BAND Bandwidth margins

Relative Growth: Rel. Growth:

Relative Strength: Rel. Strength:

Relative Valuation: Rel. Valuation:

Relative Profitability: Rel. Profitability: 45

Gross margin

36.7%

Operating margin

-1.3%

EBITDA margin

8.1%

Net margin

Bandwidth reports its operating margin is negative at -1.3%, alongside a gross margin of 36.7%, an operating margin of -1.3%, an EBITDA margin of 8.1%, and a net margin of 1%. Margin expansion was strongest in EBITDA margin, which increased by 2.9 percentage points. Gross margin had the strongest contraction, declining by 2.1 percentage points.

BAND margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Bandwidth recorded average margins of 38.15% gross, -2.9% operating, 5.43% EBITDA, and -1.46% net. Bandwidth's current performance shows that operating, EBITDA, and net margins are above their three-year averages and gross margin is below its three-year average.

BAND margin expansion

Year-over-year margin changes in percentage points

The strongest improvement was in EBITDA margin, which increased by 2.9 percentage points, and operating margin also expanded by 0.4 percentage points and net margin also expanded by 2.5 percentage points, but gross margin contracted by 2.1 percentage points.

Gross margin expansion

-2.1pp

Operating margin expansion

0.4pp

EBITDA margin expansion

2.9pp

Net margin expansion

2.5pp

BAND Gross margin

Reviewing the last 3 years, Bandwidth recorded an average gross margin of 38.15%. Bandwidth's current gross margin is 36.7% and is 1.5 percentage points below its three-year average. The highest gross margin for Bandwidth was 39.3% in Dec 2023, while the lowest was 36.7% in Sep 2026.

BAND Operating margin

Bandwidth's operating margin averaged -2.9% across the past 3 years. Bandwidth's current operating margin is -1.3% and is 1.6 percentage points above its three-year average. Over the last 3 years, Bandwidth's operating margin peaked at -1.3% in Sep 2026 and reached a low of -5.9% in Dec 2023.

BAND EBITDA margin

Bandwidth recorded an average EBITDA margin of 5.43% across the last 3 years. Bandwidth currently reports an EBITDA margin of 8.1%, 2.7 percentage points above its three-year average. During this period, EBITDA margin reached a high of 8.1% in Sep 2026 and a low of 2.6% in Mar 2024.

BAND Net margin

Across the last 3 years, Bandwidth had an average net margin of -1.46%. Bandwidth currently reports a net margin of 1%, 2.5 percentage points above its three-year average. Looking back over the last 3 years, Bandwidth's net margin reached 1% at its highest point in Sep 2026 and -4.6% at its lowest in Mar 2024.

BAND margin group comparison

Margins compared with peer-group, industry and sector averages

Bandwidth's gross margin of 36.7% is lower than the Technology sector and the industry average. Looking at the Technology sector average of 52.5%, Bandwidth's gross margin is 30% lower.

BAND margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Bandwidth's gross margin?

For the period ending Sep 30, 2026, BAND recorded a gross margin of 36.7%.

What is Bandwidth's operating margin?

For the period ending Sep 30, 2026, BAND recorded an operating margin of -1.3%.

What is Bandwidth's EBITDA margin?

For the period ending Sep 30, 2026, BAND recorded an EBITDA margin of 8.1%.

What is Bandwidth's net margin?

For the period ending Sep 30, 2026, BAND recorded a net margin of 1%.

What are the average margins of BAND?

Across the last 3 years, BAND averaged 38.2% gross, -2.9% operating, 5.4% EBITDA, and -1.5% net.

What are the highest historical margins of BAND?

Bandwidth's highest recorded margins during the past 5 years were 43.6% gross in Dec 2021, -0.5% operating in Dec 2021, 11.3% EBITDA in Jun 2023, and 5.5% net in Jun 2023.

What are the lowest historical margins of BAND?

Over this 5-year history, Bandwidth's margins fell as low as 36.7% gross in Sep 2026, -5.9% operating in Dec 2023, 2.6% EBITDA in Mar 2024, and -5.7% net in Mar 2022.