Audiocodes (AUDC) AI Stock Analysis

• Market Cap: $229.41M
• Dividend Yield: 4.28%
• Average Volume (3M): 99.65K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.97
• Revenue Growth: 0.15%
• EPS Growth: 17.21%
• Country: US
• Employees: 946
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.16
• Shares Outstanding: 27,474,186
• 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: 1.01
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: $12.50
• Price Target Upside: 41.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $9.00 ▲(1.93% Upside)

Overall score reflects stable financial footing (strong gross margins, low leverage) but pressured profitability and only moderate cash-flow quality. Technical indicators are neutral-to-weak, limiting near-term momentum. Valuation is supportive (moderate P/E and strong dividend yield), while earnings-call guidance and Voice AI/ARR progress are positives tempered by margin compression, investment burn, and working-capital/customer concentration risks.

Positive Factors

High gross margins

Sustained gross margins near 65% reflect durable product and software economics across hardware, cloud and services. High unit-level margins create structural ability to fund R&D and Voice AI investments while preserving operating leverage as recurring revenues scale.

Growing recurring ARR

ARR expansion to $79M (+22% YoY) indicates rising subscription and managed-services revenue, improving revenue visibility and stickiness. A growing ARR base supports predictable cash flows, cross-sell opportunities and de-risks reliance on one-time hardware sales over the medium term.

Strong liquidity and capital returns

A healthy cash/investment balance plus a sizable buyback authorization provides financial flexibility to fund Voice AI scale-up, pay dividends and execute opportunistic buybacks. Combined with conservative balance-sheet leverage, this supports strategic execution and downside protection.

Negative Factors

Profitability compression

Material decline in net margins and GAAP profits reduces internal funding capacity and pressures ROE. If investment-driven margin erosion persists, the company may need sustained cash support or slower growth, challenging the multi-year path to target returns.

High DSO and tariff headwinds

Elevated 117-day receivables stretch working capital, increasing funding needs and reducing cash conversion. Recurring tariff and currency headwinds create predictable cost pressure that can structurally compress margins and limit funds available for Voice AI investment or capital returns.

Customer concentration risk

Heavy revenue concentration among a few customers increases volatility and negotiating leverage risk. Losing or downsizing a major account would have outsized impact on revenue and ARR growth, complicating long-term forecasting and raising counterparty credit and renewal risks.

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 streams, primarily from the sale of its software and hardware products, which include VoIP gateways, session border controllers, and UC solutions. The company also derives income from recurring revenue sources, such as maintenance and support services, software subscriptions, and cloud services. Significant partnerships with leading technology firms and telecommunications providers enhance its market reach and contribute to its earnings. Additionally, Audiocodes benefits from a growing demand for digital transformation and cloud communications as organizations increasingly adopt remote work and integrated communication solutions.

Audiocodes Financial Statement Overview

Summary

Mixed fundamentals: strong ~65% gross margin and low leverage (debt-to-equity ~0.20) support stability, but profitability has compressed materially (net margin down to ~5.66% TTM; ROE down to ~7.32%). Cash flow is improving but has shown volatility and only moderate alignment with earnings.

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	16.86M	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: Negative
• Last Price: 8.83
• 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 Negative. The current price of 8.83 is above the 20-day moving average (MA) of 8.64, above the 50-day MA of 8.77, and below the 200-day MA of 9.24, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.47 is Neutral, 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	77 Outperform	$284.70M	23.25	38.74%	―	10.12%	153.04%
GILT	70 Outperform	$1.41B	45.75	6.95%	―	29.67%	41.90%
AVNW	66 Neutral	$279.99M	21.71	5.24%	―	10.89%	―
AUDC	62 Neutral	$229.41M	18.02	7.67%	4.28%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRNT	49 Neutral	$204.33M	157.24	0.84%	―	-3.78%	-92.62%
ONDS	46 Neutral	$4.38B	-26.38	-17.04%	―	208.40%	44.60%

Audiocodes Corporate Events

AudioCodes Posts Modest 2025 Revenue Growth, Boosts VoiceAI Momentum and Declares $0.20 Dividend

On February 3, 2026, AudioCodes reported its financial results for the fourth quarter and full year ended December 31, 2025, showing modest top-line growth but weaker profitability, and announced a semi-annual cash dividend of $0.20 per share alongside continued share repurchases and a board-level change. Quarterly revenue rose 1.7% year-on-year to $62.6 million and full-year revenue increased 1.4% to $245.6 million, while full-year GAAP net income fell to $9.0 million and non-GAAP net income to $18.1 million amid lower margins; nevertheless, the company highlighted strong momentum in its higher-growth businesses, with Annual Recurring Revenue reaching $79 million, up 22% year-on-year, driven by robust expansion in its Live managed services and conversational AI lines, which together underpin AudioCodes’ strategic shift toward Voice AI-focused hybrid cloud services. During the fourth quarter the company generated $4.1 million in operating cash flow and $29.4 million for the year, used $6.1 million to repurchase 667,193 shares under an Israeli court-approved $25 million capital return framework that still had $20.6 million available at year-end for buybacks and/or dividends, and declared a roughly $5.4 million dividend payable in March 2026, signaling ongoing commitment to shareholder returns even as cash and investments declined to $75.7 million from $93.9 million due to these distributions; additionally, director Shai Levy resigned effective February 3, 2026, following his relocation to the United States for employment elsewhere, marking a governance change that investors will monitor as the company pursues its VoiceAI growth strategy.

The most recent analyst rating on (AUDC) stock is a Buy with a $10.50 price target. To see the full list of analyst forecasts on Audiocodes stock, see the AUDC Stock Forecast page.

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.

The most recent analyst rating on (AUDC) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Audiocodes stock, see the AUDC Stock Forecast page.

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.

The most recent analyst rating on (AUDC) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Audiocodes stock, see the AUDC Stock Forecast page.