Audiocodes (AUDC) AI Stock Analysis

• Market Cap: $274.04M
• Dividend Yield: 3.93%
• Average Volume (3M): 96.79K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.49
• 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: 115,377
• 30 Day Avg. Volume: 96,789
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: 11.26
• 1Y Price Target: $12.50
• Price Target Upside: 29.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $10.00 ▲(3.52% Upside)

Audiocodes' overall stock score is driven by its stable financial performance and fair valuation, despite mixed technical indicators and challenges highlighted in the earnings call. The company's strong cash generation and low leverage provide a solid foundation, but increased costs and pressure on net margins present risks.

Positive Factors

Cash Generation

Strong cash generation indicates efficient cash management, providing the company with the flexibility to invest in growth opportunities and weather economic fluctuations.

Microsoft Teams Business Growth

Growth in the Microsoft Teams segment highlights Audiocodes' ability to capitalize on the increasing demand for digital workplace solutions, reinforcing its market position.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and supporting long-term strategic initiatives.

Negative Factors

Increased Expenses Due to Tariffs

Rising operational costs from tariffs can pressure margins and profitability, potentially limiting the company's ability to invest in growth and innovation.

Decline in Profitability Metrics

Declining profitability metrics indicate challenges in maintaining operational efficiency, which could hinder the company's ability to sustain growth and shareholder returns.

Revenue Growth Challenges

Modest revenue growth suggests potential difficulties in expanding market share, which may impact long-term competitive positioning and financial performance.

Audiocodes Business Overview & Revenue Model

Company Description

AudioCodes Ltd. is a leading provider of advanced voice networking and media processing solutions for the digital workplace. The company operates primarily in the telecommunications sector, offering a wide range of products and services that include VoIP (Voice over Internet Protocol) solutions, session border controllers (SBCs), and unified communications (UC) solutions. AudioCodes serves various markets, including enterprises, service providers, and contact centers, enabling them to enhance their communication systems and improve operational efficiency.

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	242.47M	242.18M	244.38M	275.09M	248.92M	220.77M
Gross Profit	158.62M	158.16M	158.35M	178.78M	170.89M	149.82M
EBITDA	21.87M	21.07M	18.53M	39.36M	44.34M	39.91M
Net Income	17.24M	15.31M	8.78M	28.47M	33.75M	27.25M
Balance Sheet
Total Assets	330.48M	335.90M	337.52M	323.83M	349.27M	358.12M
Cash, Cash Equivalents and Short-Term Investments	66.54M	62.38M	38.20M	47.12M	80.09M	131.30M
Total Debt	35.14M	36.46M	39.28M	13.72M	19.53M	29.81M
Total Liabilities	144.57M	144.09M	149.41M	134.07M	143.77M	148.27M
Stockholders Equity	185.90M	191.81M	188.11M	189.76M	205.50M	209.85M
Cash Flow
Free Cash Flow	14.79M	10.97M	8.93M	6.79M	46.17M	36.95M
Operating Cash Flow	33.63M	35.25M	14.89M	8.28M	47.34M	38.48M
Investing Cash Flow	25.56M	17.81M	19.98M	-19.67M	42.62M	-139.31M
Financing Cash Flow	-26.39M	-24.86M	-28.86M	-48.60M	-51.48M	77.09M

Audiocodes Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 9.66 is below the 20-day moving average (MA) of 9.91, below the 50-day MA of 9.81, and above the 200-day MA of 9.63, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 9.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AUDC.

Audiocodes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	80 Outperform	$300.11M	26.22	32.33%	―	4.63%	328.61%
GILT	69 Neutral	$754.35M	29.93	8.16%	―	19.67%	12.32%
CRNT	66 Neutral	$210.55M	15.47	14.47%	―	5.06%	29.66%
ONDS	61 Neutral	$2.46B	-14.72	-50.60%	―	75.16%	28.13%
AUDC	57 Neutral	$274.04M	21.40	7.32%	3.93%	-0.93%	3.10%
AVNW	54 Neutral	$288.56M	247.69	―	―	6.50%	-88.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.