OR YEHUDA, Israel, Aug. 4, 2026 /PRNewswire/ --
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 was 65.7%;- Quarterly GAAP
operating margin was 5.1%;- Quarterly GAAP net income was $0.5 million,
or $0.02 per diluted share.
-- Non-GAAP results:- Quarterly Non-GAAP gross margin was 65.8%;- Quarterly
Non-GAAP operating margin was 7.4%;- Quarterly Non-GAAP net income was
$3.9 million, or $0.15 per diluted share;
-- Net cash provided by operating activities was $6.1 million for the
quarter.
-- AudioCodes repurchased 950,133 of its ordinary shares during the quarter
at an aggregate cost of $8.9 million.
Details
AudioCodes $(AUDC)$ (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 $63 million compared to $61.1 million for the second quarter of 2025.
Net income was $0.5 million, or $0.02 per diluted share, for the second quarter of 2026 compared to net income of $0.3 million, or $0.01 per diluted share, for the second quarter of 2025.
On a Non-GAAP basis, net income was $3.9 million, or $0.15 per diluted share, for the second quarter of 2026 compared to $4.1 million, or $0.14 per diluted share, for the second quarter of 2025.
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 $6.1 million for the second quarter of 2026. Cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments were $64.2 million as of June 30, 2026, compared to $75.7 million as of December 31, 2025. The decrease in cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments was the result of the use of cash for the continued repurchase of the Company's ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the first quarter. This was partially offset by cash generated from operating activities and proceeds from the maturity of marketable securities.
"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 $84 million, marking an increase of 20% compared to the year ago period. Notably, our Microsoft Teams business maintained its strong momentum, growing 5% year over year.
Consistent with the first quarter of this year, our Conversational AI business grew by more than 50% year over year in the second quarter, reflecting strong and broad-based demand across our Voice AI portfolio. The growing adoption of voice as the most natural and preferred medium for business communication and collaboration is becoming the experience of many and strengthens our confidence in the long-term growth potential of the business. During the quarter, Voice AI Connect and Live Hub delivered record bookings, driven by an accelerating pipeline, consistent new logo acquisition, and significant expansion within our existing customer base. These solutions support both virtual agent and agent-assist capabilities across the growing contact center market, in both cloud and on-premises deployments. Voca CIC, our Microsoft Teams-certified contact center solution has also generated good business progress. In addition, Meeting Insights, our enterprise-grade meeting intelligence solution for cloud and on-premises environments, continues to gain traction as customer interest grows and the opportunity pipeline steadily expands.
"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 Israel to purchase up to an aggregate amount of $25 million of ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through November 12, 2026.
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 $8.9 million.
As of June 30, 2026, the Company had $17.4 million available under this approval for the repurchase of shares and/or declaration of cash dividends.
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 20 cents per share. The aggregate amount of the dividend is approximately $4.8 million. The dividend is payable on September 3, 2026, to all of the Company's shareholders of record at the close of trading on the NASDAQ Global Select Market on August 19, 2026.
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 Company's Board of Directors.
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.
(c)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
----------------------------------------------------------------------
U.S. dollars in thousands
June 30, December 31,
2026 2025
----------- ------------
(Unaudited) (Unaudited)
----------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 51,414 $ 45,282
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 $ 10,785 $ 13,065
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 $ 309,021 $ 323,020
=========== ============
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 $ 19,097 $ 18,278
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 $ 309,021 $ 323,020
=========== ============
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,
------------------- --------------------
2026 2025 2026 2025
--------- -------- --------- ---------
(Unaudited) (Unaudited)
------------------- --------------------
Revenues:
Products $ 56,508 $ 56,290 $ 28,378 $ 28,515
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 $ 2,430 $ 4,322 $ 477 $ 306
========= ======== ========= =========
Basic net earnings per share $ 0.09 $ 0.15 $ 0.02 $ 0.01
========= ======== ========= =========
Diluted net earnings per
share $ 0.09 $ 0.15 $ 0.02 $ 0.01
========= ======== ========= =========
Weighted average number of
shares used in computing
basic net earnings per
share (in thousands) 25,826 29,202 25,185 28,877
========= ======== ========= =========
Weighted average number of
shares used in computing
diluted net earnings per
share (in thousands) 26,322 29,699 25,753 29,353
========= ======== ========= =========
AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
----------------------------------------------------------------------
U.S. dollars in thousands, except per share data
Six months ended Three months ended
June 30, June 30,
------------------ --------------------
2026 2025 2026 2025
-------- -------- --------- ---------
(Unaudited) (Unaudited)
Gross profit $ 82,486 $ 78,258 $ 41,361 $ 39,124
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 $ 6,562 $ 6,245 $ 3,198 $ 2,600
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 $ 2,430 $ 4,322 $ 477 $ 306
Net earnings per share $ 0.09 $ 0.14 $ 0.02 $ 0.01
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 $ 7,648 $ 8,782 $ 3,887 $ 4,080
======== ======== ========= =========
Non-GAAP diluted net
earnings per share $ 0.28 $ 0.29 $ 0.15 $ 0.14
======== ======== ========= =========
Weighted average number of
shares used in computing
Non-GAAP diluted net
earnings per share (in
thousands) 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
----------------------------------------------------------------------
U.S. dollars in thousands
Six months ended Three months ended
June 30, June 30,
------------------ --------------------
2026 2025 2026 2025
-------- -------- --------- ---------
(Unaudited) (Unaudited)
------------------ --------------------
Cash flows from operating
activities:
---------------------------
Net income $ 2,430 $ 4,322 $ 477 $ 306
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
----------------------------------------------------------------------
U.S. dollars in thousands
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 $ 51,414 $ 62,619 $ 51,414 $ 62,619
======== ======== ========= =========
Company Contacts
Niran Baruch, Roger L. Chuchen
Chief Financial Officer VP, Investor Relations
AudioCodes AudioCodes
Tel: +972-3-976-4000 Tel: +1-732-764-2552
niran.baruch@audiocodes.com roger.chuchen@audiocodes.com
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