Is the business good?
How good a business is BAND?
Bandwidth Inc. earns −2.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−2.0%
Return on invested capital · cost of capital 9.0% · 11 points below what the capital costs: growth destroys value
- Operating margin
- −1.8%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q1 2026
- Share count, year on year
- +14%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 18%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −3.9% |
| FY2021 | −0.46% |
| FY2022 | −4.2% |
| FY2023 | −5.9% |
| FY2024 | −2.7% |
| FY2025 | −1.9% |
Details›
- Gross margin12 months to Q1 2026
- 38%
- Operating margin12 months to Q1 2026
- −1.8%
- Net margin12 months to Q1 2026
- −0.64%
- Free cash flow margin
- 10%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $788M
- Free cash flow, trailing twelve months
- $79M
- Net income, trailing twelve months
- −$5.1M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −2.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #6 of 78 by Smart Score