Bandwidth Inc. Reports Q2 Revenue Growth

By Greg Peters • Tuesday, July 29 10:29 • Permanent Link

Bandwidth Inc. (NASDAQ: BAND) has released its financial results for the second quarter ended June 30, 2025. The company reported a revenue of $180 million for the three months ended June 30, 2025, which is an increase from the $174 million reported for the same period in 2024. Additionally, for the six months ended June 30, 2025, the revenue stood at $354 million, compared to $345 million for the same period in 2024.

The gross margin for the second quarter of 2025 was reported at 40%, showing improvement from the 37% recorded in the second quarter of 2024. Similarly, for the six months ended June 30, 2025, the gross margin was 40%, up from 38% for the same period in 2024. Furthermore, the non-GAAP gross margin for the second quarter of 2025 was 58%, an increase from 56% in the second quarter of 2024. For the six months ended June 30, 2025, the non-GAAP gross margin was 59%, compared to 56% for the same period in 2024.

Bandwidth reported a net loss of $5 million for the second quarter of 2025, as opposed to a net income of $4 million in the second quarter of 2024. The adjusted EBITDA for the second quarter of 2025 was $22 million, higher than the $19 million reported for the same period in 2024. For the six months ended June 30, 2025, the adjusted EBITDA was $44 million, compared to $35 million for the same period in 2024.

The net cash provided by operating activities for the second quarter of 2025 was $32 million, up from $24 million in the second quarter of 2024. Similarly, for the six months ended June 30, 2025, the net cash provided by operating activities was $29 million, compared to $27 million for the same period in 2024. Additionally, Bandwidth reported free cash flow of $26 million for the second quarter of 2025, an increase from $18 million in the second quarter of 2024. For the six months ended June 30, 2025, the free cash flow was $12 million, compared to $14 million for the same period in 2024.

Bandwidth also provided financial guidance for the third quarter and full year 2025. The company projects a revenue of $189 million to $191 million for the third quarter of 2025 and $745 million to $760 million for the full year 2025.

These financial results demonstrate Bandwidth's accelerating revenue growth, improved gross margins, and strong cash flow generation, indicating the company's continued momentum and disciplined execution in its core voice offerings. Today the company's shares have moved 8.14% to a price of $16.21. For the full picture, make sure to review Bandwidth's 8-K report.

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