Bandwidth Inc. (NASDAQ: BAND) reported first‑quarter 2026 revenue of $209 million, a 20% year‑over‑year increase from $174.2 million in Q1 2025, and Adjusted EBITDA of $26 million, up 17% from $22.2 million in the same period last year.
The growth was driven by a 13% rise in Cloud Communications revenue, which reached $150 million, and a near‑doubling of Software Services revenue. Global Voice usage accelerated as AI‑enabled voice agents moved beyond pilot testing into full‑scale deployment, reinforcing the company’s AI‑oriented customer base.
Non‑GAAP gross margin improved to 59.5%, up 50 basis points year‑over‑year, reflecting the structural margin advantage of Bandwidth’s owned and operated communications platform, scale benefits, and disciplined cost management.
Management raised its full‑year 2026 outlook to revenue of $880 million to $900 million and Adjusted EBITDA of $119 million to $125 million, signaling confidence in continued demand for its AI‑driven platform and a strong competitive position in the CPaaS market.
Capital allocation was reinforced with a new $80 million share repurchase program and the retirement of the company’s 0.25% convertible senior notes due 2026, along with the repurchase of $100 million of its 0.5% convertible notes due 2028 at a discount.
"Bandwidth has entered 2026 with historic momentum. In the 1st quarter, we exceeded our expectations with record revenue of $209 million, up 20% year‑over‑year, and record 1st quarter adjusted EBITDA of $26 million. Based on this performance, we are raising our full‑year outlook. These results represent far more than a quarterly beat. They are a definitive proof point of our structural advantage in a technology sector undergoing a profound transformation," said CEO David Morken.
"Our global Communications Cloud and Maestro orchestration layer are essential infrastructure that make Voice AI possible," added Morken.
"Management deployed this strengthened cash position strategically during the quarter, fully retiring the company’s 0.25% convertible senior notes due 2026 and repurchasing $100 million of its 0.5% convertible notes due 2028 at a discount," the company noted.
Investors responded positively to the earnings beat and the raised guidance, reflecting confidence in Bandwidth’s AI‑driven growth strategy and its disciplined capital allocation.
The results underscore Bandwidth’s position as a leading CPaaS provider and highlight the company’s ability to translate AI adoption into tangible financial performance.
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