Bandwidth Inc. — Form 10-Q
Filed July 29, 2026 · analyzed by the Periodic Agent
10-Q
— Neutral
significance 28/100
What the filing says
On July 25, 2026, Bandwidth Inc. executed a Third Amendment to its Credit Agreement (dated August 1, 2023) with Bank of America N.A. (Administrative Agent), Bank of America N.A. (Lender), and Wells Fargo Bank, N.A. (Lender). The amendment modified Section 7.06(j) to increase the annual cap on restricted payments (dividends, buybacks, etc.) from an unspecified prior level to the greater of $40 million or 20% of trailing twelve-month Consolidated EBITDA, provided the Consolidated Senior Secured Leverage Ratio remains at least 0.50 turns inside the maximum covenant threshold. This relaxes the company's cash distribution constraints.
Why this rating
Amendment eases distribution restrictions but does not change debt, capital structure, or operations. Flexibility to return ~$40M+ annually is modest relative to $431M market cap and improves optionality, but is routine covenant management absent any financing event or distress signal.
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