AudioCodes (NASDAQ:AUDC) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS
by Scott Moore · The Cerbat GemAudioCodes (NASDAQ:AUDC – Get Free Report) announced its quarterly earnings data on Tuesday. The communications equipment provider reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.02), FiscalAI reports. The company had revenue of $62.14 million during the quarter, compared to the consensus estimate of $61.50 million. AudioCodes had a net margin of 2.79% and a return on equity of 6.12%.
Here are the key takeaways from AudioCodes’ conference call:
- AudioCodes grew its conversational Voice AI business >50% YoY in Q1 and is targeting 40–50% growth for the segment in 2026, with goals of roughly $25M in 2026 and $50M by 2028.
- Recurring-revenue momentum strengthened — Live managed services plus Voice AI contributed to an $80M ARR exit (up ~20% YoY) and backlog rose to $79M (≈15% YoY), supporting future revenue visibility.
- Q1 revenue was $62.1M, up 2.9% YoY, with services making up 54.7% of sales and Microsoft-related business growing 6%.
- Profitability was pressured by higher investments in conversational AI — non‑GAAP EPS fell to $0.14 (from $0.15) and adjusted EBITDA margin declined to 9.4% as operating expenses rose to support growth initiatives.
- Strong cash generation and shareholder returns — operating cash flow was $12.8M in Q1, cash and investments totaled $68.1M, management paid a $0.20 dividend and repurchased ~1.7M shares for ~$13.7M.
AudioCodes Trading Down 2.5%
Shares of NASDAQ:AUDC traded down $0.21 during trading on Thursday, reaching $8.33. 172,583 shares of the stock were exchanged, compared to its average volume of 134,321. AudioCodes has a 12 month low of $6.95 and a 12 month high of $11.50. The firm has a market cap of $225.62 million, a PE ratio of 33.26 and a beta of 0.95. The stock has a 50-day moving average price of $8.48 and a 200-day moving average price of $8.59.
Institutional Investors Weigh In On AudioCodes
Several institutional investors have recently made changes to their positions in AUDC. Raymond James Financial Inc. bought a new stake in shares of AudioCodes in the second quarter valued at approximately $43,000. Barclays PLC raised its position in AudioCodes by 3,621.4% during the fourth quarter. Barclays PLC now owns 7,294 shares of the communications equipment provider’s stock valued at $64,000 after purchasing an additional 7,098 shares in the last quarter. Jump Financial LLC acquired a new position in AudioCodes during the second quarter valued at approximately $127,000. NewEdge Advisors LLC acquired a new position in AudioCodes during the fourth quarter valued at approximately $150,000. Finally, SIH Partners LLLP acquired a new position in AudioCodes during the third quarter valued at approximately $170,000. 68.05% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades
Separately, Wall Street Zen cut AudioCodes from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 7th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, AudioCodes presently has a consensus rating of “Hold”.
View Our Latest Stock Report on AUDC
AudioCodes Company Profile
AudioCodes Ltd is a global provider of advanced voice networking and media processing solutions for enterprises and service providers. The company designs and manufactures a comprehensive portfolio of products, including session border controllers (SBCs), media gateways, IP phones, management and monitoring software, and cloud-based communications microservices. Its offerings support a wide range of unified communications (UC) and contact center deployments, enabling secure, high-quality voice connectivity across on-premises, hybrid and cloud environments.
Founded in 1993 and headquartered in Rosh Ha’Ayin, Israel, AudioCodes serves customers in North America, Europe, Asia-Pacific and Latin America.