Bandwidth reported Q3 2025 financial results, posting revenue of $191.9 million, a 1% decline from $194 million in the same quarter last year. Non‑GAAP gross margin stood at 58%. The company recorded a net loss of $1.24 million, compared with a $0.41 million profit in Q3 2024, while adjusted EBITDA reached $24 million, matching the prior year quarter.
Bandwidth attributed the flat revenue to the normalization of political campaign messaging revenue, which is cyclical. Management highlighted growth in software‑driven revenue and voice‑AI deployments, which offset the decline and contributed to margin expansion.
The company raised its full‑year 2025 outlook to revenue of $747–$760 million and adjusted EBITDA of $89–$92 million, citing stronger momentum in AI and software mix and a record number of million‑plus deals closed during the quarter.
Segment revenue breakdown was provided: Enterprise Voice $110 million, Global Voice Plans $60 million, Programmable Messaging $20 million, and Software & Services $1.9 million. Software & Services revenue grew 15% year‑over‑year, reflecting increased adoption of the Maestro and AIBridge platforms and Trust Services.
Management noted that the launch of Maestro and AIBridge, along with Trust Services, has driven higher average customer revenue and retention rates above 99%.
The results reinforce Bandwidth’s position in the CPaaS market, emphasizing a recurring software revenue model and AI integration as key growth drivers.
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