Equities Analysts Set Expectations for Bandwidth Q3 Earnings

Key Points

• Zacks Research has lowered its Q3 2025 earnings per share (EPS) estimate for Bandwidth to $0.01, down from the previous estimate of $0.02, while the consensus estimate for the full year remains at $0.22 per share.
• Bandwidth reported a quarterly EPS of $0.38 last month, surpassing expectations by $0.06, with revenues of $180.01 million, reflecting a year-over-year increase of 3.4%.
• The company has received mixed ratings from analysts, with four rating it a "Buy," one a "Hold," and one a "Sell," leading to a consensus target price of $20.80.

Bandwidth Inc. (NASDAQ:BAND - Free Report) - Investment analysts at Zacks Research cut their Q3 2025 earnings per share (EPS) estimates for shares of Bandwidth in a research note issued on Tuesday, August 19th. Zacks Research analyst Team now anticipates that the company will post earnings of $0.01 per share for the quarter, down from their previous estimate of $0.02. The consensus estimate for Bandwidth's current full-year earnings is $0.22 per share. Zacks Research also issued estimates for Bandwidth's Q1 2027 earnings at $0.06 EPS.

Several other equities research analysts have also recently commented on the company. JMP Securities restated a "market outperform" rating and issued a $36.00 target price on shares of Bandwidth in a research note on Thursday, May 15th. Needham & Company LLC restated a "buy" rating and issued a $20.00 price target on shares of Bandwidth in a research note on Friday, June 13th. Finally, Robert W. Baird decreased their price objective on Bandwidth from $20.00 to $15.00 and set a "neutral" rating on the stock in a report on Thursday, May 8th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Bandwidth presently has an average rating of "Moderate Buy" and an average price target of $20.80.

Bandwidth Stock Up 4.5%

NASDAQ BAND traded up $0.63 during trading on Thursday, hitting $14.75. The stock had a trading volume of 235,702 shares, compared to its average volume of 316,555. The company has a market capitalization of $444.57 million, a PE ratio of -43.38 and a beta of 1.80. The company's 50-day moving average price is $14.77 and its two-hundred day moving average price is $14.58. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31. Bandwidth has a 12 month low of $11.33 and a 12 month high of $23.00.

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

Insider Transactions at Bandwidth

In other news, insider Rebecca Bottorff sold 16,935 shares of the firm's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $15.14, for a total transaction of $256,395.90. Following the completion of the transaction, the insider directly owned 43,285 shares in the company, valued at $655,334.90. This trade represents a 28.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David A. Morken sold 4,999 shares of the firm's stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $14.47, for a total value of $72,335.53. Following the transaction, the chief executive officer owned 6,964 shares of the company's stock, valued at $100,769.08. This trade represents a 41.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 46,728 shares of company stock valued at $687,037. 6.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Bandwidth

A number of hedge funds have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC boosted its holdings in Bandwidth by 53.9% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 21,876 shares of the company's stock worth $287,000 after acquiring an additional 7,661 shares during the last quarter. CWM LLC boosted its stake in Bandwidth by 326.8% in the first quarter. CWM LLC now owns 7,460 shares of the company's stock valued at $98,000 after acquiring an additional 5,712 shares during the last quarter. Two Sigma Investments LP raised its position in shares of Bandwidth by 8.9% in the fourth quarter. Two Sigma Investments LP now owns 108,338 shares of the company's stock valued at $1,844,000 after purchasing an additional 8,813 shares during the period. Dimensional Fund Advisors LP raised its position in shares of Bandwidth by 9.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,249,120 shares of the company's stock valued at $21,260,000 after purchasing an additional 112,269 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Bandwidth by 10.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,182 shares of the company's stock valued at $293,000 after purchasing an additional 1,658 shares during the period. Institutional investors and hedge funds 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.