Bandwidth Posts Record Q3 Revenue of $234 Million, Up 22% on AI Voice Demand

Record results across key metrics

Bandwidth (NASDAQ: BAND) reported results for the quarter ended September 30, 2026. Revenue rose to $234 million from $192 million in the third quarter of 2025. Adjusted EBITDA reached $35 million, compared with $24 million a year earlier, for an Adjusted EBITDA margin of 22%.

The company returned to a profit on a GAAP basis. Net income was $5 million, against a loss of $1 million in the prior-year quarter. Basic net income per share was $0.16, compared with a loss of $0.04. Non-GAAP net income rose to $20 million from $11 million, or $0.50 per Non-GAAP share versus $0.36.

Cash generation also improved. Net cash provided by operating activities was $38 million, up from $22 million, and free cash flow was $33 million, compared with $13 million a year earlier. For the nine months, revenue was $663 million versus $546 million, and free cash flow was $56 million versus $25 million.

GAAP gross margin slipped to 36% from 38%, while Non-GAAP gross margin increased to 61% from 58%.

SI agents at the center of the pitch

Chief Executive Officer David Morken tied the results to enterprises "increasingly entrusting us to power SI-driven communication workflows." He said that as SI agents begin to act on behalf of businesses and consumers, they will need to reach people by voice and text, and that Bandwidth will "continue to scale as SI generates more conversations between people and agents." The company uses "SI" for super intelligence in its own description of its offering.

CFO Daryl Raiford said growth came from customers expanding their usage of the platform. According to him, the sales team added four new $1 million-plus customer wins and expansions that will layer into results over the next twelve months. He added that the business model lets the company lean into that momentum while expanding margins and generating strong cash flow.

The headline also points to a 2027 outlook of double-digit Cloud Communications revenue growth from voice usage demand.

Customer wins and Salesforce certification

Bandwidth listed several third quarter customer examples:

• A rapidly expanding all-digital bank chose Bandwidth to modernize its contact center and integrate an SI agent, displacing a major CPaaS competitor. The company cited its low-latency owned network, a 5x-redundant toll-free solution with Maestro routing and observability, and native Genesys integration.
• A consumer privacy company now relies on Bandwidth for millions of phone numbers and launched an SI-powered call screening service on its software and voice infrastructure.
• A major enterprise network and communications provider serving businesses and state and local governments adopted the platform voice solution, adding recurring platform fees and usage-based revenue.
• A communications provider serving thousands of businesses and agencies selected Bandwidth to expand calling internationally, using its network reaching 70 countries.

Salesforce named Bandwidth its first certified international carrier to support the global rollout of its native Contact Center. The offering extends to more than 25 countries across Europe, the U.K., Australia and New Zealand, with more markets to follow. Enterprises can connect through a bring-your-own-carrier model with Maestro.

Full-year guidance and what it signals

For full year 2026, Bandwidth guides to revenue of $905 million to $910 million, Adjusted EBITDA of $124 million to $125 million, and Non-GAAP earnings per share of $1.73 to $1.79. The guidance assumes a weighted average diluted share count of approximately 38.7 million. The company said the figures are based on current indications and subject to change.

For investors and customers, the report suggests Bandwidth is positioning its voice and messaging network as infrastructure for AI-driven customer interactions, and that usage growth is already showing up in revenue and cash flow. Management will meet investors at Needham Tech Week on November 18, 2026, and at the Wells Fargo TMT Summit, where Morken is scheduled for a fireside chat on December 8, 2026.