On February 19, 2026, Bandwidth Inc. (NASDAQ: BAND), a prominent player in the global enterprise cloud communications sector, released its financial results for the fourth quarter and the full year ended December 31, 2025. The results showcase a year marked by strong performance, increased enterprise adoption of their AI-driven voice solutions, and a robust outlook for future growth.

2. Key Financial Highlights

Fourth Quarter Results

For the three months ending December 31, 2025, Bandwidth reported the following key financial metrics:

Revenue: $208 million, slightly down from $210 million in Q4 2024.

Gross Margin: 38%, an improvement from 36% in the same quarter last year.

Non-GAAP Gross Margin: 57%, compared to 58% in Q4 2024.

Net Loss: $3 million, a slight increase from a loss of $2 million in Q4 2024.

Non-GAAP Net Income: $11 million, slightly down from $12 million year-over-year.

Net Loss per Share: $(0.10), compared to $(0.06) in Q4 2024.

Non-GAAP Net Income per Share: $0.35, down from $0.37 in Q4 2024.

Adjusted EBITDA: $25 million, up from $23 million in the previous year’s quarter.

Net Cash Provided by Operating Activities: $39 million, slightly up from $37 million year-over-year.

Free Cash Flow: $31 million, marginally higher than $30 million in Q4 2024.

Full Year Results

For the full year ended December 31, 2025, the company reported:

Revenue: $754 million, up from $748 million in 2024, marking a consistent growth trajectory.

Gross Margin: 39%, an increase from 37% in 2024.

Non-GAAP Gross Margin: 58%, consistent with the previous year.

Net Loss: $13 million, compared to a loss of $7 million in 2024.

Non-GAAP Net Income: $46 million, up from $41 million year-over-year.

Net Loss per Share: $(0.43), compared to $(0.24) in 2024.

Non-GAAP Net Income per Share: $1.43, an increase from $1.34 in the prior year.

Adjusted EBITDA: $93 million, up from $82 million in 2024.

Net Cash Provided by Operating Activities: $89 million, compared to $84 million in 2024.

Free Cash Flow: $57 million, slightly down from $59 million in the previous year.

3. CEO Commentary

David Morken, CEO of Bandwidth, expressed confidence in the company's performance, stating, "2025 was a year of sustained business performance and strengthening fundamentals for Bandwidth, with record million-dollar-plus deals and continued enterprise adoption of AI-driven voice." He emphasized the increasing reliance of customers on the Maestro platform and the Communications Cloud, which are pivotal in powering AI in production environments.

Morken also highlighted the company’s commitment to its growth strategy with the announcement of an $80 million share repurchase program. This initiative reflects the company's confidence in its ability to generate meaningful cash flow while continuing to invest in innovation and margin expansion.

4. Conclusion

Bandwidth Inc.’s financial results for Q4 and the full year 2025 demonstrate a solid foundation for future growth, driven by increased enterprise adoption of its innovative solutions. While the company experienced a slight dip in revenue for Q4 2025, the overall positive trajectory and strategic initiatives, such as the share repurchase program, indicate a strong outlook for the coming years. Investors and stakeholders will be keen to see how Bandwidth leverages its strengths to sustain its competitive edge in the rapidly evolving communications landscape.

Original press release