Bandwidth reported record third-quarter revenue and higher adjusted EBITDA, while also expanding and extending its revolving credit facility. The company said it expects double-digit growth in Cloud Communications revenue from voice usage demand in 2027.
Key details
- Third-quarter revenue was $234 million, up 22% from a year earlier.
- Adjusted EBITDA was $35 million, an increase of 43% year over year. The company also cited an adjusted EBITDA margin of 22%.
- 2027 outlook: Bandwidth expects double-digit growth in Cloud Communications revenue, driven by demand for voice usage.
- The revolving credit facility increased to $200 million from $150 million. The amendment took effect October 26.
- The facility’s maturity was extended to October 26, 2031.
- A permitted basket under the credit agreement was increased from the greater of $5 million or 10% of trailing-12-month consolidated EBITDA to the greater of $10 million or 10% of that EBITDA.
- The amendment also removed the agreement’s defined “SOFR Adjustment” and related references; the announcement did not specify the effect on borrowing costs.
What changes
The larger revolving commitment gives Bandwidth access to more potential borrowing capacity, and the extended maturity pushes the facility’s end date out five years from the amendment date. The changes expand and extend available financing; they do not, by themselves, indicate that Bandwidth borrowed an additional $50 million. The higher basket allows more capacity under the relevant credit-agreement provision, with the permitted amount still linked to EBITDA.