--- title: "Bandwidth Q2 Cash Flow Jumps 40 Percent" description: "Bandwidth (BAND) reported a 40% increase in free cash flow for Q2 2025, reaching $25.6 million, alongside revenue of $180 million, surpassing analyst expectations. Non-GAAP earnings per share hit $0.3" type: "news" locale: "en" url: "https://longbridge.com/en/news/250634509.md" published_at: "2025-07-29T15:40:27.000Z" --- # Bandwidth Q2 Cash Flow Jumps 40 Percent > Bandwidth (BAND) reported a 40% increase in free cash flow for Q2 2025, reaching $25.6 million, alongside revenue of $180 million, surpassing analyst expectations. Non-GAAP earnings per share hit $0.38, exceeding estimates. The company achieved a record non-GAAP gross margin of 58% and a 3.7% revenue growth year-over-year. Bandwidth's focus on AI-driven voice solutions and programmable messaging continues to drive enterprise adoption. For Q3 2025, revenue is projected between $189–$191 million, with full-year guidance set at $745–$760 million. **Bandwidth** (BAND -19.49%), a provider of cloud-based communications software for enterprises worldwide, released second-quarter 2025 results on July 29, 2025. The key news: revenue (GAAP) climbed to $180.0 million, beating analyst expectations of $178.87 million (GAAP), and non-GAAP earnings per share reached $0.38, ahead of the $0.33 estimate. The company reported a record non-GAAP gross margin of 58%, and though operating under a GAAP net loss for the period, Bandwidth delivered another quarter of outperformance on core metrics while continuing to invest in innovation and enterprise growth. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.38 $0.33 $0.29 31.0 % Revenue $180.0 million $178.87 million $173.6 million 3.7% Non-GAAP Gross Margin 58 % 56 % 2.0 pp Adjusted EBITDA $21.9 million $18.7 million 17.1 % Free Cash Flow $25.6 million $18.3 million 39.9 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. ## Company Overview and Business Focus Bandwidth operates a global communications platform offering voice, messaging, emergency services, and number management for large enterprises. Its infrastructure allows customers to build, automate, and manage communications across over 65 countries, reaching over 90% of global economic output. The company has recently concentrated on three core focus areas: advancing its AI-driven enterprise voice offerings, growing its programmable messaging business, and ensuring regulatory compliance across multiple jurisdictions. Its competitive advantages include an all-IP global network, an API-focused product design, and deep regulatory experience, which are critical for providing reliable and scalable service to clients like Microsoft, Cisco, Zoom, and AWS. ## Quarterly Highlights and Key Metrics Several metrics stood out this quarter. Revenue rose 3.7% compared to Q2 2024, reflecting continued demand for Bandwidth’s suite of cloud-based voice and messaging solutions. The non-GAAP gross margin increased to a record 58%, up from 56% in Q2 2024. Adjusted EBITDA, a measure of earnings before interest, taxes, depreciation, and amortization, grew 17.1% compared to Q2 2024, reaching $21.9 million. Free cash flow (non-GAAP) increased nearly 40% compared to Q2 2024, reaching $25.6 million, supported by higher operating cash flow and disciplined capital spending. This was also a quarter marked by higher innovation spend. Research and development expenses (GAAP) rose to $31.75 million, up 12.9% from Q2 2024, as the company continued to enhance its product suite. General and administrative expenses were up 12.8% compared to Q2 2024. Product progress was notable. Enterprise customers accelerated adoption of Maestro and AI Bridge—software platforms that help organizations orchestrate and integrate artificial intelligence into contact centers and customer engagement channels. Over half of all enterprise customers now use these platforms as of Q1 2025. Major wins included a large healthcare provider selecting Bandwidth as its sole voice provider for reliability, as well as a leading insurance brokerage migrating complex communications infrastructure to Bandwidth, citing the power of programmable call routing and AI integration. Programmable Messaging, which lets businesses embed text messaging into their applications, accounted for 19% of cloud communications revenue in Q1 2025. Customer retention metrics remained strong. Average annual revenue per customer reached a record in Q1 2025, and name retention held above 99% for Q1 2025. Channel partnerships gained momentum in Q1 2025, supporting both direct sales and partner-led implementations. No material one-time charges were reported for the period. ## Looking Ahead: Management Guidance and Investor Watchpoints For the third quarter, Bandwidth projects revenue in the range of $189–$191 million for Q3 2025 and adjusted EBITDA between $19–$21 million for Q3 2025. For the full fiscal year 2025, guidance calls for revenue of $745–$760 million for full year 2025 and adjusted EBITDA of $86–$91 million for full year 2025. The outlook factors in the absence of last year’s significant political campaign messaging revenue, normalizing the year-over-year comparison. Investors should keep an eye on several key trends for the remainder of the year. Growth in enterprise cloud adoption and AI-driven communications solutions remains a priority for the company and its customer base. Management will need to sustain margin improvement while monitoring costs, particularly as research and development investments continue to rise. *Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.* ### Related Stocks - [BAND.US - Bandwidth](https://longbridge.com/en/quote/BAND.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Bandwidth｜8-K：2025 财年 Q4 营收 2.08 亿美元不及预期 | | [Link](https://longbridge.com/en/news/276329774.md) | | Bandwidth｜10-K：2025 财年营收 7.54 亿美元不及预期 | | [Link](https://longbridge.com/en/news/276333285.md) | | 去年第四季国内批发贸易微跌 1.1% \| 联合早报网 | 新加坡去年第四季国内批发贸易指数同比下滑 1.1%，扭转了前一季的 0.6% 增长。若不包括石油贸易，销售额则上涨 1.1%。各细分领域表现不一，生活用品和家具的批发贸易跌幅最大，达 17.9%；而一般批发贸易同比增幅最大，达 27.7%。 | [Link](https://longbridge.com/en/news/276412225.md) | | Bandwidth 警告称，《降低通胀法案》中新实施的 1% 股票回购消费税将导致其税负增加 | Bandwidth (BAND) 警告称，由于《通货膨胀削减法案》引入的新 1% 股票回购消费税，可能会导致其税负增加。如果公司不符合例外情况，该税可能会影响未来的股票赎回和回购。BAND 的平均股票价格目标为 20.00 美元，显示出 3 | [Link](https://longbridge.com/en/news/276421760.md) | | Bandwidth (BAND) 第四季度收益：有哪些预期 | Bandwidth (BAND) 将于本周四公布第四季度财报。分析师预计收入将与去年持平，达到 2.083 亿美元，调整后的每股收益为 0.33 美元。该公司在超过收入预期方面有着良好的历史记录，在过去两年中平均超出预期 3.2%。相比之下 | [Link](https://longbridge.com/en/news/276193361.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.