CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Bandwidth Q3 revenue rises 22%, slightly beats estimates

By Reuters News


Overview

  • US cloud communications firm's Q3 revenue rose 22%, slightly beating analyst expectations

  • Adjusted EBITDA for Q3 grew 43% to $35 mln, with margin of 22%

  • Growth driven by higher customer usage and new large customer wins


Outlook

  • Bandwidth sees 2026 revenue between $905 mln and $910 mln

  • Company expects 2026 adjusted EBITDA of $124 mln to $125 mln

  • Bandwidth projects 2026 non-GAAP EPS of $1.73 to $1.79


Result Drivers

  • CUSTOMER USAGE EXPANSION - Co said growth was driven by customers expanding their usage of its platform

  • NEW LARGE CUSTOMERS - Sales team added four new $1 mln-plus customer wins and expansions, expected to contribute to future results

  • INTERNATIONAL EXPANSION - Specialized communications provider selected Bandwidth to expand calling services internationally, relying on network reaching 70 countries


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$234 mln

$233.16 mln (6 Analysts)

Q3 Net Income

$5 mln

Q3 Adjusted Gross Margin

61.00%

Q3 Gross Profit

$84.80 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "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 $60.00, about 23.8% above its October 28 closing price of $48.45

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 31 three months ago


Reuters Recommended Reads

  • Oct 28 - Cybersecurity firm Gen Digital's Q2 revenue beats on strong demand; raises FY outlook

  • Oct 28 - Cybersecurity firm Fortinet's Q3 revenue rises 20%, adj EPS beats estimates

  • Oct 28 - Gen Digital raises annual revenue forecast on strong cybersecurity demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.