Bandwidth Inc. recently released its 10-Q report, revealing key insights into the company's financial performance and operations. Bandwidth operates as a cloud-based software-powered communications platform-as-a-service provider, offering voice and messaging services across various mobile applications and connected devices. Its platform includes voice services through SIP or programmable voice APIs, software APIs for messaging, communications solutions with integrated local emergency services, number management solutions, and insights on customer's voice and messaging performance.
In the three months ended September 30, 2025, Bandwidth reported total revenue of $191.9 million, representing a 1% decrease from the same period in 2024. The net loss for the period was $1 million, compared to a net income of less than $1 million in the corresponding period in 2024. For the nine months ended September 30, 2025, total revenue was $546 million, reflecting a 1% increase from the same period in 2024. However, the net loss for the nine-month period was $10 million, compared to a net loss of $5 million in 2024.
Bandwidth also disclosed its key performance indicator, the net retention rate, which decreased to 105% for the three months ended September 30, 2025, from 117% in the same period in 2024. The decline in the net retention rate was attributed to lower political messaging revenue following the U.S. presidential election in November 2024.
The company also provided a breakdown of its revenue sources, with 74% of its cloud communications revenue derived from recurring sources for the three months ended September 30, 2025. Additionally, Bandwidth highlighted its cost of revenue, which includes fees paid to other network service providers, network operations costs, personnel costs, and amortization of acquired technology intangibles and depreciation.
Today the company's shares have moved -1.06% to a price of $16.77. If you want to know more, read the company's complete 10-Q report here.
