NEW YORK, July 7, 2026, 15:10 EDT
- Bandwidth stock jumped 12.2% to $68.09 in afternoon trading, moving between $59.74 and $68.97.
- Bandwidth shares are now trading roughly 6.7% under the $72.64 conversion price tied to its new 0% notes due 2032.
- Bandwidth is scheduled to post Q2 results before the bell on July 29.
Bandwidth Inc. NASDAQ:BAND climbed over 12% on Tuesday, easily outpacing the broader U.S. indexes, which traded lower. That move also brought fresh focus to the stock’s spot near the conversion price for a hefty convertible note offering from June.
Bandwidth was last seen at $68.09, up $7.42. Volume reached 1.14 million shares. The stock hit $68.97 at its session high, staying about 5% under the $72.64 initial conversion price for the 0% notes due 2032.
| Tuesday market check | Move | Why investors care |
|---|---|---|
| Bandwidth | +12.2% at $68.09 | Shares are getting closer to the note conversion level |
| Nasdaq Composite | down 0.61% | BAND’s jump isn’t just about tech strength today |
| S&P 500 | down 0.26% | Stock did better than the main indexes |
| Dow | down 0.33% | Traders repriced software small-caps one name at a time |
U.S. stocks dropped Tuesday. The Nasdaq slipped 0.61%, the S&P 500 lost 0.26% and the Dow fell 0.33%, according to Reuters.
Bandwidth raised $316.25 million through 0% convertible senior notes on June 18, an SEC filing showed, after investors took the full option for more notes. The initial conversion price was set near $72.64 a share and the capped call price was $105.66. Up to 5.99 million shares could be issued on conversion if holders go for the maximum rate, according to the same 8-K.
| Convertible note math | Figure | Read-through |
|---|---|---|
| June 15 reference stock price | $52.83 | Used as the base for the note terms |
| Latest BAND price | $68.09 | Shares are up 28.9% from the reference |
| Initial conversion price | $72.64 | That’s 6.7% over the latest BAND price |
| Capped call price | $105.66 | 55.2% higher than the current market |
| Maximum conversion shares | 5.99 million | Works out to roughly 17.7% of Q1 non-GAAP diluted share count |
Bandwidth reported 33.84 million non-GAAP diluted shares in Q1. The max conversion share number is big enough to have an impact, even after accounting for capped calls that are intended to limit dilution up to the cap price.
The stock move shifts the valuation talk going into earnings. Bandwidth’s latest market cap sat around $2.24 billion. That’s roughly 2.5x the top of its full-year 2026 revenue guidance of $900 million, and about 18x the high end of its adjusted EBITDA guide of $125 million, going by market cap alone.
| Operating yardstick | Q1 2026 actual | 2026 guide |
|---|---|---|
| Revenue | $208.8 million | $880 million to $900 million |
| Adjusted EBITDA | $26 million | $119 million to $125 million |
| Non-GAAP EPS | $0.38 | $1.77 to $1.83 |
Bandwidth CEO David Morken said in April the company “exceeded the top end of guidance ranges” in Q1. CFO Daryl Raiford added the quarter saw Bandwidth “deleveraging our balance sheet and reducing dilution.” Bandwidth
Bandwidth posted first-quarter revenue of $208.8 million, up 20%. Gross margin dropped to 37% from 41%. Non-GAAP gross margin stayed at 59%. Net income came in at $4.1 million. The company reported a net loss of $3.7 million a year ago.
AI buzz is now priced into the shares. Bandwidth on June 23 said it rolled out Bandwidth Build, a new platform for AI agents and developers looking to set up communications services and spin up voice apps on its Communications Cloud.
Bandwidth will post Q2 numbers before the open on July 29. The company is targeting revenue between $214 million and $220 million, with adjusted EBITDA seen at $24 million to $27 million. Non-GAAP EPS is expected in a range of 35 to 37 cents.
Related articles: Earnings Reports
