Audiocodes (AUDC)
NASDAQ:AUDC
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Audiocodes
(NASDAQ:AUDC)
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Rating:55Neutral
Price Target:
$9.50
▲(7.59% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by mixed financial performance: strong gross margins and improved growth are offset by materially thinner profitability, higher leverage, and weaker/volatile free cash flow. Technicals are a notable drag given the clear downtrend despite oversold readings. Valuation is moderately supportive due to the ~5% dividend yield, while earnings-call guidance is positive but tempered by ongoing margin pressure and execution risks (DSO, concentration, and Voice AI investment burn).
Positive Factors
Gross margin sustainability
AudioCodes maintains a durable, high gross margin (~65%) driven by software, licensing and services mix. Persistent gross-margin leverage supports investment in Voice AI and managed services while preserving product pricing power and cushioning operating profitability against revenue swings.
Negative Factors
Compressed profitability
Despite revenue recovery, operating and net profitability have materially weakened versus historical levels, reflecting investment spend and cost pressures. Lower margins reduce internal funding capacity, lower ROE, and increase reliance on cash or external financing to sustain growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin sustainability
AudioCodes maintains a durable, high gross margin (~65%) driven by software, licensing and services mix. Persistent gross-margin leverage supports investment in Voice AI and managed services while preserving product pricing power and cushioning operating profitability against revenue swings.
Read all positive factors
Audiocodes (AUDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$243.14M
Dividend Yield4.28%
Average Volume (3M)99.65K
Price to Earnings (P/E)31.5
Beta (1Y)0.82
Revenue Growth0.15%
EPS Growth17.21%
CountryUS
Employees946
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.16
Shares Outstanding26,806,992
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 Cap1.17
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda15.48
Forecast
1Y Price Target
$12.50Price Target Upside41.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.67
Revenue Forecast (FY)$252.75M
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:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call portrays a mixed picture: clear, strong momentum in strategic growth areas (Voice/Conversational AI, Live managed services) with ARR expansion, backlog growth, customer wins, and a solid cash position and capital returns. However, near-term financials show meaningful declines in GAAP and non-GAAP profitability, only modest overall revenue growth, tariff/currency headwinds, and elevated DSO and customer concentration risks. Management’s forward-looking guidance and stated multi-year plan for Voice AI growth create optimism but the business remains in a transition phase with investment-driven margin pressure.Positive Updates
Modest Top-Line Growth
Q4 revenue of $62.6M, up 1.7% YoY from $61.6M; full-year 2025 revenue of $245.6M, up 1.4% YoY from $242.2M.
Negative Updates
Significant Decline in GAAP and Non-GAAP Profitability
Q4 GAAP net income fell to $1.9M ($0.07/sh) from $6.8M ($0.22/sh) in Q4 2024 (≈-72% YoY). Full-year GAAP net income was $9M vs $15.3M in 2024 (≈-41%). Non-GAAP Q4 net income fell to $4.5M ($0.16/sh) from $11.6M ($0.37/sh) (≈-61% YoY); FY non-GAAP net income fell to $18.1M from $27.3M (≈-33.7%).
Read all updates
Q4-2025 Updates
Positive
Negative
Modest Top-Line Growth
Q4 revenue of $62.6M, up 1.7% YoY from $61.6M; full-year 2025 revenue of $245.6M, up 1.4% YoY from $242.2M.
Read all positive updates
Company Guidance
The company guided 2026 revenue of $247M–$255M and non‑GAAP diluted EPS of $0.60–$0.75, assuming 40–50% growth in the Voice AI business; annual recurring revenues are expected to rise ~20% from a $79M exit in 2025 to $92M–$98M in 2026. Management reiterated a non‑GAAP gross margin target of roughly 65%–68%, expects a tariff headwind of about $2.3M in 2026 (vs. $2.7M in 2025), and noted Voice AI currently burns ~$9–$10M annually with planned breakeven in ~2 years and a long‑term Voice AI revenue goal of ~$50M by 2028. Balance sheet and capital‑return metrics referenced alongside guidance include $75.7M in cash/equivalents/investments, a court‑approved $25M additional share buyback authorization (valid through 4/27/2026) with $6.1M of shares repurchased in the quarter, and a $0.20 per‑share cash dividend (~$5.4M) payable 3/6/2026; operational metrics to watch include 117 days DSO.Audiocodes Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 245.60M | 242.18M | 244.38M | 275.09M | 248.92M |
| Gross Profit | 159.63M | 158.16M | 158.35M | 178.78M | 170.89M |
| EBITDA | 18.27M | 21.07M | 18.53M | 39.36M | 44.34M |
| Net Income | 8.96M | 15.31M | 8.78M | 28.47M | 33.75M |
Balance Sheet | |||||
| Total Assets | 323.16M | 335.90M | 337.52M | 323.83M | 349.36M |
| Cash, Cash Equivalents and Short-Term Investments | 72.87M | 62.38M | 38.20M | 47.12M | 80.31M |
| Total Debt | 69.33M | 36.46M | 39.28M | 13.72M | 19.53M |
| Total Liabilities | 151.86M | 144.09M | 149.41M | 134.07M | 143.87M |
| Stockholders Equity | 171.30M | 191.81M | 188.11M | 189.76M | 205.50M |
Cash Flow | |||||
| Free Cash Flow | 22.89M | 10.97M | 8.93M | 6.79M | 46.17M |
| Operating Cash Flow | 29.36M | 35.25M | 14.89M | 8.28M | 47.34M |
| Investing Cash Flow | -1.55M | 17.81M | 19.98M | -19.67M | 42.62M |
| Financing Cash Flow | -41.28M | -24.86M | -28.86M | -48.60M | -51.48M |
Audiocodes Technical Analysis
Positive
8.83
Price Trends
7.92
Positive
8.27
Positive
8.79
Positive
Market Momentum
0.25
Negative
70.02
Negative
92.88
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 8.45, above the 50-day MA of 7.92, and above the 200-day MA of 8.79, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 70.02 is Negative, neither overbought nor oversold. The STOCH value of 92.88 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 0 New Risks
Audiocodes Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $304.70M | 20.23 | 34.98% | ― | 10.12% | 153.04% | |
67 Neutral | $1.37B | 37.11 | 5.50% | ― | 29.67% | 41.90% | |
63 Neutral | $265.53M | 12.04 | 5.54% | ― | 10.89% | ― | |
62 Neutral | $201.35M | -90.22 | -1.22% | ― | -3.78% | -92.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.45B | -16.40 | -50.76% | ― | 208.40% | 44.60% | |
55 Neutral | $243.14M | 31.48 | 4.98% | 4.28% | 0.15% | 17.21% |
* Technology Sector Average
AUDC
Audiocodes
9.07
0.54
6.32%
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CRNT
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BKTI
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80.49
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ONDS
Ondas
9.53
8.70
1048.19%
Audiocodes Corporate Events
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...
AudioCodes Adopts Rule 10b5-1 Plan to Sustain Share Repurchases
Feb 4, 2026
On February 4, 2026, AudioCodes approved a Rule 10b5-1 share repurchase plan that designates an independent broker to execute buybacks within Rule 10b-18 pricing and volume parameters, allowing the company to continue accumulating its ordinary sha...
AudioCodes Posts Modest 2025 Revenue Growth, Boosts VoiceAI Momentum and Declares $0.20 Dividend
Feb 3, 2026
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 alon...
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.