margin
57.00%
Q4 Gross Profit
$78.08 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $20.00, about 54% above its February 18 closing price of $12.99

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPnb8Q3WRa

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.)