Bandwidth Adjusted EBITDA Margin Expands to 22%

The Tip Desk · November 1, 2026 · 2 min read

Third-quarter revenue hit a record $234 million as Adjusted EBITDA reached $35 million and the company guided 2027 Cloud Communications growth from voice usage.

Bandwidth Inc. (BAND) reported record third-quarter revenue of $234 million, up 22% from a year earlier, matching the year-over-year growth rate it posted in the second quarter. Adjusted EBITDA rose to $35 million, up 43% from a year earlier, and Adjusted EBITDA margin expanded to 22% from a record 18% in the prior quarter.

The global cloud communications company said growth was driven by customers expanding usage of its platform. Chief Financial Officer Daryl Raiford said the sales team added four new $1 million-plus customer wins and expansions that will layer into results over the next twelve months.

Non-GAAP net income increased to $20 million from $14 million in the second quarter, and Non-GAAP diluted earnings were $0.50 a share versus $0.37 a share. GAAP results swung to net income of $5 million, or $0.13 a share diluted, from a $0.07 a share diluted loss in the prior quarter.

GAAP gross margin held at 36%. Non-GAAP gross margin expanded to 61% from 59%. Free cash flow rose to $33 million from $24 million, and operating cash flow increased to $38 million from $29 million.

Among the large-account additions, an all-digital banking platform selected Bandwidth to modernize its contact center and integrate an SI agent, displacing a major CPaaS competitor. A consumer privacy company launched an SI-powered call screening service on Bandwidth software and voice infrastructure. A major enterprise network and communications provider adopted the platform voice solution, creating recurring platform fees and incremental usage-based revenue. A specialized communications provider expanded international calling on Bandwidth’s network reaching 70 countries.

Salesforce named Bandwidth its first certified international carrier to support the global rollout of its native Contact Center across more than 25 countries, extending the Agentforce Contact Center partnership first disclosed in the first quarter. Enterprises can connect through a bring-your-own-carrier model with Maestro.

Chief Executive Officer David Morken said the company delivered record results in all key financial metrics and that as SI agents act on behalf of businesses and consumers, they will need to reach people by voice and text.

Bandwidth is providing full-year 2026 guidance of revenue of $905 million to $910 million, Adjusted EBITDA of $124 million to $125 million, and Non-GAAP earnings of $1.73 to $1.79 a share, assuming a weighted average diluted share count of approximately 38.7 million. The company had raised the full-year outlook in both the first and second quarters.

The company issued a 2027 outlook of double-digit Cloud Communications revenue from voice usage demand growth.