Audiocodes (AUDC) AI Stock Analysis

• Market Cap: $196.09M
• Dividend Yield: 4.28%
• Average Volume (3M): 99.65K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.94
• 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: 26,806,992
• 10 Day Avg. Volume: 85,922
• 30 Day Avg. Volume: 99,650
• PEG Ratio: -0.72
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 11.02
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: 12.74
• 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: 55 Neutral
• Price Target: $7.50 ▼(-15.06% Downside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 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

High gross margins

Sustained ~65% gross margins indicate durable product pricing power and favorable product mix in networking/VoIP hardware and software. High gross margins provide a structural cushion to absorb investment in Voice AI and services while supporting long-term operating leverage and cash generation even if operating expenses rise.

Recurring revenue / ARR expansion

Growing ARR and managed services (22% YoY to $79M) increases revenue visibility and stickiness, shifting mix toward predictable, subscription-style revenues. This structural shift supports more stable cashflows, higher lifetime customer value, and better scalability of margins as the services base expands over multiple years.

Solid cash & capital-return flexibility

A meaningful cash balance and active buyback/dividend programs show strong liquidity and capital allocation optionality. This financial flexibility funds continued Voice AI investment, supports shareholder returns without immediate capital raises, and provides a multi-month buffer for operational needs or opportunistic investments.

Negative Factors

Compressed profitability

Sharp margin compression despite revenue rebound reduces long-term return generation and reinvestment capacity. Lower net and EBIT margins limit the company’s ability to self-fund growth, weaken ROI metrics, and increase sensitivity to cost inflation or revenue shocks over the next several quarters to years.

Rising leverage

Notable step-up in leverage from prior years reduces financial flexibility and amplifies earnings volatility risk. Higher debt increases fixed obligations and interest exposure, constraining capacity for M&A or additional investments and leaving less runway if free cash flow proves uneven over the medium term.

High DSO and customer concentration

Elevated receivables days and heavy revenue concentration increase working-capital needs and counterparty risk. Reliance on a few large customers/distributors magnifies revenue volatility and collection exposure, making cash conversion less reliable and complicating scaled growth investments over the medium term.

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

A strong 2025 revenue rebound and consistently healthy ~65% gross margins are positives, but profitability has compressed materially versus 2020–2022 (2025 net margin 3.6%, EBIT margin 5.7%). Leverage increased in 2025 (debt-to-equity 0.40), and free cash flow fell sharply YoY (-30.7%), indicating more volatile cash conversion.

Income Statement

Revenue has been volatile: after declines in 2023 (-11.2%) and flat performance in 2024 (-0.9%), 2025 rebounded sharply (+43%). However, profitability has compressed materially versus 2020–2022: net margin fell to 3.6% in 2025 (from 6.3% in 2024 and double-digits in 2020–2022), and operating profitability is also lower (2025 EBIT margin 5.7% vs. 13.2% in 2022). Gross margin remains strong and stable around ~65%, but the key weakness is the much thinner bottom-line profitability despite the revenue rebound.

Balance Sheet

The balance sheet remains generally solid with meaningful equity ($171.3M in 2025) supporting a moderate leverage profile (debt-to-equity 0.40 in 2025). That said, leverage has stepped up notably from 2022–2024 levels (0.07–0.21) as total debt increased to $69.3M in 2025, which reduces financial flexibility. Returns on equity are positive but muted recently (5.2% in 2025, down from 8.0% in 2024 and far below 2021–2022 levels), reflecting lower profitability.

Cash Flow

Cash generation is positive, with 2025 operating cash flow of $29.4M and free cash flow of $22.9M. However, free cash flow growth declined sharply in 2025 (-30.7%), indicating weaker cash conversion year-over-year. Free cash flow relative to net income improved versus 2024 (2025: 0.78 vs. 2024: 0.31), but this has also been inconsistent over time, and the overall trajectory shows greater volatility than earlier years (e.g., very strong 2020–2021 levels).

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

• Technical Analysis Sentiment: Negative
• Last Price: 8.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 7.56, above the 50-day MA of 8.17, and below the 200-day MA of 8.87, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 38.50 is Neutral, neither overbought nor oversold. The STOCH value of 20.27 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	$315.64M	25.58	38.74%	―	10.12%	153.04%
GILT	70 Outperform	$1.14B	46.80	5.15%	―	29.67%	41.90%
AVNW	63 Neutral	$313.66M	21.50	5.60%	―	10.89%	―
CRNT	62 Neutral	$205.85M	-91.97	-1.23%	―	-3.78%	-92.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AUDC	55 Neutral	$196.09M	23.01	7.67%	4.28%	0.15%	17.21%
ONDS	46 Neutral	$4.68B	-25.78	-17.04%	―	208.40%	44.60%

Audiocodes Corporate Events

AudioCodes Adopts Rule 10b5-1 Plan to Sustain Share Repurchases

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 shares even during insider-trading blackout periods; the move underscores management’s commitment to capital returns and could help stabilize the stock during restricted trading windows.

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 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.