AudioCodes Reports Second Quarter 2025 Results and Declares Semi-Annual Dividend of 20 cent per share

Rhea-AI Summary

AudioCodes (NASDAQ: AUDC) reported Q2 2025 results with revenues of $61.1 million, up 1.3% year-over-year. The company achieved GAAP net income of $0.3 million ($0.01 per share) and Non-GAAP net income of $4.1 million ($0.14 per share).

Key highlights include service revenue growth of 1.9% year-over-year to $32.6 million, Microsoft business growth of 6.5%, and Annual Recurring Revenue (ARR) reaching $70 million, up 25% year-over-year. The company declared a semi-annual dividend of 20 cents per share and repurchased 715,732 shares for $6.6 million.

The quarter saw operational challenges from new US import tariffs ($1 million additional costs) and increased EMEA costs due to Euro strengthening. The company received court approval to purchase up to $20 million of additional ordinary shares through December 2025.

Positive

• Revenue growth of 1.3% year-over-year to $61.1 million
• Service revenues increased 1.9% year-over-year to $32.6 million
• Microsoft business grew 6.5% in the quarter
• Annual Recurring Revenue reached $70 million, up 25% year-over-year
• Strong cash position of $95.3 million as of June 30, 2025
• Positive operating cash flow of $7.7 million for the quarter
• New $20 million share buyback program approved through December 2025
• Declared semi-annual dividend of 20 cents per share

Negative

• GAAP net income declined to $0.3 million from $3.8 million year-over-year
• Non-GAAP net income decreased to $4.1 million from $5.5 million year-over-year
• GAAP EBITDA dropped to $3.6 million from $6.2 million year-over-year
• $1 million additional costs from new US import tariffs
• Increased costs in EMEA due to Euro strengthening against USD

Insights

Financial Analyst

AudioCodes reported modest revenue growth but declining profits amid increased expenses from tariffs and currency headwinds.

AudioCodes posted slightly positive Q2 2025 results with revenues growing 1.3% year-over-year to $61.1 million, primarily driven by service revenues which increased 1.9% to $32.6 million. However, profitability metrics show concerning deterioration - GAAP EBITDA declined significantly to $3.6 million from $6.2 million in Q2 2024, while GAAP net income fell to just $0.3 million ($0.01 per share) from $3.8 million ($0.12 per share) year-over-year.

The company attributed this profit decline to two key operational challenges: approximately $1 million in additional costs from new tariffs on US imports and increased EMEA costs due to Euro strengthening against the dollar. Despite these headwinds, cash flow remains solid with $7.7 million generated from operations, allowing continued shareholder returns through both share repurchases ($6.6 million spent buying back 715,732 shares) and a $0.20 per share semi-annual dividend (totaling about $5.7 million).

The underlying business shows encouraging signs in key growth areas. Their Microsoft-related business grew 6.5%, and Annual Recurring Revenue (ARR) reached $70 million (up 25% year-over-year), highlighting the company's steady transition toward more predictable revenue streams. Management remains particularly optimistic about conversational AI, maintaining their 40-50% growth outlook for this segment in 2025.

AudioCodes' strategic focus appears sound with product innovations including the new Live Platform (integrating UCaaS and CX solutions) and Meeting Insights On-Prem solution for secure meeting intelligence in sensitive sectors like government and healthcare. The company's cash position remains healthy at $95.3 million, up slightly from $93.9 million at 2024 year-end, providing a cushion against ongoing macroeconomic challenges.

OR YEHUDA, Israel, July 29, 2025 /PRNewswire/ --

Second Quarter Highlights

• Quarterly revenues increase by 1.3% year-over-year to $61.1 million;
• Quarterly service revenues increased by 1.9% year-over-year to $32.6 million;
• GAAP results:
  
  • Quarterly GAAP gross margin was 64.1%;
  • Quarterly GAAP operating margin was 4.3%;
  • Quarterly GAAP EBITDA was $3.6 million;
  • Quarterly GAAP net income was $0.3 million, or $0.01 per diluted share. 
• Non-GAAP results:   
  • Quarterly Non-GAAP gross margin was 64.5%;
  • Quarterly Non-GAAP operating margin was 7.2%;
  • Quarterly Non-GAAP EBITDA was $5.2 million;
  • Quarterly Non-GAAP net income was $4.1 million, or $0.14 per diluted share.
• Net cash provided by operating activities was $7.7 million for the quarter.
• AudioCodes repurchased 715,732 of its ordinary shares during the quarter at an aggregate cost of $6.6 million.

Details

AudioCodes (NASDAQ: AUDC), a leading provider of unified communications voice, contact center and conversational AI applications and services for enterprises, today announced its financial results for the second quarter ended June 30, 2025.

Revenues for the second quarter of 2025 were $61.1 million compared to $60.3 million for the second quarter of 2024.

EBITDA for the second quarter of 2025 was $3.6 million compared to $6.2 million for the second quarter of 2024.

On a Non-GAAP basis, EBITDA for the second quarter of 2025 was $5.2 million compared to $8.3 million for the second quarter of 2024.

Net income was $0.3 million, or $0.01 per diluted share, for the second quarter of 2025 compared to net income of $3.8 million, or $0.12 per diluted share, for the second quarter of 2024.

On a Non-GAAP basis, net income was $4.1 million, or $0.14 per diluted share, for the second quarter of 2025 compared to $5.5 million, or $0.18 per diluted share, for the second quarter of 2024.

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (iv) tax impact which relates to our Non-GAAP adjustments; and (v) in Q1 2024 non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company's new headquarters. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.

Net cash provided by operating activities was $7.7 million for the second quarter of 2025. Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments were $95.3 million as of June 30, 2025 compared to $93.9 million as of December 31, 2024. The increase in cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments was the result of cash generated from operating activities. This was partially offset by use of cash for the continued repurchasing of the Company's ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the first quarter.

"I am pleased to report solid second quarter 2025 progress and results. Second quarter top-line growth was fueled mainly by growth of our Live managed services in the UCaaS and CX markets coupled with cross-selling our AI-powered business applications," said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.

We saw strong demand in UC, CX, and conversational AI, with Microsoft business rising 6.5% this quarter. Conversational AI remains a key growth area, supporting our 40%-50% segment growth outlook for 2025. Live managed services also grew, driving Annual Recurring Revenues (ARR) to $70 million, a 25% year-over-year increase.

This quarter, we launched Live Platform, our integrated UCaaS and CX solution. With Webex Calling certification and Live CX services, it now supports comprehensive UC and CX features for all major global UCC vendors.

In Conversational AI, we launched the Meeting Insights On-Prem (Mia OP) solution, which delivers secure meeting intelligence for enterprises detached from the cloud and/or the internet. Designed primarily for sectors like government, defense, healthcare, and finance, Mia OP has active customers in Israel with a growing number of proof-of-concept trials underway. The team is expanding international outreach and has received positive feedback from industry analysts.

Operationally, we experienced increased expenses due to the implementation of new tariffs on US imports amounting to $1 million additional costs as well as a significant rise in costs within EMEA region driven by the strengthening of the Euro against the US dollar.  These two factors impacted our net income generation in the quarter. 

Overall, we delivered on our business priorities in the quarter, making the necessary investments in product and sales with an eye towards accelerating our growth in revenues in our Conversational AI products and solutions. We believe these investments position us well for an improved top-line growth in the medium term," concluded Mr. Adlersberg.

Share Buy Back Program

During the quarter ended June 30, 2025, the Company acquired 715,732 of its ordinary shares under its share repurchase program for a total consideration of $6.6 million.

In July 2025, the Company received court approval in Israel to purchase up to an aggregate amount of $20 million of additional ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through December 30, 2025.

Cash Dividend

AudioCodes also announced today that the Company's Board of Directors has declared a cash dividend in the amount of 20 cents per share. The aggregate amount of the dividend is approximately $5.7 million. The dividend is payable on August 28, 2025, to all of the Company's shareholders of record at the close of trading on the NASDAQ Global Select Market on August 14, 2025. 

In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions. If the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital, the withholding rate is 30%.

The dividend will be paid in U.S. dollars on the ordinary shares of AudioCodes Ltd. that are traded on the Nasdaq Global Select Market or the Tel-Aviv Stock Exchange. The amount and timing of any other dividends will be determined by the Board.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's second quarter of 2025 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.

About AudioCodes

AudioCodes Ltd. (NASDAQ: AUDC)(TASE: AUDC) is a global leader in unified communications voice, contact center and conversational AI services and solutions for enterprises, enabling them to improve their customer experience (CX) and employee experience (EX) through enhanced communications and collaboration. Powered by AI, AudioCodes offers a comprehensive range of products, applications and SaaS services that provide seamless interoperability with the world's leading unified communications as a service (UCaaS) and contact center as a service (CCaaS) platforms, including Microsoft Teams, Webex, Zoom, Genesys and many others. Enterprises across the world, including 65 Fortune 100 companies, leverage AudioCodes expertise to enhance their productivity, collaboration, business process automation & intelligence, compliance and customer interaction. AudioCodes' global reach is achieved via its expert sales and support teams and its worldwide community of certified resellers, integrators and service providers.

For more information on AudioCodes, visit http://www.audiocodes.com.

Follow AudioCodes' social media channels:

AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.

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 U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company's loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; the effects of the current terrorist attacks by Hamas in Israel, and the war and hostilities between Israel and Hamas, and Israel and Hezbollah as well as the possibility that this could develop into a broader regional conflict involving Israel with other parties, may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and other factors detailed in AudioCodes' filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

©2025 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, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, 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.

Summary financial data follows

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
	June 30,		December 31,
	2025		2024
	(Unaudited)		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$ 62,619		$58,749
Short-term bank deposits	228		210
Short-term marketable securities	16,365		3,426
Trade receivables, net	58,567		56,016
Other receivables and prepaid expenses	17,456		13,012
Inventories	26,390		31,463
Total current assets	181,625		162,876
LONG-TERM ASSETS:
Long-term Trade receivables	$ 16,338		$ 15,753
Long-term marketable securities	12,725		28,518
Long-term financial investments	3,341		3,008
Deferred tax assets	9,340		9,838
Operating lease right-of-use assets	30,702		32,534
Severance pay funds	19,105		18,004
Total long-term assets	91,551		107,655
PROPERTY AND EQUIPMENT, NET	28,873		27,321
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET	37,783		38,049
Total assets	$ 339,832		$ 335,901
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables	7,538		7,543
Other payables and accrued expenses	26,737		25,823
Deferred revenues	43,480		38,438
Short-term operating lease liabilities	6,194		5,954
Total current liabilities	83,949		77,758
LONG-TERM LIABILITIES:
Accrued severance pay	$ 17,564		$ 16,387
Deferred revenues and other liabilities	19,187		19,434
Long-term operating lease liabilities	31,057		30,508
Total long-term liabilities	67,808		66,329
Total shareholders' equity	188,075		191,814
Total liabilities and shareholders' equity	$ 339,832		$ 335,901

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
	Six months ended				Three months ended
	June 30,				June 30,
	2025		2024		2025		2024
	(Unaudited)				(Unaudited)
Revenues:
Products	$ 56,290		$ 56,897		$ 28,515		$ 28,347
Services	65,162		63,482		32,563		31,956
Total Revenues	121,452		120,379		61,078		60,303
Cost of revenues:
Products	21,936		22,743		10,919		10,918
Services	21,258		19,494		11,035		9,910
Total Cost of revenues	43,194		42,237		21,954		20,828
Gross profit	78,258		78,142		39,124		39,475
Operating expenses:
Research and development, net	25,899		27,114		12,873		13,181
Selling and marketing	38,376		34,820		19,815		17,453
General and administrative	7,738		7,991		3,836		3,905
Total operating expenses	72,013		69,925		36,524		34,539
Operating income	6,245		8,217		2,600		4,936
Financial income (expenses), net	522		419		(1,194)		396
Income before taxes on income	6,767		8,636		1,406		5,332
Taxes on income, net	(2,445)		(2,779)		(1,100)		(1,558)
Net income	$ 4,322		$ 5,857		$ 306		$ 3,774
Basic net earnings per share	$ 0.15		$ 0.19		$ 0.01		$ 0.12
Diluted net earnings per share	$ 0.15		$ 0.19		$ 0.01		$ 0.12
Weighted average number of shares used in computing basic net earnings per share (in thousands)	29,202		30,337		28,877		30,341
Weighted average number of shares used in computing diluted net earnings per share (in thousands)	29,699		30,764		29,353		30,735

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
U.S. dollars in thousands, except per share data
	Six months ended				Three months ended
	June 30,				June 30,
	2025		2024		2025		2024
	(Unaudited)				(Unaudited)
GAAP net income	$ 4,322		$ 5,857		$ 306			$ 3,774
GAAP net earnings per share	$ 0.15		$ 0.19		$ 0.01			$ 0.12
Cost of revenues:
Share-based compensation (1)	225		175		130			96
Amortization expenses (2)	244		244		122			122
Lease expenses (5)	-		304		-			-
	469		723		252			218
Research and development, net:
Share-based compensation (1)	729		1,171		380			579
Lease expenses (5)	-		342		-			-
	729		1,513		380			579
Selling and marketing:
Share-based compensation (1)	1,221		1,472		652			749
Amortization expenses (2)	22		22		11			11
Lease expenses (5)	-		38		-			-
	1,243		1,532		663			760
General and administrative:
Share-based compensation (1)	1,101		1,434		526			692
Lease expenses (5)	-		76		-			-
	1,101		1,510		526			692
Financial expenses (income):
Exchange rate differences (3)	918		)809(		1,953			(445)
Income taxes:
Taxes on income, net (4)	-		422		-			(49)
Non-GAAP net income	$ 8,782		$ 10,748		$ 4,080			$ 5,529
Non-GAAP diluted net earnings per share	$ 0.29		$ 0.34		$ 0.14			$ 0.18
Weighted average number of shares used in computing Non-GAAP diluted net earnings per share (in thousands)	30,422		31,561		30,120			31,552
(1)  Share-based compensation expenses related to options and restricted share units granted to employees and others. (2)  Amortization expenses related to intangible assets. (3)  Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated        currencies. (4)  Tax impact which relates to our non-GAAP adjustments. (5)  In Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the       Company's new headquarters.

 

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. 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
		Six months ended				Three months ended
		June 30,				June 30,
		2025		2024		2025		2024
		(Unaudited)				(Unaudited)
Cash flows from operating activities:
Net income		$ 4,322		$ 5,857		$ 306		$ 3,774
Adjustments required to reconcile net income to net     cash provided by operating activities:
Depreciation and amortization		1,913		1,784		959		1,261
Amortization of marketable securities premiums and     accretion of discounts, net		197		615		93		301
Decrease (increase) in accrued severance pay, net		76		(479)		(57)		(369)
Share-based compensation expenses		3,276		4,252		1,688		2,116
Decrease (increase) in deferred tax assets, net		307		64		(312)		850
Cash financial loss (income), net		22		154		(31)		69
Decrease in operating lease right-of-use assets		2,199		3,557		1,453		1,168
Increase (decrease) in operating lease liabilities		422		(3,435)		1,965		(1,324)
Decrease (increase) in trade receivables, net		(3,136)		(3,767)		(3,922)		(6,083)
Decrease (increase) in other receivables and prepaid      expenses		(4,444)		235		(6,827)		(305)
Decrease in inventories		4,976		5,947		2,121		2,689
Increase (decrease) in trade payables		87		(2,454)		1,376		(2,220)
Increase (decrease) in other payables and accrued     expenses		6,750		(1,605)		9,345		127
Increase (decrease) in deferred revenues		4,215		1,365		(432)		(4,945)
Net cash provided by (used in) operating activities		21,182		12,090		7,725		(2,891)
Cash flows from investing activities:
Proceeds from short-term deposits		(18)		6		(19)		2
Proceeds from financial investment		178		47		65		26
Proceeds from redemption of marketable securities		3,200		3,450		-		2,950
Purchase of financial investments		(442)		-		-		-
Purchase of property and equipment		(3,259)		(15,263)		(1,785)		(8,478)
Net cash used in investing activities		(341)		(11,760)		(1,739)		(5,500)

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
U.S. dollars in thousands
		Six months ended				Three months ended
		June 30,				June 30,
		2025		2024		2025		2024
		(Unaudited)				(Unaudited)
Cash flows from financing activities:
Purchase of treasury shares		(11,818)		(4,754)		(6,610)		(1,170)
Cash dividends paid to shareholders		(5,326)		(5,453)		-		-
Proceeds from issuance of shares upon exercise of     options		173		180		110		-
Net cash used in financing activities		(16,971)		(10,027)		(6,500)		(1,170)
Net increase (decrease) in cash, cash equivalents, and     restricted cash		3,870		(9,697)		(514)		(9,561)
Cash, cash equivalents and restricted cash at beginning    of period		58,749		30,546		63,133		30,410
Cash, cash equivalents and restricted cash at end of    period		$ 62,619		$ 20,849		$ 62,619		$ 20,849

 

 

Company Contacts
Niran Baruch, Chief Financial Officer AudioCodes Tel: +972-3-976-4000 niran.baruch@audiocodes.com		Roger L. Chuchen, VP, Investor Relations AudioCodes Tel:  732-764-2552 roger.chuchen@audiocodes.com

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SOURCE AudioCodes

FAQ

What were AudioCodes (AUDC) Q2 2025 earnings results?

AudioCodes reported Q2 2025 revenues of $61.1 million (up 1.3% YoY), GAAP net income of $0.3 million ($0.01 per share), and Non-GAAP net income of $4.1 million ($0.14 per share).

How much is AudioCodes' dividend for Q2 2025?

AudioCodes declared a semi-annual cash dividend of 20 cents per share, totaling approximately $5.7 million, payable on August 28, 2025.

What was AUDC's share buyback activity in Q2 2025?

AudioCodes repurchased 715,732 ordinary shares for a total of $6.6 million and received court approval for an additional $20 million share buyback program through December 2025.

What is AudioCodes' current Annual Recurring Revenue (ARR)?

AudioCodes' Annual Recurring Revenue reached $70 million, representing a 25% increase year-over-year.

What were the main challenges for AudioCodes in Q2 2025?

The company faced $1 million in additional costs from new US import tariffs and increased EMEA costs due to Euro strengthening against USD, impacting net income generation.

What is AudioCodes' cash position as of Q2 2025?

AudioCodes reported cash and equivalents of $95.3 million as of June 30, 2025, up from $93.9 million at the end of 2024, with $7.7 million in operating cash flow for the quarter.