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Audiocodes
(NASDAQ:AUDC)
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Rating:67Neutral
Price Target:
$11.00
▲(14.82% Upside)
Action:Reiterated
Date:08/05/26
AUDC scores as a moderate-quality opportunity: solid balance sheet and cash generation support durability, and technicals plus a positive earnings narrative (raised revenue guidance, strong AI/ARR/backlog momentum) are meaningful positives. The score is capped by compressed profitability and a demanding valuation (high P/E), alongside working-capital and concentration risks highlighted on the call.
Positive Factors
Balance Sheet & Cash Generation
Healthy liquidity and consistent cash generation, together with modest and improving leverage, provide durable financial flexibility. Cash and recurring operating cash flow fund AI and services investments, support dividends and buybacks, and lower refinancing risk over the next several quarters.
Negative Factors
Modest Top-line Growth / Flat Product Sales
Sustained low organic revenue growth and stagnant product sales limit operating leverage and make scaling dependent on services and AI adoption. If recurring streams don't accelerate, topline stagnation could persist, constraining long-term margin expansion and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet & Cash Generation
Healthy liquidity and consistent cash generation, together with modest and improving leverage, provide durable financial flexibility. Cash and recurring operating cash flow fund AI and services investments, support dividends and buybacks, and lower refinancing risk over the next several quarters.
Read all positive factors
Audiocodes (AUDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$242.84M
Dividend Yield4.18%
Average Volume (3M)99.65K
Price to Earnings (P/E)38.2
Beta (1Y)0.71
Revenue Growth2.02%
EPS Growth-56.43%
CountryUS
Employees981
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.26
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.50Price Target Upside30.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.61
Revenue Forecast (FY)$251.63M
Audiocodes Business Overview & Revenue Model
Company Description
Founded in 1992 and headquartered in Lod, Israel, AudioCodes Ltd. is a prominent provider of sophisticated communication solutions for the contemporary digital workplace. The company offers a comprehensive portfolio encompassing software, hardware...
How the Company Makes Money
AudioCodes makes money primarily by selling communications infrastructure products and associated software and services that enable and manage enterprise voice connectivity, especially for Microsoft Teams and other UC/cloud calling environments. K...
Audiocodes Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational narrative driven by strong, high-growth momentum in Voice AI, significant ARR gains (doubled over three years) and improvements in margins, backlog and Microsoft-related contract value. Management raised revenue guidance, reported healthy cash balances, executed buybacks and a dividend, and highlighted multiple product certifications and enterprise wins. Offsetting factors include modest overall revenue growth (3.1%), flat product revenues, a slight decline in non-GAAP net income, elevated DSO (107 days), and concentration risk tied to large customers and the Microsoft ecosystem. On balance, the positive momentum in recurring and AI-driven revenue streams, improved margins, and strengthened pipeline outweigh the operational and concentration cautions.Positive Updates
Top-line Growth and Services Mix
Q2 revenue of $63.0M, up 3.1% YoY (from $61.1M). Services revenue grew 6.2% YoY to $34.6M and accounted for 54.9% of total revenues (~55%), while product revenues were roughly flat.
Negative Updates
Modest Overall Revenue Growth
Total revenue growth was modest at only 3.1% YoY in Q2, reflecting limited near-term topline expansion outside the high-growth Voice AI and services segments.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth and Services Mix
Q2 revenue of $63.0M, up 3.1% YoY (from $61.1M). Services revenue grew 6.2% YoY to $34.6M and accounted for 54.9% of total revenues (~55%), while product revenues were roughly flat.
Read all positive updates
Company Guidance
On the guidance front, AudioCodes reiterated 2026 non‑GAAP diluted net income per share of $0.60–$0.75 and raised full‑year revenue guidance to $251–$256 million (previously $247–$255M). Management also reaffirmed a Voice AI target of roughly 40–50% YoY growth for 2026 with a $50M revenue target by end of 2028. Key operating metrics supporting the guidance included exit Q2 ARR of $84M (up 20% YoY, doubled over three years), backlog near $90M (up 23% YoY), Q2 revenue of $63M (+3.1% YoY) with services $34.6M (54.9% of revenue, +6.2%), Voice AI >50% YoY growth in the quarter (H1 ~100% YoY), Microsoft Teams revenue +5% Q2 (+5.6% H1, on track to ~$170M YE), pipeline new opportunities +14% YoY and Teams TCV +73% YoY to >$20M; balance sheet highlights: cash & equivalents $64.2M, net cash from ops $6.1M, DSO 107 days, 950k shares repurchased for ~$8.9M, $0.20/share dividend (~$4.8M) and court approval to buy up to $25M of stock through Nov 12, 2026.Audiocodes Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
73
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 249.25M | 245.60M | 242.18M | 244.38M | 275.09M | 248.92M |
| Gross Profit | 163.86M | 159.63M | 158.16M | 158.35M | 178.78M | 170.89M |
| EBITDA | 18.68M | 18.00M | 19.27M | 18.53M | 39.36M | 44.34M |
| Net Income | 7.06M | 8.96M | 15.31M | 8.78M | 28.47M | 33.75M |
Balance Sheet | ||||||
| Total Assets | 309.02M | 323.16M | 335.90M | 337.52M | 323.83M | 349.36M |
| Cash, Cash Equivalents and Short-Term Investments | 61.41M | 72.87M | 62.38M | 38.20M | 47.12M | 80.31M |
| Total Debt | 41.37M | 69.33M | 36.46M | 39.28M | 13.72M | 19.53M |
| Total Liabilities | 163.24M | 151.86M | 144.09M | 149.41M | 134.07M | 143.87M |
| Stockholders Equity | 145.78M | 171.30M | 191.81M | 188.11M | 189.76M | 205.50M |
Cash Flow | ||||||
| Free Cash Flow | 22.01M | 22.89M | 10.97M | 8.93M | 6.79M | 46.17M |
| Operating Cash Flow | 27.58M | 29.36M | 35.25M | 14.89M | 8.28M | 47.34M |
| Investing Cash Flow | 14.23M | -1.55M | 17.81M | 19.98M | -19.67M | 42.62M |
| Financing Cash Flow | -52.86M | -41.28M | -24.86M | -28.86M | -48.60M | -51.48M |
Audiocodes Technical Analysis
Positive
9.58
Price Trends
9.64
Positive
9.19
Positive
8.76
Positive
Market Momentum
0.05
Negative
54.72
Neutral
64.56
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 9.58 is below the 20-day moving average (MA) of 9.75, below the 50-day MA of 9.64, and above the 200-day MA of 8.76, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 64.56 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $457.17B | 38.41 | 25.14% | 1.45% | 9.21% | 25.97% | |
67 Neutral | $242.84M | 38.21 | 4.01% | 4.18% | 2.02% | -56.43% | |
66 Neutral | $2.26B | 45.44 | 6.54% | ― | 27.84% | ― | |
66 Neutral | $32.90B | 12.66 | 23.57% | 3.35% | 2.72% | 56.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $51.22B | 62.76 | 4.55% | 1.80% | 13.04% | -24.13% | |
43 Neutral | $10.92M | -0.31 | -520.98% | ― | -80.99% | -113.71% |
* Technology Sector Average
AUDC
Audiocodes
9.90
0.61
6.53%
CALX
Calix
37.48
-19.20
-33.87%
CSCO
Cisco Systems
120.88
52.40
76.52%
CLRO
Clearone Communications
9.80
5.31
118.26%
ERIC
Telefonaktiebolaget LM Ericsson
10.16
2.83
38.51%
NOK
Nokia
9.43
5.38
132.90%
Audiocodes Corporate Events
AudioCodes Sets September 9, 2026 Shareholder Meeting to Confirm Directors and Auditor
Aug 5, 2026
AudioCodes Ltd., an Israel-based communications and voice technology company listed as a foreign private issuer in the U.S., provides voice networking and unified communications solutions to a global market. The company maintains robust disclosure...
AudioCodes Posts Q2 2026 Growth, Boosts Voice AI and Announces Semi-Annual Dividend
Aug 4, 2026
On August 4, 2026, Israel-based AudioCodes reported second-quarter 2026 results showing modest top-line growth as it advances its transition toward a voice AI-driven cloud software and services model. Revenue for the quarter ended June 30 rose 3.1...
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...
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.