Bandwidth Inc. Class A Common Stock (BAND)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Bandwidth as a Graham-style asset with a Buffett-style question: is this a durable business at a sensible price? It sells communications APIs, a technically sticky but competitive niche. Revenue rose from $601.1 million in fiscal year 2023 to $748.5 million in fiscal year 2024 and $753.8 million in fiscal year 2025, but the bottom line remains poor: net losses of $16.3 million, $6.5 million, and $12.9 million in those same years. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $208.8 million and net income was $4.1 million, though diluted EPS was still -$0.08, a gap that demands scrutiny. The latest quarter shown also produced a small profit, but one quarter does not prove a turnaround. At the 2026-10-13 close of $52.73, FairStock calculations show a negative P/E of -155.09, price-to-book of 4.49, EV/EBITDA of 21.50, and a 9.2% free-cash-flow yield. The cash flow is attractive, yet an Altman Z-score of 0.87 and debt-to-equity of 1.47 suggest financial frailty. A Piotroski score of 4/9 and a FairStock score of 32/100 confirm mediocre fundamentals. Growth is real, but profits are thin, competition is fierce, and beta of 3.03 means the market price swings more than the business. I would need evidence that recent profitability is durable and leverage is falling before calling this a sound long-term value. Today it is a speculative turnaround, not a sure thing.

In plain English: Bandwidth runs cloud software that helps businesses add calling and messaging to their apps. Sales are growing, and recent quarters show smaller losses or a small profit, but it has lost money in each of the last three fiscal years and carries a lot of debt. At the recent price near $53, the shares look expensive relative to current profits but less so relative to cash flow; overall, the numbers look mixed and risky.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer