Bandwidth's third quarter 2026 revenue of $234M beat estimates as margins expanded significantly

Bandwidth reported record results for the third quarter of 2026, exceeding analyst expectations for both revenue and profitability. The performance was characterized by strong operational leverage and the addition of high-value enterprise contracts, particularly those focused on AI-driven communication workflows.

Key Highlights

• Record revenue of $234 million represented 22% year-over-year growth, surpassing consensus estimates.
• Adjusted EBITDA climbed 43% year-over-year to $35 million, resulting in an improved Adjusted EBITDA margin of 22%.
• Non-GAAP gross margin expanded to 61%, a 300 basis point increase compared to the prior year.
• The sales team secured four new $1 million-plus customer wins and expansions expected to contribute over the next 12 months.
• Free cash flow reached $33 million, a significant increase from $13 million in the third quarter of 2025.