Equities Analysts Set Expectations for Bandwidth Q3 Earnings

Bandwidth Inc. (NASDAQ:BAND) – Investment analysts at William Blair lowered their Q3 2025 earnings per share (EPS) estimates for Bandwidth in a research report issued to clients and investors on Tuesday, July 29th. William Blair analyst A. Bhatia now anticipates that the company will earn $0.08 per share for the quarter, down from their prior estimate of $0.11. The consensus estimate for Bandwidth’s current full-year earnings is $0.22 per share. William Blair also issued estimates for Bandwidth’s Q4 2025 earnings at $0.16 EPS and Q3 2026 earnings at $0.23 EPS.

Bandwidth (NASDAQ:BAND) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.06. The company had revenue of $180.01 million for the quarter, compared to the consensus estimate of $178.87 million. Bandwidth had a positive return on equity of 1.43% and a negative net margin of 1.32%. Bandwidth’s revenue for the quarter was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.29 earnings per share.

Other equities analysts also recently issued research reports about the company. Needham & Company LLC restated a “buy” rating and issued a $20.00 target price on shares of Bandwidth in a research report on Friday, June 13th. Morgan Stanley decreased their target price on Bandwidth from $18.00 to $11.00 and set an “underweight” rating on the stock in a research report on Wednesday, April 16th. JMP Securities restated a “market outperform” rating and issued a $36.00 target price on shares of Bandwidth in a research report on Thursday, May 15th. Finally, Robert W. Baird decreased their target price on Bandwidth from $20.00 to $15.00 and set a “neutral” rating on the stock in a research report on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $20.80.

Bandwidth Stock Performance

NASDAQ BAND opened at $13.45 on Friday. The company has a market cap of $400.27 million, a PE ratio of -39.56 and a beta of 1.80. The stock’s 50 day simple moving average is $14.93 and its 200-day simple moving average is $14.91. Bandwidth has a 1-year low of $11.33 and a 1-year high of $23.00. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.31 and a quick ratio of 1.31.

Insider Activity

In related news, COO Devesh Agarwal sold 1,804 shares of Bandwidth stock in a transaction that occurred on Thursday, May 29th. The stock was sold at an average price of $14.47, for a total transaction of $26,103.88. Following the transaction, the chief operating officer owned 57,689 shares in the company, valued at approximately $834,759.83. This trade represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Rebecca Bottorff sold 16,935 shares of Bandwidth stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $15.14, for a total value of $256,395.90. Following the transaction, the insider owned 43,285 shares in the company, valued at approximately $655,334.90. The trade was a 28.12% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 44,596 shares of company stock valued at $658,682 in the last 90 days. 6.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Bandwidth

Institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC lifted its position in Bandwidth by 53.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 21,876 shares of the company’s stock worth $287,000 after buying an additional 7,661 shares in the last quarter. CWM LLC lifted its position in Bandwidth by 326.8% during the first quarter. CWM LLC now owns 7,460 shares of the company’s stock worth $98,000 after buying an additional 5,712 shares in the last quarter. Vanguard Group Inc. increased its stake in Bandwidth by 4.3% during the fourth quarter. Vanguard Group Inc. now owns 1,769,027 shares of the company’s stock worth $30,109,000 after acquiring an additional 73,623 shares during the last quarter. Two Sigma Investments LP increased its stake in Bandwidth by 8.9% during the fourth quarter. Two Sigma Investments LP now owns 108,338 shares of the company’s stock worth $1,844,000 after acquiring an additional 8,813 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Bandwidth by 9.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,249,120 shares of the company’s stock worth $21,260,000 after acquiring an additional 112,269 shares during the last quarter. Hedge funds and other institutional investors own 68.53% of the company’s stock.

About Bandwidth

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth’s APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.