Bandwidth Reports Impressive Financial Performance for Fourth Quarter and Year-End 2025

Bandwidth's Financial Success in 2025

In a recent report dated February 19, 2026, Bandwidth Inc. (NASDAQ: BAND), a prominent enterprise cloud communications company, revealed its financial results for both the fourth quarter and the entire year of 2025. The report is a testament to the company's resilience and strategic initiatives in a competitive market.

Strong Q4 Performance

For the fourth quarter of 2025, Bandwidth achieved revenue of $208 million, slightly down from $210 million in the previous quarter. Nevertheless, the company recorded an impressive gross margin of 38%, reflecting its ability to manage costs effectively while maintaining competitive pricing structures. The Non-GAAP gross margin stood at a remarkable 57%, highlighting operational efficiency.

Key Financial Metrics

In terms of profitability, Bandwidth reported a net loss of $3 million, with Non-GAAP net income being $11 million. The Adjusted EBITDA surged to $25 million, slightly up from the $23 million reported in the corresponding period last year. This indicates robust operational performance and strong cash generation capabilities, evidenced by a free cash flow of $31 million.

Full Year Financial Highlights

For the full year ended December 31, 2025, Bandwidth's revenue rose to $754 million, compared to $748 million in 2024. The company’s gross margin improved to 39%, with Non-GAAP net income increasing to $46 million from $41 million in the previous year. Adjusted EBITDA for the year reached $93 million, underscoring the company's effective cost management and growth strategies.

CEO David Morken expressed optimism about the company's direction, stating, "2025 was a year of sustained business performance and strengthening fundamentals for Bandwidth..." He pointed out the growing reliance on their Maestro platform and Communications Cloud, which have facilitated AI integrations in enterprise environments. This trend reflects the increasing demand for advanced communication solutions and the company's ability to adapt.

2026 Outlook

Looking into 2026, Bandwidth anticipates approximately 16% revenue growth and a 29% increase in Adjusted EBITDA. This positive outlook is backed by a solid demand for voice services and a burgeoning software segment. Bandwidth’s board has also authorized an $80 million share repurchase program, signaling confidence in its long-term growth strategies and value creation for shareholders.

Major Client Wins

During Q4, Bandwidth secured significant contracts with prominent enterprises such as a leading U.S. insurance group and a major bank, further solidifying its position in the cloud communications space. Other notable clients included a top global automaker and a prominent e-commerce platform, illustrating Bandwidth's diverse customer base and the increasing adoption of its advanced communication services.

Conclusion

Bandwidth Inc. continues to thrive amid competitive pressures, showcasing strong financial results for 2025. As the company gears up for 2026, it remains committed to innovation, customer satisfaction, and sustainable growth. Investors and stakeholders alike can look forward to witnessing Bandwidth’s continued evolution in the cloud communications landscape.

For more detailed insight into Bandwidth's financial performance, a conference call will be held on February 19, 2026, at 8:00 AM ET, providing an opportunity for stakeholders to gain further understanding of the company's future direction and strategies.