UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-K __________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38285 BANDWIDTH INC. (Exact name of registrant as specified in its charte ...

Bandwidth Announces Fourth Quarter and Full Year 2025 Financial Results Record fourth quarter Adjusted EBITDA and free cash flow Provides 2026 outlook of approximately 16% revenue growth and 29% Adjusted EBITDA growth Board authorizes an $80 million share repurchase program February 19, 2026 Conference Call Bandwidth will host a conference call to discuss financial results for the fourth quarter and full year ended December 31, 2025 on February 19, 2026. Details can be found below and on the investor sectio ...

Core Insights - Bandwidth Inc. reported strong financial results for Q4 and full year 2025, highlighting record Adjusted EBITDA and free cash flow, with a positive outlook for 2026, projecting approximately 16% revenue growth and 29% Adjusted EBITDA growth [1][2][3] Financial Performance - Q4 2025 revenue was $208 million, slightly down from $210 million in Q4 2024, while full year revenue increased to $754 million from $748 million in 2024 [1][3] - Gross margin for Q4 2025 was 38%, up from 36% in Q4 2024, and for the full year, it was 39%, compared to 37% in 2024 [1][3] - Non-GAAP net income for Q4 2025 was $11 million, down from $12 million in Q4 2024, while full year non-GAAP net income rose to $46 million from $41 million [1][3] - Adjusted EBITDA for Q4 2025 was $25 million, up from $23 million in Q4 2024, and for the full year, it increased to $93 million from $82 million [1][3] Cash Flow and Share Repurchase - Net cash provided by operating activities for Q4 2025 was $39 million, compared to $37 million in Q4 2024, while free cash flow was $31 million, slightly up from $30 million [1][3] - The Board of Directors authorized an $80 million share repurchase program, reflecting confidence in the company's growth strategy and cash flow generation [1][2] Customer Highlights - Bandwidth secured significant contracts with various enterprises, including a top-five global automaker and a major U.S. bank, showcasing the demand for its AI-driven communication solutions [1][2] - The company emphasized the increasing reliance on its Maestro platform and Communications Cloud for AI integration in production environments [1][2] 2026 Financial Outlook - For Q1 2026, Bandwidth expects revenue between $200 million and $203 million, and for the full year, revenue guidance is set between $864 million and $884 million [1][3] - Adjusted EBITDA guidance for Q1 2026 is projected between $21 million and $24 million, with full year guidance between $117 million and $123 million [1][3]

Core Viewpoint - Bandwidth Inc. will report its financial results for Q4 and the full year ended December 31, 2025, on February 19, 2026, before market open [1]. Group 1: Financial Reporting - The financial results announcement will occur before market open on February 19, 2026 [1]. - A live webcast of the conference call will be available on the Investor Relations section of the company's website, with a replay accessible shortly after the event [2]. - The conference call is scheduled for 8:00 a.m. Eastern Time on February 19, 2026, with specific dial-in numbers provided for domestic and international participants [3]. Group 2: Company Overview - Bandwidth Inc. is a global cloud communications software company that provides voice calling, text messaging, and emergency services [4]. - The company's solutions cover over 65 countries and more than 90 percent of global GDP, serving major players in unified communications and cloud contact centers, including AWS, Cisco, Google, Microsoft, and others [4]. - Bandwidth is recognized as a pioneer in the cloud communications sector, being the first global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, and an owner-operated network [4].

Core Insights - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors, with a watchlist of up to 100 companies [1] - The investor has over 7 years of personal capital investment experience globally and aims to identify asymmetric investment opportunities for market-beating returns [1] Investment Focus - The investor specializes in small to mid-cap companies that are less researched by others, indicating a niche market approach [1] - The investor holds a Master's degree in Electrical Engineering and works as an automotive battery R&D engineer, suggesting a strong technical background relevant to the sectors of interest [1] Research and Analysis - The write-ups on Seeking Alpha serve as a platform for the investor to articulate investment theses and engage with the investing community for feedback [1] - The emphasis on diligent study and research highlights a commitment to thorough analysis in identifying potential investment opportunities [1]

Core Insights - Business messaging is experiencing a significant transformation driven by RCS, AI, and consumer demands for trust and transparency [1][2] Group 1: RCS and AI Impact - The "RCS Gap" presents a substantial opportunity, with 96% RCS device coverage but 59% of businesses planning to deploy RCS without having launched yet [4] - By 2030, 80% of enterprise applications are expected to be multimodal, integrating voice, text, and visual content, with RCS and AI-driven messaging becoming preferred methods [5] Group 2: SMS and Customer Engagement - SMS remains a crucial component for cost-efficient, high-volume reach, with brands using a mix of short codes, toll-free, 10DLC, and RCS, enhanced by AI for a personalized customer experience [6] - Trust is becoming a key differentiator, as enterprises move towards branded, verified messaging to enhance engagement and rebuild consumer confidence, utilizing RCS features like sender verification [7] Group 3: Deliverability and Provider Selection - Message deliverability is the primary factor in choosing a messaging provider, surpassing cost or features, with Bandwidth offering advanced tools for campaign registration and delivery insights to meet this priority [8]

Industry Overview - The Zacks Communication - Infrastructure industry is benefiting from increased user demand for digital innovations, leading to fiber densification and extensive 5G deployment [1] - Industry players provide infrastructure solutions for communication networks, including high-speed network access solutions and various hardware and software products [3] Future Trends - The industry is transitioning to cloud services, driven by the growth of bandwidth-intensive applications and the deployment of 5G technology, requiring significant investments in LTE, broadband, and fiber [4] - Companies are focusing on improving customer service and achieving competitive cost structures to attract new customers and increase average revenue per user [4] Challenges - The industry faces high capital expenditures for infrastructure upgrades, unpredictable raw material prices, and supply chain disruptions, which pose significant threats [1] - A shortage of chips and high raw material prices due to inflation and geopolitical tensions are impacting profitability [5] Network Development - Operators are moving towards converged network structures that combine voice, video, and data communications, which is expected to reduce service delivery costs and expand coverage [6] Industry Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, with a growth of 113.9% over the past year compared to 16.3% and 26.9% for the S&P 500 and sector, respectively [9] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA of 7.08X, significantly lower than the S&P 500's 18.74X and the sector's 19.84X [12] Key Companies - **CommScope**: A leading provider of infrastructure solutions, with a focus on cost-cutting and core operations, has seen a stock surge of 256.5% in the past year and a revised earnings estimate of $1.64 per share [15] - **IHS Holding**: Operates over 37,000 towers and has gained 128% in stock value over the past year, with a current earnings estimate of 78 cents per share [18][19] - **Bandwidth**: A CPaaS provider with a focus on software APIs, supports high user volumes and has a Zacks Rank of 3 (Hold) [22]

Core Insights - The Q3 earnings season is characterized by volatility, with stocks needing to demonstrate their value to support the significant rally observed in 2025 [1] Group 1: Market Overview - The overall stock market is perceived as expensive, but this view may overlook the fact that the valuation concerns are primarily concentrated in specific sectors [1] Group 2: Analyst Background - Gary Alexander has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, and has been involved with seed-round startups [1]

Core Insights - Bandwidth Inc. (BAND) reported mixed results for Q3 2025, with revenues exceeding estimates but net loss missing expectations [1][4][10] Revenue Performance - Quarterly revenues decreased to $191.9 million from $193.9 million year-over-year, primarily due to lower revenues from political campaign messaging, although this was offset by strong demand for digital engagement and messaging services in sectors like healthcare and financial services [2][5] - The top line surpassed the Zacks Consensus Estimate of $189.8 million [5] Profitability Metrics - On a GAAP basis, the company reported a net loss of $1.24 million or 4 cents per share, compared to a net income of $0.41 million or 1 cent per share in the same quarter last year, attributed to declining sales and higher operating expenses [3][10] - Non-GAAP net income was $11.4 million or 36 cents per share, down from $12.8 million or 43 cents per share year-over-year, missing the Zacks Consensus Estimate of 38 cents [4][10] Operating Efficiency - Non-GAAP gross margin remained stable at 58%, supported by a favorable product mix [6] - Adjusted EBITDA was $24.3 million, exceeding guidance and slightly up from $24 million in the prior-year period [6] Cash Flow and Liquidity - Net cash from operating activities for the quarter was $50.9 million, an increase from $47.4 million in the previous year [7] - As of September 30, 2025, cash and cash equivalents stood at $73.4 million, with convertible senior notes totaling $247.3 million [7] Future Outlook - Bandwidth anticipates continued growth, projecting revenues for 2025 in the range of $747-760 million, reflecting a year-over-year growth of 9-11% [8] - Adjusted EBITDA is forecasted to be between $89-92 million, an increase from the previous estimate of $86-$91 million [8] - The company expects growing adoption of voice AI and strength in software revenues to drive overall revenue growth in Q4 [9]

Core Insights - Bandwidth reported revenue of $191.9 million for the quarter ended September 2025, a decrease of 1% year-over-year, with EPS at $0.36 compared to $0.43 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $189.9 million by 1.05%, while the EPS fell short of the consensus estimate of $0.38 by 5.26% [1] Financial Performance Metrics - Net retention rate was reported at 105%, below the estimated 110.6% by analysts [4] - International revenue reached $26.15 million, surpassing the estimated $24.6 million, reflecting a year-over-year increase of 10.8% [4] - North American revenue was $165.74 million, slightly below the estimate of $165.77 million, indicating a year-over-year decline of 2.7% [4] - Revenue from messaging surcharges was $50.09 million, exceeding the average estimate of $47.04 million [4] - Revenue from cloud communications was reported at $141.81 million, below the estimated $143.27 million [4] Stock Performance - Bandwidth shares have returned +4.9% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]