Bandwidth Inc. — Earnings Quality Grade F
BAND · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 17 days, change -4 days YoY
AR growth -17.4% vs revenue growth 0.7%
Revenue 0.7%, CFFO 6.7%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 29.8% is >2x revenue growth 0.7%
SG&A/Gross Profit = 60.0%. Normal
Gross margin 39.1%, change +1.7pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.1B, FCF/NI = -4.38
Accruals ratio = -9.7%. Low accruals
Cash $0.1B covers only 23% of debt $0.5B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 124% of equity. Over 50%
Debt/EBITDA = 12.2x (>4x). Interest coverage = -7.1x (<2x). Financial stress
Other assets grew 95.0% vs revenue 0.7%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 7% YoY. Normal
Manipulation Score
M-Score = -3.08 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25