Revenue grew 22.0% year over year to $234.0M in 2026Q3, yet operating margin of 0.8% and net margin of 2.2% remain thin, warranting continued scrutiny of SG&A of $46.5M against revenue scale.
Bandwidth Inc. (BAND) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 870.37M | 753.82M | 748.49M | 601.12M | 573.15M | 490.91M | 343.11M | 232.59M | 204.11M | 162.96M | 152.13M | 137.8M |
| Revenue Growth % | 15.11% | 0.71% | 24.52% | 4.88% | 16.75% | 43.07% | 47.52% | 13.95% | 25.26% | 7.11% | 10.4% | - |
| Cost of Goods Sold | 551.03M | 458.77M | 468.53M | 364.96M | 334.8M | 272.38M | 185.25M | 124.96M | 108.14M | 89.26M | 85.22M | 79.24M |
| COGS % of Revenue | - | 60.86% | 62.6% | 60.71% | 58.41% | 55.49% | 53.99% | 53.72% | 52.98% | 54.78% | 56.01% | 57.5% |
| Gross Profit | 319.33M | 295.05M | 279.96M | 236.16M | 238.35M | 218.52M | 157.86M | 107.64M | 95.97M | 73.69M | 66.92M | 58.56M |
| Gross Margin % | 36.69% | 39.14% | 37.4% | 39.29% | 41.59% | 44.51% | 46.01% | 46.28% | 47.02% | 45.22% | 43.99% | 42.5% |
| Gross Profit Growth % | - | 5.39% | 18.55% | -0.92% | 9.07% | 38.43% | 46.66% | 12.16% | 30.23% | 10.13% | 14.27% | - |
| Operating Expenses | 330.64M | 309.42M | 300.02M | 271.61M | 262.68M | 220.76M | 171.37M | 125.33M | 89.22M | 59.08M | 51.67M | 50.6M |
| OpEx % of Revenue | - | 41.05% | 40.08% | 45.18% | 45.83% | 44.97% | 49.94% | 53.88% | 43.71% | 36.25% | 33.97% | 36.72% |
| Selling, General & Admin | 181.21M | 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 | 149.43M | 132.52M | 118.63M | 104.19M | 97.99M | 55.17M | 42.06M | 31.46M | 20.9M | 10.79M | 8.52M | 7.38M |
| R&D % of Revenue | - | 17.58% | 15.85% | 17.33% | 17.1% | 11.24% | 12.26% | 13.53% | 10.24% | 6.62% | 5.6% | 5.35% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 301K | 0 | 0 | 0 |
| Operating Income | -11.3M | -14.37M | -20.06M | -35.46M | -24.32M | -2.24M | -13.51M | -17.69M | 6.75M | 14.62M | 15.24M | 7.96M |
| Operating Margin % | -1.3% | -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 | 55.41M | 39.4M | 29.18M | 6.26M | 11.28M | 40.13M | 8.11M | -3.89M | 12.58M | 20.33M | 21.39M | 15.04M |
| EBITDA Margin % | 6.37% | 5.23% | 3.9% | 1.04% | 1.97% | 8.17% | 2.36% | -1.67% | 6.16% | 12.48% | 14.06% | 10.91% |
| EBITDA Growth % | 43.38% | 34.99% | 366.18% | -44.48% | -71.9% | 394.78% | 308.7% | -130.9% | -38.14% | -4.94% | 42.22% | - |
| D&A (Non-Cash Add-back) | 66.72M | 53.76M | 49.24M | 41.72M | 35.6M | 42.36M | 21.61M | 13.81M | 5.82M | 5.71M | 6.14M | 7.08M |
| EBIT | -4.5M | -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 | -2.31M | -2.03M | -1.86M | -808K | -3.05M | -28.78M | -13.67M | 0 | 301K | -1.73M | -908K | -589K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 2.73M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.31M | 2.03M | 1.86M | 808K | 3.05M | 28.78M | 16.41M | 0 | 301K | 1.73M | 908K | 589K |
| Other Income/Expense | 12.38M | -2.22M | 11.11M | 16.15M | 41.63M | -28.96M | -15.47M | 2.47M | 301K | -1.73M | -908K | -589K |
| Pretax Income | 1.07M | -16.59M | -8.95M | -19.3M | 17.31M | -31.2M | -28.97M | -15.22M | 7.05M | 12.89M | 14.34M | 7.37M |
| Pretax Margin % | 0.12% | -2.2% | -1.2% | -3.21% | 3.02% | -6.35% | -8.44% | -6.55% | 3.46% | 7.91% | 9.42% | 5.35% |
| Income Tax | -7.68M | -3.68M | -2.43M | -2.96M | -2.26M | -3.83M | 15.01M | -17.72M | -10.87M | 6.92M | -11.09M | 408K |
| Effective Tax Rate % | -717.94% | 22.17% | 27.13% | 15.33% | -13.08% | 12.29% | -51.79% | 116.38% | -154.12% | 53.67% | -77.39% | 5.53% |
| Net Income | 8.75M | -12.91M | -6.52M | -16.34M | 19.57M | -27.36M | -43.98M | 2.49M | 17.92M | 5.97M | 22.36M | -6.7M |
| Net Margin % | 1.01% | -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 % | 174.99% | -97.92% | 60.08% | -183.51% | 171.52% | 37.78% | -1863.31% | -86.08% | 200.17% | -73.29% | 433.7% | - |
| Net Income (Continuing) | 8.75M | -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) | 0.22 | -0.43 | -0.24 | -0.64 | 0.63 | -1.09 | -1.83 | 0.10 | 0.85 | 0.37 | 1.33 | -0.46 |
| EPS Growth % | 70.29% | -79.17% | 62.5% | -201.59% | 157.8% | 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 | 40.13M | 30M | 27.21M | 25.61M | 30.91M | 25.09M | 24.09M | 23.92M | 21.14M | 14.54M | 14.57M | 14.57M |
| Basic Shares Outstanding | 32.24M | 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% | - |
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 $295.1M in gross profit for the year, representing a gross profit margin of 39.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Thin operating margins persist
Metrics are mathematically derived from official filings.
Revenue Rebounds Sharply from Trough
According to the reported quarterly income statements, Bandwidth's revenue climbed from $174.2M in 2025Q1 to $234.0M in 2026Q3, with year-over-year growth reaching 22.0% in the latest quarter after a period of contraction.
The reacceleration in top-line growth, moving from negative territory in late 2025 to roughly 20% in 2026, suggests demand recovery rather than a one-quarter anomaly. Investors should monitor whether this growth is volume-driven or reflects pricing actions, since the reported data does not separate these components. The durability of a 22% growth rate after several flat quarters warrants further investigation.
Gross Margin Compression Versus Peers
Based on reported figures, Bandwidth's gross margin declined from 41.0% in 2025Q1 to 34.2% in 2026Q1 before recovering to 36.2%, which remains well below Twilio's 48.9% gross margin.
The gap relative to TWLO suggests Bandwidth has weaker structural pricing power or a higher cost-of-service burden per unit of revenue. The recent recovery to 36.2% is encouraging but has not restored the margin level seen a year earlier. Cyclicality in carrier and usage-based pricing may explain part of the volatility, though the reported data alone does not confirm this.
Operating Leverage Remains Unproven
Based on EDBL-style reported figures, operating income turned slightly positive at $1.8M in 2026Q3 as SG&A held near $46.5M, yet operating margin of 0.8% remains thin relative to revenue scale.
Gross profit grew from $71.5M to $84.8M across the period while operating expenses stayed broadly flat, which indicates some operating leverage is emerging. However, operating margin has only just crossed into positive territory, so the leverage benefit is small in absolute terms. Investors should watch whether incremental gross profit continues to fall through to operating income.
Net Income Diverges From Operations
As reported in the financial statements, net income of $5.2M in 2026Q3 exceeded operating income of $1.8M, while diluted EPS of $0.13 contrasts with a negative EPS of -$0.10 in 2025Q4.
The gap between operating income and net income in several quarters suggests non-operating items or tax effects are influencing reported earnings. Stock-based compensation of roughly $12-14M per quarter is material relative to operating income, which suggests a meaningful share of economic cost sits outside the reported operating line. Earnings quality should be assessed cautiously given the volatility in the bottom line.
Persistent Losses Mask Fragile Profitability
According to the reported figures, Bandwidth posted operating losses in seven of ten quarters, and the recent positive quarter rests on a single period of $1.8M operating income against $46.5M of SG&A.
A bear case would emphasize that the profitable quarter may not be representative, given that operating margins were negative in most of the observed history. Stock-based compensation of around $13M per quarter could be masking the true cost base, and growth above 20% may not persist if usage-based revenue is cyclical. Investors should monitor whether margin gains are sustained over several consecutive quarters before extrapolating.