MeritValue

Bandwidth Inc.

BANDdata completeness 88%11 fiscal years on file
The thesis, from the filings

Bandwidth Inc. earns about -2% on equity, but has diluted owners by 20% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$490.9M1$573.2M2$601.1M3$748.5M3$753.8M3
Net income−$27.4M4$19.6M5−$16.3M6−$6.52M6−$12.9M6
Operating cash flow$40.8M7$34.9M8$39M9$83.9M9$89.5M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$486.4M10$480.5M11$418.5M12$281.3M13$247.6M13
Cash & equivalents$331.5M14$113.6M15$132M16$81.8M16$102.8M16
Diluted shares25.1M30.9M25.6M27.2M30.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$133.34
your share of equity
Profit it earned you last year
−$4.3
Free cash flow it threw off
—
Debt you’d be carrying
$82.53

10 shares is a claim on $133.34 of net worth that earned you −$4.3 last year, against $82.53 of debt.

iii. Is this a good business?
Moat signal · return on equity
-2% avg · 5y
FY21 -7%FY22 7%FY23 -5%FY24 -2%FY25 -3%

It earned an average -2% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+20% shares · 5y

Share count is up 20% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 49% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001514416-24-000024 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001514416-25-000024 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001514416-26-000017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001514416-24-000024 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001514416-25-000024 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001514416-26-000017 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001514416-24-000024 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001514416-25-000024 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001514416-26-000017 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001514416-23-000048 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2022-12-31 · accession 0001514416-24-000024 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2023-12-31 · accession 0001514416-25-000024 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2024-12-31 · accession 0001514416-26-000017 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2021-12-31 · accession 0001514416-24-000024 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0001514416-25-000024 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0001514416-26-000017 (CashAndCashEquivalentsAtCarryingValue)