Analysts Set Expectations for Bandwidth FY2025 Earnings

Key Points

• Zacks Research has reduced Bandwidth's FY2025 EPS estimate from ($0.05) to ($0.07), while the current consensus estimate for the company's earnings stands at $0.22 per share.
• Despite a quarterly revenue of $180.01 million, Bandwidth experienced a negative net margin of 1.32% but reported a positive return on equity of 1.43%.
• Bandwidth shares are currently priced at $14.12, with an average target price of $20.80 as per market analysts, while four analysts have rated the stock as a Buy.

Bandwidth Inc. (NASDAQ:BAND - Free Report) - Zacks Research cut their FY2025 EPS estimates for Bandwidth in a research note issued to investors on Tuesday, August 19th. Zacks Research analyst Team now forecasts that the company will post earnings per share of ($0.07) for the year, down from their prior forecast of ($0.05). The consensus estimate for Bandwidth's current full-year earnings is $0.22 per share. Zacks Research also issued estimates for Bandwidth's Q2 2026 earnings at $0.06 EPS, Q3 2026 earnings at $0.09 EPS, Q4 2026 earnings at $0.25 EPS, FY2026 earnings at $0.40 EPS, Q2 2027 earnings at $0.17 EPS and FY2027 earnings at $0.55 EPS.

BAND has been the subject of several other research reports. Robert W. Baird reduced their price objective on shares of Bandwidth from $20.00 to $15.00 and set a "neutral" rating for the company in a research report on Thursday, May 8th. JMP Securities restated a "market outperform" rating and set a $36.00 price objective on shares of Bandwidth in a research report on Thursday, May 15th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $20.00 price target on shares of Bandwidth in a research report on Friday, June 13th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $20.80.

Bandwidth Stock Down 2.7%

Shares of BAND stock traded down $0.40 during trading on Friday, reaching $14.25. The company's stock had a trading volume of 127,441 shares, compared to its average volume of 286,473. The company has a market capitalization of $429.50 million, a price-to-earnings ratio of -41.91 and a beta of 1.80. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.31 and a quick ratio of 1.31. Bandwidth has a 1-year low of $11.33 and a 1-year high of $23.00. The stock's 50-day moving average price is $14.78 and its 200 day moving average price is $14.53.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $0.38 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $0.06. The firm had revenue of $180.01 million during the quarter, compared to analysts' expectations of $178.87 million. Bandwidth had a negative net margin of 1.32% and a positive return on equity of 1.43%. The business's quarterly revenue was up 3.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.29 earnings per share. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Insider Buying and Selling at Bandwidth

In related news, CEO David A. Morken sold 4,999 shares of the stock in a transaction dated Thursday, May 29th. The shares were sold at an average price of $14.47, for a total value of $72,335.53. Following the sale, the chief executive officer directly owned 6,964 shares of the company's stock, valued at approximately $100,769.08. This represents a 41.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Devesh Agarwal sold 2,132 shares of the stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $13.30, for a total transaction of $28,355.60. Following the completion of the sale, the chief operating officer directly owned 62,927 shares in the company, valued at approximately $836,929.10. The trade was a 3.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 46,728 shares of company stock worth $687,037. Company insiders own 6.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC lifted its holdings in Bandwidth by 183.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock valued at $60,000 after purchasing an additional 2,445 shares in the last quarter. State of Tennessee Department of Treasury purchased a new position in shares of Bandwidth during the 2nd quarter worth about $204,000. Man Group plc lifted its holdings in shares of Bandwidth by 76.5% during the 2nd quarter. Man Group plc now owns 21,132 shares of the company's stock worth $336,000 after acquiring an additional 9,158 shares during the period. Engineers Gate Manager LP lifted its holdings in shares of Bandwidth by 15.7% during the 2nd quarter. Engineers Gate Manager LP now owns 60,210 shares of the company's stock worth $957,000 after acquiring an additional 8,161 shares during the period. Finally, Bridgeway Capital Management LLC purchased a new position in shares of Bandwidth during the 2nd quarter worth about $2,166,000. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

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.