Bandwidth Inc. reported a total revenue of $754 million for the fiscal year ending December 31, 2025, marking a slight increase of 1% from $748 million in 2024. The company's net loss for the year was $13 million, compared to a loss of $7 million in the previous year. The growth in revenue was primarily driven by a 4% increase in cloud communications revenue, which reached $561 million, while messaging surcharge revenue decreased by 8% to $192 million, largely due to reduced political messaging activity following the U.S. presidential election in November 2024.
In terms of operational metrics, Bandwidth's net retention rate stood at 98% for 2025, a decline from 122% in 2024, reflecting the impact of lower political messaging revenue. The company continues to focus on expanding its customer base, particularly among larger enterprises, which has resulted in a 3% increase in average annual customer revenue to $0.2 million. Bandwidth's customer base remains diverse, with no single customer accounting for more than 10% of total revenue.
Strategically, Bandwidth has made significant investments in its research and development, with expenses rising by 12% to $133 million in 2025. This investment is aimed at enhancing its cloud communications platform and integrating AI capabilities, particularly through its Maestro platform. The company also repurchased approximately $27 million of its 2026 Convertible Notes in February 2025, reducing the outstanding principal to about $8 million. Additionally, Bandwidth's Board of Directors authorized a share repurchase program of up to $80 million, reflecting a commitment to returning value to shareholders.
As of December 31, 2025, Bandwidth had approximately 1,100 employees and maintained a strong cash position with $103 million in cash and cash equivalents. The company operates in over 65 countries, serving a global market that encompasses more than 90% of the world's GDP. Looking ahead, Bandwidth anticipates continued growth driven by the increasing adoption of cloud communications and AI technologies, although it acknowledges potential challenges from market competition and economic conditions. The company remains focused on leveraging its unique position in the market to enhance customer experiences and drive long-term value.
About Bandwidth Inc.
Bandwidth Inc. operates a global Communications Platform as a Service (CPaaS) with an owned-and-operated all-IP network spanning over 65 countries. It provides programmable voice, messaging, emergency services, and number management APIs to enterprises, SaaS platforms, and cloud communications providers. Bandwidth’s platform enables digital transformation by integrating scalable, reliable, and compliant communication solutions with deep regulatory expertise and enterprise-grade support.
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