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Bandwidth Inc. Announces Strong Second Quarter 2026 Results

On July 29, 2026, Bandwidth Inc. (NASDAQ: BAND), a prominent global company specializing in enterprise cloud communications, unveiled its financial results for the second quarter that ended on June 30, 2026. The company demonstrated remarkable growth, reporting a revenue increase of 22% year-over-year, reaching $220 million. Additionally, Bandwidth achieved an adjusted EBITDA of $28 million, reflecting a robust 27% year-over-year surge and setting a new record with an adjusted EBITDA margin of 18%.

Key Highlights

David Morken, Bandwidth's Co-Founder and CEO, emphasized that the accelerating shift towards AI-driven solutions is reshaping how enterprises assess their communications infrastructure. He noted, "AI is reshaping how enterprises evaluate communications infrastructure, increasing demand for trusted, scalable platforms capable of supporting mission-critical AI interactions." As organizations increasingly standardize on Bandwidth's solutions, the company is capitalizing on this trend, securing significant strategic customer wins in the thriving AI sector.

Financial Results

The results for the second quarter reveal a promising outlook for Bandwidth:

• - Revenue: $220 million, compared to $180 million in Q2 2025.
• - Gross Margin: Reported at 36%, while the non-GAAP gross margin stood at 59%.
• - Net Income: Bandwidth recorded a net income of $2 million, substantially improving from a loss of $5 million in the same quarter last year.
• - Adjusted EBITDA: Increased to $28 million, marking a notable growth from $22 million a year ago.
• - Free Cash Flow: Bandwidth generated $24 million in free cash flow, highlighting strong operational cash generation.

Customer Achievements

In the second quarter, Bandwidth celebrated several key customer wins and expansions, particularly those leveraging its Maestro orchestration platform and AI services. Noteworthy achievements include:

• - A substantial Midwestern healthcare system selected Bandwidth's services to transition from outdated communication infrastructures to modern cloud-based solutions, enhancing its AI capabilities.
• - A prominent European appliance care provider chose Bandwidth to streamline its communication across various markets, ensuring a reliable foundation for AI-enabled customer engagement.
• - A global electronic brokerage expanded its existing partnership with Bandwidth, consolidating its communications through a single trusted platform across regulatory markets.
• - A major player in the U.S. text messaging sector consolidated a vast majority of its messaging traffic onto Bandwidth’s platform to enhance operational efficiency.

Future Outlook

Looking ahead, Bandwidth is optimistic, raising its full-year 2026 financial expectations, fueled by sustained demand in AI-driven communication solutions. The company is now projecting:

• - Q3 2026 Revenue: Between $231 - $235 million
• - Full Year 2026 Revenue: Estimated between $900 - $910 million
• - Adjusted EBITDA: Forecast for Q3 stands at $32 - $34 million, and for the full year at $123 - $125 million

Daryl Raiford, CFO of Bandwidth, commented, "Our record quarterly results reflect the business model's strong earnings potential, driven by heightened customer demand across Voice and Messaging." With a robust product offering and a clear path for future growth, Bandwidth is well-positioned to continue its leading role in the ever-evolving communications landscape, particularly as AI adoption intensifies.

Conclusion

As Bandwidth Inc. builds upon its financial successes, the company's focus remains on innovation and delivering exceptional value to customers through its cloud communications services. The recent quarter confirms Bandwidth's expanding influence and the impact of its strategic decisions in meeting modern communication needs. Investors and stakeholders alike can anticipate further development from Bandwidth, bolstered by its commanding presence in the AI and cloud sectors.

For further inquiries, Bandwidth will host a conference call to discuss these financial results in detail, with a replay available through their investor section after the call.