Bandwidth Strengthens Finances with $100 Million Convertible Notes Repurchase Strategy

### Strategic Debt Management Strengthens Bandwidth's Financial Foundation

Bandwidth Inc., a frontrunner in enterprise cloud communications, makes a significant announcement regarding its financial strategy, reflecting confidence in its operational performance. On March 2, 2026, the company reveals its plan to repurchase $100 million of its 0.50% Convertible Senior Notes due in 2028, effectively reducing the outstanding principal from $250 million to about $150 million. This move follows the successful maturity and retirement of its 0.25% Convertible Senior Notes due in 2026, thereby removing all convertible debt maturing before April 1, 2028. By simplifying its capital structure and enhancing its financial resilience, Bandwidth aims to better position itself for future growth.

Bandwidth's Chief Financial Officer, Daryl Raiford, highlights the company's impressive financial performance in the fourth quarter of 2025, marked by record profitability and free cash flow. With anticipated revenue growth of 16% and an impressive 30% growth in Adjusted EBITDA for 2026, Bandwidth underscores its strong fundamental health. The company's approach reflects a strategic focus on maintaining a balanced capital allocation strategy that includes not only the sizable share repurchase program—valued at $80 million—but also significant investments in artificial intelligence and technology innovation. By addressing its debt proactively, Bandwidth demonstrates its clear aim to leverage attractive market conditions to strengthen its liquidity and operational agility.

The repurchase transactions are set to be finalized by March 4, 2026, pending standard conditions. Notably, previous capped call transactions associated with the 2028 Notes will remain effective despite these new repurchase agreements. This development not only simplifies the company’s financial commitments but also reaffirms Bandwidth's commitment to long-term stability and investment. As the company continues to innovate and expand its offerings across more than 65 countries, it sets a precedent for other organizations in the technology and communications sectors, showcasing the importance of robust financial management intertwined with strategic growth initiatives.

In addition to the repurchase announcement, Bandwidth's ongoing commitment to innovation in enterprise communications remains strong. With a focus on enhancing its AI capabilities, the company positions itself to capitalize on new market opportunities. This balanced approach to investment, alongside its strategic debt management, highlights Bandwidth's ambitions to be a pioneering force in the rapidly evolving communications landscape.