Audiocodes (AUDC)
NASDAQ:AUDC
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Audiocodes
(NASDAQ:AUDC)
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Rating:61Neutral
Price Target:
$10.00
▲(13.25% Upside)
Action:Reiterated
Date:05/09/26
The score reflects solid balance-sheet strength and positive cash generation with improving strategic momentum highlighted on the earnings call (Voice AI/recurring revenue, backlog/ARR). It is held back by compressed profitability versus prior years, weaker near-term technicals, and a relatively high P/E despite support from a strong dividend yield.
Positive Factors
Low leverage / healthy balance sheet
A low, falling debt-to-equity (~0.24) and substantial equity provide durable financial flexibility. This supports continued R&D and Voice AI investments, funds buybacks/dividends, and lowers insolvency risk in downturns, enabling multi‑quarter strategic execution without reliance on external financing.
Negative Factors
Compressed profitability and operating margins
Operating and net income have materially declined versus prior peaks as the company invests in growth. Sustained margin compression reduces free cash flow conversion and ROE, limiting reinvestment capacity and making long‑term return targets harder to meet if cost discipline lags revenue scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / healthy balance sheet
A low, falling debt-to-equity (~0.24) and substantial equity provide durable financial flexibility. This supports continued R&D and Voice AI investments, funds buybacks/dividends, and lowers insolvency risk in downturns, enabling multi‑quarter strategic execution without reliance on external financing.
Read all positive factors
Audiocodes (AUDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$246.14M
Dividend Yield4.28%
Average Volume (3M)99.65K
Price to Earnings (P/E)37.8
Beta (1Y)0.72
Revenue Growth2.02%
EPS Growth-56.43%
CountryUS
Employees946
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.25
Shares Outstanding25,348,930
10 Day Avg. Volume85,922
30 Day Avg. Volume99,650
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)1.47
Price to Sales (P/S)1.03
P/FCF Ratio11.02
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit1.51
Enterprise Value/Ebitda13.38
Forecast
1Y Price Target
$12.50Price Target Upside41.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.66
Revenue Forecast (FY)$251.60M
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...
How the Company Makes Money
AudioCodes primarily makes money by selling and supporting products and services that connect and manage enterprise voice/VoIP traffic and help organizations deploy and operate unified communications (commonly including Microsoft Teams integration...
Audiocodes Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational momentum in strategic growth areas—Voice AI, Live/Managed Services, bookings, ARR and backlog growth—alongside margin improvement at the gross level and solid cash generation and shareholder returns. However, near-term profitability and efficiency metrics deteriorated (GAAP and non‑GAAP net income declines, EBITDA margin compression), operating expenses were elevated due to investments, DSO is high, and revenue growth remained modest overall. The results reflect a company in transition investing for future AI-driven recurring revenue growth while accepting short-term margin pressure.Positive Updates
Modest Top-Line Growth
Total revenue of $62.1M in Q1 2026, up 2.9% year-over-year (from $60.4M).
Negative Updates
Decline in GAAP Net Income and EPS
GAAP net income declined to $2.0M ($0.07/diluted share) from $4.0M ($0.13) in Q1 2025 — roughly a 50% decrease in net income and ~46% decline in EPS YoY.
Read all updates
Q1-2026 Updates
Positive
Negative
Modest Top-Line Growth
Total revenue of $62.1M in Q1 2026, up 2.9% year-over-year (from $60.4M).
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance of $247–$255 million in revenues and non‑GAAP diluted EPS of $0.60–$0.75, and gave segment targets including 40–50% growth for Voice AI in 2026 (planning ~50% growth to ~$25M in 2026 with a multi‑year goal of ~$50M by 2028), while noting combined Live Managed Services and Voice AI exit ARR of $80M (up ~20% YoY) and backlog of $79M (vs. $67M, ~15% YoY). Q1 non‑GAAP gross margin was 66.3% (within the 65–68% long‑term target), adjusted EBITDA was $5.8M (9.4% margin), Q1 non‑GAAP EPS was $0.14, cash & investments totaled $68.1M, net cash from operations was $12.8M, DSO was 104 days, the company paid a $0.20 per‑share dividend (~$5.3M) and repurchased $13.7M of shares in the quarter.Audiocodes Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 247.37M | 245.60M | 242.18M | 244.38M | 275.09M | 248.92M |
| Gross Profit | 161.62M | 159.63M | 158.16M | 158.35M | 178.78M | 170.89M |
| EBITDA | 18.18M | 18.27M | 21.07M | 18.53M | 39.36M | 44.34M |
| Net Income | 6.89M | 8.96M | 15.31M | 8.78M | 28.47M | 33.75M |
Balance Sheet | ||||||
| Total Assets | 305.67M | 323.16M | 335.90M | 337.52M | 323.83M | 349.36M |
| Cash, Cash Equivalents and Short-Term Investments | 65.60M | 72.87M | 62.38M | 38.20M | 47.12M | 80.31M |
| Total Debt | 37.38M | 69.33M | 36.46M | 39.28M | 13.72M | 19.53M |
| Total Liabilities | 151.57M | 151.86M | 144.09M | 149.41M | 134.07M | 143.87M |
| Stockholders Equity | 154.10M | 171.30M | 191.81M | 188.11M | 189.76M | 205.50M |
Cash Flow | ||||||
| Free Cash Flow | 23.78M | 22.89M | 10.97M | 8.93M | 6.79M | 46.17M |
| Operating Cash Flow | 30.40M | 29.36M | 35.25M | 14.89M | 8.28M | 47.34M |
| Investing Cash Flow | -1.25M | -1.55M | 17.81M | 19.98M | -19.67M | 42.62M |
| Financing Cash Flow | -52.19M | -41.28M | -24.86M | -28.86M | -48.60M | -51.48M |
Audiocodes Technical Analysis
Positive
8.83
Price Trends
8.80
Positive
8.35
Positive
8.70
Positive
Market Momentum
0.11
Negative
64.67
Neutral
92.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUDC, the sentiment is Positive. The current price of 8.83 is above the 20-day moving average (MA) of 8.82, above the 50-day MA of 8.80, and above the 200-day MA of 8.70, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 64.67 is Neutral, neither overbought nor oversold. The STOCH value of 92.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AUDC.
Audiocodes Risk Analysis
Audiocodes disclosed 69 risk factors in its most recent earnings report. Audiocodes reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our results of operations could be materially and adversely affected if we cannot keep pace with technological changes impacting the development of our products and implementation of our business needs, including with respect to automation and the use of AI. Q4, 2023
2.
The attack on Israel in October 2023, and the ensuing war with the Hamas terror organization and related conflicts with their supporters, could have a material adverse effect on our business, financial position, operating results and cash flows. Q4, 2023
Audiocodes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $319.19M | 22.45 | 33.31% | ― | 14.16% | 38.26% | |
66 Neutral | $1.35B | 40.05 | 7.33% | ― | 46.26% | 111.78% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $246.14M | 37.79 | 4.01% | 4.28% | 2.02% | -56.43% | |
60 Neutral | $6.57B | 24.18 | 46.62% | ― | 793.18% | ― | |
57 Neutral | $257.09M | ― | -1.43% | ― | -15.03% | -110.33% | |
54 Neutral | $232.65M | 25.50 | 3.37% | ― | 0.23% | ― |
* Technology Sector Average
AUDC
Audiocodes
9.84
0.85
9.48%
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ONDS
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Audiocodes Corporate Events
AudioCodes Adopts Rule 10b5-1 Share Repurchase Plan
May 7, 2026
On May 7, 2026, AudioCodes Ltd. announced that it has adopted and approved a Rule 10b5-1 stock trading plan to repurchase its ordinary shares under the framework of the U.S. Securities Exchange Act of 1934. The plan is designed to permit share buy...
AudioCodes Q1 2026 Results Highlight Shift to AI-Driven, Recurring Revenue Model
May 5, 2026
On May 5, 2026, AudioCodes reported its financial results for the first quarter ended March 31, 2026, posting a 2.9% year-over-year revenue increase to $62.1 million, driven in part by 4.3% growth in services revenue to $34.0 million. GAAP net inc...
AudioCodes Files 2025 Form 20-F With U.S. SEC
Mar 30, 2026
AudioCodes Ltd., a global provider of enterprise voice and VoiceAI solutions serving large enterprises including many Fortune 100 companies, reported that it has filed its Annual Report on Form 20‑F for the fiscal year ended December 31, 202...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.