Bandwidth (BAND) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 19, 2026 astatine 8:18 AM CST 25 min read

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Thursday, Feb. 19, 2026 astatine 8 a.m. ET

• Chief Executive Officer — David Morken

• Chief Financial Officer — Daryl Raiford

• Chief Product Officer — John Bell

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David Morken: Welcome, everyone. We are pleased to study a coagulated 4th quarter, capping disconnected a twelvemonth defined by sustained concern show and strengthening fundamentals. Throughout 2025, we delivered dependable advancement crossed revenue, profitability, and escaped currency flow. A superior item of the twelvemonth was our occurrence successful the ample endeavor space. We closed a grounds fig of million-dollar-plus deals, including 2 important wins successful the 4th fourth alone. We besides continued to put successful high-margin innovation. We are seeing tangible results from our AI dependable tools, our spot portfolio, our planetary communications cloud, and our Maestro orchestration software. Entering 2026, we are assured successful the upward trajectory of our business.

When we reported 2022 results, we acceptable ambitious four-year goals extending done 2026: a 15% to 20% gross compound yearly maturation rate, a 5 percent constituent summation successful gross borderline to 60%, a 20% EBITDA margin, a 15% escaped currency travel margin, and $125,000,000 successful cumulative escaped currency flow. While marketplace dynamics, peculiarly successful messaging, volition astir surely support america abbreviated of our multiyear gross CAGR target, our 2026 outlook is afloat connected way to execute our goals for gross margin, EBITDA margin, and escaped currency travel margin. Furthermore, we volition importantly transcend our 2026 cumulative escaped currency travel objective, having already surpassed $125,000,000 by 2025. Daryl volition locomotion done our afloat 2026 guidance successful much item shortly.

But astatine a precocious level, our 2026 outlook reflects steadfast request crossed some dependable and messaging, on with continued coagulated execution, giving america assurance successful the absorption of our concern and our fiscal model. Earlier today, we besides announced the authorization of our inaugural stock repurchase program. This reflects our assurance successful the durability of our concern exemplary and our quality to make currency portion simultaneously investing successful our future. I privation to convey our customers for their continued spot successful Bandwidth. I besides privation to convey our Bandmates for their tireless committedness to excellence and I convey God for the blessing of different twelvemonth filled with opportunities for our squad to larn and

Operator: grow.

David Morken: Over 2 years ago, we identified AI dependable arsenic the adjacent frontier. Since then, we person helped customers determination from AI dependable experimentation into real-world production. From an AI dependable concierge for a planetary hospitality marque to an AI-powered dependable ordering strategy for nutrient venues nationwide, enterprises are trusting Bandwidth to motorboat caller AI-driven lawsuit acquisition usage cases. Our AI investments are paying off. The Bandwidth Communications Cloud and Maestro are purpose-built to integrate and negociate AI dependable crossed divers environments, with the quality, reliability, ultra-low latency, and standard that planetary businesses necessitate to enactment multichannel AI-driven lawsuit conversations. Our endeavor momentum validates this net-centric approach.