Bandwidth(US:BAND)2025-10-30 12:36Financial Performance - Total revenue for Q3 2025 was $191.9 million, a slight decrease of 1% compared to $193.9 million in Q3 2024[18] - Gross profit for Q3 2025 increased to $73.8 million, up 1% from $73.1 million in Q3 2024[18] - Operating loss for Q3 2025 was $2.0 million, compared to a loss of $0.9 million in Q3 2024[18] - Net loss for Q3 2025 was $1.2 million, compared to a net income of $0.4 million in Q3 2024[18] - Total revenue for the three months ended September 30, 2025, was $191.9 million, compared to $193.9 million for the same period in 2024[101] - Total revenue for the nine months ended September 30, 2025, was $546.1 million, compared to $538.5 million for the same period in 2024[101] - The company reported a net loss attributable to common stockholders of $1.24 million for the three months ended September 30, 2025[124] - The net loss for the three months ended September 30, 2025, was $1,241,000, while the net income for the same period in 2024 was $413,000[211] Assets and Liabilities - Total assets as of September 30, 2025, increased to $1,033.3 million, up from $989.2 million as of December 31, 2024[15] - Cash and cash equivalents decreased to $73.4 million from $81.8 million as of December 31, 2024[15] - Accounts receivable increased to $93.4 million, up from $86.5 million as of December 31, 2024[15] - Total stockholders' equity rose to $392.7 million, compared to $312.5 million as of December 31, 2024[15] - As of September 30, 2025, total financial assets amounted to $62.091 million, with cash and cash equivalents at $55.092 million and marketable securities at $6.999 million[61] - Total accrued expenses and other current liabilities decreased to $85,221,000 as of September 30, 2025, down from $101,819,000 as of December 31, 2024[67] - Total lease obligations as of September 30, 2025, were $224,714,000, with long-term lease obligations amounting to $221,059,000[72] Cash Flow and Financing Activities - Cash provided by operating activities for the nine months ended September 30, 2025, was $50,877,000, an increase from $47,365,000 in 2024[32] - The company incurred a net cash used in financing activities of $29,076,000 for the nine months ended September 30, 2025, compared to $106,144,000 in 2024[32] - The total cash, cash equivalents, and restricted cash at the end of the period was $73,698,000, a decrease from $75,261,000 at the end of the previous year[32] - The company had no outstanding borrowings under the Credit Facility, with an available borrowing capacity of $150.0 million as of September 30, 2025[84] - The company may need to seek additional equity or debt financing to meet future capital requirements, which could adversely affect its business and financial condition if not raised on acceptable terms[191] Research and Development - Research and development expenses for Q3 2025 were $33.0 million, an increase of 9% from $30.2 million in Q3 2024[18] - Research and development expenses for the three months ended September 30, 2025, were $33 million, an increase from $30 million in the same period of 2024[151] - Research and development expenses increased by $3 million, or 9%, for the three months ended September 30, 2025, reflecting continued investment in network infrastructure[160] Stock-Based Compensation - The company reported stock-based compensation of $38,448,000 for the nine months ended September 30, 2025, compared to $35,148,000 in 2024[32] - Total stock-based compensation expense for the three months ended September 30, 2025, was $12.33 million, compared to $11.45 million for the same period in 2024[108] - Stock-based compensation expense for the nine months ended September 30, 2025, was $38,448,000, up from $35,148,000 in 2024, reflecting an increase of about 6.5%[211] Debt and Convertible Notes - The Company issued $400.0 million of 0.25% Convertible Notes due 2026, with net proceeds of approximately $344.7 million after costs[85] - The Company issued $250.0 million of 0.50% Convertible Notes due 2028, with net proceeds of approximately $217.0 million after costs[88] - The net carrying amount of the liability components of the Convertible Notes was $254.9 million as of September 30, 2025, compared to $281.3 million as of December 31, 2024[97] Tax and Effective Tax Rate - The effective income tax rate for the three months ended September 30, 2025, was 64.8%, compared to 228.7% for the same period in 2024[119] - The effective tax rate for the three months ended September 30, 2025, was 64.8%, a decrease from 228.7% in the same period of 2024[148] - For the nine months ended September 30, 2025, the Non-GAAP effective income tax rate was 17.2%, compared to 15.5% for the same period in 2024[208] Revenue Recognition and Future Commitments - The company recognized revenue of $1.5 million and $5.1 million during the three and nine months ended September 30, 2025, respectively, from deferred revenue balances[103] - The company expects to recognize $8.4 million in revenue over the next 12 months related to its contract liabilities as of September 30, 2025[103] - Future commitments include $258 million in Convertible Notes, $456 million in future minimum rent payments for office space, and $19 million in non-cancelable purchase obligations[192]