← Back to All US Stocks

BAND Stock Analysis - Bandwidth Inc. AI Rating

BAND Nasdaq Services-Prepackaged Software DE CIK: 0001514416
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 BAND Key Takeaways

Revenue: $753.8M
Net Margin: -1.7%
Free Cash Flow: $82.7M
Current Ratio: 1.42x
Debt/Equity: 0.62x
EPS: $-0.43
AI Rating: HOLD with 62% confidence

Investment Thesis

Bandwidth demonstrates solid operational cash generation and reasonable liquidity, but profitability deterioration is concerning with negative operating margins and losses expanding despite flat revenue growth. The company's ability to convert revenues into profits has weakened significantly, raising questions about operational efficiency and cost structure sustainability.

BAND Strengths

  • + Strong free cash flow of $82.7M (11.0% FCF margin) despite operating losses, indicating quality cash conversion
  • + Healthy liquidity position with 1.42x current ratio and $102.8M in cash providing operational flexibility
  • + Reasonable debt leverage at 0.62x debt-to-equity with manageable balance sheet structure

BAND Risks

  • ! Severe profitability deterioration with negative operating margin (-1.9%) and net loss of -$12.9M on minimal revenue growth (0.7%)
  • ! Deteriorating EPS (-$0.43) with YoY decline of -79.2% indicating significant shareholder value erosion
  • ! Negative interest coverage (-5.9x) signals inability to service debt from operating earnings, creating financial vulnerability
  • ! Stagnant revenue growth (0.7% YoY) combined with mounting losses suggests core business model stress

Key Metrics to Watch

BAND Financial Metrics

Revenue
$753.8M
Net Income
$-12.9M
EPS (Diluted)
$-0.43
Free Cash Flow
$82.7M
Total Assets
$1.1B
Cash Position
$102.8M

💡 AI Analyst Insight

Bandwidth Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BAND Profitability Ratios

Gross Margin 39.1%
Operating Margin -1.9%
Net Margin -1.7%
ROE -3.2%
ROA -1.2%
FCF Margin 11.0%

BAND vs Technology Sector

How Bandwidth Inc. compares to Technology sector averages

Net Margin
BAND -1.7%
vs
Sector Avg 18.0%
BAND Sector
ROE
BAND -3.2%
vs
Sector Avg 22.0%
BAND Sector
Current Ratio
BAND 1.4x
vs
Sector Avg 2.5x
BAND Sector
Debt/Equity
BAND 0.6x
vs
Sector Avg 0.5x
BAND Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BAND Balance Sheet & Liquidity

Current Ratio
1.42x
Quick Ratio
1.42x
Debt/Equity
0.62x
Debt/Assets
62.0%
Interest Coverage
-5.94x
Long-term Debt
$247.6M

BAND 5-Year Financial Trend

BAND 5-year financial data: Year 2021: Revenue $490.9M, Net Income $2.5M, EPS $0.10. Year 2022: Revenue $573.2M, Net Income -$44.0M, EPS $-1.83. Year 2023: Revenue $601.1M, Net Income -$27.4M, EPS $-1.09. Year 2024: Revenue $748.5M, Net Income $19.6M, EPS $-0.48. Year 2025: Revenue $753.8M, Net Income -$16.3M, EPS $-0.64.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Bandwidth Inc.'s revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.64 indicates the company is currently unprofitable.

BAND Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
11.0%
Free cash flow / Revenue

BAND Quarterly Performance

Quarterly financial performance data for Bandwidth Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $191.9M $413.0K $0.01
Q2 2025 $173.6M $413.0K $-0.16
Q1 2025 $171.0M $413.0K $-0.13
Q3 2024 $152.0M $413.0K $0.01
Q2 2024 $145.9M -$279.0K $-0.01
Q1 2024 $137.8M $3.6M $-0.28
Q3 2023 $148.3M -$802.0K $-0.03
Q2 2023 $136.5M -$279.0K $-0.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BAND Capital Allocation

Operating Cash Flow
$89.5M
Cash generated from operations
Capital Expenditures
$6.8M
Investment in assets
Dividends
None
No dividend program

BAND SEC Filings

Access official SEC EDGAR filings for Bandwidth Inc. (CIK: 0001514416)

📋 Recent SEC Filings

Date Form Document Action
Mar 16, 2026 4 xslF345X05/wk-form4_1773691522.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773346255.xml View →
Mar 10, 2026 4 xslF345X05/wk-form4_1773173292.xml View →
Mar 10, 2026 4 xslF345X05/wk-form4_1773173259.xml View →
Mar 6, 2026 4 xslF345X05/wk-form4_1772831308.xml View →

Frequently Asked Questions about BAND

What is the AI rating for BAND?

Bandwidth Inc. (BAND) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BAND's key strengths?

Strong free cash flow of $82.7M (11.0% FCF margin) despite operating losses, indicating quality cash conversion. Healthy liquidity position with 1.42x current ratio and $102.8M in cash providing operational flexibility.

What are the risks of investing in BAND?

Severe profitability deterioration with negative operating margin (-1.9%) and net loss of -$12.9M on minimal revenue growth (0.7%). Deteriorating EPS (-$0.43) with YoY decline of -79.2% indicating significant shareholder value erosion.

What is BAND's revenue and growth?

Bandwidth Inc. reported revenue of $753.8M.

Does BAND pay dividends?

Bandwidth Inc. does not currently pay dividends.

Where can I find BAND SEC filings?

Official SEC filings for Bandwidth Inc. (CIK: 0001514416) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BAND's EPS?

Bandwidth Inc. has a diluted EPS of $-0.43.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI