Bandwidth reported October 29 that third-quarter revenue rose 22% to approximately $234 million, up from $192 million a year earlier.
The cloud-communications company recorded $5.2 million in net income, compared with a $1.2 million loss. Diluted earnings were 13 cents per share, versus a loss of 4 cents.
Adjusted net income was $19.9 million, or 50 cents per diluted share on the company’s adjusted basis. That measure excludes specified costs and other items included in reported earnings.
Reported gross margin declined to 36% from 38%. Bandwidth also reported a 61% adjusted gross margin, calculated against its cloud-communications revenue rather than total revenue, so the two percentages use different bases.
Operating cash flow increased to $37.7 million from $22.2 million. Free cash flow, after capital investment, rose to $33 million from $13.1 million.
Management forecasts annual revenue of $905 million–$910 million, adjusted EBITDA of $124 million–$125 million and adjusted earnings of $1.73–$1.79 per share.
Those full-year figures are projections. The quarterly results describe the company’s financial performance, rather than independent evidence for its product-performance claims.
Sources: Bandwidth — October 29 Results: https://www.prnewswire.com/news-releases/bandwidth-announces-third-quarter-2026-financial-results-302922787.html