AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share
Rhea-AI Summary
AudioCodes (NASDAQ: AUDC) reported second quarter 2026 revenues of $63 million, up 3.1% year over year, with services revenues rising 6.2% to $34.6 million. GAAP gross margin was 65.7%, GAAP operating margin 5.1%, and GAAP net income $0.5 million or $0.02 per diluted share.
Non-GAAP net income was $3.9 million or $0.15 per diluted share, and operating cash flow reached $6.1 million. The company reported Annual Recurring Revenue of $84 million, up 20% year over year, with Conversational AI growing over 50% and Microsoft Teams-related business up 5%. AudioCodes repurchased 950,133 shares for $8.9 million, leaving $17.4 million available under its court-approved $25 million authorization as of June 30, 2026. The Board declared a semi-annual cash dividend of $0.20 per share, totaling about $4.8 million, payable September 3, 2026 to shareholders of record on August 19, 2026.
Positive
- Q2 2026 revenue up 3.1% year over year to $63m
- Q2 services revenue grew 6.2% year over year to $34.6m
- Annual Recurring Revenue reached $84m, up 20% year over year
- Q2 operating cash flow was $6.1m
- Q2 Non-GAAP EPS was $0.15 versus $0.14 a year ago
- Board declared a semi-annual dividend of $0.20 per share (~$4.8m)
Negative
- Q2 GAAP net income was low at $0.5m (EPS $0.02)
- Cash, deposits, marketable securities and long-term investments fell to $64.2m from $75.7m at year-end 2025
- Shareholders’ equity declined to $145.8m from $171.3m at year-end 2025
- Six-month 2026 GAAP net income declined to $2.43m from $4.32m a year earlier
Key Figures
Previous Dividends,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Q4 earnings dividend | Positive | -13.7% | Q4 results, full-year results, dividend declaration, and share repurchases |
| Jul 29 | Q2 earnings dividend | Positive | -4.4% | Q2 results, recurring-revenue growth, dividend declaration, and share repurchases |
| Feb 04 | Q4 earnings dividend | Positive | +5.3% | Q4 results, service-revenue growth, dividend declaration, and share repurchases |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific history showed negative reactions in two of three comparable announcements, with an average move of -4.26%.
Key Terms
gaap financial
non-gaap financial
annual recurring revenue financial
withholding tax regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
OR YEHUDA,
Second Quarter Highlights
- Quarterly revenues increased by
3.1% year-over-year to ;$63 million - Quarterly services revenues increased by
6.2% year-over-year to ;$34.6 million - GAAP results:
- Quarterly GAAP gross margin was65.7% ;
- Quarterly GAAP operating margin was5.1% ;
- Quarterly GAAP net income was , or$0.5 million per diluted share.$0.02 - Non-GAAP results:
- Quarterly Non-GAAP gross margin was65.8% ;
- Quarterly Non-GAAP operating margin was7.4% ;
- Quarterly Non-GAAP net income was , or$3.9 million per diluted share;$0.15 - Net cash provided by operating activities was
for the quarter.$6.1 million - AudioCodes repurchased 950,133 of its ordinary shares during the quarter at an aggregate cost of
.$8.9 million
Details
AudioCodes (NASDAQ: AUDC) (the "Company"), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the second quarter ended June 30, 2026.

Revenues for the second 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 second quarter of 2026, reflecting well on the execution of our strategic initiative to transform AudioCodes into a voice AI-driven cloud software and services company," stated Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
Second-quarter results were propelled again by sustained momentum across our two principal growth pillars: the Live suite of managed services for UCaaS and CX, alongside our Conversational AI business. Collectively, these segments advanced Annual Recurring Revenue (ARR) to
Consistent with the first quarter of this year, our Conversational AI business grew by more than
"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
In May 2026, the Company received court approval in
During the quarter ended June 30, 2026, the Company acquired 950,133 of its ordinary shares under its share repurchase program for a total consideration of
As of June 30, 2026, the Company had
As of June 30, 2026, the total outstanding shares of the Company are 24,590,849.
Cash Dividend
AudioCodes also announced today that the Company's Board of Directors has declared a semi-annual cash dividend in the amount of
In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of
The dividend will be paid in
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 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, 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 the 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 following: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular, including governmental undertakings to address such conditions; 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, the advent of artificial intelligence, and the ability to manage changes in market conditions and evolving regulatory regimes, as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes' financing agreements; possible impacts and disruptions from AudioCodes' acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which 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 any other factors described in AudioCodes' filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information in this release.
©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 | |||
June 30, | December 31, | ||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | |||
Short-term bank deposits | 255 | 239 | |
Short-term marketable securities | 10,001 | 27,350 | |
Trade receivables, net | 62,877 | 67,358 | |
Other receivables and prepaid expenses | 18,581 | 19,064 | |
Inventories | 23,764 | 22,032 | |
Total current assets | 166,892 | 181,325 | |
LONG-TERM ASSETS: | |||
Long-term Trade receivables | |||
Long-term financial investments | 2,492 | 2,790 | |
Deferred tax assets | 7,026 | 7,773 | |
Operating lease right-of-use assets | 31,573 | 30,077 | |
Severance pay funds | 23,057 | 21,163 | |
Total long-term assets | 74,933 | 74,868 | |
PROPERTY AND EQUIPMENT, NET | 29,636 | 29,248 | |
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET | 37,560 | 37,579 | |
Total assets | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
CURRENT LIABILITIES: | |||
Trade payables | 9,439 | 6,416 | |
Other payables and accrued expenses | 29,640 | 30,284 | |
Deferred revenues | 41,466 | 38,243 | |
Short-term operating lease liabilities | 7,430 | 6,635 | |
Total current liabilities | 87,975 | 81,578 | |
LONG-TERM LIABILITIES: | |||
Accrued severance pay | |||
Deferred revenues and other liabilities | 22,230 | 20,517 | |
Long-term operating lease liabilities | 33,938 | 31,348 | |
Total long-term liabilities | 75,265 | 70,143 | |
Total shareholders' equity | 145,781 | 171,299 | |
Total liabilities and shareholders' equity | |||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Six months ended | Three months ended | ||||||
June 30, | June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
(Unaudited) | (Unaudited) | ||||||
Revenues: | |||||||
Products | |||||||
Services | 68,593 | 65,162 | 34,580 | 32,563 | |||
Total Revenues | 125,101 | 121,452 | 62,958 | 61,078 | |||
Cost of revenues: | |||||||
Products | 20,160 | 21,936 | 10,249 | 10,919 | |||
Services | 22,455 | 21,258 | 11,348 | 11,035 | |||
Total Cost of revenues | 42,615 | 43,194 | 21,597 | 21,954 | |||
Gross profit | 82,486 | 78,258 | 41,361 | 39,124 | |||
Operating expenses: | |||||||
Research and development, net | 27,354 | 25,899 | 13,296 | 12,873 | |||
Selling and marketing | 40,664 | 38,376 | 20,984 | 19,815 | |||
General and administrative | 7,906 | 7,738 | 3,883 | 3,836 | |||
Total operating expenses | 75,924 | 72,013 | 38,163 | 36,524 | |||
Operating income | 6,562 | 6,245 | 3,198 | 2,600 | |||
Financial income (expenses), net | (2,141) | 522 | (1,759) | (1,194) | |||
Income before taxes on income | 4,421 | 6,767 | 1,439 | 1,406 | |||
Taxes on income, net | (1,991) | (2,445) | (962) | (1,100) | |||
Net income | |||||||
Basic net earnings per share | |||||||
Diluted net earnings per share | |||||||
Weighted average number of shares used in computing | 25,826 | 29,202 | 25,185 | 28,877 | |||
Weighted average number of shares used in computing | 26,322 | 29,699 | 25,753 | 29,353 | |||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||
Six months ended | Three months ended | |||||||
June 30, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
(Unaudited) | (Unaudited) | |||||||
Gross profit | ||||||||
Gross margin | 65.9 % | 64.4 % | 65.7 % | 64.1 % | ||||
Share-based compensation (1) | 153 | 225 | 75 | 130 | ||||
Amortization expenses (2) | - | 244 | - | 122 | ||||
Non-GAAP gross profit | 82,639 | 78,727 | 41,436 | 39,376 | ||||
Non-GAAP gross margin | 66.1 % | 64.8 % | 65.8 % | 64.5 % | ||||
Operating income | ||||||||
Operating margin | 5.2 % | 5.1 % | 5.1 % | 4.3 % | ||||
Share-based compensation (1) | 2,811 | 3,276 | 1,422 | 1,688 | ||||
Amortization expenses (2) | 19 | 266 | 8 | 133 | ||||
Non-GAAP operating income | 9,392 | 9,787 | 4,628 | 4,421 | ||||
Non-GAAP operating margin | 7.5 % | 8.1 % | 7.4 % | 7.2 % | ||||
Net income | ||||||||
Net earnings per share | ||||||||
Share-based compensation (1) | 2,811 | 3,276 | 1,422 | 1,688 | ||||
Amortization expenses (2) | 19 | 266 | 8 | 133 | ||||
Exchange rate differences (3) | 2,388 | 918 | 1,980 | 1,953 | ||||
Non-GAAP net income | ||||||||
Non-GAAP diluted net earnings per share | ||||||||
Weighted average number of shares used in computing | 27,075 | 30,422 | 26,430 | 30,120 | ||||
(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. | ||||||||
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 | ||||||||
Six months ended | Three months ended | |||||||
June 30, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
Net income | ||||||||
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,212 | 1,913 | 1,131 | 959 | ||||
Amortization of marketable securities premiums and accretion of discounts, net | 122 | 197 | 44 | 93 | ||||
Decrease (increase) in accrued severance pay, net | (1,075) | 76 | (823) | (57) | ||||
Share-based compensation expenses | 2,811 | 3,276 | 1,422 | 1,688 | ||||
Decrease in deferred tax assets, net | 690 | 307 | 165 | (312) | ||||
Cash financial loss (income), net | 407 | 22 | 168 | (31) | ||||
Decrease in operating lease right-of-use assets | 2,263 | 2,199 | 1,057 | 1,453 | ||||
Decrease (increase) in operating lease liabilities | (374) | 422 | 786 | 1,965 | ||||
Decrease (increase) in trade receivables, net | 6,761 | (3,136) | (2,905) | (3,922) | ||||
Decrease (increase) in other receivables and prepaid expenses | 483 | (4,444) | 850 | (6,827) | ||||
Decrease (increase) in inventories | (1,866) | 4,976 | (911) | 2,121 | ||||
Increase in trade payables | 2,883 | 87 | 1,269 | 1,376 | ||||
Decrease in other payables and accrued expenses | (4,150) | 6,750 | 2,009 | 9,345 | ||||
Increase in deferred revenues | 5,320 | 4,215 | 1,357 | (432) | ||||
Net cash provided by operating activities | 18,917 | 21,182 | 6,096 | 7,725 | ||||
Cash flows from investing activities: | ||||||||
Proceeds from short-term deposits | (16) | (18) | (13) | (19) | ||||
Proceeds from financial investment | 122 | 178 | 88 | 65 | ||||
Proceeds from maturity of marketable securities | 17,377 | 3,200 | 14,377 | - | ||||
Purchase of financial investments | (135) | (442) | (135) | - | ||||
Purchase of property and equipment | (2,296) | (3,259) | (1,051) | (1,785) | ||||
Net cash provided by (used in) investing activities | 15,052 | (341) | 13,266 | (1,739) | ||||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
Six months ended | Three months ended | |||||||
June 30, | June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from financing activities: | ||||||||
Purchase of treasury shares | (22,548) | (11,818) | (8,876) | (6,610) | ||||
Cash dividends paid to shareholders | (5,289) | (5,326) | - | - | ||||
Proceeds from issuance of shares upon exercise of options | - | 173 | - | 110 | ||||
Net cash used in financing activities | (27,837) | (16,971) | (8,876) | (6,500) | ||||
Net increase (decrease) in cash and cash equivalents | 6,132 | 3,870 | 10,486 | (514) | ||||
Cash and cash equivalents at beginning of period | 45,282 | 58,749 | 40,928 | 63,133 | ||||
Cash and cash equivalents at end of period | ||||||||
Company Contacts | ||
Niran Baruch, Chief Financial Officer AudioCodes Tel: +972-3-976-4000 | Roger L. Chuchen VP, Investor Relations AudioCodes Tel: +1-732-764-2552 | |
Logo - https://mma.prnewswire.com/media/2391462/audiocodes_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/audiocodes-reports-second-quarter-2026-results-and-declares-semi-annual-dividend-of-20-cents-per-share-302842022.html
SOURCE AudioCodes