Bandwidth Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 4% year-over-year, reaching $180.0 million compared to $173.6 million in the same period of 2024. For the first half of 2025, total revenue was $354.3 million, up from $344.6 million in the prior year. Despite the revenue growth, the company experienced a net loss of $4.9 million for the quarter, a decline from a net income of $4.1 million in Q2 2024. The loss for the first half of 2025 was $8.7 million, compared to a loss of $5.2 million in the same period last year.
Operating expenses increased to $75.4 million for the second quarter, up from $70.9 million in the previous year, driven primarily by higher research and development costs, which rose by 13% to $31.7 million. Sales and marketing expenses decreased slightly by 5% to $24.8 million, while general and administrative expenses increased by 13% to $18.8 million. The company reported an operating loss of $3.7 million for the quarter, an improvement from the $6.1 million loss in Q2 2024.
In terms of operational metrics, Bandwidth's customer base continued to expand, with a net retention rate of 112% for the second quarter, up from 111% in the same period last year. The company attributed its revenue growth to increased demand for its cloud communications services, particularly in its Global Voice Plans, which saw a 7% increase in revenue. However, messaging surcharge revenue declined by 2%, primarily due to reduced political messaging activity following the U.S. presidential election in November 2024.
Looking ahead, Bandwidth remains focused on enhancing its product offerings and expanding its market presence. The company is strategically positioned to capitalize on trends such as the migration to cloud communications and the growing demand for integrated voice and messaging services. Bandwidth has also entered into a $150 million revolving credit facility, providing it with additional liquidity to support its growth initiatives. The company anticipates that its cash, cash equivalents, and marketable securities, totaling approximately $60.4 million as of June 30, 2025, will be sufficient to meet its operational needs for the next 12 months.
About Bandwidth Inc.
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