BANDBandwidth Inc.

Services-Prepackaged Software

Revenue: $754M; 0.7% YoY
Operating margin: -1.9%; 29% YoY
EBITDA: $21M; 82% YoY
Market cap: $1.8B
Employees: 1,100; $685K revenue each
Net debt / EBITDA: -8.0×; −$171M net debt
AI in 10-K: 10.1; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 2 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$3M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
7% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
32% of assets
Over 40% of assets
Shareholder dissentYes
76% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeNo
$685K · 68th pct
Bottom quartile of its SIC industry
Quiet on AINo
10.1 per 10K words · 93rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 8.0× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedYes
$1.8B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$20M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$491M	$573M	$601M	$748M	$754M	0.7%
Operating income	−$2M	−$24M	−$35M	−$20M	−$14M	28%
Net income	−$27M	$20M	−$16M	−$7M	−$13M	98%
Operating cash flow	$41M	$35M	$39M	$84M	$89M	6.7%
Stock-based comp	$15M	$21M	$37M	$48M	$52M	8.2%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $20M · 117
Net: −$20M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$8M	$8M	10	248
FY2024	$2M	$2M	11	201
FY2023	$2M	$1M	9	148
FY2022	$5M	$1M	15	95
FY2021	$3M	−$671K	47	133