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 (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 $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.
©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
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