Revenue growth has decelerated significantly, with the company reporting a -1.1% year-over-year decline in 2025Q4 and persistent negative operating margins that reached -2.2% in 2026Q1.
| Sales/Revenue | 209.36B | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M | 343.11M | 232.59M | 204.11M | 162.96M | 152.13M | 137.8M |
| Revenue Growth % | 27752.2% | 0.71% | 24.52% | 4.88% | 16.75% | 43.07% | 47.52% | 13.95% | 25.26% | 7.11% | 10.4% | - |
| Cost of Goods Sold | 131.23B | 483.71M | 468.53M | 364.96M | 334.8M | 272.38M | 185.25M | 124.96M | 108.14M | 89.26M | 85.22M | 79.24M |
| COGS % of Revenue | - | 64.17% | 62.6% | 60.71% | 58.41% | 55.49% | 53.99% | 53.72% | 52.98% | 54.78% | 56.01% | 57.5% |
| Gross Profit | 78.13B | 270.1M | 279.96M | 236.16M | 238.35M | 218.52M | 157.86M | 107.64M | 95.97M | 73.69M | 66.92M | 58.56M |
| Gross Margin % | 37.32% | 35.83% | 37.4% | 39.29% | 41.59% | 44.51% | 46.01% | 46.28% | 47.02% | 45.22% | 43.99% | 42.5% |
| Gross Profit Growth % | - | -3.52% | 18.55% | -0.92% | 9.07% | 38.43% | 46.66% | 12.16% | 30.23% | 10.13% | 14.27% | - |
| Operating Expenses | 82.76B | 284.47M | 300.02M | 271.61M | 262.68M | 220.76M | 171.37M | 125.33M | 89.22M | 59.08M | 51.67M | 50.6M |
| OpEx % of Revenue | - | 37.74% | 40.08% | 45.18% | 45.83% | 44.97% | 49.94% | 53.88% | 43.71% | 36.25% | 33.97% | 36.72% |
| Selling, General & Admin | 44.2B | 176.9M | 181.39M | 167.43M | 164.69M | 165.59M | 129.31M | 93.87M | 68.32M | 48.29M | 43.15M | 43.22M |
| SG&A % of Revenue | - | 23.47% | 24.23% | 27.85% | 28.73% | 33.73% | 37.69% | 40.36% | 33.47% | 29.63% | 28.36% | 31.37% |
| Research & Development | 38.57B | 125.27M | 118.63M | 104.19M | 97.99M | 55.17M | 42.06M | 31.46M | 20.9M | 10.79M | 8.52M | 7.38M |
| R&D % of Revenue | - | 16.62% | 15.85% | 17.33% | 17.1% | 11.24% | 12.26% | 13.53% | 10.24% | 6.62% | 5.6% | 5.35% |
| Other Operating Expenses | -1000K | -17.71M | 0 | 0 | 0 | 0 | 0 | 0 | 301K | 0 | 0 | 0 |
| Operating Income | -4.63B | -14.37M | -20.06M | -35.46M | -24.32M | -2.24M | -13.51M | -17.69M | 6.75M | 14.62M | 15.24M | 7.96M |
| Operating Margin % | -2.21% | -1.91% | -2.68% | -5.9% | -4.24% | -0.46% | -3.94% | -7.61% | 3.31% | 8.97% | 10.02% | 5.78% |
| Operating Income Growth % | - | 28.37% | 43.43% | -45.77% | -987.35% | 83.44% | 23.67% | -362.04% | -53.81% | -4.11% | 91.46% | - |
| EBITDA | -4.57B | 42.78M | 29.18M | 15.58M | 18.25M | 40.13M | 8.11M | -3.89M | 12.58M | 20.33M | 21.39M | 15.04M |
| EBITDA Margin % | -2.18% | 5.68% | 3.9% | 2.59% | 3.18% | 8.17% | 2.36% | -1.67% | 6.16% | 12.48% | 14.06% | 10.91% |
| EBITDA Growth % | -13659.46% | 46.6% | 87.27% | -14.62% | -54.51% | 394.78% | 308.7% | -130.9% | -38.14% | -4.94% | 42.22% | - |
| D&A (Non-Cash Add-back) | 61.28M | 57.15M | 49.24M | 51.04M | 42.58M | 42.36M | 21.61M | 13.81M | 5.82M | 5.71M | 6.14M | 7.08M |
| EBIT | -15.86M | -14.56M | -7.09M | -18.5M | 20.35M | -2.53M | -13.51M | -17.69M | 6.75M | 14.62M | 15.24M | 7.96M |
| Net Interest Income | -1.34M | -1.73M | -1.86M | -808K | -3.05M | -28.78M | -13.67M | 0 | 301K | -1.73M | -908K | -589K |
| Interest Income | 200K | 300K | 0 | 0 | 0 | 0 | 2.73M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.54M | 2.03M | 1.86M | 808K | 3.05M | 28.78M | 16.41M | 0 | 301K | 1.73M | 908K | 589K |
| Other Income/Expense | 7.21B | -2.22M | 11.11M | 16.15M | 41.63M | -28.96M | -15.47M | 2.47M | 301K | -1.73M | -908K | -589K |
| Pretax Income | 2.58B | -16.59M | -8.95M | -19.3M | 17.31M | -31.2M | -28.97M | -15.22M | 7.05M | 12.89M | 14.34M | 7.37M |
| Pretax Margin % | 1.23% | -2.2% | -1.2% | -3.21% | 3.02% | -6.35% | -8.44% | -6.55% | 3.46% | 7.91% | 9.42% | 5.35% |
| Income Tax | -1.53B | -3.68M | -2.43M | -2.96M | -2.26M | -3.83M | 15.01M | -17.72M | -10.87M | 6.92M | -11.09M | 408K |
| Effective Tax Rate % | -59.31% | 22.17% | 27.13% | 15.33% | -13.08% | 12.29% | -51.79% | 116.38% | -154.12% | 53.67% | -77.39% | 5.53% |
| Net Income | 4.11B | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M | -43.98M | 2.49M | 17.92M | 5.97M | 22.36M | -6.7M |
| Net Margin % | 1.96% | -1.71% | -0.87% | -2.72% | 3.41% | -5.57% | -12.82% | 1.07% | 8.78% | 3.66% | 14.7% | -4.86% |
| Net Income Growth % | 398628.42% | -97.92% | 60.08% | -183.51% | 171.52% | 37.78% | -1863.31% | -86.08% | 200.17% | -73.29% | 433.7% | - |
| Net Income (Continuing) | 4.11B | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M | -43.98M | 2.49M | 17.92M | 5.97M | 25.43M | 6.96M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13.66M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 124.67 | -0.43 | -0.24 | -0.64 | -0.48 | -1.09 | -1.83 | 0.10 | 0.85 | 0.37 | 1.33 | -0.46 |
| EPS Growth % | -873.13% | -79.17% | 62.5% | -33.33% | 55.96% | 40.44% | -1930% | -88.24% | 129.73% | -72.18% | 389.13% | - |
| EPS (Basic) | - | -0.43 | -0.24 | -0.64 | 0.77 | -1.09 | -1.83 | 0.11 | 0.85 | 0.42 | 1.43 | -0.49 |
| Diluted Shares Outstanding | 32.96M | 30M | 27.21M | 25.61M | 30.91M | 25.09M | 24.09M | 23.92M | 21.14M | 14.54M | 14.57M | 14.57M |
| Basic Shares Outstanding | 31.68M | 30M | 27.21M | 25.61M | 25.28M | 25.09M | 24.09M | 22.64M | 21.09M | 12.59M | 13.58M | 13.58M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 134.18% | - |
Negative Operating Margin Persistence
As reported in recent financial filings, Bandwidth's year-over-year revenue growth has decelerated significantly, with the most recent quarterly figures showing a marked departure from the double-digit expansion observed in early 2024, suggesting that the company is struggling to capture incremental volume in its core US market.
The transition from high-teens growth rates in early 2024 to near-zero growth suggests that the company's usage-based model is facing headwinds from either market saturation or aggressive competitive pricing. Investors should monitor whether this deceleration reflects a structural shift in enterprise demand or merely a temporary lull in messaging volume.
Based on the provided income statement data, Bandwidth's gross margin has fluctuated within a narrow band, peaking at 41% in early 2025 before retreating, which highlights the inherent difficulty of scaling a facilities-based carrier model against rising network interconnect and carrier pass-through costs.
The inability to consistently expand gross margins above the 40% threshold suggests that the company lacks the pricing power to fully offset the rising costs of 10DLC messaging and other carrier surcharges. This structural limitation implies that Bandwidth may remain tethered to a lower-margin utility profile rather than a high-margin software-as-a-service trajectory.
According to the company's quarterly income statements, operating margins have remained consistently negative, hovering near -2% in recent periods, which indicates that the firm has yet to achieve the necessary scale to cover its substantial R&D and SG&A expenses through its current revenue base.
The persistence of negative operating income despite significant revenue volume suggests that the company's cost structure is highly rigid. Without a clear path to scaling operating expenses slower than gross profit, the firm may continue to struggle with achieving GAAP profitability in the near term.
Analysis of the provided financial data reveals that stock-based compensation remains a meaningful component of the company's expense structure, often exceeding $12 million per quarter, which complicates the interpretation of GAAP net income and necessitates a focus on cash-based performance metrics for a clearer view.
The reliance on stock-based compensation to manage cash outflows while maintaining negative net income warrants further investigation into the company's long-term dilution profile. Investors should be cautious of the gap between reported GAAP results and the underlying cash-generating capability of the core communications infrastructure business.
While the company's status as a Tier 1 carrier provides a theoretical barrier to entry, the stagnant revenue growth and negative operating margins suggest that the market may be correct in pricing Bandwidth as a commodity pipe rather than a high-value software infrastructure partner.
Short-sellers may focus on the risk that the company's physical network assets become a liability rather than an asset if software-defined competitors continue to gain share without the burden of heavy regulatory and interconnection costs. The lack of operating leverage suggests that the company's competitive moat may not be translating into the superior unit economics typically expected of software-centric businesses.
Quick answers to the most common questions about buying BAND stock.
For fiscal year 2025, Bandwidth Inc. (BAND) reported total revenue of $753.8M. This represents a 447.0% increase compared to $137.8M in 2015.
Bandwidth Inc. (BAND) reported a net loss of $12.9M for the fiscal year ending 2025.
Bandwidth Inc. (BAND) reported an operating income of $-14.4M, resulting in an operating profit margin of -1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Bandwidth Inc. (BAND) generated $270.1M in gross profit for the year, representing a gross profit margin of 35.8%. This demonstrates the company's core pricing power and production efficiency.