Bandwidth : Q1 2026 Earnings Presentation

Published: 2026-04-30 07:25:51 ET BAND

Published on 04/30/2026 at 07:25 am EDT

April 30, 2026

AI, voice & messaging

Providing Global Comms at Scale Across Three Customer Categories

Global Voice Plans

Powering hyperscalers and global cloud platforms across Contact Center, CRM, and Unified Communications

Enterprise Voice

Powering mission-critical, AI-driven communications for Global 2000 enterprises elevating customer experience

Programmable Messaging

Powering customer engagement and notifications across messaging channels

Bandwidth's Competitive Edge

Owned network and regulatory licenses across nearly 70 countries with ~7,000 direct carrier connections worldwide

→ Structural margin advantage and durable barriers to entry

Maestro enables enterprises to deploy and scale AI voice agents with ultra-low latency, reliability, scalability-with trust and compliance embedded

→ Higher usage, richer call ﬂows, and expanding software revenue

Trusted platform for hyperscalers and global enterprises

→ Sustained >99% customer retention

Bandwidth: Critical Infrastructure in the AI Tech Stack

Usage Model

More interactions from AI agents

Continuous, automated communication

AI Voice Applications

Enterprise Systems & Workflows

Bandwidth Communications Cloud

Owned Global Network + Maestro Orchestration Software

~7,000 direct carrier connections

Global Communications Ecosystem

expands with AI voice adoption

flows increase platform usage

Higher value per interaction

Additional call legs, services, and software expand revenue per interaction

ENTERPRISE AI TECH STACK

Deeply embedded in governed workflows

Trust, compliance, and integrations built into the network

Orchestration layer for AI-driven communications

Maestro connects AI agents across enterprise systems

Control and observability for high-value interactions

Source of truth, visibility, auditability at enterprise scale

1Q26 TTM Financial Highlights

$788m

Total revenue

13%1

Total revenue y/y growth

$578m

Cloud communications revenue2

10%3

Cloud communications revenue2 y/y growth

$97m

Adjusted EBITDA

10%

Adjusted EBITDA4 y/y growth

$69m

Free cash flow4

40%

Free cash flow4 y/y growth

1 Normalized for political campaign revenue of $54m for the TTM period ended Q1'25.

2 Cloud communications revenue is total revenue less pass-through messaging surcharge revenue.

3 Normalized for political campaign revenue of $20m for the TTM period ended Q1'25 in cloud communications revenue. 7

4 See appendix for GAAP to non-GAAP reconciliation.

Note: See Appendix for definitions and calculations of metrics presented on this slide.

Strong Customer Retention

99%

12 years

Customer Name Retention

Net Retention Rate

Top 20 Customer Median Tenure

1 Net retention rate is calculated as the four-quarter average of dollar-based net retention, excluding $54M of campaign revenue from 2Q'24-4Q'24. Note: Customer metrics as of March 31, 2026. See Appendix for definitions of metrics presented in this slide.

Revenue Performance

20%

1Q26 Total revenue growth y/y

13%

1Q26 Cloud communications revenue1 growth y/y

$138

$171 $174

$209

$23

$114

$43

$41

$59

$150

$133

$128

1Q23 1Q24 1Q25 1Q26

(USD Millions)

1 Cloud communications revenue is total revenue less pass-through messaging surcharge revenue.

2 Messaging surcharges is defined as pass-through messaging surcharges levied by carriers on Application to Person (A2P) text messages.

. 9

Cloud Communications Revenue by Customer Category

1Q26 % of revenue

71%

$150m1 9%

20%

Global Voice Plans 12% y/y

Enterprise Voice 14% y/y

Programmable Messaging 15% y/y

1 Represents Cloud communications revenue, which is total revenue less pass-through messaging surcharge revenue, for the quarter ended March 31, 2026.

Customer Metrics

$244k

Average annual customer revenue

16%2

Average annual customer revenue growth y/y

102%

Adjusted Net Retention Rate1

113% 109% 110%

1Q23 1Q24 1Q25 1Q26

1 Normalized for campaign messaging revenue of $37m and $54m for the TTM periods ending Q1'23, and Q1'25, respectively.

2 Normalized for campaign messaging revenue of $54m for the TTM period ending Q1'25.

Non-GAAP Gross Margin Performance

Quarterly Annual

14%

Gross Profit growth y/y

54%

57%

59% 59%

57%

58%

60%

1Q23 1Q24 1Q25 1Q26 2024 2025 2026E

Note: We calculate non-GAAP gross margin by dividing non-GAAP gross profit by Cloud communications revenue, which is total revenue less pass-through messaging surcharge revenue.

See Appendix for GAAP to non-GAAP reconciliation. 12

Adjusted EBITDA Performance

17%

1Q26 Adjusted EBITDA margin1

17%

Adjusted EBITDA growth y/y

Quarterly Annual

$122

$16

$22

$26

$82

$93

1Q23 1Q24 1Q25 1Q26 2024 2025 2026E2

(USD Millions)

1 Calculated by dividing Adjusted EBITDA by Cloud communications revenue, which is total revenue less pass-through messaging surcharge revenue.

2 Represents midpoint of guidance provided in the Financial Outlook section of the April 30, 2026 earnings press release. Bandwidth has not reconciled full year 2026 guidance related to Adjusted EBITDA to GAAP Net income or loss, because stock-based compensation cannot be reasonably calculated or predicted at this time.

Non-GAAP EPS Performance

1Q26 Non-GAAP EPS

growth y/y

Accelerated value creation

Quarterly Annual

$0.36 $0.38

$1.34 $1.43

$1.77 - $1.83

$0.27

$0.05

1Q23 1Q24 1Q25 1Q261 2024 2025 2026E1

1 Weighted average diluted share count of approximately 33.8 million in 1Q 2026 and estimated weighted average diluted share count of 35.3 million in full year 2026. 14

Free Cash Flow Performance (TTM)

12%1

1Q26 Free cash flow margin

40%

FCF growth y/y

Trailing Twelve Months

$69

$50

$26

($9)

1Q23 1Q24 1Q25 1Q26

(USD Millions)

1 Calculated by dividing Free cash flow by Cloud communications revenue, which is total revenue less pass-through messaging surcharge revenue. See appendix for GAAP to non-GAAP reconciliation.

Balanced Capital Allocation Strategy

1Q26 Debt reduction

Repurchased $100 million of 0.5% convertible notes due 2028 at a discount

Fully retired 0.25% convertible senior notes due 2026

Lowered long-term debt leverage ratio to 1.23x ($150 million outstanding /

$122 million 2026 Adjusted EBITDA mid-point)

1Q26 Dilution reduction

Initiated $80 million share repurchase program

Opportunistically reduced dilution by ~700,000 shares using approximately

$11 million cash through balanced methods

2Q26 and Full Year 2026 Outlook

2Q 2026

FY 2026

Revenue

$214m - $220m

$880m - $900m

Adjusted EBITDA1

$24m - $27m

$119m - $125m

Non-GAAP EPS1,2

$0.35 - $0.37

$1.77 - $1.83

18%

Total revenue growth y/y 2026 guidance

31%

Adjusted EBITDA growth y/y

2026 guidance

Full year 2026 guidance is based upon the following estimates and assumptions:

Interest expense of $1 - $3m

Depreciation of $38 - $42m

Adjusted tax rate of 20% - 21%

Average diluted share count of approximately ~35m

Capital Expenditures of $24 - $26m

1 Bandwidth has not reconciled its first quarter and full year 2026 guidance related to Adjusted EBITDA to GAAP net income or loss and non-GAAP net earnings or loss to GAAP net earnings or loss and non-GAAP earnings or loss per share to GAAP earnings or loss, because stock-based compensation cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort

2 Weighted average diluted share count of approximately 34.7 million in 2Q 2026 and estimated weighted average diluted share count of 35.3 million in full year 2026.

1Q26 Earnings Results Key Takeaways

Raising Outlook on Strong Performance

Achieved record quarterly revenue of $209 million, up 20% y/y, and Adjusted EBITDA of $26 million, up 17% y/y.

Raised full-year 2026 outlook.

Momentum in Large Enterprise Market

Secured multi-million-dollar deals in financial services, emphasizing our leadership in providing mission-critical, AI-driven communications to high-demand, regulated sectors.

AI Driving Platform Expansion

Maestro orchestration platform enables seamless AI-driven interactions, positioning Bandwidth as the indispensable communications backbone for AI-first enterprises.

Disciplined Capital Allocation

Strengthened balance sheet, including fully retiring 2026 convertible notes, repurchasing $100 million of 2028 notes at a discount, and launching $80 million share repurchase program.

Expanding into CRM with Salesforce

Selected by Salesforce as the critical infrastructure partner for Agentforce Contact Center, extending our platform into CRM and strengthening our role in AI-driven customer engagement.

Sustainable Growth and Shareholder Value

Enhanced financial outlook reflects strong execution across large enterprise engagements and robust customer retention, laying the groundwork for sustainable growth and long-term value.

Appendix

Historical Metrics

USD millions, except for Average Annual Customer Revenue in USD thousands

FY23

1Q24

2Q24

3Q24

4Q24

FY24

1Q25

2Q25

3Q25

4Q25

FY25

1Q26

Total Revenue

601.1

171.0

173.6

193.9

210.0

748.5

174.2

180.0

191.9

207.7

753.8

208.8

Cloud communications

478.9

128.5

128.4

138.8

144.1

539.8

133.5

135.9

141.8

150.3

561.4

150.2

Messaging surcharges

122.2

42.5

45.2

55.1

65.9

208.7

40.8

44.2

50.1

57.4

192.4

58.6

Total Gross Profit

236.2

65.5

64.8

73.1

76.5

280.0

71.5

71.7

73.8

78.1

295.1

77.9

Non-GAAP Gross Profit

261.4

72.6

71.8

80.1

83.4

307.9

78.6

79.4

81.7

86.3

326.0

89.3

Non-GAAP Gross Margin1

55 %

57 %

56 %

58 %

57 %

59 %

58 %

57 %

58 %

59 %

Net Income (loss)

(16.3)

(9.2)

4.1

0.4

(1.8)

(6.5)

(3.7)

(4.9)

(1.2)

(3.0)

(12.9)

4.1

Non-GAAP Net Income

22.8

7.8

8.7

12.8

11.6

40.9

11.1

11.8

11.5

45.9

12.5

Adjusted EBITDA

48.2

15.9

18.7

24.0

23.4

82.1

22.2

21.9

24.3

24.8

93.3

26.0

Adjusted EBITDA Margin2

10 %

12 %

15 %

17 %

16 %

15 %

17 %

16 %

17 %

Cash and Investments3

153.5

147.2

76.4

79.9

83.8

41.7

68.1

80.4

111.3

50.3

Net cash (used in) provided by operating

activities

39.0

2.5

24.4

20.5

36.5

83.9

(3.1)

31.7

22.2

38.6

89.5

8.8

Net cash used in investing in capital assets4

(19.9)

(6.9)

(6.1)

(6.2)

(25.4)

(10.2)

(6.1)

(9.1)

(7.5)

(32.9)

(9.4)

Free Cash Flow

19.1

(4.4)

18.3

14.2

30.3

58.5

(13.3)

25.6

13.1

31.1

56.6

(0.6)

Average Annual Customer Revenue

178

190

198

212

226

228

230

231

232

244

Net Retention Rate

101 %

107 %

111 %

117 %

122 %

116 %

112 %

105 %

98 %

102 %

Adjusted Net Retention Rate

109 %

113 %

115 %

112 %

109 %

107 %

110 %

1 Calculated by dividing non-GAAP gross profit by Cloud communications revenue.

2 Calculated by dividing adjusted EBITDA by Cloud communications revenue.

3 Cash and Investments excludes restricted cash.

4 Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use. Note: Totals may not sum due to rounding.

GAAP to Non-GAAP Reconciliation - Net Income

USD millions, except per share amounts

FY23

1Q24

2Q24

3Q24

4Q24

FY24

1Q25

2Q25

3Q25

4Q25

FY25

1Q26

Net income (loss)

(16.3)

(9.2)

4.1

0.4

(1.8)

(6.5)

(3.7)

(4.9)

(1.2)

(3.0)

(12.9)

4.1

Stock-based compensation

37.0

12.3

11.4

13.2

48.4

13.6

12.5

12.3

13.9

52.3

13.0

Amortization of acquired intangibles

17.3

4.4

4.3

4.4

17.5

4.3

4.6

18.1

7.6

Amortization of debt discount and issuance

costs for convertible debt

2.0

0.5

0.4

0.3

1.5

0.3

1.1

0.2

Net cost associated with early lease

terminations and leases without economic

benefit

4.0

1.2

0.9

0.4

0.0

2.4

Net gain on extinguishment of debt

(12.8)

(10.3)

(1.1)

(7.3)

Gain on business interruption insurance

recoveries

(4.0)

Non-recurring items not indicative of ongoing

operations and other1

1.2

0.1

0.0

(1.0)

0.3

(0.6)

0.5

0.3

1.2

0.8

2.8

(0.4)

Estimated tax effects of adjustments

(5.5)

(1.4)

(2.1)

(3.2)

(4.8)

(11.5)

(2.7)

(0.9)

(5.7)

(5.1)

(14.5)

(4.8)

Non-GAAP net income

22.8

7.8

8.7

12.8

11.6

40.9

11.1

11.8

11.5

45.9

12.5

Interest expense on convertible notes2

1.3

0.3

1.1

0.3

0.2

1.0

0.2

Numerator used to compute Non-GAAP

diluted net income per share

24.0

8.1

9.0

13.0

11.8

42.0

11.4

12.1

11.7

46.9

12.7

1 Non-recurring items not indicative of ongoing operations and other include (i) $0.4 million of expense resulting from early termination of undrawn SVB credit facility for the year ended December 31, 2023, (ii) a $1.0 million gain on the sale of an intangible asset for the year ended December 31, 2024, (iii) $1.3 million of foreign exchange charges primarily related to balance sheet revaluations, $0.5 million in nonrecurring litigation expenses, and

$0.1 million of losses on sale of business for the year ended December 31, 2025, and (iv) $0.9 million, $0.4 million, and $0.8 million of losses on disposals of property, plant and equipment during the years ended December 31 2025, 2024 and 2023, respectively. For the three months ended March 31, 2026, non-recurring items not indicative of ongoing operations and other include ($0.6 million) of foreign exchange charges primarily related to balance sheet revaluations and $0.2 million of losses on disposals of property, plant and equipment.

2 Non-GAAP net income is increased for interest expense as part of the calculation for diluted Non-GAAP earnings per share.

Note: Totals may not sum due to rounding.

GAAP to Non-GAAP Reconciliation - Earnings Per Share

USD millions, except per share amounts

FY23

1Q24

2Q24

3Q24

4Q24

FY24

1Q25

2Q25

3Q25

4Q25

FY25

1Q26

Net income (loss) per share

Basic

(0.64)

(0.35)

0.15

0.02

(0.06)

(0.24)

(0.13)

(0.16)

(0.04)

(0.10)

(0.43)

0.13

Diluted

(0.64)

(0.35)

(0.17)

0.01

(0.06)

(0.24)

(0.13)

(0.16)

(0.04)

(0.10)

(0.43)

(0.08)

Non-GAAP net income per Non-GAAP share

Basic

0.89

0.30

0.32

0.47

0.41

1.50

0.38

0.40

0.38

0.37

1.53

0.40

Diluted

0.83

0.27

0.29

0.43

0.37

1.34

0.36

0.38

0.36

0.35

1.43

0.38

Weighted average number of common shares

outstanding

Basic shares

25.6

26.5

27.1

27.4

27.9

27.2

29.0

29.9

30.3

30.8

30.0

31.7

Diluted shares

25.6

26.5

29.5

28.6

27.9

27.2

29.0

29.9

30.3

30.8

30.0

33.0

Non-GAAP basic shares

25.6

26.5

27.1

27.4

27.9

27.2

29.0

29.9

30.3

30.8

30.0

31.7

Convertible debt conversion

3.4

3.3

2.4

1.8

2.3

1.7

1.5

1.3

Nonvested RSUs and stock options issued and

outstanding

0.0

0.8

1.3

1.2

2.0

1.9

0.8

0.0

0.5

1.4

1.3

0.9

Non-GAAP diluted shares

29.1

30.6

30.8

30.4

31.6

31.4

32.3

33.7

32.9

33.8

Note: Totals may not sum due to rounding. 23

GAAP to Non-GAAP Reconciliation - Gross Profit, Adjusted EBITDA, Free Cash Flow

USD millions, except per share amounts

FY23

1Q24

2Q24

3Q24

4Q24

FY24

1Q25

2Q25

3Q25

4Q25

FY25

1Q26

Gross Profit

236.2

65.5

64.8

73.1

76.5

280.0

71.5

71.7

73.8

78.1

295.1

77.9

Gross Margin %

39 %

38 %

37 %

38 %

36 %

37 %

41 %

40 %

38 %

39 %

37 %

Depreciation

16.3

4.8

4.7

4.4

18.5

4.7

5.2

5.3

5.5

20.7

5.8

Amortization of acquired intangible assets

7.8

2.0

1.9

2.0

1.9

7.8

1.9

2.0

2.1

8.1

5.1

Stock-based compensation

1.1

0.4

0.5

1.6

0.5

0.6

2.2

0.5

Non-GAAP Gross Profit

261.4

72.6

71.8

80.1

83.4

307.9

78.6

79.4

81.7

86.3

326.0

89.3

Non-GAAP Gross Margin %1

55 %

57 %

56 %

58 %

57 %

59 %

58 %

57 %

58 %

59 %

Net Income (loss)

(16.3)

(9.2)

4.1

0.4

(1.8)

(6.5)

(3.7)

(4.9)

(1.2)

(3.0)

(12.9)

4.1

Income tax (benefit) provision

(3.0)

(0.2)

(0.3)

(0.7)

(1.2)

(2.4)

(0.1)

0.1

(2.3)

(1.5)

(3.7)

(1.5)

Interest expense (income), net

0.8

(0.6)

0.7

1.0

0.8

1.9

0.5

2.0

0.7

Depreciation

24.4

8.1

8.0

7.7

31.7

8.2

8.8

9.2

9.5

35.7

9.8

Amortization

17.3

4.4

4.3

4.4

17.5

4.3

4.6

18.1

7.6

Stock-based compensation

37.0

12.3

11.4

13.2

48.4

13.6

12.5

12.3

13.9

52.3

13.0

Net cost associated with early lease

terminations and leases without economic

benefit

4.0

1.2

0.9

0.4

0.0

2.4

Net gain on extinguishment of debt

(12.8)

(10.3)

(1.1)

(7.3)

Gain on business interruption insurance

recoveries

(4.0)

Non-recurring items not indicative of ongoing

operations and other2

0.8

0.1

0.0

(1.0)

0.3

(0.6)

0.5

0.3

1.2

0.8

2.8

(0.4)

Adjusted EBITDA

48.2

15.9

18.7

24.0

23.4

82.1

22.2

21.9

24.3

24.8

93.3

26.0

Net cash (used in) provided by operating

activities

39.0

2.5

24.4

20.5

36.5

83.9

(3.1)

31.7

22.2

38.6

89.5

8.8

Net cash used in investing in capital assets3

(19.9)

(6.9)

(6.1)

(6.2)

(25.4)

(10.2)

(6.1)

(9.1)

(7.5)

(32.9)

(9.4)

Free cash flow

19.1

(4.4)

18.3

14.2

30.3

58.5

(13.3)

25.6

13.1

31.1

56.6

(0.6)

1 Calculated by dividing Non-GAAP gross profit by revenue less pass-through surcharges of $122.2M in FY23, $42.5M in 1Q24, $45.2M in 2Q24, $55.1M in 3Q24, $65.9M in 4Q24, $40.8M in 1Q25, $44.2M in 2Q25, $50.1M in 3Q25, $57.4M in 4Q25, and $58.6M in 1Q26.

2 Non-recurring items not indicative of ongoing operations and other include (i) a $1.0 million gain on the sale of an intangible asset for the year ended December 31, 2024, and (iii) $0.9 million, $0.4 million, and $0.8 million of losses on disposals of property, plant and equipment during the years ended December 31, 2025, 2024, and 2023, respectively. For the three months ended March 31, 2026, non-recurring items not indicative of ongoing operations and other include ($0.6 million) of foreign exchange charges primarily related to balance sheet revaluations and $0.2 million of losses on disposals of property, plant and equipment.

3 Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use. Note: Totals may not sum due to rounding.

Definitions

Adjusted EBITDA: Net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, acquisition related expenses, stock-based compensation expense, impairment of intangible assets, (gain) loss on sale of business, net cost associated with early lease terminations and leases without economic benefit, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, and non-recurring items not indicative of ongoing operations and other.

Adjusted EBITDA margin: Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by cloud communications revenue, which excludes pass-through messaging surcharge revenue.

Average annual customer revenue: Average annual customer revenue is the trailing twelve month revenue divided by the average number of active customers from the current quarter and number of active customers from the same quarter of the prior year.

Cloud communications revenue: Total revenue less pass-through messaging surcharge revenue.

Customer name retention rate: Customer name retention rate (CNRR) is defined as the percentage of customers with $100k or greater revenue in the prior twelve month period that remain customers in the current twelve month period.

Free cash flow: Free cash flow represents net cash provided by or used in operating activities less net cash used in the acquisition of property, plant and equipment and capitalized development costs of software for internal use.

Free cash flow margin: Free cash flow margin is calculated by dividing free cash flow by cloud communications revenue, which excludes pass-through messaging surcharge revenue.

Messaging surcharge revenue: Revenue derived from fees imposed by certain carriers within the messaging ecosystem, which are subsequently invoiced and passed through to customers.

Net Retention Rate ("NRR"): To calculate the net retention rate, we first identify the cohort of customers that generated revenue in the same quarter of the prior year. The net retention rate is obtained by dividing the revenue generated from that cohort in a quarter, by the revenue generated from that same cohort in the corresponding quarter in the prior year. The net retention rate reported in a quarter is then obtained by averaging the result from that quarter by the corresponding results from each of the prior three quarters. Customers of acquired businesses are included in the subsequent year's calendar quarter of acquisition.

Non-GAAP Gross Profit: Gross profit after adding back the following items: depreciation and amortization; amortization of acquired intangible assets related to acquisitions; and stock-based compensation.

Non-GAAP Gross Margin: Non-GAAP Gross Margin is calculated by dividing non-GAAP gross profit by cloud communications revenue, which excludes pass-through messaging surcharge revenue.

Non-GAAP Net Income: Net income or loss adjusted for certain items affecting period to period comparability. Non-GAAP net income excludes stock-based compensation, amortization of acquired intangible assets related to acquisitions, amortization of debt discount and issuance costs for convertible debt, acquisition related expenses, impairment charges of intangibles assets, if any, net cost associated with early lease terminations and leases without economic benefit, (gain) loss on sale of business, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, non-recurring items not indicative of ongoing operations and other, and estimated tax impact of above adjustments, net of valuation allowances.

Disclaimer

Bandwidth Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:23 UTC.