Bandwidth Q3 revenue beats estimates, raises EBITDA outlook

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

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:

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