AudioCodes Reports First Quarter 2026 Results
Rhea-AI Summary
AudioCodes (NASDAQ: AUDC) reported Q1 2026 revenue of $62.1M (up 2.9% YoY) and GAAP net income of $2.0M ($0.07 diluted). Non-GAAP net income was $3.8M ($0.14). ARR reached $80M, near +20% YoY. Cash and investments totaled $68.1M. The company repurchased 1,740,329 shares for $13.7M and paid a cash dividend of $0.20 per share (~$5.3M).
Management cited growth in Live managed services and Conversational AI, with CAI growing over 50% YoY and record revenues for the Voca CIC contact center solution.
Positive
- ARR +20% to $80M
- Conversational AI growth >50% YoY
- Share repurchase of 1,740,329 shares for $13.7M (~6.8% of outstanding)
Negative
- GAAP net income down to $2.0M from $4.0M (≈50% decline YoY)
- Non-GAAP net income down to $3.8M from $4.7M (≈19% decline YoY)
News Market Reaction – AUDC
On the day this news was published, AUDC declined 16.07%, reflecting a significant negative market reaction. Argus tracked a trough of -13.4% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $50M from the company's valuation, bringing the market cap to $262.50M at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
AUDC’s slight -0.29% move contrasts with mixed peer action: CRNT up 1.2%, while BKTI, INSG, LTRX, and AVNW are down between -1.48% and -8.41%, pointing to stock-specific drivers rather than a unified sector trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Quarterly earnings | Positive | +5.5% | Q3 2025 results with revenue growth and higher recurring revenues. |
| Oct 13 | Earnings date notice | Neutral | +1.4% | Announcement of Q3 2025 reporting date and conference call details. |
| Jul 07 | Earnings date notice | Neutral | -0.3% | Scheduling Second Quarter 2025 earnings release and investor call. |
| May 06 | Quarterly earnings | Positive | -12.2% | Q1 2025 results with revenue growth, profitability, and higher ARR. |
| Apr 07 | Earnings date notice | Neutral | -1.4% | Announcement of Q1 2025 reporting date and conference call. |
Earnings-related headlines for AUDC have produced mixed but generally modest moves, with an average same-tag reaction of -1.39%. Full quarterly results sometimes trigger larger swings than simple reporting-date notices.
Over the past year, AudioCodes’ earnings cycle has featured steady revenue growth, rising services mix, and recurring dividends. In Q1 2025, the company posted $60.4M in revenue with both GAAP and Non-GAAP profitability, but the stock fell 12.18%. Q3 2025 results on Nov 4, 2025 saw $61.5M revenue and a positive 5.55% reaction. Reporting-date notices around Q2 and Q3 2025 produced small moves near flat, underscoring that full financial releases drive the more meaningful price responses.
Historical Comparison
In the last five earnings-tagged releases, AUDC’s average move was -1.39%. The current pre-news change of -0.29% sits well within this historically modest reaction range.
Earnings updates show steady revenue growth and rising ARR, with recurring dividends and buybacks recurring across Q1 and Q3 2025 results.
Market Pulse Summary
The stock dropped -16.1% in the session following this news. A negative reaction despite revenue growth to $62.1M and strong operating cash flow of $12.8M would fit prior instances where earnings triggered downside, like the -12.18% move after Q1 2025. Pressure on GAAP and Non-GAAP net income versus last year could weigh on sentiment even as ARR reaches $80M and buybacks total $13.7M. Past patterns suggest that softer profitability metrics have at times overshadowed recurring revenue progress.
Key Terms
gaap financial
non-gaap financial
annual recurring revenue financial
arr financial
ucaas technical
conversational ai technical
edge computing technical
AI-generated analysis. Not financial advice.
OR YEHUDA,
First Quarter Highlights
- Quarterly revenues increased by
2.9% year-over-year to$62.1 million - Quarterly services revenues increased by
4.3% year-over-year to$34.0 million - GAAP results:
- Quarterly GAAP gross margin was
66.2% ; - Quarterly GAAP operating margin was
5.4% ; - Quarterly GAAP net income was
$2.0 million $0.07
- Quarterly GAAP gross margin was
- Non-GAAP results:
- Quarterly Non-GAAP gross margin was
66.3% ; - Quarterly Non-GAAP operating margin was
7.7% ; - Quarterly Non-GAAP net income was
$3.8 million $0.14
- Quarterly Non-GAAP gross margin was
- Net cash provided by operating activities was
$12.8 million - AudioCodes repurchased 1,740,329 of its ordinary shares during the quarter at an aggregate cost of
$13.7 million
Details
AudioCodes (NASDAQ: AUDC) (the "Company"), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the first quarter ended March 31, 2026.
Revenues for the first quarter of 2026 were
Net income was
On a Non-GAAP basis, net income was
Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income and non-GAAP operating margin exclude: (i) share-based compensation expenses and (ii) amortization expenses related to intangible assets. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures are provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Net cash provided by operating activities was
"I am pleased to announce strong financial results for the first quarter of 2026, reflecting effective execution of our strategic initiatives. In the first quarter of 2026, we made important progress in our transformation into an AI-driven hybrid cloud software and services organization," stated Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
The first-quarter results were propelled by sustained momentum across our two principal growth pillars: the Live suite of managed services for UCaaS and CX, alongside our Conversational AI (CAI) business. Collectively, these segments advanced Annual Recurring Revenue (ARR) to
Meeting Insights, our enterprise-grade cloud meeting intelligence platform, continues to experience substantial interest and increasing opportunities. The On-Prem version of Meeting Insights has also witnessed growing demand, fueled by the need for edge computing solutions, which provides enhanced control of data sovereignty, improved service availability, and cost reduction.
"We have seen continued strong positive operational cash flow. We believe that our increased investments in the Voice AI market will prove beneficial to our business expansion in the coming years. Overall, we achieved our operational and financial targets through maintaining budgetary and managerial discipline. The ongoing investments in Live services and Voice AI have significantly contributed to our current success and position us favorably for continued healthy top-line growth throughout the remainder of 2026," concluded Mr. Adlersberg.
Share Buy Back Program and Cash Dividend
In October 2025, the Company received court approval in
On February 3, 2026, the Company declared a cash dividend of
During the quarter ended March 31, 2026, the Company acquired 1,740,329 of its ordinary shares under its share repurchase program for a total consideration of
As of March 31, 2026, the Company had
As of March 31, 2026, the total outstanding shares of the Company are 25,453,614.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's first quarter of 2026 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers:
United States Participants: 888-506-0062
International Participants: +1 (973) 528-0011
The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.
Follow AudioCodes' social media channels:
AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, X, Facebook, and YouTube.
About AudioCodes
AudioCodes Ltd. (NASDAQ: AUDC) (TASE: AUDC) is a global leader in enterprise voice and VoiceAI business solutions. We help organizations unlock the full value of voice, transforming every conversation, whether human or AI, into a strategic asset that drives better business outcomes. Our portfolio spans voice connectivity, unified communications and contact center integration, and next-generation voice AI applications that enhance collaboration, automate workflows and deliver real-time insights. With over 30 years of global experience and trusted by 65 of the Fortune 100, AudioCodes powers the intelligent enterprise, connecting people, platforms and data to move business forward.
For more information on AudioCodes, visit http://www.audiocodes.com.
Statements concerning AudioCodes' business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under
©2026 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, AudioCodes One Voice, AudioCodes Meeting Insights, and AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
AUDIOCODES LTD. AND ITS SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
March 31, | December 31, | ||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | |||
Short-term bank deposits | 242 | 239 | |
Short-term marketable securities | 24,426 | 27,350 | |
Trade receivables, net | 56,596 | 67,358 | |
Other receivables and prepaid expenses | 19,431 | 19,064 | |
Inventories | 22,940 | 22,032 | |
Total current assets | 164,563 | 181,325 | |
LONG-TERM ASSETS: | |||
Long-term Trade receivables | |||
Long-term financial investments | 2,490 | 2,790 | |
Deferred tax assets | 7,217 | 7,773 | |
Operating lease right-of-use assets | 29,433 | 30,077 | |
Severance pay funds | 21,124 | 21,163 | |
Total long-term assets | 74,425 | 74,868 | |
PROPERTY AND EQUIPMENT, NET | 29,111 | 29,248 | |
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET | 37,568 | 37,579 | |
Total assets | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
CURRENT LIABILITIES: | |||
Trade payables | 7,659 | 6,416 | |
Other payables and accrued expenses | 26,020 | 30,284 | |
Deferred revenues | 41,786 | 38,243 | |
Short-term operating lease liabilities | 6,544 | 6,635 | |
Total current liabilities | 82,009 | 81,578 | |
LONG-TERM LIABILITIES: | |||
Accrued severance pay | |||
Deferred revenues and other liabilities | 20,730 | 20,517 | |
Long-term operating lease liabilities | 30,841 | 31,348 | |
Total long-term liabilities | 69,558 | 70,143 | |
Total shareholders' equity | 154,100 | 171,299 | |
Total liabilities and shareholders' equity | |||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Three months ended | ||||
March 31, | ||||
2026 | 2025 | |||
(Unaudited) | ||||
Revenues: | ||||
Products | ||||
Services | 34,013 | 32,599 | ||
Total Revenues | 62,143 | 60,374 | ||
Cost of revenues: | ||||
Products | 9,911 | 11,017 | ||
Services | 11,107 | 10,223 | ||
Total Cost of revenues | 21,018 | 21,240 | ||
Gross profit | 41,125 | 39,134 | ||
Operating expenses: | ||||
Research and development, net | 14,058 | 13,026 | ||
Selling and marketing | 19,680 | 18,561 | ||
General and administrative | 4,023 | 3,902 | ||
Total operating expenses | 37,761 | 35,489 | ||
Operating income | 3,364 | 3,645 | ||
Financial income (expenses), net | (382) | 1,716 | ||
Income before taxes on income | 2,982 | 5,361 | ||
Taxes on income, net | (1,029) | (1,345) | ||
Net income | ||||
Basic net earnings per share | ||||
Diluted net earnings per share | ||||
Weighted average number of shares used in computing basic net earnings | 26,468 | 29,528 | ||
Weighted average number of shares used in computing diluted net | 26,891 | 30,045 | ||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | |||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||
Three months ended | |||||
March 31, | |||||
2026 | 2025 | ||||
(Unaudited) | |||||
Gross profit | |||||
Gross margin | 66.2 % | 64.8 % | |||
Share-based compensation (1) | 78 | 95 | |||
Amortization expenses (2) | - | 122 | |||
Non-GAAP gross profit | 41,203 | 39,351 | |||
Non-GAAP gross margin | 66.3 % | 65.2 % | |||
Operating income | |||||
Operating margin | 5.4 % | 6.0 % | |||
Share-based compensation (1) | 1,389 | 1,588 | |||
Amortization expenses (2) | 11 | 133 | |||
Non-GAAP operating income | 4,764 | 5,366 | |||
Non-GAAP operating margin | 7.7 % | 8.9 % | |||
Net income | |||||
Net earnings per share | |||||
Share-based compensation (1) | 1,389 | 1,588 | |||
Amortization expenses (2) | 11 | 133 | |||
Exchange rate differences (3) | 408 | (1,035) | |||
Non-GAAP net income | |||||
Non-GAAP diluted net earnings per share | |||||
Weighted average number of shares used in computing Non-GAAP | 27,719 | 30,725 | |||
(1) Share-based compensation expenses related to options and restricted share units granted to employees and others. | |||||
Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information.
The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies.
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Three months ended | ||||
March 31, | ||||
2026 | 2025 | |||
(Unaudited) | ||||
Cash flows from operating activities: | ||||
Net income | ||||
Adjustments required to reconcile net income to net cash provided by | ||||
Depreciation and amortization | 1,081 | 954 | ||
Amortization of marketable securities premiums and accretion of | 78 | 104 | ||
Decrease (increase) in accrued severance pay, net | (252) | 133 | ||
Share-based compensation expenses | 1,389 | 1,588 | ||
Decrease in deferred tax assets, net | 525 | 619 | ||
Cash financial loss (income), net | 239 | 53 | ||
Decrease in operating lease right-of-use assets | 1,206 | 746 | ||
Decrease in operating lease liabilities | (1,160) | (1,543) | ||
Decrease in trade receivables, net | 9,666 | 786 | ||
Decrease (increase) in other receivables and prepaid expenses | (367) | 2,383 | ||
Decrease (increase) in inventories | (955) | 2,855 | ||
Increase (decrease) in trade payables | 1,614 | (1,289) | ||
Decrease in other payables and accrued expenses | (6,159) | (2,595) | ||
Increase in deferred revenues | 3,963 | 4,647 | ||
Net cash provided by (used in) operating activities | 12,821 | 13,457 | ||
Cash flows from investing activities: | ||||
Proceeds from short-term deposits | (3) | 1 | ||
Proceeds from financial investment | 34 | 113 | ||
Proceeds from maturity of marketable securities | 3,000 | 3,200 | ||
Purchase of financial investments | - | (442) | ||
Purchase of property and equipment | (1,245) | (1,474) | ||
Net cash provided by (used in) investing activities | 1,786 | 1,398 | ||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Three months ended | ||||
March 31, | ||||
2026 | 2025 | |||
(Unaudited) | ||||
Cash flows from financing activities: | ||||
Purchase of treasury shares | (13,672) | (5,208) | ||
Cash dividends paid to shareholders | (5,289) | (5,326) | ||
Proceeds from issuance of shares upon exercise of options | - | 63 | ||
Net cash used in financing activities | (18,961) | (10,471) | ||
Net increase (decrease) in cash, cash equivalents | (4,354) | 4,384 | ||
Cash, cash equivalents at beginning of period | 45,282 | 58,749 | ||
Cash, cash equivalents at end of period | ||||
Company Contacts | ||
Niran Baruch, | Roger L. Chuchen |
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SOURCE AudioCodes