[Q2 2025 Earnings Release](index=1&type=section&id=Q2%202025%20Earnings%20Release) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company surpassed Q2 2025 expectations, driven by core voice offerings and AI solution adoption - The company **exceeded top and bottom-line expectations for Q2 2025**, driven by momentum in its core voice offerings and disciplined execution[2](index=2&type=chunk)[4](index=4&type=chunk) - Enterprise adoption of **AI voice integrations is building momentum**, with the Maestro and AIBridge platforms being key drivers[2](index=2&type=chunk) - **Key customer wins** in banking, healthcare, and insurance underscore the platform's value for enhancing customer experience and resilience[13](index=13&type=chunk) Q2 2025 Financial Highlights ($ in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $180 | $174 | $354 | $345 | | Gross Margin | 40% | 37% | 40% | 38% | | Non-GAAP Gross Margin | 58% | 56% | 59% | 56% | | Net (Loss) Income | $(5) | $4 | $(9) | $(5) | | Adjusted EBITDA | $22 | $19 | $44 | $35 | | Net cash provided by operating activities | $32 | $24 | $29 | $27 | | Free cash flow | $26 | $18 | $12 | $14 | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) The company projects continued growth for Q3 and the full year 2025, with adjusted revenue growth of 9% to 11% - Full-year 2025 revenue guidance reflects **9% to 11% year-over-year growth** after adjusting for the cyclical decrease in political messaging revenue[10](index=10&type=chunk) Q3 & Full Year 2025 Guidance ($ in millions) | Metric | 3Q 2025 Guidance | Full Year 2025 Guidance | | :--- | :--- | :--- | | Revenue | $189 - $191 | $745 - $760 | | Adjusted EBITDA | $19 - $21 | $86 - $91 | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements in accordance with GAAP [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Revenue and gross profit increased in Q2 2025, though the company reported a net loss versus a net income in the prior-year period Key Income Statement Data (In thousands) | Line Item | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $180,013 | $173,602 | $354,254 | $344,635 | | Gross Profit | $71,664 | $64,829 | $143,176 | $130,313 | | Operating Loss | $(3,748) | $(6,074) | $(8,435) | $(16,490) | | Net (Loss) Income | $(4,931) | $4,055 | $(8,671) | $(5,178) | | Diluted Net (Loss) per Share | $(0.16) | $(0.17) | $(0.29) | $(0.19) | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) Total assets and stockholders' equity increased as of June 30, 2025, while total liabilities and cash decreased Key Balance Sheet Data (In thousands) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $60,136 | $81,812 | | Total current assets | $176,413 | $187,812 | | Total assets | $1,022,482 | $989,166 | | Total current liabilities | $134,892 | $140,323 | | Total liabilities | $637,944 | $676,633 | | Total stockholders' equity | $384,538 | $312,533 | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Cash from operations increased slightly for the six months ended June 30, 2025, but a net decrease in cash was recorded Cash Flow Summary - Six Months Ended June 30 (In thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $28,638 | $26,901 | | Net cash used in investing activities | $(22,067) | $(5,303) | | Net cash used in financing activities | $(29,067) | $(91,020) | | Net decrease in cash | $(21,839) | $(70,030) | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures to provide a clearer view of core operating performance [Non-GAAP Gross Profit and Non-GAAP Gross Margin](index=8&type=section&id=Non-GAAP%20Gross%20Profit%20and%20Non-GAAP%20Gross%20Margin) Non-GAAP gross profit and margin both increased in Q2 2025 compared to the prior-year period Non-GAAP Gross Profit Reconciliation (In thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gross Profit (GAAP) | $71,664 | $64,829 | | Adjustments | $7,732 | $6,994 | | **Non-GAAP Gross Profit** | **$79,396** | **$71,823** | | **Non-GAAP Gross Margin %** | **58%** | **56%** | [Non-GAAP Net Income](index=9&type=section&id=Non-GAAP%20Net%20Income) Non-GAAP net income increased to $11.8 million in Q2 2025 from $8.7 million in the prior-year period Non-GAAP Net Income Reconciliation (In thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income (GAAP) | $(4,931) | $4,055 | | Stock-based compensation | $12,545 | $11,360 | | Amortization of acquired intangibles | $4,565 | $4,336 | | Other Adjustments | $(1,349) | $(11,053) | | **Non-GAAP Net Income** | **$11,830** | **$8,719** | [Adjusted EBITDA](index=10&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA increased to $21.9 million in Q2 2025, up from $18.7 million in the prior-year quarter Adjusted EBITDA Reconciliation (In thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (Loss) Income (GAAP) | $(4,931) | $4,055 | | Adjustments (Taxes, Interest, D&A, SBC, etc.) | $26,821 | $14,686 | | **Adjusted EBITDA** | **$21,890** | **$18,741** | [Free Cash Flow](index=10&type=section&id=Free%20Cash%20Flow) Free cash flow increased significantly year-over-year for Q2 2025 but decreased for the six-month period Free Cash Flow Reconciliation (In thousands) | Line Item | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $31,721 | $24,436 | $28,638 | $26,901 | | Net cash used in investing in capital assets | $(6,090) | $(6,116) | $(16,302) | $(12,988) | | **Free Cash Flow** | **$25,631** | **$18,320** | **$12,336** | **$13,913** | [About the Company & Disclosures](index=3&type=section&id=About%20the%20Company%20%26%20Disclosures) This section provides a corporate overview, forward-looking statements, and an explanation of non-GAAP measures - Bandwidth is a **global CPaaS provider** with a Communications Cloud covering over 65 countries[15](index=15&type=chunk) - The report contains **forward-looking statements** subject to various risks and uncertainties[16](index=16&type=chunk) - The company uses **non-GAAP financial measures** to supplement GAAP statements and aid in period-to-period comparisons[17](index=17&type=chunk)[19](index=19&type=chunk)[22](index=22&type=chunk)

Following the completion of the call through Tuesday, August 5, 2025, a replay will be available by dialing (877) 344-7529 for the U.S. or (412) 317-0088 for callers outside the U.S., and entering passcode 4790498. About Bandwidth Inc. Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 perce ...

Core Insights - The India Communication Platform as a Service (CPaaS) market is projected to grow from USD 1.03 Billion in 2025 to USD 3.43 Billion by 2031, with a compound annual growth rate (CAGR) of 22.20% [1][16]. Market Drivers - The surge in demand for CPaaS in India is driven by the digitization of various sectors such as retail, healthcare, BFSI, and e-commerce, alongside increased smartphone penetration and internet accessibility [2]. - Digital transformation across Indian enterprises is significantly boosting CPaaS adoption, with organizations integrating real-time communication capabilities to enhance service quality [4]. - Supportive government initiatives like Digital India and the expansion of digital payment systems have further increased the demand for cloud-based communication tools [5]. Market Challenges - The expansion of CPaaS services has raised concerns regarding data privacy and regulatory compliance, particularly with the implementation of the Digital Personal Data Protection Act, 2023 [6][7]. - Ambiguities in regulations concerning data localization and cross-border transfer complicate the operational landscape for CPaaS providers [8]. Market Trends - The integration of artificial intelligence in CPaaS is a key trend, enabling intelligent and conversational interactions through tools like chatbots and voice assistants [9]. - AI-driven communication enhances service consistency and response times in high-volume environments such as retail and banking, while advancements in natural language processing improve accessibility [10]. Key Players - Notable companies in the India CPaaS market include Twilio Inc., Infobip Ltd., Bandwidth Inc., Plivo Inc., Kaleyra Inc., Route Mobile Ltd., Sinch AB, and 8x8, Inc. [14].

European enterprise leaders collaborate with Bandwidth to combat fraud, shape regulatory readiness and build customer trust across AI-powered global communications. RALEIGH, N.C., July 22, 2025 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, brought together European enterprise leaders in London this month for a customer roundtable focused on one of the biggest industry challenges: securing trust in the age of AI. In London this month, Bandwidth gathe ...

Core Viewpoint - Bandwidth Inc. is set to report its financial results for the second quarter of 2025 on July 29, 2025, before market opening [1]. Company Overview - Bandwidth Inc. is a global cloud communications software company that provides voice calling, text messaging, and emergency services to enterprises [4]. - The company operates in over 65 countries and covers more than 90 percent of global GDP, serving major clients such as Amazon Web Services, 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) provider to offer a combination of composable APIs, AI capabilities, and an owner-operated network [4].

Core Insights - Pennymac, a leading U.S. mortgage lender, has achieved over 50% annual telecom savings and significantly accelerated loan processing times by migrating to Bandwidth's cloud communication platform [1][3][4] Group 1: Cost Efficiency - The migration to Bandwidth's platform has resulted in more than 50% annual telecom savings for Pennymac [1][3] - The partnership has improved business-critical performance metrics, including a faster time to close for each loan [4][7] Group 2: Customer Experience - Pennymac's customer service communication is now faster and more agile, with automation expediting underwriting and shortening loan finalization times [5] - New conveniences for customers include 24/7 payment options through an automated contact center, enhancing overall customer experience [5] Group 3: Compliance and Risk Management - Pennymac leverages its new cloud communications systems to support compliance and mitigate risk, automating critical TCPA compliance checks for outbound calls [6] - The system ensures calls are not made to individuals on the National Do Not Call Registry or outside reasonable hours, enhancing regulatory compliance [6] Group 4: Technological Advancements - The use of Bandwidth's platform has provided Pennymac with advanced capabilities such as sophisticated call routing, conversational AI, and pre-built integrations with leading marketplace technologies [4][7] - The ability to tap into rich metadata from IP voice calls has allowed for enhanced performance analysis [4]

Core Insights - Bandwidth Inc. announced the winners of the second annual Texties, recognizing excellence and innovation in business text messaging [1][2] - The awards were determined by a panel of industry experts based on business results, innovation, and impact on end-users [1] Company Highlights - Emitrr, an AI-driven messaging platform, enhances healthcare staffing efficiency, resulting in a 23-28% higher patient response rate compared to traditional phone calls and a 24% increase in monthly recurring revenue for early adopting clinics [3][6] - TrueDialog utilizes AI-powered TrueDelivery technology to ensure message delivery, significantly improving engagement for universities and brands [4] - Modern Campus focuses on re-engaging the 37.8% of higher education students who do not complete their degrees on time, achieving a 35% increase in student re-engagement [4][6] - TruVideo enhances customer experience in automotive services by using AI tools for multilingual message translation, leading to higher service proposal acceptance rates and increased revenue per repair order [5][6] Industry Impact - The Texties award winners demonstrate how innovative messaging strategies can drive significant business outcomes across various sectors, including healthcare, education, and automotive services [1][3][5] - Bandwidth's solutions are trusted by major enterprises and cover over 65 countries, impacting more than 90% of global GDP [7]

Core Insights - Twilio Inc. and Bandwidth Inc. are key players in the U.S. Communications Platform as a Service (CPaaS) market, providing APIs for messaging, voice, and emergency services [1][2] Twilio Overview - Twilio leads in customer communications, focusing on AI-powered products that enhance automation, security, and insights for businesses [3] - The Twilio Segment customer data platform drives growth by enabling targeted marketing campaigns, leveraging data integration [4] - Financially, Twilio reported a 42.5% increase in non-GAAP earnings per share and 12% revenue growth in Q1 2025, attributed to improved cost control [4] - Twilio's financial health is robust, with $2.45 billion in cash and $991 million in long-term debt, alongside a $2 billion share buyback program authorized in January 2025 [5] Bandwidth Overview - Bandwidth has established a position in cloud communications but operates on a smaller scale than Twilio, with a 33.3% rise in non-GAAP earnings per share and 7% revenue growth in Q1 2025 [6] - The Enterprise Voice business is a key growth area, supported by platforms like Maestro and AI Bridge [6][7] - Bandwidth's service offerings include Enterprise Voice, Global Voice Plans, and Programmable Messaging, ensuring reliable service for AI applications [7] - However, Bandwidth faces challenges such as slow messaging growth and a heavy reliance on Enterprise Voice, which poses concentration risks [8] - As of March 31, 2025, Bandwidth had $42 million in cash against $468 million in long-term liabilities, raising concerns about its debt load [9] Comparative Analysis - Twilio is projected to have a stronger growth trajectory, with Zacks Consensus Estimates indicating a 7.9% revenue growth and 22.3% EPS growth for 2025, compared to Bandwidth's 0.3% revenue growth and 14.2% EPS growth [10][11] - Twilio trades at a higher valuation of 3.61 times forward sales, reflecting its growth momentum, while Bandwidth trades at 0.53 times, indicating its associated risks [12] - Year-to-date, Twilio's stock has increased by 9%, while Bandwidth's shares have decreased by 17.3%, highlighting investor sentiment towards each company [13] Conclusion - Twilio's scale, product diversity, and stronger growth outlook position it as a more attractive investment compared to Bandwidth, which faces several challenges [14]

Group 1 - Seeking Alpha welcomes LL Insights as a new contributing analyst, encouraging submissions of investment ideas for publication [1] - The article highlights the opportunity for contributors to earn money and gain access to exclusive SA Premium features [1] Group 2 - The author of the second document has a background in mechanical engineering and transitioned into a quantitative analyst role, focusing on fixed income [2] - The investment arm where the author worked consistently outperformed industry averages and is recognized among top global asset managers in fixed income markets [2] - The author expresses a particular interest in fixed-income and technology equities [2]

Industry Overview - The Zacks Communication - Infrastructure industry is facing challenges due to high capital expenditures for infrastructure upgrades, unpredictable raw material prices, supply-chain disruptions, and high customer inventory levels [1][4][6] - Despite these challenges, the increasing demand for digital innovations is expected to benefit the industry in the long run [1] Key Trends - High raw material prices and extended lead times for components are negatively impacting operations and profitability [4][6] - The industry is moving towards network convergence, combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and expand coverage [5] - Short-term profitability is at risk due to the need for significant infrastructure investments to meet the growing demand for mobile broadband and home Internet solutions [6] Market Performance - The Zacks Communication - Infrastructure industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a growth of 67% compared to 9.1% for the S&P 500 and 6.2% for the sector [9] Valuation Metrics - The industry is currently trading at a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio of 3.45X, significantly lower than the S&P 500's 16.87X and the sector's 16.83X [12] Notable Companies - Anterix Inc. (ATEX) is positioned to benefit from solid demand for scalable infrastructure and holds the largest licensed spectrum in the 900 MHz band [2][15] - Bandwidth Inc. (BAND) operates as a Communications Platform-as-a-Service (CPaaS) provider and is focused on continuous innovation to support high user volumes [2][18]