Audiocodes (AUDC) AI Stock Analysis

• Market Cap: $264.39M
• Dividend Yield: 4.09%
• Average Volume (3M): 99.65K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.39
• Revenue Growth: 0.15%
• EPS Growth: 17.21%
• Country: US
• Employees: 946
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.17
• 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: 0.93
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: 14.66
• 1Y Price Target: $12.50
• Price Target Upside: 31.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $10.50 ▲(10.06% Upside)

Audiocodes' overall stock score reflects a balanced view of its financial performance, technical analysis, valuation, and earnings call insights. The company's strong gross margins and strategic focus on AI provide growth potential, but declining profitability and mixed technical signals warrant caution. The valuation is fair, offering a reasonable return to investors. The earnings call suggests optimism, but challenges remain, particularly in managing costs and sustaining revenue growth.

Positive Factors

Conversational AI Growth

The strong growth in the conversational AI segment indicates a successful strategic shift, enhancing AudioCodes' competitive position in AI-driven solutions.

Strategic Partnerships

The agreement with a Tier 1 integrator expands market reach and revenue potential, solidifying AudioCodes' position in the global communications market.

Stable Balance Sheet

A low debt-to-equity ratio indicates conservative financial management, providing stability and flexibility for future investments and growth.

Negative Factors

Declining Profit Margins

The decline in profit margins suggests challenges in cost management and pricing power, potentially affecting long-term profitability.

Increased Tariff Costs

Rising tariff costs increase operational expenses, which could pressure margins and impact competitiveness in the U.S. market.

Flat Microsoft Business Growth

Stagnant growth in the Microsoft segment may indicate challenges in leveraging key partnerships, affecting revenue diversification and 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 presents a mixed financial picture. The company maintains strong gross margins and a stable balance sheet with low leverage. However, declining net profit margins and inconsistent revenue growth pose challenges. Cash flow management shows improvement, but historical volatility suggests the need for careful monitoring. Overall, Audiocodes demonstrates resilience but faces hurdles in sustaining profitability and growth.

Income Statement

Audiocodes shows a mixed performance in its income statement. The company has a solid gross profit margin of around 65%, indicating efficient production. However, the net profit margin has declined from 13.56% in 2021 to 5.66% in the TTM period, reflecting reduced profitability. Revenue growth has been inconsistent, with a notable decline in 2023, but a slight recovery in the TTM period. EBIT and EBITDA margins have also decreased over the years, suggesting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet of Audiocodes is relatively stable. The debt-to-equity ratio remains low at around 0.20, indicating conservative leverage. Return on equity has decreased from 16.42% in 2021 to 7.32% in the TTM period, showing a decline in profitability relative to shareholder equity. The equity ratio is healthy, suggesting a strong capital structure with adequate equity backing its assets.

Cash Flow

Cash flow analysis reveals some concerns. While free cash flow growth is positive in the TTM period, the operating cash flow to net income ratio is moderate, indicating that cash generation from operations is not fully aligned with reported earnings. The free cash flow to net income ratio has improved to 72.32% in the TTM period, but historical fluctuations highlight potential volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	244.55M	242.18M	244.38M	275.09M	248.92M	220.77M
Gross Profit	159.26M	158.16M	158.35M	178.78M	170.89M	149.82M
EBITDA	16.80M	21.07M	18.53M	39.36M	44.34M	39.57M
Net Income	13.83M	15.31M	8.78M	28.47M	33.75M	27.25M
Balance Sheet
Total Assets	331.80M	335.90M	337.52M	323.83M	349.36M	358.12M
Cash, Cash Equivalents and Short-Term Investments	73.96M	62.38M	38.20M	47.12M	80.31M	126.20M
Total Debt	37.40M	36.46M	39.28M	13.72M	19.53M	29.81M
Total Liabilities	158.06M	144.09M	149.41M	134.07M	143.87M	148.27M
Stockholders Equity	173.74M	191.81M	188.11M	189.76M	205.50M	209.85M
Cash Flow
Free Cash Flow	33.05M	10.97M	8.93M	6.79M	46.17M	36.95M
Operating Cash Flow	41.60M	35.25M	14.89M	8.28M	47.34M	38.48M
Investing Cash Flow	25.88M	17.81M	19.98M	-19.67M	42.62M	-139.31M
Financing Cash Flow	-42.54M	-24.86M	-28.86M	-48.60M	-51.48M	77.09M

Audiocodes Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.54 is above the 20-day moving average (MA) of 9.16, below the 50-day MA of 9.55, and below the 200-day MA of 9.60, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 47.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AUDC.

Audiocodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	79 Outperform	$273.08M	23.86	38.74%	―	10.12%	153.04%
AVNW	72 Outperform	$292.82M	21.87	5.24%	―	10.89%	―
CRNT	70 Outperform	$207.00M	15.21	8.61%	―	5.06%	29.66%
GILT	67 Neutral	$796.76M	31.62	7.49%	―	19.67%	12.32%
AUDC	65 Neutral	$264.39M	20.28	7.67%	4.09%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONDS	45 Neutral	$2.14B	―	-81.20%	―	75.16%	28.13%

Audiocodes Corporate Events

AudioCodes Adopts Rule 10b5-1 Stock Repurchase Plan

On November 5, 2025, AudioCodes Ltd. announced the adoption of a stock trading plan under Rule 10b5-1 to facilitate the repurchase of its ordinary shares. This plan allows the company to buy back shares even during periods when insider trading laws or self-imposed trading blackouts would otherwise prevent such actions. The move is expected to provide flexibility in managing share repurchases, potentially impacting the company’s market positioning and shareholder value.

AudioCodes Reports Strong Q3 2025 Financial Results and Strategic Growth

On November 4, 2025, AudioCodes announced its financial results for the third quarter of 2025, reporting a 2.2% increase in quarterly revenues to $61.5 million. The company highlighted a strong performance in its conversational AI business, which grew by 50%, contributing to a 25% increase in annual recurring revenue. AudioCodes also repurchased over 1.2 million shares and declared a cash dividend, reflecting its commitment to shareholder returns. The company secured a significant agreement with a tier-1 system integrator, enhancing its market positioning and opening opportunities for cross-selling.

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.