Audiocodes (AUDC) AI Stock Analysis

• Market Cap: $259.29M
• Dividend Yield: 4.16%
• Average Volume (3M): 99.65K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.48
• Revenue Growth: -0.93%
• EPS Growth: 3.10%
• Country: US
• Employees: 946
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.14
• Shares Outstanding: 28,368,244
• 10 Day Avg. Volume: 85,922
• 30 Day Avg. Volume: 99,650
• PEG Ratio: 0.23
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 26.81
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 12.81
• 1Y Price Target: $12.50
• Price Target Upside: 36.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $10.00 ▲(9.29% Upside)

Audiocodes' strong cash flow and stable balance sheet are significant strengths, but declining profitability and inconsistent revenue growth weigh on the overall score. The technical indicators suggest bearish momentum, and while the valuation is reasonable, increased expenses and reduced net income from the earnings call further impact the score.

Positive Factors

Strong Cash Flow

Strong cash flow growth indicates robust cash generation capabilities, providing the company with flexibility to invest in growth opportunities and manage debt efficiently.

Growth in Microsoft Teams Business

Growth in the Microsoft Teams segment highlights Audiocodes' competitive positioning and potential for sustained revenue from enterprise communication solutions.

Conversational AI Growth Outlook

The strong growth outlook in conversational AI reflects Audiocodes' strategic focus on AI-driven services, positioning it well for future technological trends.

Negative Factors

Decline in Profitability Metrics

Declining profitability metrics indicate challenges in maintaining cost efficiency and margin sustainability, which could impact long-term financial health.

Increased Expenses Due to Tariffs

Rising costs from tariffs could pressure margins and profitability, requiring strategic adjustments to mitigate long-term financial impacts.

Inconsistent Revenue Growth

Inconsistent revenue growth suggests challenges in market demand or execution, potentially affecting the company's ability to sustain long-term growth.

Audiocodes Business Overview & Revenue Model

Company Description

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace. The company offers solutions, products, and services for unified communications, contact centers, VoiceAI business line, and service provider business. Its products include session border controllers, life cycle management solutions, VoIP network routing solutions, media gateways and servers, multi-service business routers, IP phones solutions, and value-added applications, as well as professional services. The company also offers One Voice Operations Center, a voice network management solution; Device Manager for administering business phones and meeting room solutions; AudioCodes Routing Manager for handling call routing in VoIP networks; and User Management Pack 365 simplifies user lifecycle and identity management across Microsoft Teams and Skype for Business deployments. In addition, it provides AudioCodes Live for Microsoft Teams, a portfolio of managed services for simplifying Teams adoption; appliances for Microsoft Skype/Teams for Business such as survivable branch appliances, CCE, and CloudBond 365; and a range of value-added voice applications comprising SmartTAP, Voca, VoiceAI Connect, and Meeting Insights. Further, the company offers managed services; and AudioCodes Live Cloud, a Microsoft Teams software as a service solution that enables service providers to offer their business customers a seamless migration to Microsoft Teams. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, network equipment providers, and systems integrators and distributors in the telecommunications and networking industries. The company primarily operates in the Americas, Europe, the Far East, and Israel. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.

How the Company Makes Money

AudioCodes generates revenue through multiple key streams, primarily from the sale of hardware and software solutions that facilitate voice communications over IP networks. Their core revenue model is based on the direct sale of products such as SBCs, media gateways, and session management solutions, as well as licensing software for enterprise communications. Additionally, the company earns recurring revenue from maintenance and support services, which provide ongoing assistance and updates for their products. Significant partnerships with major cloud service providers and telecommunications companies further enhance their revenue potential, as these collaborations often lead to joint solutions and integrations that expand AudioCodes’ market reach. The growing demand for cloud-based communication solutions and digital transformation initiatives among businesses also contribute positively to their earnings, as more organizations seek to modernize their communication infrastructures.

Audiocodes Financial Statement Overview

Summary

Audiocodes maintains a stable financial position with moderate profitability and strong cash generation capacity. Despite some pressure on net margins and revenue growth, the company's low leverage and healthy equity ratio provide financial stability.

Income Statement

Audiocodes has shown stable gross profit margins around 65.4% in recent periods, with a slight decline in revenue growth compared to previous years. The EBIT margin stands at approximately 7.2%, indicating moderate operational efficiency. However, net profit margins have decreased from 12.1% in 2021 to 7.1% TTM, suggesting pressure on net profitability.

Balance Sheet

The company maintains a solid equity ratio of around 56.2% TTM, reflecting a strong balance sheet position. The debt-to-equity ratio is relatively low at 0.19 TTM, indicating low leverage risk. Return on equity is modest at approximately 9.3% TTM, showing moderate efficiency in using shareholders' equity to generate profits.

Cash Flow

Audiocodes has demonstrated strong operating cash flow relative to net income, with a ratio of 1.95 TTM, indicating good cash generation efficiency. Free cash flow has grown by 34.6% TTM, reflecting improved cash management. However, fluctuations in investing and financing cash flows present some volatility risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	243.25M	242.18M	244.38M	275.09M	248.92M	220.77M
Gross Profit	158.28M	158.16M	158.35M	178.78M	170.89M	149.82M
EBITDA	19.23M	21.07M	18.53M	39.36M	44.34M	39.91M
Net Income	13.78M	15.31M	8.78M	28.47M	33.75M	27.25M
Balance Sheet
Total Assets	339.83M	335.90M	337.52M	323.83M	349.27M	358.12M
Cash, Cash Equivalents and Short-Term Investments	79.21M	62.38M	38.20M	47.12M	80.09M	126.20M
Total Debt	37.25M	36.46M	39.28M	13.72M	19.53M	29.81M
Total Liabilities	151.76M	144.09M	149.41M	134.07M	143.77M	148.27M
Stockholders Equity	188.07M	191.81M	188.11M	189.76M	205.50M	209.85M
Cash Flow
Free Cash Flow	32.07M	10.97M	8.93M	6.79M	46.17M	36.95M
Operating Cash Flow	44.34M	35.25M	14.89M	8.28M	47.34M	38.48M
Investing Cash Flow	29.23M	17.81M	19.98M	-19.67M	42.62M	-139.31M
Financing Cash Flow	-31.80M	-24.86M	-28.86M	-48.60M	-51.48M	77.09M

Audiocodes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUDC, the sentiment is Negative. The current price of 9.15 is below the 20-day moving average (MA) of 9.63, below the 50-day MA of 9.67, and below the 200-day MA of 9.67, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AUDC.

Audiocodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	80 Outperform	$244.85M	21.40	39.51%	―	4.63%	328.61%
CRNT	70 Outperform	$212.33M	15.60	8.61%	―	5.06%	29.66%
GILT	69 Neutral	$880.94M	34.96	7.49%	―	19.67%	12.32%
AUDC	65 Neutral	$259.29M	20.25	7.32%	4.16%	-0.93%	3.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONDS	61 Neutral	$2.66B	―	-81.20%	―	75.16%	28.13%
AVNW	54 Neutral	$298.04M	255.82	0.52%	―	6.50%	-88.62%

Audiocodes Corporate Events

AudioCodes Announces Successful Shareholder Meeting Results

On September 16, 2025, AudioCodes Ltd. held its Annual General Meeting of Shareholders at its offices, where all agenda items were approved by the required majority. This successful meeting reflects shareholder confidence and may positively impact the company’s strategic direction and operational stability.

AudioCodes Announces 2025 Annual General Meeting Details

On August 12, 2025, AudioCodes Ltd. announced the distribution of its proxy statement to shareholders for the upcoming Annual General Meeting scheduled for September 16, 2025, in Israel. Key agenda items include the reelection of directors, approval of compensation policies, and the appointment of auditors. The meeting will also review the company’s financial statements, reflecting AudioCodes’ ongoing commitment to transparency and governance. This event underscores the company’s strategic focus on strengthening its leadership and operational policies, which are crucial for maintaining its competitive edge in the telecommunications sector.

AudioCodes Announces Q2 2025 Financial Results and Dividend

On July 29, 2025, AudioCodes announced its financial results for the second quarter of 2025, reporting a 1.3% year-over-year increase in quarterly revenues to $61.1 million. Despite a decline in GAAP net income compared to the previous year, the company declared a semi-annual cash dividend of 20 cents per share, reflecting its commitment to returning value to shareholders. The company also highlighted significant growth in its Live managed services and conversational AI sectors, with a 25% year-over-year increase in Annual Recurring Revenues (ARR) to $70 million. AudioCodes launched new solutions like the Live Platform and Meeting Insights On-Prem, targeting sectors such as government and healthcare. However, operational costs rose due to new tariffs on US imports and currency fluctuations, impacting net income. The company continues to invest in product and sales to drive future growth.