Bandwidth Reports Q4 2025 Results, Projects Strong 2026 Growth, and Authorizes $80M Share Buyback
Summary
Bandwidth Inc. reported Q4 2025 financial results with record Adjusted EBITDA and free cash flow, issued strong 2026 guidance projecting significant revenue and EBITDA growth, and authorized an $80 million share repurchase program.
Key Events
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Q4 and Full Year 2025 Financial Results
Bandwidth reported Q4 2025 revenue of $208 million and a net loss of $(3) million, with Non-GAAP net income of $11 million. The company achieved record quarterly Adjusted EBITDA of $25 million and free cash flow of $31 million. For the full year 2025, revenue was $754 million, with a net loss of $(13) million and Non-GAAP net income of $46 million.
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Strong 2026 Financial Outlook
The company provided optimistic guidance for 2026, forecasting approximately 16% revenue growth and 29% Adjusted EBITDA growth. Full year 2026 revenue is expected to be between $864 million and $884 million, with Adjusted EBITDA projected to be $117 million to $123 million.
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$80 Million Share Repurchase Program Authorized
Bandwidth's Board of Directors authorized a share repurchase program of up to $80 million of its Class A common stock. This significant capital allocation decision reflects management's confidence in the company's valuation and future prospects.
Analysis
Bandwidth Inc. announced its fourth quarter and full year 2025 financial results, highlighting record Adjusted EBITDA and free cash flow for the quarter. The company provided a robust outlook for 2026, projecting approximately 16% revenue growth and 29% Adjusted EBITDA growth, signaling continued operational improvement and expansion. Crucially, the Board of Directors authorized an $80 million share repurchase program, which represents a substantial return of capital to shareholders and a strong vote of confidence in the company's future growth strategy and financial health.
At the time of this filing, BAND was trading at $12.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $396.5M. The 52-week trading range was $11.33 to $19.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.