OR YEHUDA, Israel, May 5, 2026 /PRNewswire/ —
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, or $0.07 per diluted share.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, or $0.14 per diluted share;Net cash provided by operating activities was $12.8 million for the quarter.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 $62.1 million compared to $60.4 million for the first quarter of 2025.
Net income was $2.0 million, or $0.07 per diluted share, for the first quarter of 2026 compared to net income of $4.0 million, or $0.13 per diluted share, for the first quarter of 2025.
On a Non-GAAP basis, net income was $3.8 million, or $0.14 per diluted share, for the first quarter of 2026 compared to $4.7 million, or $0.15 per diluted share, for the first 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 $12.8 million for the first quarter of 2026. Cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments were $68.1 million as of March 31, 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 repurchasing of the Company’s ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the quarter. This was partially offset by cash generated from operating activities.
“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 $80 million, marking an increase of nearly 20% compared to the year ago period. Conversational AI business grew by over 50% year-over-year, underscoring extensive demand for our Voice AI portfolio. Voca CIC, our Teams-certified contact center solution, achieved record revenues for the quarter. Additionally, our VAIC and Live Hub products secured significant new client acquisitions and expansions within the existing customer base, driven by the rising adoption of virtual agent and agent assist applications.
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 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 was valid through April 27, 2026.
On February 3, 2026, the Company declared a cash dividend of 20 cents per share. The dividend, in the aggregate amount of approximately $5.3 million, was paid on March 6, 2026, to all of the Company’s shareholders of record on February 20, 2026.
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 $13.7 million.
As of March 31, 2026, the Company had $1.6 million available under this approval for the repurchase of shares and/or declaration of cash dividends.
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 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
March 31,
December 31,
2026
2025
(Unaudited)
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$ 40,928
$ 45,282
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
$ 14,161
$ 13,065
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
$ 305,667
$ 323,020
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
$ 17,987
$ 18,278
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
$ 305,667
$ 323,020
AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except per share data
Three months ended
March 31,
2026
2025
(Unaudited)
Revenues:
Products
$ 28,130
$ 27,775
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
$ 1,953
$ 4,016
Basic net earnings per share
$ 0.07
$ 0.14
Diluted net earnings per share
$ 0.07
$ 0.13
Weighted average number of shares used in computing basic net earnings
per share (in thousands)
26,468
29,528
Weighted average number of shares used in computing diluted net
earnings per share (in thousands)
26,891
30,045
AUDIOCODES LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands, except per share data
Three months ended
March 31,
2026
2025
(Unaudited)
Gross profit
$ 41,125
$ 39,134
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
$ 3,364
$ 3,645
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
$ 1,953
$ 4,016
Net earnings per share
$ 0.07
$ 0.13
Share-based compensation (1)
1,389
1,588
Amortization expenses (2)
11
133
Exchange rate differences (3)
408
(1,035)
Non-GAAP net income
$ 3,761
$ 4,702
Non-GAAP diluted net earnings per share
$ 0.14
$ 0.15
Weighted average number of shares used in computing Non-GAAP
diluted net earnings per share (in thousands)
27,719
30,725
(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
Three months ended
March 31,
2026
2025
(Unaudited)
Cash flows from operating activities:
Net income
$ 1,953
$ 4,016
Adjustments required to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
1,081
954
Amortization of marketable securities premiums and accretion of
discounts, net
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
U.S. dollars in thousands
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
$ 40,928
$ 63,133
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SOURCE AudioCodes
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