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Sep 30, 2025
Bandwidth Q3 2025 Earnings Report
Bandwidth exceeded revenue and profitability guidance ranges in the third quarter of 2025, driven by solid revenue growth from core voice usage and software.
Key Takeaways
Bandwidth reported strong third-quarter 2025 financial results, exceeding revenue and profitability guidance. The company achieved $191.895 million in revenue and a non-GAAP gross margin of 58%. Despite a GAAP net loss of $1.241 million, Adjusted EBITDA reached $24.330 million. The company highlighted significant customer wins and advancements in its AI and software strategy, leading to an increased full-year Adjusted EBITDA outlook.
Revenue for Q3 2025 was $191.895 million, slightly down from $193.883 million in Q3 2024.
Non-GAAP Gross Margin remained strong at 58% for Q3 2025, consistent with the previous year.
Adjusted EBITDA for Q3 2025 was $24.330 million, showing a slight increase from $23.971 million in Q3 2024.
The company reported a GAAP net loss of $1.241 million for Q3 2025, compared to a net income of $0.413 million in Q3 2024.
Forward Guidance
Bandwidth provided full-year 2025 guidance projecting revenue between $747 million and $760 million, and Adjusted EBITDA between $89 million and $92 million. This outlook reflects anticipated growth in Voice and Voice AI offerings, higher software revenue, and a strong political messaging season.
Positive Outlook
- Projected full-year 2025 revenue growth of 9% to 11% year-over-year, adjusting for political campaign messaging activity.
- Raised full-year Adjusted EBITDA outlook to approximately $91 million (range $89M - $92M).
- Expected growth in Voice and Voice AI offerings.
- Anticipated higher software revenue.
- Strong political messaging season expected to drive performance towards medium-term financial targets.
Challenges Ahead
- Guidance for Adjusted EBITDA is not reconciled to GAAP net income due to the inability to reasonably calculate or predict stock-based compensation.
- The revenue growth projection is adjusted for an expected cyclical reduction in political campaign messaging activity, which was $62 million in 2024, indicating a potential headwind if not for this adjustment.
Historical Earnings Impact
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