$BAND

Bandwidth Inc.

CIK:0001514416|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 219,897	$ 180,013	$ 428,681	$ 354,254
Cost of revenue	141,354	108,349	272,224	211,078
Gross profit	78,543	71,664	156,457	143,176
Operating expenses
Research and development	37,343	31,749	75,809	62,381
Sales and marketing	25,360	24,818	49,987	51,274
General and administrative	20,393	18,845	39,835	37,956
Total operating expenses	83,096	75,412	165,631	151,611
Operating loss	(4,553)	(3,748)	(9,174)	(8,435)
Other income (expense)
Net gain on extinguishment of debt	5,163	0	12,446	1,082
Interest expense, net	(967)	(547)	(1,640)	(1,035)
Other (expense) income, net	(45)	(500)	558	(217)
Total other income (expense)	4,151	(1,047)	11,364	(170)
(Loss) income before income taxes	(402)	(4,795)	2,190	(8,605)
Income tax benefit (provision)	2,789	(136)	4,315	(66)
Net income (loss)	$ 2,387	$ (4,931)	$ 6,505	$ (8,671)
Net income (loss) per share
Basic (in usd per share)	$ 0.07	$ (0.16)	$ 0.20	$ (0.29)
Diluted (in usd per share)	$ (0.07)	$ (0.16)	$ (0.15)	$ (0.29)
Numerator used to compute net income (loss) per share:
Basic	$ 2,387	$ (4,931)	$ 6,505	$ (8,671)
Diluted	$ (2,395)	$ (4,931)	$ (5,036)	$ (8,671)
Weighted average number of common shares outstanding:
Basic (in shares)	32,129,631	29,889,020	31,906,992	29,438,230
Diluted (in shares)	33,490,677	29,889,020	33,225,729	29,438,230

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income (loss)	$ 6,505	$ (8,671)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	35,114	25,818
Non-cash reduction to the right-of-use asset	1,676	1,620
Amortization of debt discount and issuance costs	591	709
Stock-based compensation	25,597	26,120
Deferred taxes and other	(5,008)	(2,923)
Net gain on extinguishment of debt	(12,446)	(1,082)
Changes in operating assets and liabilities:
Accounts receivable, net of allowance	(19,194)	(1,763)
Prepaid expenses and other assets	(4,280)	(1,465)
Accounts payable	8,606	(8,247)
Accrued expenses and other liabilities	2,271	(1,490)
Operating right-of-use liability	(1,892)	12
Net cash provided by operating activities	37,540	28,638
Cash flows from investing activities
Purchase of property, plant and equipment	(9,721)	(10,938)
Capitalized software development costs	(4,662)	(5,364)
Purchase of marketable securities	(6,419)	(10,702)
Proceeds from sales and maturities of marketable securities	10,426	4,731
Proceeds from sale of business	0	206
Net cash used in investing activities	(10,376)	(22,067)
Cash flows from financing activities
Borrowings on line of credit	148,700	28,500
Repayments on line of credit	(148,700)	(28,500)
Proceeds from issuance of convertible senior notes	316,250	0
Net cash paid for debt extinguishment	(216,186)	(26,144)
Purchase of capped call	(21,821)	0
Repurchase of Class A common stock	(20,000)	0
Payment of debt issuance costs	(12,028)	0
Value of equity awards withheld for tax liabilities and other	(5,215)	(2,923)
Net cash provided by (used in) financing activities	41,000	(29,067)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,151)	657
Net increase (decrease) in cash, cash equivalents, and restricted cash	67,013	(21,839)
Cash, cash equivalents, and restricted cash, beginning of period	103,160	82,234
Cash, cash equivalents, and restricted cash, end of period	170,173	60,395
Reconciliation of cash, cash equivalents, and restricted cash, end of period
Cash and cash equivalents	169,902	60,136
Restricted cash included in prepaid expenses and other current assets	271	259
Total cash, cash equivalents, and restricted cash, end of period	170,173	60,395
Supplemental disclosure of cash flow information
Cash paid for (received from) interest	207	(246)
Cash paid for taxes, net	1,094	782
Right-of-use assets obtained in exchange for new operating lease liabilities	633	1,434
Supplemental disclosure of noncash investing and financing activities
Purchase of property, plant and equipment, accrued but not paid	4,063	6,180
Purchase of property and equipment through lease incentive	$ 0	$ 1,685

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 169,902	$ 102,788
Marketable securities	4,455	8,476
Accounts receivable, net of allowance	110,294	91,409
Deferred costs	4,384	4,830
Prepaid expenses and other current assets	17,089	11,557
Total current assets	306,124	219,060
Property, plant and equipment, net	165,771	174,251
Operating right-of-use asset, net	151,853	152,950
Intangible assets, net	121,361	138,742
Deferred costs, non-current	2,322	3,098
Other long-term assets	7,426	7,754
Goodwill	346,581	356,772
Total assets	1,101,438	1,052,627
Current liabilities:
Accounts payable	49,143	42,600
Accrued expenses and other current liabilities	87,297	91,151
Current portion of deferred revenue	8,796	8,742
Operating lease liability, current	4,542	3,947
Current portion of convertible senior notes	0	7,627
Total current liabilities	149,778	154,067
Other liabilities	1,727	555
Operating lease liability, net of current portion	219,110	221,019
Deferred revenue, net of current portion	3,226	4,972
Deferred tax liability	18,655	24,479
Convertible senior notes	330,769	247,562
Total liabilities	723,265	652,654
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock: $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding	0	0
Treasury common stock: shares, at cost; 576,794 and 0 shares as of June 30, 2026 and December 31, 2025, respectively	(20,012)	0
Additional paid-in capital	490,860	485,836
Accumulated deficit	(77,821)	(84,326)
Accumulated other comprehensive loss	(14,887)	(1,568)
Total stockholders’ equity	378,173	399,973
Total liabilities and stockholders’ equity	$ 1,101,438	$ 1,052,627
Treasury stock, shares (in shares)	576,794	0
Class A voting common stock
Stockholders’ equity:
Class A and Class B common stock	$ 31	$ 29
Class B voting common stock
Stockholders’ equity:
Class A and Class B common stock	$ 2	$ 2